October 18, 2007

INDUSTRY ACCESS*

Amweld Building Products Enhances Its Manufacturing & Operations With Relocation Plans To New Facilities

Amweld Building Products, a division of Ark II Manufacturing, LLC, announced plans to relocate its manufacturing operations and corporate offices to new locations. Current manufacturing facilities in Niles and Garrettsville, OH, will be phased out over the coming months and most manufacturing relocated to Monterrey, Mexico. Amweld Building Products will establish its new corporate offices and a distribution center, with some light manufacturing for custom jobs, in Stow, OH.

For more than 60 years, Amweld Building Products has been manufacturing hollow metal doors and frames which are designed specifically for the commercial building industry (hotels, office buildings, schools, government buildings, hospitals, etc.). Amweld is also a supplier of architectural hardware to its distributors. Amweld Building Products is a business division of Ark II Manufacturing, LLC.

For more detailed information, please contact John Kish, Director of Corporate Marketing, at 800-333-9914. For more information about Amweld Building Products, please visit www.amweld.com.

Click here for more Industry Access news including recent new hires, merger & acquisition activity and who's offering new products.

* DHI Members may submit news releases to be considered for inclusion in DHI's IndustryWatch. Send to: jmadden@dhi.org.

BUSINESS UPDATE

The Associated General Contractors of America (AGC) recently released its fifth Construction Inflation Alert, warning owners, budget setters and contractors to expect larger materials and labor cost increases in 2008 than they have experienced in the past 12 months, reported Building Design and Construction. "Nonresidential construction has had a banner year so far in 2007 and we've seen spending on nearly every segment increase compared to 2006, despite the plunge in homebuilding," said AGC Chief Economist Kenneth Simonson. "The materials cost surges that plagued the industry in 2004-2006 have slowed dramatically, and labor remains available in most markets. Simonson warned that many observers expect that the end of the calm is coming soon, "The worsening slide in homebuilding and turmoil in the credit markets threaten some types of nonresidential construction. At the same time, some materials costs are beginning to turn up again, and labor costs have started to accelerate." Full Story

The third quarter of 2007 shows a 1.89% increase in construction costs over the second quarter of 2007, and a 7.74% increase over the third-quarter 2006 index, according to the Turner Construction Building Cost Index. Experts link the looming shortage of skilled labor and talent in the industry to the pressure on material prices in the U.S. reported Buildings.com. Full Story

The September Producer Price Index for Wood Doors (flush & panel, interior & exterior) was down 0.3% from 2006 and the Other Wood Doors (Incl. garage, screen, storm, etc.) PPI was up 2.1% compared to a year earlier. Compared to August, the unadjusted September PPI for both Wood Doors and Other Wood Doors were unchanged, according to the Bureau of Labor Statistics. The PPI for Metal Doors, Sash & Trim was down 0.2% from August and up 2.3% from a year ago. Click here to view the full September Producer Price Index report. (PDF file - Wood Door information is on page 12 and Metal Door data is on page 17)

Nonresidential builders and their subcontractors added 10,000 more jobs in September after two months of no net hiring, according to the latest jobs report from the Bureau of Labor Statistics. Homebuilding jobs fell another 20,000 bringing the decline in the last three months to nearly 50,000. These divergent trends will continue for several more months and then begin to converge, reported Building Design & Construction. Full Story

In Canada, investment in non-residential construction rose again in the third quarter, marking four straight years of growth in the sector, Statistics Canada says. Construction of major office building in Alberta, Quebec and Ontario helped push investment up 4.9% from the previous quarter, to C$10.4 billion, reported The Canadian Press. The statistics agency said growth in the non-residential sector has been on an uninterrupted growth streak since the middle of 2003. Full Story

The Canadian Construction Association (CCA) has advised municipalities to ensure there is a sufficient pool of available contractors conversant with green building techniques before mandating that bidders be LEED-qualified, reported Daily Commercial News and Construction Record. Full Story

As part of its commitment to provide a better way to build, the Green Building Initiative (GBI) has released a new and improved interactive platform for its Green Globes environmental assessment and rating system. The updates reflect feedback from hundreds of users, including architects, engineers and graduate architecture students at Stanford University and the University of California at Berkeley, and include several user interface changes to streamline the design entry and review process, reported Environmental Design & Construction. Full Story

CONSTRUCTION & DESIGN

Following a six point decline in August, the Architecture Billings Index (ABI) for September dropped to its lowest level since June 2006. The American Institute of Architects (AIA) reported the September ABI rating was 51.1, down from the previous mark of 53.9 (any score above 50 indicates an increase in billings), and inquiries for new projects was 61.4. "While there is plenty of nonresidential construction activity in the pipeline over the coming months, the demand for new projects is tapering off a bit." said AIA Chief Economist Kermit Baker, PhD, Hon. AIA. "The fallout from the subprime mortgage meltdown in the residential market has seeped into the nonresidential sector causing project delays and a tightening market for financing. There is also emerging concern in the industry that this situation will extend into 2008." Full Story

Reed Construction Data is forecasting a 7.1% increase in construction spending in 2008 (versus -1.7% in 2007). The gains will be small early in the year, but progressively increase. There is a larger-than-usual error range about this forecast since the forecast period includes a projected turnabout from decline to increase. The timing and magnitude of the turnabout depends on housing start trends, which are still somewhat fuzzy until there is an accurate reading on the surplus home inventory and the availability of mortgage credit to applicants with acceptable credit scores. Full Story

Many architects and builders are using Forest Stewardship Council (FSC)-certified wood in their projects as a means of demonstrating their own commitment to the environment, reported Environmental Design & Construction. The LEED Green Building Rating System and other types of green building programs around the country help to encourage the use of FSC-certified wood, and allow building owners to earn recognition for doing so. Many professionals working on LEED-registered projects have questions related to the implementation of the certified wood credit and FSC-US has worked together with the U.S. Green Building Council to develop a list of frequently asked questions. Full Story

