ClarkWestern and Dietrich Metal Framing Combine
Marubeni-Itochu Steel America Inc. and Worthington Industries, Inc. announced Feb. 22 that they have reached an agreement in principle to combine ClarkWestern Building Systems and Dietrich Metal Framing in a newly-formed joint venture. In the transaction, MISA will acquire a 75 percent interest of the joint venture, and Worthington will acquire a 25 percent interest.
As part of the exchange, Worthington will also acquire the assets of the non-automotive service center business of MISA Metals, Inc. consisting of three steel processing facilities in Ohio and Tennessee. Both parties anticipated the deal would be signed by the end of the February.
The exchange of assets is being structured as a cashless transaction with the exception of working capital adjustments and other transition payments. The metal framing joint venture will be led by the ClarkWestern Building Systems’ leadership team and will combine the best of Dietrich and ClarkWestern Building Systems. Consolidation decisions will focus on maximizing geographic coverage and customer service while achieving low cost production.
The joint venture anticipates operating 13 manufacturing facilities across the country. Seven of Dietrich’s 13 facilities will be retained by Worthington and permanently closed following a brief transition period. One ClarkWestern Building Systems facility will be closed. The Dietrich facilities anticipated to be closed include Colton and Stockton, Calif.; Denver; Hammond, Ind.; Baltimore; Boonton, N.J.; and Hutchins, Texas. Dietrich facilities that will remain open include McDonough, Ga.; Kapolei, Hawaii; Lenexa, Kan.; two facilities in Warren, Ohio; and Baytown, Texas.
FMI Outlook Says Construction Is Bottoming Out
FMI’s 2011 U.S. Markets Construction Overview reveals that 2010 represents the industry’s lowest point of put in place construction. FMI’s forecast indicates that it will be 2014 before put in place construction starts to approach the levels of 2007, which were its prior peak. “Of course, there are pockets of health and counter-trending companies. We are convinced that, now more than ever, senior managements need to be looking beyond the current turmoil and toward what their companies will look like coming out of the down cycle,” according to FMI.
This year’s Overview consists of three major pieces: a compilation of trends in the current environment, important issues facing nine client groups served by FMI and the fourth quarter 2010 economic forecast.
A few highlights include the following:
• Nonresidential building construction has experienced a steep decline, which will extend well into 2011.
• Many trade contractors will shift to new market sectors to bolster weak backlogs.
• Lodging, office and commercial are overbuilt.
• Population growth is driving demand for health care, education and public safety sectors.
• More competition for fewer private jobs is increasing bidders on public projects.
• Sustainable or green construction will drive demand for LEED®-certified buildings.
• Labor-intensive contractors hired heavily during the boom are now experiencing painful downsizing.
• Innovation is driving efficiencies in prefabrication, standardization and supplier integration.
• As the baby boomers age out, many firms will face succession and transition challenges.
• Industry consolidation will create attractive acquisition opportunities.
FMI publishes the U.S. Markets Construction Overview annually.
The Overview includes a comprehensive report on vital construction trends and forecasts the growth or decline in each market segment, noting both short-term and long-term considerations.
According to an industry report, FMI’S Overview indicates that “in the current construction marketplace, more subcontractors are seeing the value of building direct relationships with project owners.” Subcontractors are “struggling to position themselves on value,” FMI reports, so they “are working around general contractors and building relationships directly with end owners. For one progressive specialty contractor, this has meant positioning itself to manage other trades on-site, where the scope of work is interrelated and directly affecting its own labor efficiency.” This “general contractor light” approach, FMI says, is “adding real value to the end owner.” FMI also notes that business ethics are becoming ever more critical to a construction company’s ability to win work. “Owners and contractors will work with firms because they have a definable ethical culture,” FMI says in the annual report. “The right people will be attracted to work for and with ethical organizations. Trust will increase delivery speeds and reduce costs. As a result, more profits will be made.”
OSHA-Slashing Budget Passes House
A bill cutting OSHA’s current budget by nearly $100 million for the remainder of fiscal year 2011 passed the House Feb. 19 in a 235–189 vote.
