Mike Miazga 0000-00-00 00:00:00
NEWS, INSIGHTS AND BACKGROUND INFORMATION OF INTEREST TO PVF PEOPLE Construction Industry Panel Sees Manufacturing Growth Despite a report that barely shows growth overall, consultant FMI’s fourth quarter Nonresidential Construction Index reflects optimism in the manufacturing sector. With a score of 50 or more indicating growth and less than 50 a slowing of construction activity, the fourth quarter NRCI stands at 50.3, down from 52. 4 in the third quarter. The score is derived from a survey of construction industry executives who work in diverse market sectors such as manufacturing, health care, education, lodging, office and commercial projects. Those involved in manufacturing are among the most optimistic about activity in the next three months (a score of 57.5) and in the next year (64.4). Only those executives involved in health care projects come close in their business outlook for the same periods, with scores of 57.9 and 64.2 respectively. In contrast, those involved in office construction foresee a slowing of activity in the next three months (40.4) and year (48.8). In the manufacturing sector in the next three months, 26.9% of executives see activity growing from the last quarter, and 61.3% see it remaining the same. Only 11.8% see business getting worse than it was in the third quarter. In the next year, 36.2% of executives see manufacturing activity increasing from the prior period, and 56.4% see it remaining the same. Just 7.4% expect business to get worse in the next year. The report cautions that moderate growth overall does not mean changes are not taking place in nonresidential construction. “In past issues, panelists expressed views on the increasing use of new methods and technologies like BIM, prefabrication, modularization, integrated project delivery, sustainable construction, as well as improved productivity and business development,” FMI states. In another finding from its survey, FMI says project cancellations are down because fewer projects are getting started unless full financing is in place. “Overall, cancellations and delays began to improve in the second quarter of 2010,” the report states. “Although still historically high by what panelists consider normal rates, financing is less the problem compared with the early part of the recession. Now most delays are caused by the red tape and the mechanics of getting funding, permitting and approvals in a normal period. This problem may have worsened since banks and government have downsized their workforce at the same time paperwork for loan approvals and regulations have increased.” For more information, visit www.fminet.com. According to Metals Service Center Institute, October service center shipments returned to double-digit rates of increase in the United States. • U.S. service centers shipped 3,378.1 thousand tons of steel products in the October, an increase of 11.5% from October 2010. • 2011 year-to-date steel shipments were 34,452.7 thousand tons, an increase of 15.4% from the same period in 2010. • Steel product inventories were 8,377.7 thousand tons at the end of October, an increase of 12.9% over October 2010, and a decrease of 1.5% from September 2011. At the current shipping rate, this represents 2.5 months supply, an increase of 1.3% from a year ago. The World Steel Association reports the United States produced 7.3 million metric tons of crude steel in October, an increase of 11. 5% compared to October 2010. World crude steel production for the 64 countries reporting to WSA was 124 million metric tons in October — 6.2% higher than October 2010. BITS AND PIECES PVF PEOPLE ON THE MOVE…… Flowserve hired Michael S. Taff as a senior vice president and chief financial officer. Taff will officially join the company in early 2012. The company also appointed David E. Roberts Jr. To its board of directors. Roberts is an executive vice president and COO at Marathon Oil Corp. Chicago Tube and Iron Co. Hired Dennis Collins as outside sales representative for the southeastern Wisconsin territory. Todd Destiche was named the outside sales representative for the northeastern Wisconsin territory, while Stephen Wilka joined the company as an outside sales representative for the eastern South Dakota and southwestern Minnesota territories. Ferguson Acquires Pipeline Materials Distributor Ferguson Enterprises recently acquired Groeniger & Co. In an asset transaction. As of mid-November, the company will continue to operate under its existing name and be led by Dick Alexander, Groeniger’s current executive vice president. Founded in 1949, Groeniger is the leading waterworks distributor in northern and central C a l i f o r n i a . The company has eight sales branches, one administrative office and one pipe yard. Groeniger distributes pipe and other equipment for waterworks, fire protection, sewer, reclaimed water, irrigation and storm drainage projects. Groeniger is recognized as a leading pipeline materials supplier for residential, commercial and public works sectors. “It is clear Groeniger and Ferguson share the same culture of taking care of the customer, respecting our vendors and taking care of our employees,” Alexander said. “This union will provide our customers with a combination of resources and talent that will benefit them now and for many years to come.”
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