Allmand Announces Major Expansion of Holdrege Manufacturing Facility

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.

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.

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.

Trade Groups Team Up to Create a Drug- and Alcohol-Free Construction Industry

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.

“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.

Brokk Introduces Its Brokk 800 Demolition Machine

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 Reminds North Americans of the Incredible Value of Water Systems

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.

Construction Employment Remains Nearly Flat in April, Unemployment Rate Falls to 14.5 Percent, a Four-Year Low

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.

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.

“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.”

Modest Cement Consumption Growth Expected for 2012

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. 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.

Economists Say Housing Outlook Continues to Slowly Brighten

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.”

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.

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.

Volvo CE Breaks Ground on $100 Million North American Expansion

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 (right) 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.

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.

Cool Tools of the Day: Hyundai Construction Offers Compact Radius Excavators

More and more operators are realizing the versatility, comfort and productivity of Hyundai Construction’s line of compact radius excavators. These state-of-the art earthmoving machines are perfect for tight, confined jobsites and designed for maximum performance.

For projects requiring small excavators, the R27Z-9 and R35Z-9 zero tail swing models offer a tail-swing radius of 2.7 and 2.10 ft, respectively. This gives users a choice for easy, efficient operation on sites where space is tight. The 6,350-lb R27Z-9 is powered by a reliable 24.7-hp Mitsubishi S3L2 engine. The machine has a dig depth of 6.10-ft and bucket-digging force of 4,520 lbf.

The R35Z-9 zero tail swing weighs 8,050 lbs and is powered by a 27.3-hp Yanmar 3TNV88, water-cooled, four-cycle engine. The R35Z-9 has a dig depth of 7.2 ft and bucket digging force 7,050 lbf. You can select rubber or steel tracks on either the R27Z-9 or the R35Z-9.

In the middle of the Hyundai compact radius lineup is the 13,010-lb R60CR-9 and the 18,410-lb R80CR-9 compact radius models. The tail swing radius of the R60CR-9 is a tight 3.7 ft, while the R80CR-9 is just 4.2 ft. The large size and nimble maneuverability makes these models ideal for light construction, utility, demolition, landscaping and other applications where space is limited, but power is needed.

Hyundai’s North American headquarters in Norcross, GA, along with their Elk Grove location outside Chicago, gives the company two strategically located parts depots for quick fulfillments of dealer and customer orders.

Both models are powered by the fuel-efficient Yanmar 4TNV98 diesel engine. This engine gives the R60CR-9 model 57 hp and 59.6 hp for the R80CR-9. The dig depth for the R60CR-9 reaches 10.5 ft. The R80CR-9 offers a dig depth of 12.5 ft, making it perfect for small pipe installation and repair work.

It is a breeze to demolish asphalt and concrete walkways and curbs with these mini excavators. The bucket-digging forces range from 9,190 lbf for the R60CR-9 to the R80CR-9’s 12,570 lbf. Both models give you steel or rubber tracks as an option.

Hyundai designed all compact-radius excavators with operator comfort and convenience in mind. Features and benefits like fully adjustable seats and armrests, large foot pedals, ergonomic joysticks, large-capacity air conditioners, improved ventilation, MP3 player/AM/FM radio and water- and dust-proofing seals all add to the overall comfort.

Hyundai’s North American headquarters in Norcross, GA, along with their Elk Grove location outside Chicago, gives the company two strategically located parts depots for quick fulfillments of dealer and customer orders. For more information, visit www.hceamericas.com or call 877-509-2254.

Wright Express Releases Monthly Construction Fuel Consumption Index Results

Wright Express Corp., a leading global provider of value-based business payment processing and information management solutions, in collaboration with IHS, the leading global source of information and analytics, recently released results of its Wright Express Construction Fuel Consumption Index (FCI), which indicated an increase of 3.5 percent in March versus its level the previous year.

The Wright Express Construction FCI measures national fuel consumption statistics for the construction industry, which provides an accurate and up-to-date indication of construction activity in the United States. The construction segment comprises approximately 20 percent of the Wright Express portfolio of customers.

“The results of the March 2012 Fuel Consumption Index indicates increased fueling activity in the construction sector, which typically accompanies an improvement in U.S. construction activity,” said Michael Dubyak, chairman and chief executive officer of Wright Express. “It is encouraging to see a positive uptick for March following the negative year-over-year metrics witnessed for the previous three months.”

According to the Wright Express Construction FCI, the strong growth in March marks the largest month-over-month gain in fuel consumption for the seasonally-adjusted index since the creation of the FCI.

Wright Express worked with IHS to capture and analyze transaction data from its closed loop network of more than 180,000 fuel and vehicle maintenance locations, including over 90 percent of the domestic retail fuel locations and 45,000 vehicle maintenance locations. With this data, the Wright Express Construction FCI can be used to identify emerging trends within the construction industry and the national economy.

The indicators were tested at monthly, quarterly and annual frequencies, with the greatest insights produced using the year-over-year percent change of the monthly data. For March 2012, the Wright Express Construction FCI reported that fuel consumption by U.S. construction companies increased by 3.5 percent versus March 2011 and increased by 3.8 percent versus the previous month.

March 2012 Wright Express Construction Fuel Consumption Index (FCI)
According to the Wright Express Construction FCI, the strong growth in March marks the largest month-over-month gain in fuel consumption for the seasonally-adjusted index since the creation of the FCI. Other recently released construction data has been less positive as the unusually warm winter weather boost faded and the industry lost 7,000 jobs in March and 6,000 in February. Additionally, real spending on infrastructure is likely to remain on a downward trend through next year, given the budgetary problems confronting state and local government.

IHS Analysis
According to the IHS analysis, after three years of depressed construction, the inventory of new housing is beginning to tighten. New home sales declined by 1.6 percent in February, but inventory continues to shrink, which is good news since builders will have to replenish stocks by ramping up starts once demand rebounds. Housing starts were down in February, but were still at their third-highest level since October 2008. Meanwhile, housing permits rose 5.1 percent in February to a 717,000 annual rate, which is the highest level since October 2008. The pickup in permits in February is a good sign for future homebuilding activity. 2012 should be a better year for housing than 2011. Pent-up demand for housing is building as young adults stay at home, and at some point will spark a revival in housing activity.

The Wright Express Construction FCI for March 2012 is available at http://www.wrightexpress.com/fci.

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