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.

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.

The construction industry lost 2,000 jobs in April, following similar declines of 3,000 in March and 1,000 in February, but still added 63,000 jobs over the past year as the industry unemployment rate shrank to 14.5 percent -- the lowest April level in four years, according to an analysis of new federal employment data released today by the Associated General Contractors of America. Association officials said that lack of long-term federal highway and transit funding, along with other infrastructure budget cuts, threatens to limit construction job growth.

“The plunge in the unemployment rate for former construction workers from 17.8 percent in April 2011 and 21.8 percent two years ago is good news for them,” said Ken Simonson, the association’s chief economist. “Unfortunately, few of them have found jobs in construction, which actually employed 1,000 fewer workers than it did in April 2010.”

Construction started losing jobs in 2006 -- more than a year before the rest of the economy -- and did not touch bottom until February 2011, a year after other sectors, Simonson pointed out. Even in the past year, there have been construction job losses in half the months, he said.

“It is tough to attract and retain workers when employment gains are so spotty,” Simonson observed. “With workers finding jobs in other industries, retiring or returning to school, contractors face a potential shortage of skilled workers in a year or two.”

Simonson noted that the 1.1 percent increase in construction employment over the past year was shared among all sectors of the industry. Employment among residential specialty trade contractors climbed by 33,100 or 2.3 percent, helped by a large increase in multifamily construction. Heavy and civil engineering employment rose by 18,400 (2.2 percent), thanks to work on power, energy and manufacturing projects. Nonresidential building employment increased by 6,000 (0.9 percent), while nonresidential specialty trade contractors added 3,900 employees, as private hospital, higher education, warehouse and transportation work accelerated. Residential building construction, mainly single-family homebuilding, eked out a gain of 700 workers (0.1 percent), he said.

Association officials said that inadequate long-term funding for infrastructure investment is likely to undermine construction employment gains in coming months. They cited the lack of a multiyear federal highway and transit bill as a particular problem, along with shrinking federal funding for a range of construction projects.

“Instead of hiring workers for desperately needed improvements to the nation’s transportation network, contractors must wait to see if lawmakers pass more than a short-term, no-increase highway and transit bill,” said Stephen E. Sandherr, the association’s chief executive officer. “Meanwhile, other federal appropriations for water, wastewater and building infrastructure have been cut for two years in a row, with further cuts likely, making the jobs outlook even grimmer, unless Congress passes adequately funded, long-term bills now.”

Got a strong opinion about a certain topic in the construction industry? Now’s your chance to express it on a global scale. No matter what you want to talk about, it’s all fair game -- the economy, machine brands, cool ideas you have, emissions regulations, the industry as a whole, etc., etc. If you’re passionate about a certain viewpoint, or know someone who is, John Deere wants to hear it. And who knows? John Deere may just bring its video crew to your neck of the woods to get your take on things.

See the video below. It’s the first in a collection of video essays featuring unique points of view from around the construction industry, brought to us by John Deere. We couldn't say it better ourselves.

Stronger than expected job creation and the beginning of a construction industry recovery means gains in real construction spending will materialize this year -- after seven years of consecutive declines. According to the new forecast from the Portland Cement Association (PCA), increases in cement consumption will follow.

PCA revised its fall forecast upward, anticipating a modest 3.7 percent increase in 2012, followed by a 7.6 percent jump in 2013 and a 14.1 percent increase in 2014. The forecast includes marginal improvements to nonresidential construction, an upward revision to housing starts and an aggressive cement intensity gain, which is the amount of cement used per real dollar of construction activity.

“Cement usage is greatest at the early stages of construction with foundation work. The retreat of building starts during the recession had a huge impact on consumption and intensity,” Ed Sullivan, PCA chief economist said. “A construction start rebound in 2012 coupled with concrete’s competitive price compared to other building materials translates to increases.”

With successive years of economic and employment growth, the structural issues facing the construction industry will diminish, Sullivan said. For example, foreclosures’ adverse impact will fade, and return on investment for nonresidential investments will improve. Partially because of these improvements, state deficits will eventually be replaced by surpluses.

PCA forecasts all sectors of construction to be positive during 2014-2015, which typically results in large gains in cement consumption. For more information, visit www.cement.org.

Mirroring the uneven economic recovery, the housing market is expected to move in a slow, gradual upward path in 2012. It will still encounter its share of speed bumps along the road, according to economists participating in a recent National Association of Home Builders (NAHB) construction forecast webinar on the housing and economic outlook.

While the latest monthly housing data have shown signs of a slight softening, NAHB chief economist David Crowe said this is more reflective of typical month-to-month volatility in the numbers and unusual seasonal factors than they are an indication of any significant downward trend in the broader housing market.

“The aggregate information suggests we’re just in a pause mode right now in terms of these measures,” said Crowe, who noted this could partly be the result of an early spring that brought much better weather than usual into the picture at the start of this year and pulled some housing activity forward.