Dozens of architects, PTA presidents, school board members, school superintendents, and others from across the country are ready to begin a grassroots effort to further the vision of green schools for every child within a generation. Some 64 "Green School Advocates" from U.S. Green Building Council (USGBC) chapters nationwide were in Washington, DC, during the last week of September to receive training to go back to their communities and organize green school committees. Local chapter "Green Schools Advocacy Committees" will work with decision-makers, parents, teachers, and others who are passionate about giving children the healthiest, safest places to learn and grow—all while saving school districts money, contributing toward mitigating climate change, and improving our environment, reported Consulting-Specifying Engineer. Full Story

In Texas, demand is rising for high-rise living space in cities such as Austin and Dallas. The movement also is accelerating beyond Texas to Phoenix, Las Vegas and several other cities that don't have a rich urban heritage but are now embracing high-density projects, as gas prices, traffic and environmental regulations increase, reported USA Today. Full Story

SECURITY & SAFETY

A recent Security Distributing & Marketing article, "Market Leaders in Key Vertical Spaces," profiles a number of vertical market leaders which are recognized not only for their volume of work, but also for their innovation and effectiveness within key markets. Full Story

A recently released white paper offers guidance to security directors and government agency personnel who are implementing Personal Identity Verification (PIV) cards and readers in compliance with FIPS 201-1, reported Security Sales & Integration. FIPS 201-1 is essentially an interoperability standard for smart cards and readers used in support of the common PIV credential mandated by Homeland Security Presidential Directive (HSPD-12). It seeks to improve identification and authentication of federal employees and contractors for access to federal facilities and information systems. Full Story Download the full report (PDF file)

GOVERNMENT AFFAIRS

The House of Representatives passed a resolution setting a goal to expand renewable energy production in the U.S. The 25 by '25 resolution expresses the sense of the Congress that by the year 2025, at least 25% of total U.S. energy will come from renewable, domestically-produced sources, reported Environmental Design & Construction. Full Story

Maine has adopted the latest edition of several National Fire Protection Association (NFPA) fire and life safety codes. The latest adoptions will set fire and life safety requirements for new and existing buildings in the state, reported Security Sales & Integration. Full Story

The California state Department of General Services' Office of Public School Construction(OPSC) said that schools can apply for $100 million in High Performance Incentive Grants. High performance schools are defined as those that feature energy- and resource-efficient classrooms. Full Story

SMALL BUSINESS NEWS

Product Safety

Odds are we will be talking about this topic for the rest of the year. The House will consider, and likely pass, several consumer-product-safety-related bills that cover narrow issues. Last week, the Senate subcommittee chaired by Senator Mark Pryor (D-AR), held a hearing on his bill, S 2045. We expect to see it on the Senate floor before Thanksgiving. In the House, Energy and Commerce Chairman John Dingell (D-MI) has indicated he is working on his version of a comprehensive bill.

Climate Change Bill

Energy and Commerce Chairman Dingell is also promising that his version of a "climate change" bill will be out soon. It looks as if Chairman Dingell’s bill will go the "cap and trade" route.

A cap-and-trade program imposes a ceiling (i.e., an emissions cap) on the total emissions of that particular greenhouse gas. A market in emissions licenses (i.e., allowances) between emitters is created. This market in allowances is designed so that owners of allowances can trade those allowances with other emitters who need them or retain (bank) them for future use or sale. In the case of the sulfur dioxide program contained in the 1990 Clean Air Act Amendments, most allowances were allocated free by the federal government to utilities according to statutory formulas related to a given facility’s historic fuel use and emissions; other allowances have been reserved by the government for periodic auctions to ensure market liquidity.

DHI's Jerry Heppes sits on the board of the Small Business Legislative Council. If you'd like more information on these or other issues affecting small businesses, feel free to contact him at jheppes@dhi.org.

This material is protected under copyright law and contains confidential information. It is for the sole personal, informational use of DHI members. It cannot be distributed, reprinted, referenced as a source for attribution, or otherwise made public

FOUNDATION NEWS

The Foundation’s 2007 Online Auction is Open October 18th

Support the Foundation by visiting lifesafetyfoundation.cmarket.com to see what items are available to bid on.

Companies, Chapters and Individuals Committed to Making a Difference

Thank you to all of the individuals, companies and chapters that continue to support the foundation. Click here for a complete list of contributors (as of September 5th).

It is with this type of commitment that the foundation is able to continue to advance our important message of life safety and security.

Your support continues to make a difference. Thank you.

Keep up-to-date with the latest Foundation news and programs, please visit www.lifesafetysecurity.org

DHI NEWS

LAST CHANCE TO RECEIVE 2007 EDUCATION PRICING!
December 7th – 9th, 2007 in Lansdowne, VA

DHI will be offering ONE LAST National Education session this year. If you are interested in becoming a Fire Door Assembly Inspector (FDAI) this school is designed for you! The classes that will be offered include:

Basic Architectural Hardware (COR110)
Hardware Applications (COR115)
Using Codes and Standards (COR140)
Fire Door Assembly Inspection (DAI 600)

Whether you need to satisfy the pre-requisites or are ready to enroll in the Fire Door Assembly Inspection class, you can’t afford to miss this upcoming education opportunity! Beginning January 1, 2008, the price for DHI education will increase! Don’t miss your last chance to take advantage of 2007 education pricing! Register online at www.dhi.org/education/courselistings.asp, fax your completed registration form to 703-222-2410 or contact DHI directly at 703-222-2010.