In a sign of easing inflation pressure, the nation’s construction materials prices increased 0.1 percent in April, according to the May 11 Producer Price Index report by the U.S. Labor Department. Construction materials prices are up 2.5 percent compared to the same time last year. Nonresidential construction materials prices were unchanged for the month, but are 2.4 percent higher from one year ago.

Nonferrous wire and cable prices rose 0.7 percent for the month, but are down 5.2 percent from April 2011. Prices for fabricated structural metal products were up 0.5 percent for the month and are up 2 percent year over year. Prices for concrete products increased 0.2 percent in April and are up 2 percent compared to the same time last year. Prices for steel mill products inched up 0.2 percent in April, but are down 1.9 percent year over year.

In contrast, prices for prepared asphalt, tar roofing and siding fell 2.6 percent in April and are down 3.3 percent from one year ago. Prices for plumbing fixtures and fittings decreased 0.7 percent for the month, but are up 2.5 percent compared to the same time last year. Softwood lumber prices fell 0.4 percent compared to March, but are still 3 percent higher than the same time last year. Iron and steel prices slipped 0.3 percent in April and are down 1.8 percent year over year.

Crude energy materials prices dropped 6.8 percent in April as crude petroleum prices fell 7.9 percent. Crude energy materials prices are down 16.3 percent compared to the same time last year. Overall, the nation’s wholesale goods prices slipped 0.2 percent for the month, but are 1.9 percent higher than April 2011.

“Recent news pertaining to the U.S. nonresidential construction industry has been somehat disheartening of late,” said Associated Builders and Contractors chief economist Anirban Basu. “Still, at the very least, contractors have been enjoying the benefits of stable materials prices.

“Construction materials prices are now up just 2.5 percent on a year-over-year basis, and hardly moved in April,” Basu said. “However, the trajectory of prices may become more volatile in the months ahead with financial markets being impacted by ongoing bad news from both Europe and the United States regarding near-term economic prospect.

“While that should lead to a decline in materials prices due to softening demand, commodity markets are often impacted when equity and bond investors reduce their exposure to other assets and move into commodities,” said Basu. “This is what happened during the early months of 2008, and it has occurred on occasion since then.

“At this point in time, there are two scenarios,” Basu said. “One would be a moderation of prices with inflation kept in check. The other worse outcome would be one in which the economy continued to disappoint and materials prices rose."

To view the previous PPI report, click here.

When it comes to construction, excavators are often one of the first machines to hit the jobsite. While compact excavators are commonly thought of as “big shovels,” contractors can use them in countless ways during the site preparation and construction processes.

Case Construction Equipment offers six B Series compact excavators that deliver the power, productivity and fast cycle times to perform landscaping, utility, demolition, construction or industrial jobs that require power in tight working conditions. With the center-swing boom, Case B Series compact excavators can dig around stationary objects or alongside obstacles. The machines deliver best-in-class serviceability, says Case, with a swing-out access panel enabling quick service and minimal downtime.

Want to learn more? Just watch the video below or visit Case Construction at www.casece.com.

Builder confidence in the 55+ housing market for single-family homes had a significant increase in the first quarter of 2012 compared to the same period a year ago, according to the latest National Association of Home Builders’ (NAHB) 55+ Housing Market Index (HMI). The index increased 10 points to 27, and although 27 is relatively low for an index that lies on a scale of 0 to 100, it is nevertheless the highest reading since the inception of the index in 2008.

“We continue to see increased optimism from builders and developers in the 55+ housing segment,” said NAHB 50+ Housing Council chairman W. Don Whyte. “We are servicing the largest growing group of buyers that we have ever seen in this age category, and it is a population that is dramatically different from what it was only a few years ago. This creates an opportunity for builders and developers in this market to create communities that address the specific needs of the 55+ consumer.”

