Equipment World Digital Magazine
Issue link: http://read.dmtmag.com/i/305391
May 2014 | EquipmentWorld.com 12 reporter | continued pointed out the dramatic drop in the number of unemployed construction workers. In the past four years, construction unemployment has de- creased by 1.3 million workers. However, during that same period, the industry has only added 439,000. That means the majority of those work- ers have either left for other sectors, returned to school or they've retired, which places a high priority on fi nding new workers to replace them. Housing disappoints Residential construction had a disappointing fi rst quarter, although March snapped a three-month streak of decreases to the seasonally adjusted annual rate. But that bump was only 2.8 percent to 946,000—down 5.9 percent from a year ago. Baker said some of that slow activity is weather- related but noted that things are still below the trend line for growth based on what analysts were seeing in the fourth quarter of last year. Baker said the consensus of eight major hous- ing forecasts compiled by the AIA suggests a 23-percent improvement in housing starts to 1.14 million in 2014. In 2015, a 24-percent increase to 1.43 million is forecasted. However, Baker noted that the potential for market is closer to 1.8 mil- lion. "So, still a long way to go," he said. Nonresidential/Transportation Noting nonresidential's slow road to a sustained recovery, Baker said the sector seems to be getting off to a healthy start in 2014, citing a 6.4-percent year-over-year improvement as of February. Simonson said he expects nonresiden- tial construction to grow between 4 and 8 per- cent in 2014 with power and lodging being the biggest winners at more than 10 percent growth. Markstein predicts a 7-percent growth in non- residential spending to $320 billion, followed by an 8.7-percent growth in 2015 to $328 billion. Simsonson forecasts transportation construc- tion to grow between 2 and 5 percent but says highway and street construction could remain fl at or fall by 5 percent. That uncertainty has a lot to do with whether or not Congress can pass a highway bill that ensures the Highway Trust Fund remains solvent. The current MAP-21 transportation bill expires at the end of Septem- ber and the U.S. Department of Transportation expects the HTF to run out of money by the end of August. –Wayne Grayson Briefs Top views on our website Ohio DOT embarks on its largest construction season ever The Ohio Department of Transportation has announced that the 2014 construction season will be its largest ever. ODOT says the season is made up of 936 projects statewide totaling $2.5 billion. Most of the funding will come from the Ohio Turnpike, which will provide $1.5 billion over the next six years. This year's season includes $1.5 billion in roadway resurfacing projects, 84 interstate safety upgrades and 30 bridges repaired or replaced. In total, the state plans to invest $3 billion in new infrastructure spending in the next six years. The largest project contract awarded this year was the Portsmouth Bypass project at $370 million, ODOT says. Highway Trust Fund to run out of money in August Updating the Highway Trust Fund Ticker, the U.S. De- partment of Transportation predicts the HTF to run out of money by the end of August. The DOT notes that the Highway Account started fi scal year 2014 with about $1.6 billion, and $9.7 billion was transferred from the General Fund. Since then, the account's cash balance has dropped by nearly $3.5 billion to $8.4 billion. For the latest on Highway Trust Fund Ticker, go to equipmentworld.com. United Rentals posts strong fi rst quarter United Rentals says it will bring in $750 million in fl eet in the second quarter, the result of a strong 2014 start, with "notable year-over-year growth in rates, time utilization and volume," according to CEO Michael Knee- land. In the company's fi rst quarter, rental revenue had increased 9.7 percent year-over-year. Total revenue was $1.178 billion, compared to $1.100 billion for the same period last year. To check out these and current stories, go to equipmentworld.com. Caterpillar excavators stack 600-pound blocks in the biggest game of Jenga you've ever seen Amazing images of subway construction in the man-made caverns below New York City Duck Dynasty star Willie Robertson designed a truck: meet the Commander Series Chevrolet Silverado