Issue link: http://read.dmtmag.com/i/146868
Contents Winner 2012 Journalism Award Construction Writers Association August 2013 Vol. 79, No. 8 Editorial Team Features Executive Editor and Director of Programs Kim Phelan kphelan@aednet.org from the cover Midyear Business REport Contributing Editor Joanne Costin pr@aednet.org There's still time to make necesary adjustments. Editor's Note 7 Get thee to Forum, foofoo attire not required. Graphic Production eva Belmonte design@aednet.org eva@neggie.net On the Numbers 53 CODB: Sales volume is not the High Profit distinguishing factor. Columnists Garry Bartecki AED Vice President of Finance Building a Gateway to Asia 18 Eli Lustgarten ESL Consultants Although optimistic, AED members are concerned over the impacts of government regulation, including health care costs. Jerry Randecker & Chris Sitter Jordan-Sitter Associates Ron Slee R.J. Slee & Associates Vice President–Sales/ Publisher David W. Gordon 800-388-0650 ext. 334 dgordon@aednet.org Washington Insider 59 The public trusts and will listen to companies like yours. Plus: Activity Moves Up, Down and Sideways 42 Not Your Grandfather's Rental Companies 46 AGC Chief Economist Ken Simonson breaks down the sectors, analyzes industry's personality disorder. 3_Aug_TOC_KP.indd 3 Aftermarket 57 Employees don't know what you don't know – so help them. Inside AED 8 Groundwork 12 Industry Beat 14 Advertisers' Index 63 Dealer Data 64 Construction Confusion: Advertising Sales Manager Albert J. Ramirez 800-388-0650 ext. 311 aramirez@aednet.org Further housing, nonres gains expected in '14 and beyond. departments Industry Snapshot Advertising Contacts 600 22nd Street, Suite 220 Oak Brook, IL 60523 630-574-0650 fax 630-574-0132 www.aednet.org Business Outlook 55 Dealers Watching for Second-Half Pop 26 Putting its natural advantages to good use, two northern B.C. port cities are booming with construction project spending. Christian Klein AED Vice President of Government Affairs and Washington Counsel Production Manager martin cabral 800-388-0650 ext. 313 mcabral@aednet.org Columns From the Chairman 5 Three experts opine on rental penetration and the industry's continued evolution. Midway through 2013, construction is displaying a split personality. Private residential construction, both single- and multifamily, is going gangbusters. Private nonresidential construction has been going nowhere. And public construction is headed in reverse. Where will these segments head for the rest of 2013 and beyond? What might drive a change in direction? Total construction spending through the first five months of the year, as measured by the Census Bureau's "value put in place" series, rose 6 percent compared with the same period in 2012, similar to the 7 percent full-year growth recorded from 2011 to 2012. But the pattern has shifted markedly. So far this year, private residential construction has surged 25 percent, after gaining 9 percent in 2012. In contrast, private nonresidential construction has flattened out to an increase of just 0.6 percent year-to-date in 2013 after rising 16 percent for all of last year. Only public construction has remained fairly consistent, shrinking 5 percent so far in 2013 following a drop of 3 percent in 2012. The Residential Revival The pickup in residential construction extends to both single- and multifamily building. The former accelerated from 22 percent growth last year to 34 percent year-to-date, while the latter rose from an already lofty 48 percent gain to 57 percent. Despite the upsurge, builders have continued to pull more permits than the number of units they have started in the first five months of 2013, suggesting the boom will continue for at least the next few months. Nevertheless, many analysts have scaled back their forecasts 42 | www.cedmag.com | Construction Equipment Distribution | August 2013 42_Simonson_Feature_EB.indd 42 7/25/13 11:51 AM How Do Contractors Spell Relief? R E N T A L 32 AED Directors provide regional observations. Best Practices – Successful Succession: A Work in Progress 48 HOLT CAT prepares its fifth generation to take over the business. August 2013 | Construction Equipment Distribution | www.cedmag.com | 3 7/25/13 12:47 PM