The 55+ single-family HMI measures builder sentiment based on a survey that asks if current sales, prospective buyer traffic and anticipated six-month sales for that market are good, fair or poor (high, average or low for traffic). An index number below 50 indicates that more builders view conditions as poor than good. All index components remain well below 50, but increased considerably from a year ago, each reaching an all-time high: Present sales rose 12 points to 27, expected sales for the next six months increased eight points to 32 and traffic of prospective buyers rose nine points to 26.

The 55+ multifamily condo HMI remains the weakest of the 55+ housing market indices, but also recorded an all-time high at 15, up seven points from a year ago. All index components showed an increase compared to a year ago: Present sales rose five points to 14, expected sales for the next six months increased seven points to 20 and traffic of prospective buyers jumped nine points to 15.

The 55+ multifamily rentals continue to lead the way in the overall 55+ housing market. Present production climbed 11 points to 31, expected future production increased eight points to 35, current demand for existing units rose three points to 42 and expected future demand increased one point to 45.

“Like the overall single-family housing market, the 55+ housing segment is facing a slow but steady recovery,” said NAHB Chief Economist David Crowe. “Consumers are starting to see the resale market show some improvement, which allows them to start thinking about moving into 55+ housing.”

The Outdoor Power Equipment Institute (OPEI) today announced that it has issued the first-ever ANSI standard for Multipurpose Off-Highway Utility Vehicles (MOHUVs), encompassing off-highway vehicles that operate between 25 to 50 miles per hour and are utilized for multi-purpose applications. We here at Compact Equipment usually just call MOHUVs utility vehicles or UTVs.

OPEI’s MOHUV committee developed the standard after a rigorous American National Standards Institute (ANSI) process which included additional input and cross-functional reviews by a consensus group comprising vehicle users, industry representatives and government/independent agencies.

“Up until now, there was no standard for MOHUVs. Developing this standard was really a priority for OPEI as this type of vehicle enjoys growing popularity,” said Kris Kiser, President and CEO of OPEI. “Now, MOHUV manufacturers have clear guidance and minimum requirements on voluntary, consensus driven standards as approved by ANSI.”

Before the newly announced MOHUV standard, only work-focused utility vehicles (limited to 25 mph or lower) and recreation-focused off-highway vehicles (operating above 30 mph) had published standards. The new OPEI standard fills the gap by defining standards for utility vehicles that are capable of a broad spectrum of uses.

To purchase the new MOHUV standards document, ANSI/OPEI B71.9-2012, go to the ANSI eStandards Store.

The Outdoor Power Equipment Institute is an international trade association representing more than 84 small engine, utility vehicle and outdoor power equipment manufacturers and suppliers worldwide. OPEI is a recognized Standards Development Organization for the American National Standards Institute (ANSI) and active internationally through the International Standards Organization (ISO) in the development of safety and performance standards. For more information, visit www.OPEI.org.

Lincoln Electric is dedicated to the training of effective, productive and quality welders. To aid in its cause, the company has simplified and improved its VRTEX upgrade program for the VRTEX 360, a software-based weld training system that immerses the student in a virtual reality environment complete with sight, sound and tactile sensations. The program changes include a simplified naming strategy, an easier ordering and sales process and a broadened eligibility for choosing upgrade options. These program modifications started on April 2 and are the latest in a series of improvements designed to better align the program with customers’ needs.

“As our offering expanded, Lincoln Electric has moved to a more flexible approach,” said Deanna Postlethwaite, marketing manager of Lincoln Electric Automation. “Customers have told us they want flexibility, choice and simplicity when it comes to purchasing the VRTEX 360 and the software upgrade releases. Our new programs provide offerings with flexibility for the customer to choose only what they want, when they want it. It also provides the customer better visibility of the contents, functionality and user interface included with each release.”

“By simplifying the program, we can quickly and easily provide new functions like the virtual bend test and expanded scope such as THEORY function additions to enhance training systems for welding instructors and students around the world. This year will include amazing new releases and exciting functionality. By implementing the changes to the program now, we can better serve customers in the future.”

