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Construction Industry Continues to Face Steep Unemployment
Kubota’s New Compact Track Loadersh
Caterpillar Acquires Underground Imaging Technologies Inc.
FMI Outlook: Another Year of Decline in Nonresidential Construction
John Deere’s Retrofit Tips
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Construction Industry Continues to Face Steep Unemployment
Losses Top 20 Percent in June
 June proved to be a dark month for America’s job market as the country shed scores of jobs compared to the nearly 200,000 gained in March and April. The latest Bureau of Labor Statistics report, released July 2, reported that the unemployment rate in construction was 20.1 percent.
The industry lost 22,000 jobs in June, following the loss of 35,000 jobs in May. There are approximately 1.4 million construction workers currently out of a job as the industry continues to recover from the economic downturn, according to reports from the National Utility Contractors Association (NUCA). While construction unemployment continued to slowly decline over the past several months, 20 percent is obviously nothing to smile about compared to the 9.7 percent national unemployment rate.
The residential building construction sector lost 1,500 jobs in June and 51,100 jobs compared to June 2009, reports the Associated Builders and Contractors Inc. (ABC). Overall, the construction industry lost 447,000 jobs year-over-year. The June non-seasonally adjusted construction unemployment rate stayed flat at 20 percent, up from the 17.4 percent in June 2009.
“Employment in nonresidential building construction continues to slump, a reflection of the fact that momentum in the broader economy has yet to meaningfully impact many segments of America’s nonresidential building construction industry,” said ABC Chief Economist Anirban Basu. “This is particularly true for privately financed segments, where a lack of momentum was also reflected in the July 1 data regarding construction spending.”
To combat the rampant unemployment, NUCA and the Clean Water Council continue to aggressively advocate a broad range of House and Senate bills intended to expand the water and wastewater infrastructure markets. Legislative initiatives include eliminating the state volume cap on private activity bonds, extension and expansion of the Build America Bonds program, robust appropriation levels for EPA’s Clean Water and Drinking Water State Revolving Fund (SRF) programs, reauthorization of the SRF programs and the possible establishment of a National Infrastructure Bank.
Total employment, both private and public, in the nation is down 125,000 jobs for the month as the temporary Census workforce decreased by 225,000 jobs. Total employment for the second quarter was up 621,000, but is down 170,000 or 0.1 percent from the same time last year, according to an ABC report. Total private employment was up 83,000 jobs in June and up 357,000 jobs for the second quarter. However, on a year-over-year basis, total private employment was down 375,000 jobs (0.3 percent). Meanwhile, the national unemployment rate was 9.5 percent in June, the lowest since July 2009. |
Kubota’s New Compact Track Loaders
 There’s a new pair of compact track loaders rolling onto jobsites this summer. Kubota Tractor Corp.’s new compact track loader series includes the 75-hp SVL75 and the 90-hp SVL90 models. Powered by efficient Kubota engines, the new compact track loaders are all-Kubota designed, engineered and manufactured.
“The SVL75 and SVL90 models offer customers a new dimension in Kubota quality and versatility to add to their equipment selection,” said Greg Embury, Kubota Vice President of Sales and Marketing. “Kubota is involved in each and every aspect of these machines, and we are proud of what these compact track loaders can deliver to our customers in terms of machine quality, innovation and value.”
The 74.3-hp (gross) SVL75 boasts a 6,204-lb bucket breakout force and a 4,881-lb lifting capacity, while the 90-hp (gross) SVL90 has a bucket breakout force of 7,961 lbs and a lifting capacity of 5,869 lbs. Both models are powered by a four-cylinder, direct injection, turbo-charged Kubota diesel engine. Kubota’s compact track loaders are also equipped with a rigid-mount undercarriage and a vertical lift boom for long reach and maximum lifting and dumping capabilities. A variety of performance-matched attachments are available for the SVL75 and SVL90, including several bucket options with teeth or straight edges, four-in-one buckets, pallet forks and more.
Operators are greeted by a wide cab entrance and a spacious, comfortable operator area, which features a high-back, fully-adjustable suspension seat and ample leg room. A hand-and-foot throttle ensures exceptional convenience. Both models are equipped with two-speed travel and high ground clearance for optimal travel performance on rough construction site terrain. The overall design is built to ensure stability and comfort in uneven terrain.
Kubota’s SVL75 and SVL90 are designed with time-saving maintenance in mind. Daily maintenance checks for engine oil dipstick, fuel filter, water/fuel separator, air cleaner and coolant level are simple and greasing the machine are made easy with all grease fittings accessible from ground level. A slide-and-tilt radiator and oil cooler are simple to reach because it requires the removal of only four bolts to be tilted for easy cleaning.
In addition, Kubota’s compact track loaders were designed to sustain hard work and heavy loads; the main frame and undercarriage are a one-piece welded unit, providing uncompromised structural strength.
Caterpillar Acquires Underground Imaging Technologies Inc.
 Over the past several years, there’s been a tech boom within the equipment industry. No longer are machines limited to gears and levers. Sophisticated technology like global positioning systems (GPS), laser systems and subsurface imaging and mapping have gained mainstream acceptance by contractors and manufacturers that are supporting value-added technology like never before. The latest news in the tech world is Caterpillar’s acquisition of Underground Imaging Technologies Inc. (UIT).
UIT is an advanced geophysical services company and technology developer based in Latham, N.Y. The acquisition will give Caterpillar the capability to provide geophysical services, specializing in providing three-dimensional representations of underground utilities and other targets.
