AEM Survey Optimistic About 2004

The construction machinery manufacturing industry expects anticipates 2004 growth in the 3 percent to 5 percent range, according to an annual industry forecast of the Association of Equipment Manufacturers. Sales increases in 2004 are predicted for all major product groups covered in the AEM forecast.

Machinery manufacturers participating in the annual AEM "outlook" survey expect construction equipment business in the United States to close out 2003 with a 0.4 percent loss, followed by 2004 growth of 5.5 percent.

"We are certainly more optimistic than we have been in the past few years," said Ron DeFeo, 2003 AEM chairman and chairman/CEO of Terex Corp. of Westport, Conn. "We look for a general improvement in business conditions to positively impact the construction equipment manufacturing industry.

"For our business segment in particular, our customers' fleets are aging and need replacement. Also, the federal government needs to pass highway spending legislation, and this should boost equipment sales.

"Our customers have taken a wait-and-see attitude during the past few years as our economy has slowed, delaying new equipment purchases. General business conditions are still fluctuating, but we are hopeful that confidence - and with it, buying - will increase as more economic indicators register positively for a sustained period of time."

First Half of theYear Price Hikes Holding

Manufacturers of construction equipment pushed through a string of price increases totaling 1.1 percent during the first half of 2003, the largest increases tracked by the Bureau of Labor Statistics in several years.

The higher equipment prices held during the summer months, encouraging manufacturers to nudge prices up another 0.1 percent in September. The latest increase pushed the BLS producer price index for construction equipment 1.5 percent above September 2002's level.

The largest year-to-year price hikes tracked by BLS are 4 percent for wheel-type loaders and 2.2 percent for power cranes and excavators. Paving equipment prices are 1.5 percent above a year ago.

BLS also tracked a 0.8 percent increase in tire prices during the third quarter, which left tire prices 3.1 percent higher than a year ago. Equipment users may see their biggest cost break in diesel fuel, which has fallen 1.3 percent below last year's level.
Source: Engineering News-Record

DFW International Airport Newly Expanded Runway Reopened

DFW International Airport recently reopened the expanded Runway 18R/36L, which will accommodate large, long-haul airlines that serve Asia Pacific and other major destinations around the world.

The 2,012-ft. extension lengthens the runway to 13,400 ft. Construction of the project was completed on time and approximately $500,000 under budget. The $25.55 million runway and taxiway project was funded in part by $10.3 million in Federal Aviation Administration grant money.

DFW has received more than $49 million in grants from the FAA for the 18L, 18R and 17C improvement projects.

"The continued extension of runways at DFW is a key element in our ability to attract additional international flights," said DFW's CEO Jeff Fegan,. "Longer runways keep us competitive with other airports. These extensions and our new International Terminal D reflect DFW Airport's position as a critical gateway to the world."

McGraw-Hill Construction Sees 1 Percent Increase in Total Construction in 2004

Citing strong projected gains for income property and manufacturing construction, Robert Murray, vice president of economic affairs at McGraw-Hill Construction, predicted that total U.S. construction in 2004 will increase 1 percent from the projected 2003 level of $505.6 billion to $508.9 billion.

After reaching elevated levels in 2003, Murray said single-family housing construction is expected to drop 2 percent in 2004 to $226 billion, primarily due to higher mortgage rates. Additionally, electric utility construction is expected to continue falling from record levels achieved in 2001, with a 19 percent decrease estimated for 2004.

However, Murray added that these declines will be offset by 9 percent increases in both income property and manufacturing building construction.

Murray said hotel and warehouse construction in 2004 is expected to see "double-digit growth," while office construction will experience "modest" gains. Additionally, construction of stores and apartments will continue the upward trend reported in 2003.
"While total construction has been basically steady during 2003, it's been the result of divergent behavior by project type," Murray said in his new 2004 Construction Outlook. "Single family housing has clearly been the 'star' this year and is on track to register its highest number of dwelling units since 1978.

"Multifamily housing is also seeing moderate expansion, despite rising vacancies and flat rents in some markets. And, in a bit of a surprise, stores and hotels are likely to report construction gains for 2003, as the initial stage of a turnaround for commercial building appears to be taking hold."

TDLR Makes Appointments To The Electrical Safety & Licensing Advisory Board

The Texas Electrical Safety and Licensing Act took effect on Sept. 1, and its funding bill, HB24, was signed by the Gov. Rick Perry in the third 78th Legislature Special Session.

HB24 gives the Texas Department of Licensing and Regulation authority to continue implementing the act. The department recently made the following appointments to the Electrical Safety and Licensing Advisory Board, which will provide advice on adopting rules, enforcing and administering the act and setting fees:

Keith Bell, Chair - Forney Term until 2009
Randy Pomikahl - Briarcliff Term until 2007
Ray Audas - Conroe Term until 2005
Tony Merritt - Texarkana Term until 2009
Kenny Corvell - Longview Term until 2007
A.C. McAfee - Mesquite Term until 2005
Brad Boyer - Cypress Term until 2009
Mark Goodson - Denton Term until 2007
Public Member Pending Term until 2005