Independent, or a la carte upgrade releases enable users to purchase VRTEX 360 upgrade features based on their specific needs. Each upgrade contains a bundle of features that the customer can review and evaluate prior to purchasing. Users have the option to purchase or skip the upgrade if it does not fit into their welding training program.

VRTEX 360 Extensions upgrade packages are sent directly to customers who purchase the program with supporting literature, materials and curriculum components useful in any welding training environment. For more information on the VRTEX 360 and its program updates, visit www.lincolnelectric.com/vrtex360.

Over the past few years, the “perfect storm” of recession and market uncertainties has left many construction firm owners and manufacturing executives a little seasick. Some companies have run up on the rocks, while others have failed to stay afloat all together. If you look at this period as a test of leadership and management skills, how has your company performed?

Many contractors tell us they will be pleased if they can just survive until the turnaround happens. However, others are working on building companies that are prepared for the next economic wave. They are rethinking their strategies to prepare for long-term market changes not just short-term survival. When it comes to making machinery, Caterpillar is a progressive thinking manufacturer, and it’s also the biggest maker of earthmoving equipment in the world. In this latest video, former and current Caterpillar leaders share their experiences during critical times of leadership. It’s always interesting to see how executives at the top react, evolve and lead. Enjoy.

Allmand Bros. Inc. has unveiled plans for a significant expansion to its manufacturing facility in Holdrege. The approximate $3,000,000.00 expansion will feature a 40,000-sq ft addition to the present building, as well as the acquisition of an additional 17 acres for parking and finished goods storage. Construction is planned to begin within the next two months and is expected to be fully operational before the end of the year.

Citing increased customer demand for its products and a reliable forecast for this demand to continue, company president Matt Allmand says, “This expansion will allow us to not only increase production but to also hopefully reduce the lead-time for our products from the current 16-17 weeks to a more manageable four weeks or so.”

This increased production will also require adding a number of new employees, further adding to the local economy.

The new addition will house an enlarged fabrication area adding a new higher-speed laser cutting machine and a new press brake to the existing laser, press brake, plasma cutter and other fabrication equipment that will also be located in the new area.

An additional advantage is that work that is currently being done by outside metal fabricators can now be brought in-house, allowing greater control over the scheduling and quality of the manufactured components. Allmand Brothers, established in 1938, is a leading manufacturer of Allmand portable light towers, jobsite heaters, trailer-mounted arrow boards and Port-A-Lite light stands. 

For more information, contact Allmand Bros. Inc., Box 888, Holdrege, NE, 68949, call 308-995-4495, 800-562-1373, fax 308-995-5887, e-mail info@allmand.com or visit the company’s website at www.allmand.com.

Five of the nation’s largest construction trade associations have teamed up to form the Construction Coalition for a Drug- and Alcohol-Free Workplace (CCDAFW). The coalition’s mission is to create a drug- and alcohol-free construction industry by providing companies and organizations with the resources necessary to implement drug- and alcohol-free policies into their business practices.

CCDAFW recently launched a nationwide effort urging construction-related firms and organizations to sign an online pledge signifying they will create and maintain a workplace free from substance abuse. In addition to listing current pledge signatories, the CCDAFW website, www.drugfreeconstruction.org, includes educational materials and state-by-state policies for substance abuse testing.

The CCDAFW is comprised of Associated Builders and Contractors (ABC), the Associated General Contractors of America (AGC), Construction Industry Round Table (CIRT), Construction Users’ Roundtable (CURT) and Women Construction Owners & Executives (WCOE).

“We are driving an industry toward world-class safety,” said ABC president and CEO Michael D. Bellaman. “If we want to have an industry that is world class in safety, we have to start with a rock-solid foundation that includes an environment free of drugs and substance abuse. This coalition is a way to help companies build that foundation so we can continue toward our goal of eliminating all fatalities on construction worksites.”

“This partnership will build on the significant steps firms across the country have already taken to make construction safer today than it has ever been,” said AGC CEO Stephen E. Sandherr. “Making sure that every construction worker on every construction site is fully in control and absolutely sober is the best way to save lives and prevent injuries.”