“UIT’s geophysical expertise and advanced technologies will add dynamic new subsurface infrastructure capabilities to our Connected Worksite offerings,” said Hans Haefeli, Vice President with responsibility for the Caterpillar Advanced Systems Division. “But most important, this service provides detailed information that enables design engineers and contractors to proceed on underground projects with a clearer picture of the subsurface environment, contributing to both project cost savings and increased safety on the worksite.”
In business since 2002, UIT has been instrumental in developing many advancements in three-dimensional mapping by integrating geophysical and geospatial hardware and custom software. UIT is the owner of a number of patents and proprietary geophysical technologies. UIT also has demonstrated expertise in using those geophysical tools such as their multi-channel 14-antenna ground penetrating radar system called TerraVision II and their time domain electromagnetic induction (TDEMI) system called MetaVision II.
The extensive data from multiple geophysical and geospatial inputs are processed using a suite of UIT’s proprietary software that effectively integrates the acquisition, processing and analysis of these dissimilar datasets. The process is best defined as geomatic engineering, a modern engineering discipline that integrates acquisition, modeling, analysis and management of spatially referenced data that, when fused into common information systems, provides a well-defined and accurate representation of the subsurface that is geo-referenced and tied to control points.
“The use of advanced near-surface geophysical tools provides highly accurate three-dimensional images and digital maps of subsurface utilities and unknown objects,” said Mark R. Wallbom, CEO of UIT. “Our portfolio of proprietary software and geophysical means and methods has high value for both design and construction projects. Identifying underground impediments — before design and construction begin — speeds up the work, saves money and enhances safety. The technology also has potential applications in road building quality control, site evaluation, environmental surveys and mapping geologic layers for mining applications.”
All of UIT’s subsurface mapping activities are tied to an extremely accurate GPS or a robotic total station that provides the required spatial information and has the capability to provide the actual elevation — not just the depth of cover — of all targets. Extensive post processing and interpretation of the developed datasets, acquired from favorable soils, result in a foot-by-foot map with accurate three-dimensional target locations formatted for computer aided design (CAD) or other geographical information system (GIS) compatibility.
Currently, Underground Imaging Technologies LLC is focusing on its customers in North America, but plans call for offering imaging services in many other parts of the world.
FMI Outlook: Another Year of Decline in Nonresidential Construction
 The construction sector is struggling to get up from this economic slump, so we’re going to have to endure certain months (or perhaps even most of this year) falling backwards before we can stand tall again. Grim forecasts seemed to be the news du jour in July, as FMI (management consultants and investment bankers for the construction industry) released their Construction Outlook: Second Quarter 2010 Report.
While there have been positive signs for the general economy, the outlook for put-in-place construction for 2010 remains bleak. Total construction in 2010 will be down 5 percent after declining in 2009. Residential construction is expected to begin recovering in 2010. Nonresidential construction will decline 16 percent in 2010. Nonbuilding construction will continue to be a positive contributor thanks to the support of power and conservation and development construction.
The construction industry should prepare for another year of decline in nonresidential construction. Construction lost 35,000 more jobs in May. There have been losses in 31 out of 33 consecutive months, bringing the construction unemployment rate to 20.1 percent, compared to 27.1 percent in the first quarter. An increase in residential construction in 2010 could begin to turn the employment situation, but it is unlikely that it would do much to offset the losses from nonresidential construction.
Report Highlights Include:
- Residential construction is expected to begin to recover in 2010, with a slight increase in residential improvement construction.
- Nonresidential construction will see a double-digit decline in 2010. Manufacturing construction will turn down when many of the refinery projects are completed.
- Conservation and development construction contribute to a positive climb in the nonbuilding segment partly due to the Gulf oil spill cleanup.
- Water and wastewater construction should see an increase now that stimulus money has been allocated.
- Small job gains in a number of component industries were offset by job losses in electronic instruments and furniture production.
FMI’s Research Services Group is responsible for design, management and performance of primary and secondary market research projects and related research activities, including economic analysis and modeling, construction market forecasting and database management.
John Deere’s Retrofit Tips
We’re all trying to be more sustainable these days — particularly when it comes to emissions. There are a few options to consider when it comes to retrofitting your equipment to lower a diesel engine’s particulate matter (PM) emissions to help comply with regulations, bid specifications or other emissions requirements, and it can pay to do a little research. One popular retrofit option is installing a diesel particulate filter (DPF).
First, retrofitting with DPFs isn’t an option for all non-road diesel engines. Generally, Tier 0 and Tier 1 engines have PM levels that are too high for a DPF to be effective. However, DPFs can reduce PM on Tier 2 and Tier 3 engines.
Second, it’s important to understand the role a DPF will play on Tier 2 and above-powered equipment. A DPF will not make a Tier 2 engine into a higher tier-certified product like Tier 3 or Tier 4. Rather, the filter may qualify as a “best available control technology” or meet other emissions requirements asked of a contractor.
Further, the DPF may help a contractor reduce the PM levels of his or her entire equipment fleet. Understanding the impact of retrofit on the entire fleet is important because California has adopted a regulation intended to reduce PM and nitrogen oxide (NOx) emissions on construction equipment on the basis of a “fleet average.” The fleet average is an overall emissions profile for a fleet.
While California has temporarily postponed this regulation for economic and other reasons, the state may reinstate its fleet average approach in the future. Additionally, other states may follow California’s example and enact similar fleet rules to reduce PM and NOx emissions from fleets with older, higher-emitting engines.
Where can you get a DPF and quality installation?
A number of companies offer aftermarket DPFs, including equipment manufacturers. John Deere is currently working with a company called NETT to manufacture retrofit devices specifically for Deere equipment. These devices install under the hood to preserve visibility from the operator station. John Deere hopes to make them available later this year from its dealers for a select range of machines and expand the line over time.
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