Community involvement

We ran news recently of a Saint Index survey of the most unwanted real estate projects in U.S. communities. Landfills were most reviled at 78 percent, while casinos (77 percent), quarries (62 percent) and nuclear power plants (60 percent) followed. Personal experience leads me to believe that landfills rank No. 1. My parents live near a landfill in Northeast Ohio – in the same house where I grew up. Their frustrations stem from a number of factors – an unsightly heap of land nearby, the smell of garbage, the constant worry that the air and water could be contaminated, sinking property values. They feel officials aren’t trustworthy and people are making money at others’ expense. This survey and my family’s experience make me wonder how quarries fit into all of this. If residents have similar feelings toward aggregate producers, what can be done? I believe the answer falls under communication and action. Talk to the community, utilize the media to tell positive stories and conduct plant tours to explain the importance of your work – and simply show you care. And maybe this is already happening. The Saint Index survey, which polled 1,000 adults nationwide, also showed that opposition to quarries fell 2 percent from a year ago. -- Brian Richesson

PCA looks beyond stimulus

According to John Shaw of the Portland Cement Association (PCA), additional funding for transportation and infrastructure is needed that directly addresses our deteriorating roads and bridges. “There are many commendable portions of the economic stimulus bill, but there is still much work to be done,” Shaw, PCA’s senior vice president of government affairs, said. “The best way to get America working again is through the most measurable metric – road and bridge construction. We hope that Congress will continue to address our nation’s crumbling infrastructure and continue putting Americans back to work by making transportation-related legislation a priority in the 111th session.”

PCA studies report that infrastructure funding creates jobs on both an immediate and long-term basis in all areas of the economy. For every 10 construction jobs created by a project, the community gains 17 additional jobs that stay in the region.

Repairing our nation’s infrastructure will not only add jobs, but can put money back in the pockets of motorists. According the 2009 American Society of Civil Engineers Report Card for America’s Infrastructure Americans spend 4.2 billion hours a year stuck in traffic at a cost to the economy of $78.2 billion, or $710 per motorist. Additionally, congestion on our crowded roadways contributes 27.2 million tons of carbon dioxide emissions each year.

Shaw stresses keeping the states and local agencies accountable for the money that has been allocated to them is vital to moving the economy forward. “The Administration has recognized the importance of transparency and accountability for the programs within the bill. Our infrastructure must be constructed with the highest quality materials that reduce future maintenance and ensure durability,” Shaw said. “By investing properly we can free up more money for states and communities to use for vital services like schools and police.”

For example, according to Shaw, concrete pavements can last up to 30 years or longer before resurfacing is required. Asphalt needs to be resurfaced every 8 or 9 years. “It is an economical and sustainable choice for meeting our growing infrastructure demands.” -- Mark S. Kuhar

AGC lauds economic stimulus bill

Industry experts and association heads are now weighing in on the American Recovery and Reinvestment Act of 2009. “In just a few short weeks President Obama and Congress have created real and meaningful opportunities for unemployed workers and struggling businesses that will counter the effects of the economic downturn," said Stephen Sandherr, chief executive officer of the Associated General Contractors of America. "They understand that significant investments in infrastructure and construction projects can play a vital role in our economic recovery. Millions of construction workers and tens of thousands of construction companies are now ready to lead the way in proving them right.” Your comment?

AGG1 is the one

NSSGA needs your attendance at AGG1. Click here to register for the show, being held March 9-12 at the Orlando County Convention Center in Orlando. This registration will provide a show badge to the expo floor and allow you to purchase tickets for as many AGG1 Academy education sessions as you’d like to attend. You’ll also be able to find information on housing, tours, the MSHA Law seminar and information about the World of Asphalt – co-located with AGG1. Your comment?

Senate passes stimulus bill

After days of leading bipartisan negotiations, Sens. Ben Nelson (D-Neb.) and Susan Collins (R-Maine) announced late on Feb. 6 an agreement on an amendment to the Economic Recovery Act now being considered in the Senate. The Nelson/Collins amendment reduces the total cost of the package to $780 billion, which is $110 billion less than the original Senate stimulus bill.

The amendment keeps the highway spending mark at $27 billion plus the additional $5.5 billion proposed for supplemental discretionary grants for surface transportation, including highways. This amendment replaced the entirety of the original bill and all amendments proposed or passed during the Senate's debate of the issue last week.

However, the Nelson/Collins amendment does include two amendments that already passed with broad support: a $15,000 tax credit for 2009 homebuyers and a tax deduction for those who purchase a new car. With these additions, the grand total of the bill rises to $827 billion. "This deal represents a victory for the American people," said Collins. "We came together to tackle the most immediate problem facing the nation." She went on to say, "This bill is not perfect, but it represents a bipartisan, effective and targeted approach to the crisis facing our country."

