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January 8, 2009

INDUSTRY ACCESS*

Midwest Manufacturing Completes Shelby, IA Facility

Midwest Manufacturing partnered with Menards, a chain of home improvement stores, to construct a new manufacturing and distribution center in Shelby, IA. The company has created over 400 new jobs and injected $32.7 million in capital investments into the site. The project included construction of a 735,000-square-foot facility in three buildings to manufacture pre-hung doors, and serve as a distribution center of retail items for Menards stores, reported The Harlan Tribune. Full Story

Click here for more Industry Access news including recent new hires, merger & acquisition activity and who's offering new products.

* DHI Members may submit news releases to be considered for inclusion in DHI's IndustryWatch. Send to: jmadden@dhi.org.

BUSINESS UPDATE

Spending on U.S. construction projects fell less than half as much as forecast in November, reflecting gains in commercial and government building that partially cushioned the slump in residential real estate, reported Bloomberg.com. The 0.6% decline followed a 0.4% drop the prior month that was smaller than previously reported, according to the Commerce Department. Full Story

Architecture firms across the country are laying off workers at unprecedented levels, reported Architectural Record. Full Story

CONSTRUCTION & DESIGN

Year-to-date value of construction starts (excluding residential starts) through November totally $270 billion, a 0.2% drop over the same period in 2007, reported Reed Construction Data. Starts in November jumped 19% from the October numbers and more than made up for the usual seasonal decline. The latest monthly starts were 30% higher than last November's and matched 2008's June-September starts average. Full Story

The University of Michigan is moving forward with a construction campaign budgeted at $2.5 billion, ranking it among the largest university building programs in the U.S., reported the New York Times on the Web. Nine major buildings for science, medicine, health, art, business, sports, food service and student housing are in various stages of construction here. They encompass nearly three million square feet, at a cost of about $1.66 billion. Five others are in the design stage. Full Story

A report from Ernst & Young which examines the eco-friendly efforts of hotels and resorts in eight regions of the world, finds progress in the greening of the hospitality industry and identifies 10 areas in which the business could do better. Full Report (PDF file)

Construction spending in the New York area remained strong this year, even as the economy tanked, because of a half dozen $1 billion-plus projects that got off the ground. Three World Trade Center towers, two massive water and sewer projects and the extension of the No. 7 subway line helped raise the total value of construction starts in the New York metropolitan area 2% to $32.9 billion, reported Crain's New York Business. But the pipeline for 2009 does not look nearly as robust. Continued economic deterioration and a tepid recovery in the credit environment will send construction starts tumbling 19% to $26.7 billion in the city, Long Island and northern New Jersey. Full Story

SECURITY & SAFETY

Underwriters Laboratories has redefined the security requirements for magnetic switches used in many alarm systems because some of these devices can be easily defeated, reported CNET. Alarm switches and connectors for use on doors, windows, safes, vaults and other areas are classified and tested by Underwriters Laboratories, in Standard UL 634. The standard was updated to reflect concerns by the Department of Energy, state, and other federal agencies because of the capability of bypassing reed-based switch designs. Full Story

The Raleigh County Board of Education approved the immediate installation of security access control systems in 15 schools. The high-tech electronic access systems have vast capabilities including electronic locks, cameras and keyless entry on exterior doors, reported The Register Herald. Full Story

GOVERNMENT AFFAIRS

While Hawaii is planning cuts to the Department of Education's operating budget, it also plans to push ahead with millions of dollars in construction projects on public school campuses. The DOE is set to spend some $317 million in repairs, building maintenance and new construction over the next two years. The money is part of a $1.8 billion effort by the state to stimulate the economy through public works projects, reported The Honolulu Advertiser. Full Story

SMALL BUSINESS NEWS

Best wishes for a prosperous and healthy New Year. The year 2008 was a tough one for many small businesses and the trade associations that represent them. For our first cynical observation of the New Year, we will note that the lobbying community will get an early stimulus boost. As Congress convenes, the lobbying to secure items in the first stimulus legislation is already moving at a record pace.

We have lost track of the number of stimulus ideas that are being floated. The rumor mill has it the President-elect will propose allowing businesses to carry back net operating losses for five years instead of two.

A "new jobs tax credit" may be proposed. Based on our recollection of the last one during the Carter Administration, this could be a winner. The first time around, implementation took too much time (the credit was in effect for two years (1977-1978) but it was not until late 1978 that implementation rules were hammered out and the word got out to small businesses.

The congressional majority's leadership had promised to deliver a stimulus package to the President for his signature after his inauguration. We are skeptical that the Senate will be able to reach a consensus so quickly as bi-partisanship cooperation is necessary and the lobbying intense, but in the end, how can you deny a new President his honeymoon? Look for a February delivery date.

DHI's Jerry Heppes sits on the board of the Small Business Legislative Council. If you'd like more information on these or other issues affecting small businesses, feel free to contact him at jheppes@dhi.org.

This material is protected under copyright law and contains confidential information. It is for the sole personal, informational use of DHI members. It cannot be distributed, reprinted, referenced as a source for attribution, or otherwise made public.

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