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The Construction Market Landscape

12/1/2011

7 Comments

 
Written by Doug Bevill, President of Construction Economics & Strategies, LLC. Since the crash of 2008 there have been many opinions offered as to how significant the correction in the construction industry will be and when it will return to the levels we enjoyed from 2004 to 2008. The short and factual answer is that the construction industry has taken its worst hit since the Great Depression. This hit has led to significant shifts in channel behaviors, which can be attributed to the evolution of the new economic landscape in the construction industry.
To put things into perspective, it is important to understand just how much the industry has constricted and how this ever-constricting market is impacting behavior in the AEC space. In 2006, residential construction spending reached its peak of $6.9 billion. Then, in 2007, the housing market started to show the results of the subprime lending practices of the past several years. We all know how this ended up playing out: with the world teetering on the edge of a global economic crisis at the end of 2008, mainly due to a massive housing and commercial real estate bubble.
Residential construction continued to lose ground in 2008, ending at a total of approximately $2.8 billion, a staggering loss of over $4 billion. However, that was only the beginning. In 2009, the construction of commercial properties came to a screeching halt as property values dropped and banks found they were unable to lend due to the mounting toxic assets on their books. Below is a graph showing the decline in spending on residential, commercial and institutional buildings with a year-to-year percentage change.
7 Comments

The perfect reasons to become a Nergeco Dealer !

6/13/2011

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Nergeco is recognized as the specialist with its Productivity Doors which, at the same time, insulate plants and expedite traffic flows. They are selected by thousands of companies, in the most demanding process, all over the Globe. All these doors carry our 29 years of know-how and expertise, they are designed and produced by Nergeco and here to benefit you and your business.

In closed position, they provide adequate insulation to your customers activity and contribute to the general aesthetics of the building.

At each cycle, they open « just in time® » and safely close twice as fast as classic flexible doors. This is how they provide a better insulation and enable energy savings, with enhanced safety. They are ideal for new energy efficient buildings.
By including the Productivity Doors to your product range, you ensure you have an adequate, reliable and efficient solution for every need of your customer and they are easy to install and maintain. 
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Storage Products Industry SPG

5/21/2011

2 Comments

 
When It Comes To Storage Solutions,
The Only Thing We Don’t Make Is Compromises. As the single source for all your storage needs, you can Expect More from SPG. No one offers you a broader or better selection of storage systems. But, while we manufacture shelving, sinks, carts, cabinets, racks, workstations, ladders, and more, what we really offer you is productivity, efficiency, durability, versatility and performance. You’ll find all of this in every product we sell and every service we provide.

Beyond our innovative storage systems is a network of service and support that can help you maximize the performance of every square inch of space and every single employee in your facilities.

The roots of our company go back more than half a century. Today, SPG is a global company with over one million square feet of manufacturing and distribution capacity. All ready to be put to work for you.

2 Comments

Welcome to EMS-USA

3/18/2011

1 Comment

 
Since the 1960's EMS doors located in Pansdorf, Germany has been serving the European market with their superior German technology. We are pleased to let you know that their technology on sliding cold storage, hinged cold storage, industrial and traffic doors is now available in America, Canada and Mexico by way of ems-usa located in Dubuque Iowa, USA. We look forward to assisting your business with all your insulated door needs.

web site: www-ems-usa-us
1 Comment

Global material handling demand to approach $113bn by 2014

11/18/2010

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A study released by market researchers Freedonia predicts that world demand for material handling products will increase by 6.5% by 2014.
Freedonia claims that in four years the global market could be worth $113bn, driven by strong growth in the US and the Asia/Pacific region.
According to the report, new technology-related products involving automation and process management software will account for a significant portion of demand.
The Asia/Pacific market is expected to outperform average worldwide growth predictions over the next four years by 0.5% posting 7% growth.
However the likely strongest performer during the same period, according to the study, will be the US, rebounding from a poor 2009 to achieve growth of 7.9%.
In addition to advanced products, sales of traditional material handling goods, such as industrial cranes and hoists, are expected to receive a boost from improved levels of demand in the west, particularly as the US domestic market improves.