“As an organization composed of CEOs from both leading design and construction firms, the CIRT Board of Directors views participation in the coalition as extremely critical to reinforcing the importance of safety across the wide range of disciplines involved with construction job sites,” noted CIRT president Mark A. Casso. “To that end, we see the center piece of this effort as not only the pledge itself, but also the educational materials, model policies, informational aids and best practices that will be made available and shared.”

“At CURT, we believe the road to zero incidents encompasses all facets of effective safety and health programs,” said CURT Executive Vice President Gregory L. Sizemore. “The Drug- and Alcohol-Free Workplace initiative is a way to help owners and contractors improve their safety performance – on and off the jobsite – leading to the elimination of accidents and injuries.”

The launch of the CCDAFW website and online pledge coincides with North American Occupational Safety and Health Week, May 6-12.

Is demolition on your to-do list? Check out Brokk AB’s new Brokk 800 demolition machine. More than twice as big as Brokk’s previous largest model, the Brokk 400, the new “Monster Brokk” is the most powerful demolition robot available in the Brokk lineup. The Brokk 800 is available in two models — the Brokk 800S and Brokk 800P — opening up the machine for use in a variety of industries including cement and metal processing, construction and demolition, mining and tunneling, and nuclear, as well as other specialty applications.

The Brokk 800S features Brokk’s signature three-arm system and offers a maximum reach of nearly 30 ft. When equipped with the included MB1000 breaker, the Brokk 800S produces 1,500-ft-per-lb at the tip of the tool, nearly twice the hitting power of the Brokk 400.

Specially designed with added heat protection, the Brokk 800P is intended for use in challenging process applications. Additionally, it includes an extra-durable, heat-protected SB302 hydraulic breaker to work with hot ladles, runners and furnaces. This solid body hammer delivers 450-ft-per-lb at the tip of the tool. The Brokk 800P features a 360-degree arm rotation design for challenging, precise angles and offers an impressive reach of 31.5 ft.

While large and powerful, the Brokk 800 features the same compact design and capacity-to-size ratio as all Brokk units, allowing access into smaller, more restricted spaces. Powered by a 60-hp electric motor, the Brokk 800 offers emissions-free operation, further permitting work in confined areas. Safety is enhanced thanks to the remote control box. It allows operation from a safe distance, protecting operators from hazards such as high heat and falling debris.

The weight of the Brokk 800S, excluding equipment, is 24,310 lbs, while the BrokkP weighs in at 24,838 lbs. Both Brokk 800 units are able to carry attachments up to 2,465 lbs, including beam grapples, buckets, drilling equipment and shotcrete units.

Drinking Water Week, celebrated May 6-12, is a unique opportunity for both water professionals and the communities they serve to join together to recognize the vital role water plays in our daily lives. With the week in full swing, the American Water Works Association (AWWA) joins water professionals across North America in highlighting the importance of investing in water infrastructure.

“We all agree that water is an essential element in our daily lives, but for North Americans, water service is a convenience that we too often take for granted,” says AWWA executive director David LaFrance. “Those buried pipes deliver the water that is vital to our quality of life and economic vitality. They are among our most valuable community assets, and we need to assure they are in good working order for the next generation.”

Much of our drinking water infrastructure was constructed by previous generations during the late 1800s, the 1920s and during the Post World War II boom. Many of the water mains from all three eras must be replaced or repaired in the next 25 years.

In fact, according to a recent AWWA study titled “Buried No Longer: Confronting America’s Water Infrastructure Challenge,” the cost of repairing and expanding U.S. drinking water infrastructure will top $1 trillion in the next 25 years. That figure will rise to $1.7 trillion by 2050.

Addressing these issues will be costly, but not insurmountable, according to the “Buried No Longer” report. Facing them head-on by proactively investing in our tap water systems is a smart, safe, common-sense investment that will pay off for generations to come.