The continuing resolution bill (H.R. 1) would reduce OSHA’s budget to $459.7 million, which is close to 2004 levels. OSHA currently is operating under an extension of its FY 2010 budget, which was set at $558.6 million.
Cuts to OSHA in the bill include $41.3 million from federal enforcement, $34.9 million from safety and health statistics, and $14.9 million from state programs.
The Republican-backed bill strips nearly $100 billion in federal spending from President Barack Obama’s FY 2011 budget request. According to the GOP, the bill would reduce the federal deficit and promote economic growth and job creation. Democrats contend the plan would have the opposite effect.
NAHB Study: Homes in 2015 Will Be Smaller, Greener and More Casual
A study by the National Association of Home Builders shows that while consumer hesitations on home buying is waning, the recent housing downturn has changed what Americans are looking for in their next home.
The survey research on consumer preferences, which is presented annually at the NAHB International Builders’ Show, suggests that the severity of the recession has left an indelible mark on prospective home buyers, who have shifted their perspective on the housing they want and need.
Builders surveyed expect homes to average 2,152 square feet in 2015, 10 percent smaller than the average size of single-family homes started in the first three quarters of 2010.
To save on square footage, the living room is high on the endangered list—52 percent of builders expect it to be merged with other spaces in the home by 2015, and 30 percent said it will vanish entirely.
“As an overall share of total floor space, 54 percent of builders said the family room is likely to increase,” said Rose Quint, NAHB’s assistant vice president for survey research. “That makes it the only area of the home likely to get bigger.”
In addition, the relative size of the entry foyer and dining room are likely to be diminished by 2015. However, opinions were fairly evenly divided on the fate of the kitchen, master bedroom and bath and mudroom, she said.
The average new home of 2015 is likely to feature a great room comprised of the kitchen, foyer and living room; a walk-in closet in the master bedroom; a laundry room; ceiling fans; a master bedroom on the first floor in homes with two stories; and a two-car garage.
In addition to floor plan changes, 68 percent of builders surveyed say that homes in 2015 will also include more green features and technology, including low-E windows; engineered wood beams, joists or tresses; water-efficient features such as dual-flush toilets or low-flow faucets; and an Energy Star rating for the whole house.
The full study and survey methodology can be found online at www.housingeconomics.com.
ICC, ASHE to Develop Code Changes for Hospitals, Medical Care Facilities
The International Code Council and the American Society for Healthcare Engineering of the American Hospital Association are collaborating to develop a series of building code changes that will result in safe, effective and efficient provisions for hospital and ambulatory care facilities.
The joint effort, according to both organizations, aims to accomplish the following:
• Reduce conflicts caused by overlapping local and federal building and fire code requirements that can arise when constructing medical facilities.
• Ease the confusion between multiple authorities responsible for code enforcement of health care structures.
• Create comprehensive building and fire codes for the design and construction of new hospitals and ambulatory care facilities.
• Consistent code evaluation of existing health facilities.
• Increase the opportunity to apply science, research, modeling and historical data in the code development process.
• Consider cost-effective construction alternatives which do not reduce current levels of safety.
As part of its commitment to this collaboration, the ICC Board has approved the creation of a 15-person Ad Hoc Committee on Health Care (iccsafe.org/ahhc) to review and update provisions in the International Codes that impact the construction of new and existing hospitals and ambulatory care facilities. The objective of the committee is to develop code change proposals to the International Codes that will result in the most contemporary, effective, efficient and cost-effective provisions for health care facilities to assure the highest level of safety for patients, employees and other users.
January Construction Falls 6 Percent
The value of new construction starts retreated 6 percent in January to a seasonally adjusted annual rate of $423.4 billion, according to McGraw-Hill Construction, a division of The McGraw-Hill Companies. On an unadjusted basis, total construction starts in January were reported at $28.4 billion, down 4 percent from the same month a year ago.
The January statistics lowered the Dodge Index to 90 (2000=100), compared to December’s reading of 95. Over the course of 2010, the Dodge Index fluctuated within the range of 80 to 96, with the average for the year coming in at 88.