Freedonia says that despite weak demand in 2009, the US accounted for over a quarter of global demand, and will see domestic demand rise by 8.2% year on year through 2014.

The report also highlights China’s strong performance, attributing the nation’s success to a favourable exchange rate and cheap labour, as well as Germany’s healthy manufacturing tradition, which along with its central European location has helped to maintain high export levels.

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US Scrap Prices Seen Heading Down In October

10/5/2010

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Monday, October 4, 2010
US scrap market players are expecting lower scrap prices next month, mills and traders have stated.
“It appears the market will be down by $20-25/long ton due to the lack of new export business,” said one source in the Mid-Atlantic states.

“The foreign buyers have been very good at watching for dips in our market, and I think this pattern will continue. When they resume buying it has the effect of pushing the domestic market back up. Underlying it all is the fact that scrap supply is very thin. (It) makes for a very interesting situation,” he said.

Another source said shredded scrap prices have declined by about $10/l.t already from September’s $365-375/l.t (delivered mill), with the expectation they will decline by another $10/l.t in the next two weeks.

He and others report seeing negative momentum in the scrap market in general.
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MHIA Forecasts 12.0-14.0% Growth in Material Handling Equipment New Orders in 2010

10/5/2010

1 Comment

 
MHIA Forecasts 12.0-14.0% Growth in Material Handling Equipment New Orders in 2010Monday, September 20, 2010 Material handling equipment orders contracted 34.3% in 2009 are forecasted to grow 12.0-14.0% in 2010 if current momentum maintains, according to the latest Material Handling Equipment Manufacturing Forecast (MHEM) released by Material Handling Industry of America (MHIA). The outlook for 2011 is for growth in the 11.0 to 12.0% range.

“Industrial Production increased significantly in the first half of 2010 even though factory operating rates (utilization) remained very low by historical comparison," said Hal Vandiver, MHIA executive vice president of business development. "The demand that was created as the economy shifted from recession into recovery mode (filling supply chain pipelines, re-establishing inventories, and responding to pent up demand) was the principal impetus for improvement in the first two quarters in manufacturing, warehousing and distribution.”

"Forecasts are now calling for a combination of reduced GDP, corporate profit, business investment and output growth with utilization remaining below 75.0% until late 2011," added Vandiver. "This is largely due to uncertainty - consumers, investors and business owners need greater confidence in the economy's ability to sustain positive growth."

In addition, material handling equipment shipments contracted 33.4% in 2009 and are forecasted to grow 3.0 to 4.0% in 2010 and another 10.0 to 11.0 % in 2011. Domestic demand (shipments plus imports less exports) contracted 33.7% in 2009 and will grow 1.0 in 2010 and will likely mirror shipment growth in 2011. Exports will be stronger than Imports in 2010 and 2011.

The MHEM forecast of material handling equipment manufacturing is released each quarter by MHIA and looks 12 to 18 months forward to anticipate changes in the material handling and logistics marketplace.

1 Comment

Steel Looks Less Scrappy

9/20/2010

8 Comments

 
WE HOSTED A CONFERENCE call featuring three scrap-industry panelists. The call focused on the near-term outlook for the U.S. scrap steel prices and the implications for the upstream U.S. steel producers.

After a well-known price increase in September (panelists believe $20-$30 per-ton price increase is likely in September), each of the three panelists predicted a decline in scrap prices during the fourth quarter. The fourth-quarter expected decline is driven primarily by expectations for increased scrap supplies and modest domestic demand growth. The panelists pointed to a lack of sufficient domestic demand necessary to drive mill-utilization rates sustainably higher, a potential moderation in export demand after the recent bounce in exports to Turkey, and the likelihood that the recent lift in scrap pries (up 38% in past 2 months) draws more supplies into the scrap yards.

However, one caveat to the weaker outlook...if Chinese steel production continues its recent re-acceleration, this could be sufficient to hold scrap prices steady, although even in this scenario, incremental upside to prices from here is limited.