Yet Republican congressional leaders have expressed misgivings about the stimulus package. Sen. John Ensign (R-Nev.) and Rep. Mike Pence (R-Ind.) voiced the concerns of many Republicans that the legislation has too much spending and not enough tax cuts.

Consideration of the bill resumed on Feb. 9 with a roll call vote of 61 yea, 36 nay on the motion to cut off debate on the Nelson/Collins amendment. The amendment was passed on Feb. 10 by a vote of 61 to 37. Only three Republicans supported the amendment: Sens. Susan Collins and Olympia Snowe of Maine, and Arlen Specter of Pennsylvania. Final passage of the Senate stimulus package occurred shortly after on a vote of 61 to 37. Senate conferees named were Sens. Daniel Inouye (D-Hawaii), Max Baucus (D-Mont.), Harry Reid (D-Nev.), Thad Cochran (R-Miss.) and Charles Grassley (R-Iowa).

Significant differences exist between the House and Senate versions of the economic stimulus package, primarily over tens of billions of dollars in aid to states and local governments, tax provisions and programs for education, health and renewable energy. For instance, the Senate devotes $27.06 billion to highways, while the House allots $30 billion.

The bill now proceeds to Conference committee to reconcile differences between the two versions. Each chamber will vote on the Conference Report and, if passed, the stimulus will be sent to the president for signature.

NSSGA continues to contact members of the House and Senate to stress the importance of the transportation infrastructure portion of the economic stimulus package to the aggregates industry and urge the highest funding level possible.

Materials prices decline

According to Reed Construction Data, the construction materials price index dropped 7.8 percent from September to December and is expected to decline, albeit more slowly, through the winter as worldwide commodity demand continues to shrink. Commodity prices fell in January again for metals, lumber and some energy based products because construction activity and manufacturing production are now declining in most major countries and commodity inventories are well above normal levels. Preliminary data put the January price decline at more than 20 percent for aluminum, 10 percent for steel and 10 percent for lumber, 7 percent for diesel, less than 5 percent for copper but no decline for cement. Futures prices and inventory levels suggest that spot prices will continue to fall for several more months. Lumber futures prices are 30 percent below spot prices. Crude oil storage facilities are full with some product now being stored on anchored tankers. Your comment?

AEM pushes stimulus bill

As you probably know, the Senate will vote shortly on the economic stimulus package. AEM has been in constant communication with Washington leaders to inform them of the best ways to help the industry and AEM member companies put people back to work. The economic recovery package will likely be the biggest spending bill in U.S. history, and the scope of the bill affects AEM member-company interests in many ways.

AEM is actively lobbying in support of proposals to:

• Increase the proportion of spending in the bill devoted to infrastructure investment,

• Improve the business tax relief provisions,

• Streamline environmental reporting requirements so that infrastructure projects can get underway with a minimum of delay,

• Strengthen the provisions of the bill aimed at revitalizing the nation’s housing market, and

• Prevent inclusion of protectionist language that would anger our international trading partners and provoke retaliatory measures, threatening our member companies’ overseas markets.

This last provision, known as "Buy American," has engendered a great deal of controversy, and AEM is working with like-minded allies – including business as well as lawmakers, academics and international trade experts – to prevent it from harming AEM member companies' access to markets and infrastructure projects in the U.S. and overseas. President Obama has urged Congress not to include any provision that U.S. trading partners would consider protectionist, which could cause U.S. companies to potentially be shut out of projects included in stimulus packages being written in other countries. Your comment?

Will Senate dilute bill?

Acccording to Jim Haughey, Reed Construction Data chief economist, early in 2008 the GDP loss from reduced housing construction was twice as large as the GDP loss from reduced durables consumption and business equipment and software spending. The decline in consumer durable goods and business equipment and software purchases in the 4th quarter was more than six times larger than the decline in construction spending. The GDP loss from reduced durables consumption and investments, excluding construction, was $130 billion larger than the GDP loss from less construction spending.

As the stimulus plan evolved from conception to the plan approved by the House, the funds focused on general economic stimulus grew from twice as much as direct construction funding to six times as much. The direct construction funding in the house plan has drawn strong criticism from all quarters. The claims on how quickly the money will be spent are widely judged to be implausible.

Every day brings more news about layoffs outside of the housing and mortgage industries which dominated layoff news until a few months ago. The solution to this problem is not a new federal building that starts construction around Labor Day. Rather the solution is action that gives consumers more cash amore spending confidence as soon as possible – weeks not months.

The Senate may leave much of the House approved construction funding intact but their additions will be for more general programs. If total program costs continues to be a concern, the Senate may take a considerable share of the House construction funds for quicker and more general programs. Your comment?