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Construction costs soar with rising steel, gas prices
“Red-hot steel prices, combined with record diesel fuel costs, are making construction unaffordable,” said Ken Simonson, chief economist for The Associated General Contractors of America (AGC). Simonson was commenting on the producer price indexes (PPIS) for March reported by the Bureau of Labor Statistics (BLS).
“The PPI for inputs to construction industries -- materials used in all types of construction plus items consumed by contractors, such as diesel fuel -- soared 2.1% in March alone,” Simonson observed. “That jump was propelled by a staggering 24% increase in diesel fuel costs and a 5.5% rise in prices for steel mill products.
“Unfortunately, there is worse to come,” Simonson asserted. “Steel suppliers have been burning up the fax wires announcing huge price increases and canceling previous quotes. And the Energy Information Administration reported last night that the average price of highway diesel crossed the $4 per gallon mark in all regions for the first time, with a 10-cent increase in the national average just in the past week, to $4.05 per gallon. These figures won’t show up in the producer price index until next month, but contractors are paying them now.
“Public agencies as well as private owners need to adjust to these realities,” Simonson noted. “Too many of them are still assuming construction costs are rising no faster than the consumer price index (cpi), when in fact the ppi for construction inputs has gone up 6.5% in the past 12 months and 34% since steel prices first surged in December 2003. That is more than double the run-up in the CPI.
“Diesel prices are now more than 60 cents a gallon higher than the $3.44 average price for gasoline,” Simonson added. “This puts a triple burden on contractors, who use diesel to power offroad equipment and construction trucks and also pay a fuel surcharge on the thousands of deliveries and backhauls at a large job site.
“As the highway paving season gets under way, asphalt prices also are poised to take off,” Simonson concluded. “Asphalt at the refinery cost 13% more in March than a year ago. But many states and the federal government are running low on highway funds because motorists and truckers have been driving less. It is imperative that Congress pass additional funding in the next few months to keep highway construction funds flowing and not choke off funds with an ill-advised moratorium.”
Murray Supply Company hosts Bradford White counter day
Wholesale plumbing distributor Murray Supply Company held a counter day sponsored by Bradford White on May 6, 2008. Phillip Ayers from Snider, Inc. introduced the Bradford White Perfect Candidate program to a number of customers and employees. The customers enjoyed biscuits and coffee, as they discussed the features of new products in the marketplace with sales associates from Murray Supply Company.
Murray Supply Company is a family owned and operated company that is based out of Winston-Salem, North Carolina. The company is engaged in the wholesale distribution of residential and commercial plumbing products, industrial and commercial piping as well as kitchen and bath fixtures. Murray Supply Company serves their customers from five branch locations and two showrooms in North Carolina.
For information, visit online at www.murraysupply.com.
A historic lavatory bowl whose only other example is at Jefferson’s Monticello, antique plumbing tools and fittings, old copper tubs and wooden water pipes from old Boston mains will all be featured at a relocated Plumbing Museum in Watertown.
The Plumbing Museum, previously based in Worcester, Mass., is being moved to a renovated icehouse at the company headquarters of J.C. Cannistraro, LLC, one of the largest mechanical union contractors in New England. John Cannistraro, Jr. is the president of the very established family business. The museum is scheduled to open in fall 2008.
The museum will have displays outlining history of industry, with examples of tools/ materials/ fixtures from various periods: early 18th century; Victorian period; early 20th century; contemporary, etc. It also will have full examples of the structure of a “typical” modern-day plumbing system, such as exposed piping of a three-family home. Cambridge Seven Architects is overseeing the overall design and rendering of the museum layout.
The plumbing museum was founded in the 1970s by the family of Russell Manoog, Manoog Supply in Worcester, Mass.
The Manoogs built a building for the museum, which contains an extensive collection of antiques.
A Board of Trustees will include representatives from both the Cannistraro and Manoog families; Michael Kohler of the Kohler family; phcc of Greater Boston Executive Director Hugh Kelleher; and reps from vocational education community.
For more info, www.phccweb.org.
Apollo Valves takes active role on Supplier Council of MCAA
Apollo Valves representatives have a different perspective on issues for mechanical contractors now that parent company Conbraco Industries, Inc. joined the Supplier Council of the Mechanical Contractors Association of America (MCAA).
The MCAA ’s Manufacturer/Supplier Council works with contractors, including service, plumbing and welding professionals, to address issues and solve industry problems. The council also promotes development of new products for enhancing contractor productivity and profitability while still advancing the sustainable construction goals adopted by MCAA.
IAPMO begins work on green code supplement
Following through on its commitment to be the leader in sustainable model code provisions through the promotion of safe and reliable, environmentally responsible construction practices, the International Association of Plumbing and Mechanical Officials (iapmo) on April 9 in Chicago convened the inaugural meeting of its Green Technical Committee. This initial dialogue formally launches iapmo’s efforts to identify opportunities to make the Uniform Family of Codes more embracing of sustainable practices and technologies and develop the first ever green supplement for plumbing and mechanical codes.
Assembled from a host of top experts in water efficiency and the sustainable plumbing and mechanical industries, the Green Technical Committee seeks to develop and maintain a supplemental document establishing requirements for green plumbing and mechanical systems, while ensuring these practices are safe and reliable. The green plumbing and mechanical supplement will also serve as a repository for provisions that can ultimately be integrated into the Uniform Codes and supplement codes developed by other organizations.
“I consider it a great honor to be part of this pioneering effort to develop a whole new set of provisions that promote and ensure sustainability in our future building practices,” said committee Chairman Bill Erickson of CJ Erickson Plumbing Co. “I have placed a very high priority in my work to see this to its fruition.”
The supplement will seek to meet these requirements through the use of high-efficiency fixtures, appliances and equipment, water reuse and conservation, and renewable energy sources; reexamination of sizing methods and design practices; placing more emphasis on maintenance; and many other tenets of the green movement.
“By creating a comprehensive green plumbing and mechanical supplement, many proactive jurisdictions will have the option of adopting the requirements or using them as a resource to complement their existing plumbing and mechanical codes,” said Dave Viola, iapmo director of Special Services. “Many municipalities across the country have been asking for such a document.”
At the meeting, clearly defined goals were established and task groups were formed to tackle specific issues in the development of the code supplement.
The committee’s next meeting is tentatively scheduled for Aug. 21 in Chicago.
For more information, visit iapmo online at www.iapmo.org.