The implications for upstream steel producers are not positive in our view. Given the tight relationship between scrap prices and finished steel prices, in our view if scrap prices decline in the fourth quarter, it suggests the recent lift in hot rolled coil (HRC) prices will also be short-lived, implying a near-term peak HRC price of about $630 per ton (versus recent trough of $560 per ton). To put this in perspective, the U.S. steel equities are trading on average at 5.0-5.5 times 2011 earnings before interest, taxes, depreciation and amortization (EBITDA), based on a $700 per-ton HRC price. While this is a reasonable valuation range for the steel equities in our view (not "cheap," but fair), the key is...if HRC prices end 2010 at about $600 per ton, there is more downside risk versus upside potential to 2011 estimates, given the low starting point in underlying prices versus our base-case estimate (i.e. $600 per ton versus our base case of $700 per ton), and excess capacity (both domestic and global) waiting to respond should prices eventually rebound.

Among the individual equities, in our view United States Steel (ticker: X) is most exposed to weaker-than-expected pricing, given the current relative valuation -- 5.4 times 2011 EBITDA versus 4.5 times 2011 EBITDA for AK Steel Holding (AKS) -- and given inherent EBITDA leverage for a given change in underlying prices.

Conversely, in our view Nucor (NUE) remains least exposed to declining finished steel and scrap prices, given mini-mill cost structure and embedded valuation.
8 Comments

Forklift operator not stressful job

8/16/2010

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Forklift operators may face workplace safety issues but they have been listed by an online job board with librarians and piano tuners as the least stressful jobs for 2010.

CareerCast, which aggregates listings from newspapers and other sources, has assessed numerous factors for over 200 professions for its 2010 Jobs Rated Report. It has released the report that includes lists of the most and least stressful jobs as well as best and worst jobs.

The most stressful jobs of 2010 were found to be firefighter, senior corporate executive, taxi driver, surgeon, commercial pilot, public relations officer, advertising account executive and real estate agent.

Meanwhile, CareerCast lists musical instrument repairer, medical records technician, appliance repairer, actuary, forklift operator, librarian, medical secretary, bookkeeper, piano tuner and janitor as the least stressful jobs.

Jobs were ranked by five core criteria – environment, income, outlook, stress and physical demands. CareerCast measured work “environment” according to physical and emotional factors and computed the “income” score by adding the estimated mid-level income and the income growth potential. Twenty-one “stress” factors were assessed to determine this score and the “outlook” criterion comprised of employment growth, income growth potential and unemployment factors.

Danny Maron from Canada-based Ideal Forklift Training agrees with the report that a forklift operator’s job is not very stressful.

“Most operators really enjoy driving their trucks around the plant and warehouse, and going about their business. In certain circumstances, there is pressure to get a select amount of inventory to the loading dock in minutes at a time, but the guys I know seem to cope well,” Maron says.

He adds that he has yet to come across a stressed forklift operator but concedes that the job does have a stress factor. “[They have to] watch for ignorant individuals who do not look out for the forklifts and tend to walk or run and squeeze in front, behind or at the sides of the truck. Without pedestrian training, this becomes an ongoing problem but operators have become used to it.”
0 Comments

Wire decking from China not injure U.S. industry

7/26/2010

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Chinese wire decking product does not hurt U.S. industry, according to a final ruling by the U. S. trade authority on Thursday.

The United States International Trade Commission (USITC) determined Thursday to deny a ruling by the Commerce Department on final antidumping duties (AD) and countervailing duties (CVD) on imports of some 235.9 million dollar wire decking from China.

As a result of the commission's negative determinations, no antidumping or countervailing duty order will be issued on imports of this product from China.

The USITC said in a statement that "a U.S. industry is neither materially injured nor threatened with material injury by reason of imports of wire decking from China that the U.S. Department of Commerce has determined are subsidized and sold in the United States at less than fair value."

Four of the six-member commission voted in the negative. Two voted in the affirmative.

About a year ago, five U.S. companies filed petition to the U.S. trade authorities to seek protection. The USITC instituted the investigations on June 5, 2009.

The petitioners for these investigations are AWP Industries, Inc., ITC Manufacturing, Inc., J&L Wire Cloth, Inc., Nashville Wire Products Mfg. Co., Inc., and Wireway Husky Corporation.

The product covered by these investigations is welded-wire rack decking produced from carbon or alloy steel wire that has been welded into a mesh pattern.

