Construction materials prices decline

Interest rates have fallen, and so have construction-materials prices, which declined 0.8 percent in August from July, cutting the increase over the past year to only 1.5 percent. Construction sand and gravel, and crushed stone prices were up only 0.6 percent from the month previous; 1.1 percent versus three months ago, and 7.7 percent over a year ago, according to a report from Reed Construction Data, based on information released by the U.S. Bureau of Labor Statistics. That's a far cry from the double-digit increases so prevalent over the past few years. Your comment?

Toward solvency for the Highway Trust Fund

According to NSSGA, after a one-day postponement, the Senate Finance Committee unanimously approved the "The American Infrastructure Investment and Improvement Act" on Sept. 21. The bill includes the Baucus-Grassley plan to restore short-term solvency to the Highway Trust Fund (HTF). The bill also includes increased funding for aviation programs to support the reauthorization of the aviation program. The Baucus-Grassley plan responded to projections that the HTF would be running a deficit of as much as $4.3 billion by the expiration of SAFETEA-LU in 2009, and $5 billion if the billion dollars for bridge repair contained in the Senate version of the FY ’08 Transportation Appropriations bill is passed. In order to fill the funding gap, the plan would: replenish the HTF for emergency expenditures paid out of the fund since 1998, in response to hurricanes and the 9/11 terrorist attacks, which more appropriately should be funded from the General Fund; suspend for six months the motor fuel tax exemptions provided to state and local governments and certain agricultural activities; and implement additional reforms to further crack down on illegal fuel tax evasion. It is projected that these changes will provide an additional $5.6 billion into the HTF, enough to ensure its short-term solvency while a plan is developed to meet the long-term investment needs of the nation’s surface transportation infrastructure. Your comment?

Bridge to nowhere goes nowhere

It was one of the biggest pork-barrel complaints about SAFETEA-LU: An earmark for a $398 million bridge connecting an island with about 30 people on it to civilization. Well, Alaska has decided that the bridge project is off. Governor Sarah Palin said Friday that the project was $329 million short of full funding. "We went through political hot water, tons of it, and not just nationally but internationally," said Joe Williams, Ketchikan-Gateway Borough mayor. "We have nothing to show for it." The $398 million bridge would have connected Ketchikan, on one island in southeastern Alaska, to its airport on another island. "We will continue to look for options for Ketchikan to allow better access to the island," the Republican governor said. Your comment?

Fatality #23

According to MSHA, the metal/nonmental sector has suffered it's 23rd fatality of the year. On September 7, a 54-year-old supervisor with 27 years of experience was fatally injured at a crushed-stone operation. The victim was operating a track loader to remove excess material from an access road. The machine traveled over an embankment and landed approximately 125 ft. below. Your comment?

Exports: going up and out the door

According to AEM, The top 10 export destinations for American-made construction equipment for the first half of 2007 were:
1. Canada $2.6 billion, up 3 percent
2. Australia $696 million, up 9 percent
3. Mexico $588 million, up 26 percent
4. Chile $346 million, up 40 percent
5. Belgium $331 million, up 78 percent
6. China $319.5 million, up 181 percent
7. South Africa $251 million, up 63 percent
8. Venezuela $177 million, up 72 percent
9. Germany $176 million, up 70 percent
10. Russia - $165 million, up 57 percent

Exports to China are up 181 percent, although that booming economy is still only sixth on the list. They have a long way to catch up to old, reliable Canada's $2.6 billion. Your comment?

Fatality #22

MSHA is reporting that on August 29, a 41-year-old wash-plant operator with 1.5 years experience was fatally injured at an Ohio sand and gravel operation. According to the report, the victim was preparing to patch a hole in a discharge pipe located under the classifier. He was positioned on a plank placed across the top of an open tank located under the pipe. The plank broke and he fell approximately 7 ft. to the bottom of the empty tank. Your comment?

Production takes a dive

National aggregates production has taken another dive. An estimated 681 million metric tons of total aggregates was produced and shipped for consumption in the United States in the second quarter of 2007, a decrease of 14.2 percent compared with that of the same period of 2006, according to USGS. The estimated output of aggregates produced for consumption in the first 6 months of 2007 was 1.11 billion metric tons, a 16.9 percent decrease compared with that of the same period of 2006. By segment, an estimated 389 million metric tons of crushed stone was produced and shipped for consumption in the second quarter of 2007, a decrease of 14.9 percent compared with that of the same period of 2006. The estimated output of crushed stone produced for consumption in the first 6 months of 2007 was 643 million metric tons, a 17.8 percent decrease compared with that of the same period of 2006. The estimated output of construction sand and gravel produced and shipped for consumption in the second quarter of 2007 was 292 million metric tons, a decrease of 14.0 percent compared with that of the same period of 2006. The estimated output of construction sand and gravel produced for consumption in the first 6 months of 2007 was 471 million metric tons, a 15.9 percent decrease compared with that of the same period of 2006. Your comment?

Highway construction drops in July

The latest U.S. Census Bureau construction report indicates highway and street construction is slowing, and Ken Simonson, Chief Economist for The Associated General Contractors of America, says that problems with the Highway Trust Fund are looming on the horizon. Highway and street construction, which received a boost in late 2005 and early 2006, was down 0.8 percent in July and is only 5 percent higher year-to-date. Partly, that reflects lower prices for diesel and asphalt, but it also shows states are running short of highway funds as gas tax receipts slow. "Highway spending could drop sharply late next year," Simonson warned. "Last week, the Congressional Budget Office projected a $5 billion deficit in the federal Highway Trust Fund's Highway Account in fiscal year 2009, which begins in just 13 months. Congress will need to bridge that gap in order to keep road spending from plunging." Your comment?