Commercial construction may see declines
According to The Wall Street Journal, the construction industry is preparing for significant reductions in commercial and public works projects, which could result in the industry's deepest, longest contraction in recent years.
A report released in late October 2008 by New York-based McGraw-Hill Construction Cos. Inc. estimates new construction projects' values will have dropped to $515 billion by the end of 2008, which is a 7 percent decrease from 2007 and 25 percent less than its $690 billion peak in 2006.
Hotel, office building, warehouse and factory construction—which has remained relatively strong in recent years—is expected to decline. In states with low tax revenues, financing for commercial projects has become too expensive or difficult to secure. Although most construction downturns last one or two years, the current construction downturn will be in its third year for all property types and fourth year for single-family homes, according to the McGraw-Hill Construction report.
"It's the most difficult environment for construction since the early 1990s," says Robert Murray, McGraw-Hill Construction's vice president of economic affairs. "The big story for 2009 will be how the weakening construction market will spread to nonresidential building and public works."
Nonresidential construction is expected to decrease 10 percent this year to $220 billion, and 12 percent less nonresidential space will be built than in 2008.
Focus on reception
Your company's telephone reception service often is the first contact customers have with your company. Whether your company employs a receptionist or uses a recorded message, what is said and how it is conveyed can make a meaningful first impression. Here are some ideas for making sure your message welcomes and informs your callers:
Source: Adapted from The Manager's Intelligence Report, November 2008 issue
Report studies immigrant-owned businesses
A new report released by the U.S. Small Business Administration's Office of Advocacy indicates businesses owned by immigrants generate about 11.6 percent of business income in the U.S.
In addition, the report states immigrants own 11.2 percent of businesses with $100,000 or more in sales and 10.8 percent of all businesses with employees.
According to the report, immigrants represent 12.5 percent of all business owners and are 30 percent more likely to start a business than nonimmigrants. Immigrant business owners are concentrated in certain states, including California, Florida, Hawaii, New Jersey and New York. Mexican immigrants represent the largest number of immigrant business owners, and Greek, Korean and Iranian immigrants have the highest ownership rates.
The full report is available at www.sba.gov/advo/research/rs334tot.pdf.
Is it time to redesign your Web site?
If your company's Web site was launched several years ago, it may need to be redesigned. Although older Web sites often mimic companies' brochures, more recently designed Web sites offer customers more options and ways to connect with companies.
Following are some tips for updating your company's Web site:
Source: Adapted from Communication Briefings, December 2008 issue
Details
Will Hamlin
What is your position within your company?
I am vice president of business development for Hamlin Roofing Co., Garner, N.C.
What is the most unusual roofing project you've performed?
Building a playground on top of a children's hospital or installing a 107-kilowatt solar power system on the roof of our sheet-metal fabrication facility
Why did you become a roofing contractor?
I was born into it, but I really enjoy working in the industry.
What was your first roofing experience?
I started out cleaning the roofing yard and then worked on tear-off jobs.
When you were a child, what did you want to be when you grew up?
A roofing worker, what else?
What is a motto that you live by?
Do it right the first time, or be prepared to suffer the consequences. That's also known as "If you're going to be stupid, you better be tough."
If you could travel anywhere in the world, where would you go?
The Caribbean
What three items are always in your fridge?
Diet Coke, Coke and juice
What are the most high-tech things in your house?
My laptop and BlackBerry®
What's your favorite book?
The Old Man and the Boy by Robert Ruark
If you could invite any three people to dinner (dead or alive), whom would you invite?
My grandfather, dad and son
What is the most challenging aspect of your job?
Finding new ways to expand our business while maintaining the core values that got us where we are
What is your roofing industry involvement?
I currently am on NRCA's board of directors and a member of the Future Executives Institute, Safety Manual and Membership committees.
People would be surprised to know …
I'm an avid duck hunter.
Green building market is projected to increase
"Green Outlook 2009: Trends Driving Change," a study released by McGraw-Hill Construction Cos. Inc., New York, states there may be significant potential for growth in the green building market.
The report states the value of green building construction starts rose from $10 billion in 2005 to an estimated range of $36 billion to $49 billion in 2008. The report also predicts that value may triple by 2013 with the value of green building construction starts ranging from $96 billion to $140 billion during that year.
"Green growth is phenomenal across the globe," says Harvey M. Bernstein, McGraw-Hill Construction's vice president of industry analysis, alliances and strategic initiatives. "The business opportunities afforded by green buildings, even in the midst of a global economic crisis, are real and recognized by industry players."
The full report is available for purchase at www.construction.com.
LEED® 2009 passes member ballot
In November 2008, the U.S. Green Building Council's (USGBC's) updated 2009 Leadership in Energy and Environmental Design (LEED) Green Building Rating System™ passed member ballot. The updated program will be introduced this year and includes technical advances focused on improving energy efficiency, reducing carbon emissions, and addressing other environmental and human health factors.
LEED 2009's first public comments period began in May 2008, and a second public comments period followed in August 2008. USGBC received nearly 7,000 comments from members and stakeholders by the end of the second public comments period Sept. 2, 2008. LEED 2009 was successfully passed by USGBC's 18,000 member organizations Nov. 14, 2008.
"The conclusion of the balloting process marks the culmination of tireless work done by representatives from all corners of the building industry," says Brendan Owens, USGBC's vice president of LEED technical development. "We have the deepest gratitude for our volunteer leaders and for their bold steps toward resetting the bar for green building leadership and challenging the industry to move faster and reach further."
Information about specific proposed technical changes to the rating system is available at www.usgbc.org.
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