The wire mesh is reinforced with structural supports and designed to be load bearing. Wire decking reinforced with structural supports is designed generally for industrial and other commercial storage rack systems.

U.S. imports of the wire decking were valued at an estimated 235.9 million dollars in 2009.
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Sopers

6/22/2010

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Soper’s Engineered Fabric Solutions. Soper’s is a leading turnkey manufacturer of Softwall Enclosures, Partitions, and Curtains custom-designed to solve common industrial and warehousing problems such as dust, fumes, noise, temperature, odour, cross-contamination, privacy, overspray, and welding flash.


Please visit there web site: www.sopers.com
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Mach 1 Machines

6/10/2010

1 Comment

 
Mach 1 is the undisputed stretch packaging industry leader. We engineer, design, manufacture, and totally support our product on behalf of our customers.

Our expertise and knowledge truly make us a valuable partner when it comes to modernize your end-of-the-line packaging process.

Whether the need is a manual, semi automatic or highly customized fully automatic stretch wrapping equipment, our professionals will work with clients step by step trough the design, engineering, manufacturing and technical support phases.

The quality of our equipment, the exceptional product value and our devotion to customer satisfaction is what has been driving Mach 1 for 7 years.
1 Comment

MyGoPet

6/3/2010

1 Comment

 
MyGoPet is dedicated to bringing safe, efficient and enjoyable personal transportation to the U.S. and other nations around the world. Pet stands for personal electric transportation. We have taken the idea that workers in many industries as well as individual consumers need a real transportation alternative. One that moves them from place to place quietly, and in a manner that makes the most of our natural resources.

We also recognize that overpriced, overengineered vehicles that are expensive and difficult to ride are not the answer. Instead we have developed, and continue to refine, the GoPet, a vehicle that is within the financial reach of business and consumers.  We’ve designed the GoPet to be easy to ride. It gives the rider the option of standing or sitting. The GoPet recharges in 4-6 hours from any 110 volt source and it costs only pennies to ride for up to 24 miles. Plus there are no dangerous and obnoxious fumes given off by GoPet.

Scooters are really only the first type of vehicle that will be coming from MyGoPet, Inc. A whole generation of electric bicycles, motorcycles and cars are on the horizon as our society becomes more and more concerned with our impact on the environment.
1 Comment

Forklift helps trappers move alligators

5/13/2010

3 Comments

 
Forklift helps trappers move alligators
Gulfport, MS, United States


Trappers used a forklift to transport two large alligators from a bayou in a populated Gulfport neighbourhood.

“The trapping happened on 7 May, and I believe it lasted less than two hours,” says Ryan LaFontaine, public information officer with the city of Gulfport.

Licensed by the state, trappers Sam Searcy and Chris Husley were contracted through Ricky Flint, a specialist with the Mississippi Department of Wildlife, Fisheries and Parks to remove alligators that had become a nuisance.

A news broadcast of ABC affiliate WLOX in Biloxi, Mississippi, available on the station’s
website, shows the trappers at work and the role of the forklift in moving the bull alligators and placing them on a transport trailer.

In addition to the forklift, the trappers used heavy roll to wrangle the 13-foot (3.9m) and 10-foot (3m) alligators from the Brickyard Bayou and then wrapped duct tape around each animal’s snout to prevent any bone-crushing bites. The alligators’ familiarity with humans requires the trappers to kill the animals rather than relocate them. The hides and the meat were sold.

Gulfport, the second-largest city in Mississippi, is the east coast home for the US Navy Seabees construction battalion.


3 Comments

Ebtech Industrial Building Solutions

5/7/2010

1 Comment

 
  Ebtech’s 15 years of experience in the specialized building solutions industry has made us the leaders in protective systems. Whether you need Blast Mitigation, Ballistic Protection, RF Shielding, Sound Deadening, Corrosion or Heat Protection, Chip, Abrasion or Impact Resistance – choose the partner who has worked with the US Government , and partnered with PPG Industries to develop and deliver the top level in protective and hardened panels and shielded structures.

Ebtech can provide customizable protective building or physical asset protection systems that offer multiple levels of blast and ballistic protection for the following structural applications:
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