Nonresidential building in January dropped 13 percent to $138.3 billion (annual rate), following December’s strong 27 percent gain. Healthcare facilities retreated 46 percent and transportation terminal work fell 75 percent. Other institutional categories showing decreased contracting were public buildings, down 2 percent; churches, down 4 percent; and amusement-related work, down 29 percent. Educational buildings held steady in January.
The commercial structure types showed a mixed performance in January. Stores and warehouses slipped further, with January declines of 2 percent and 4 percent, respectively. Office construction in January registered a 5 percent gain, the hotel category increased 23 percent, and the manufacturing plant category rose 180 percent.
Residential building, at $118.8 billion (annual rate), dropped 7 percent in January after showing modest improvement during the previous five months. Single-family housing held steady in January, as the result of varied behavior by geography, with growth in the South Central (up 6 percent) and the South Atlantic (up 5 percent) offsetting declines in the West (down 1 percent), the Midwest (down 1 percent) and the Northeast (down 20 percent). The U.S. residential total in January was pulled down by 35 percent decline for multifamily housing, which retreated after the gains witnessed at the end of 2010.
The 4 percent decline for total construction on an unadjusted basis in January 2011 relative to January 2010 was due to this performance by major sector: nonresidential building, down 24 percent; residential building, down 13 percent; and nonbuilding construction, up 30 percent.
By region, total construction for January 2011 compared to January 2010 revealed decreased activity in the Northeast, down 44 percent; and the South Atlantic, down 28 percent. Total construction gains on a year-over-year basis were reported for the Midwest, up 1 percent; the South Central, up 21 percent; and the West, up 37 percent.
List of Top 10 States for LEED Green Buildings Released
On March 2, 2011, the U.S. Green Building Council released its 2010 list of top 10 states for LEED-certified commercial and institutional green buildings per capita, based on the U.S. 2010 Census information. The District of Columbia leads the nation with 25 square feet of LEED-certified space per person in 2010, and Nevada is the leading state with 10.92 square feet per person in 2010.
Other top states include New Mexico, New Hampshire and Oregon with more than 6 and 4 square feet of LEED-certified space per person, respectively.
The top LEED states per capita, including the District of Columbia:
• District of Columbia: 25.15 square feet
• Nevada: 10.92 square feet
• New Mexico: 6.35 square feet
• New Hampshire: 4.49 square feet
• Oregon: 4.07 square feet
• South Carolina: 3.19 square feet
• Washington: 3.16 square feet
• Illinois: 3.09 square feet
• Arkansas: 2.9 square feet
• Colorado: 2.85 square feet
• Minnesota: 2.77 square feet
Notable newly certified projects in 2010 include the Susitna Valley Jr./Sr. High School in Talkeetna, Ark.; the Wells Fargo Center in Denver; the two International Monetary Fund headquarters buildings in downtown Washington, D.C., which earned LEED certification for the operations and maintenance of an existing building; Parc Huron multi-use residential property in Chicago; the Edina Crosstown Medical Building in Edina, Minn.; Barcelona Elementary School in Albuquerque; Centennial Hills Library in Las Vegas; The Allison Inn & Spa in Newberg, Ore.; KPMG: Greenville in South Carolina; and multiple fire stations and the Bank of America Fifth Avenue Plaza in Seattle.
Of the projects represented on the list, the most-common project type was commercial office, and the most-common owner type was for-profit organization. The cities most represented in the list were Chicago and Washington, D.C.
For the full list of LEED-certified projects visit https://www.usgbc.org/showfile.aspx?documentid=8784.
Denver Excelling in LEED Green Building Development
The U.S. Green Building Council has noted that nearly 30 projects in Denver have achieved LEED green building certification since 2010, and two of these developments achieved LEED’s highest rating, Platinum.
There are approximately 230 LEED certified and registered projects in Denver. Notable newly certified projects in 2010 include the Wells Fargo Center; Legacy Plaza, home of Gates’ Corporation’s world headquarters; the prominent Colorado Convention Center; and Denver Public Schools’ Evie Garrett Dennis E-12 Campus. Xcel Energy’s new headquarters, 1800 Larimer, and the Group14 (formerly Enermodal Reilly) office both achieved LEED Platinum.