Pointing out that less volatile quarterly data have continued to show modest improvement in key housing indicators such as builder sentiment, new-home sales and housing production, Crowe said the “housing outlook continues to slowly brighten.”

Crowe noted that numerous other fundamentals remain positive for housing at this time, including demographic factors (with pent-up household demand expected to ramp up and echo-boomers heading into their prime household formation ages), historically favorable mortgage rates that are not expected to move higher than 5 percent by the end of next year, more than 100 local markets currently listed on the NAHB/First American Improving Markets Index, and the fact that house price-to-income ratio has now returned to its historical average of about three-to-one versus the nearly five-to-one to which it had previously risen during the height of the housing boom.

However, he cautioned that housing still continues to face formidable challenges of its own -- such as rising foreclosures, persistently tight lending standards for homebuyers and builders and difficulties in obtaining accurate appraisals. Moreover, disappointing job growth numbers in March and uncertainty in the European economy are undermining prospects for a vigorous recovery.

“No one is anticipating that an upward path for housing will run in a straight-line trajectory,” said Crowe. “The economy is in an uneven recovery and we can expect some corresponding ups-and-downs in the housing market in the months ahead. However, NAHB believes that on the whole, we can expect a slow and gradual recovery in housing starts, home sales and the overall housing market in 2012.”

New-home sales are expected to climb from a record-low of 305,000 units in 2011 to 357,000 this year and 505,000 in 2013. Existing single-family sales are expected to follow suit and rise from 3.8 million last year to 4.4 million in 2012 and 5.4 million next year.

Housing starts are also anticipated to move in the same upward trajectory, Crowe said, with single-family housing production increasing from 434,000 units last year to 503,000 this year and a more solid 660,000 in 2013. On the multifamily side, starts posted a healthy 55 percent increase in 2011 over 2010.

“A lot of newly formed households have become renters, so we need more rental units,” Crowe said. “We don’t expect to see the same rate of increase moving forward, but we should continue to see a healthy recovery.”

NAHB is anticipating that multifamily starts will rise from 177,000 units last year to 216,000 in 2012 and 235,000 in 2013. With many households choosing to stay in place and remodel their homes rather than move, residential remodeling is expected to rise 12 percent this year and another 7.9 percent in 2013.

We toured Volvo Construction Equipment’s Shippensburg, Pa., facility last September. Back then, it was impressed upon editors to think of the enormous manufacturing complex as a symbol of progress and investment for the Volvo CE brand in America. The company plans to spend $100 million over the next four years to expand the big Shippensburg structure (currently used to make Volvo CE’s road machinery) in preparation for new production of wheel loaders, excavators and articulated haulers by 2014.

On May 4, Volvo CE broke ground on the first phase of that $100 million expansion. That comes on the heels of Volvo CE reporting record sales and profitability in Q1, 2012, with sales up 17 percent (higher than any other operating income and operating margin for a first quarter in its history).

The expansion will bring production of some key product lines to Shippensburg. The new series of wheel loaders (L60G, L70G and L90G) will be the first of three new machine types expected to come off the production line. Larger models of the wheel loader, excavator and articulated hauler product lines are planned in the future. The factory could eventually produce 70 percent of Volvo Construction Equipment machines sold in North American.

President of Sales Region Americas Göran Lindgren says it’s an exciting time for everyone involved.  “This groundbreaking symbolizes Volvo CE’s commitment to North America and indeed to the whole Americas region,” says Lindgren. “The investment will increase the company’s flexibility and agility, enabling us to meet customer demands faster.”

The design of the new America’s Headquarters building follows in the footsteps of an on-going expansion project in the factory. The new office building will be 36,000 sq ft, consisting of two floors and a bridge that will connect the new building with existing facilities. Efforts are also being made to secure LEED certification for the office building.  LEED (Leadership in Energy and Environmental Design) certification requires that buildings be designed, constructed and operated with careful consideration for environmental impact of the health of occupants. The Shippensburg facility recently received a Silver LEED certification for the 2010 expansion of the manufacturing area.

Operations President of Volvo CE Americas Andy Knight says the Shippensburg campus will be a world class facility. “We are an industry leader in so many ways and the actual facility we work in is no different. The infrastructure investment is just one way we are living Volvo CE core values of quality, safety and environmental care.”

The new Headquarters office is expected to be ready for occupation by the beginning of 2013. The Shippensburg facility employs over 800 people and makes over 50 different models of asphalt pavers, soil and asphalt compactors, milling machines and motor graders. This figure is set to rise to around 70 models by 2015. Volvo acquired the facility in April 2007 as part of its purchase of Ingersoll Rand’s road development division.  Today, it’s quickly becoming an important element of the worldwide Volvo Construction Equipment manufacturing footprint, spread across four continents.