In the first month of 2011, three buildings in the Denver Metro Area were certified, including the Auraria Science Building, the Colorado Department of Labor and Employment building and Colorado Center Tower Two.
For the full list of LEED-certified projects nationally visit www.usgbc.org/press.
Armstrong Recycling Program Reclaims 100 Million Square Feet of Old Ceiling Tiles
Armstrong World Industries, Lancaster, Pa., announces that its Ceiling Recycling Program has now diverted more than 100 million square feet of old ceiling tiles from landfills.
The recycling program enables building owners to ship ceilings from renovation projects to the nearest Armstrong ceiling plant as an alternative to landfill disposal.
Under the program, the company pays the freight costs for shipping the old ceilings, which it uses as raw materials in the manufacture of new ceilings.
Since it introduced the program in 1999, Armstrong has recycled more than 50,000 tons of discarded mineral fiber ceiling tiles. This represents more than 14,000 Dumpsters full of construction waste that would have normally been taken to landfills.
For more information on ceiling recycling, call 877.ARMSTRONG or visit armstrong.com/recycling.
People in the News
The National Finishing Contractors Association, Bethesda, Md., has hired Nicholas Carrillo as the Western region vice president, and Jeremy Fitch as assistant to the CEO. Both positions were recently created and became effective March 1.
Carrillo, who will be based in Tempe, Ariz., brings his architectural education from the University of New Mexico, along with practical experience both as a job foreman, and most currently, as a technical sales representative.
Fitch, a graduate of Ohio State University, will join the staff in the Bethesda, Md., office. In his new position he will handle the majority of National FCA’s government relations.
Companies in the News
Acoustical Solutions, Inc., Richmond, Va., is the first distributor of QuietGlue Pro, a sound-damping compound used between two pieces of drywall to reduce sound transmission. QuietGlue Pro will be quickly shipped nationwide from one of Acoustical Solutions’ new warehouses.
Products in the News
Wall Systems business of BASF Corporation, Cleveland, announced that the International Code Council Evaluation Services has issued Evaluation Report ESR-3209, which recognizes Enershield-HP as a water-resistive barrier, as well as flexible flashing for commercial and residential construction. The report confirms compliance with applicable sections of the 2006 International Building Code and the 2006 International Residential Code.
A copy of the evaluation report that includes the product’s Conditions of Use, applications, etc., is available online at www.icc-es.org.
New on the ’Net
SFA Redesigns Website
The Steel Framing Alliance has redesigned its website, www.steelframing.org, to better deliver its message on the benefits of steel as a structural material.
The new structure highlights issues that SFA is addressing under its current strategic plan to position cold-formed steel as the material of choice in the commercial and residential markets. The public portion of the website is focused on the advantages of CFS in various markets and responds to the questions heard by SFA most often from potential users of steel framing. For example, the homepage serves as a portal for information on energy code compliance, sustainability/green building, fire resistance, seismic design and similar evolving issues, as well as the more traditional issues found on the website in the past. For each item on the home page, a single click of the mouse will take you to information on recent events, facts, resources and materials specific to each issue
The “Members Only” section of the website has not changed.
National Gypsum Company, Charlotte, N.C., has launched a new website, www.drywallfacts.com. This new site aims to correct misperceptions and false statements about the quality, safety and environmental record of National Gypsum drywall.
The site includes both basic facts about drywall as well as more detailed scientific information and links to other relevant websites. It is meant to serve as a central repository of key information and a quick reference for use by the media, vendors, suppliers, builders and consumers.
CertainTeed Corporation, Valley Forge, Pa., has enhanced its website with a new CertainTeed Building Science sitelet that provides information, educational tools, technical resources and animations of heat, air and moisture flow within buildings. This precedent-setting resource is available on the CertainTeed website at www.certainteed.com/buildingscience and was developed specifically for building and design professionals interested in building forensics and building physics.
The Building Science sitelet provides building and design solutions that are based in science, including problem diagnosis, integrated solutions and best practices. Topics covered on the site include acoustics, fire performance, indoor environmental quality, moisture management, sustainability and energy efficiency. Visitors to the site can access frequently asked questions, videos and literature on specific topics, as well as practical building and design strategies.
