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Construction Jobs
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Grus Personnel
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HVAC Agent
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Job Hot Sheet
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Indust.Tradesman
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Tradesmen Int.
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KBR
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iHireConstruction
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Road Dawg
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Welcome to ConstructionWorkers.US
The Mighty Money Machine Burns On
When you know a valuable skill, and you’ve gained some experience learning your trade, you can pretty much decide where you’d like to work. You know your expertise is needed, and you know your trade is valuable. Now, you have to figure out how to find the right company to work for. With so many out there to choose from, it’s a tough decision to make.
Now The Construction News.
U.S. Steel Exports Increase 12.4% from May to June
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SUGAR LAND--August 26, 2009--Researched by Industrial Info Resources (Sugar Land, Texas)--In a recently published report, the American Institute of International Steel (AIIS) (McLean, Virginia) indicated that in June, steel exports from the U.S. increased 12.4% from exports in May. Steel exports in May and June stood at 628,000 tons and 706,000 tons, respectively. However, compared to exports in 2008, total steel exports this fiscal year have declined nearly 42%. The year-to-date exports figure stands at 4 million tons, which is 39% lower than exports during the same period last year.
David Phelps, President of AIIS, has attributed the increase in June 2009 sales to a spurt in steel demand from Asian countries and other emerging economies. Phelps also indicated that while the figures were positive, they cannot be considered as indicative of the industry's trend for the remainder of the fiscal year. Phelps was optimistic that the growing steel demand in India, China and other Asian markets will help the global steel sector come out the present economic downturn. Increased U.S. exports in June this year have been a tremendous help to trading companies and domestic steelmakers. While China and India are the top steel importers from the U.S., exports to Africa and Latin American countries also improved considerably. The month-on-month figures indicate that U.S. exports to India and China increased 75.3% and 21.4%, respectively.
According to the World Steel Association (Brussels, Belgium), global steel output in July this year was about 103.9 million tons. This figure, which is the highest monthly output so far in 2009, represented a decline of 11.1% from June 2008. In June this year, steel production worldwide stood at 99.7 million tons. In July, China produced 50.7 million tons, accounting for about 48% of the global steel production. During the same period, the U.S. produced 5 million tons, a 41.6% slump compared to July 2008 figures, but the highest output recorded domestically this fiscal year.
Although global production of steel was higher in July, slack demand forced steel facilities in the U.S. to operate at half of their production capacities. According to figures provided by the American Iron and Steel Institute (Washington, D.C.), steel units in the U.S. were running at a plant capacity of 53.9% in July.
From January to July, total global steel production was about 651.68 million tons, including:
* Asia - 428.6 million tons
* European Union - 72.89 million tons
* Commonwealth of Independent States (CIS) - 52.42 million tons
* North America - 41.94 million tons
* South America - 19.3 million tons
* Rest of Europe - 19.3 million tons
* Middle East - 15.67 million tons
* Africa - 9.67 million tons
* Australia - 8.33 million tons
* New Zealand - 2.77 million tons
The global steel forecast report published by MEPS (International) Limited (Sheffield, England) states that in 2009, world steel output will be about 1.165 billion tons, a decline of 12% from the previous fiscal year. The study forecasts that the slowly recovering automobile industry and the real estate and construction sector in Asia and other emerging economies will help fuel steel demand. Industry experts indicate that it is a good sign that steel inventories in the automotive sector have decreased from a supply of 120 days to a 40-day supply. Many closed production facilities in the E.U. are expected to re-commence operations to help fulfill demand from the global automotive sector. The rest of Europe is also expected to steadily recover, with the Turkish steel industry in the driver's seat. The report predicts that many steel companies in the CIS nations are expected to take advantage of foreign exchange rates and produce semi-finished steel goods for export. North America and South America will see positive growth in the second half of the year, while the South African steel industry is expected to witness renewed activity from new projects in the residential construction sector.
The report forecasts that Asian steel production in 2009 will be about 743.5 million tons, with China contributing 516 million tons and Japan producing about 88 million tons. The E.U., CIS nations, and rest of Europe are expected to produce 141.5 million tons, 93 million tons, and 28.6 million tons, respectively. This fiscal year, North America, Africa, South America, Australia and New Zealand, and the Middle East are expected to contribute 82.7 million tons, 15.5 million tons, 36.3 million tons, 5.7 million tons, and 18.2 million tons, respectively.
Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy related markets. For more than 26 years, Industrial Info has provided plant and project opportunity databases, market forecasts, high resolution maps, and daily industry news. |
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Clark Energy and Acciona to Develop 1,000-Megawatt Fort Irwin Solar Project for U.S. Army
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August 11, 2009--Researched by Industrial Info Resources (Sugar Land, Texas)--The Baltimore district U.S. Army Corps of Engineers has shortlisted Clark Energy Group (Arlington, Virginia) to develop a large solar energy project at Fort Irwin (San Bernadino County, California). Another green energy player, Acciona Solar Power Incorporated (Clark County, Nevada) has been selected to partner Clark in this venture, which is a part of the Enhanced Use Leasing (EUL) program initiated by the Army Corps.
The 1,000-megawatt (MW) Fort Irwin solar project will be implemented in a phased manner with the first 500 MW of output scheduled to be available by 2022. The project is expected to be executed at an estimated cost of $2 billion. Construction activities are slated to commence in 2011. The Fort Irwin EUL project will be based on multiple solar technologies, involving both solar thermal plants as well as photovoltaic units. Power generation facilities will be spread across five sites, spanning a total land area of 14,000 acres.
The Clark-Acciona action plan is based on a holistic approach covering all aspects of the project, ranging from the terrain, infrastructure and technology to constraints, resources and costs involved in the venture. The team is also expected to factor the lead times associated with obtaining necessary resources, connections and approvals for each stage of the project into its plan.
The land requirements of the project have been addressed under the EUL program of the Army Corps. The U.S. Army plans to harness private funds and expertise to promote renewable energy ventures in return for long-term leases of land owned by the Army. The lease, lasting up to 50 years, will be based on the market value of land, the rent for which will be payable by means of in-kind services such as infrastructure development involving developing road networks and airstrips.
A portion of the 1,250 gigawatt-hours of energy generated by the Fort Irwin solar power venture will power two critical facilities located within the Fort Irwin grounds in the Mojave Desert of California, while the remaining output will be marketed to the private sector. Potential buyers include Edison International (NYSE:EIX) (Rosemead, California) and Los Angeles Department of Water and Power. The Army's heavy maneuver combat training exercises are conducted at the National Training Center located in the Fort Irwin complex. Fort Irwin also houses NASA's Goldstone Deep Space Communications Complex, responsible for contacting and tracking space missions. The pilot EUL project will serve as a model to harness the vast solar potential in the desert region, in addition to providing energy security to Fort Irwin.
Clark Energy is an energy solutions provider for both public and private sectors and is a full-service energy services company specializing in services related to energy efficiency, water conservation and development of green energy ventures. Clark is an affiliate of diversified real estate company Clark Realty Builders LLC (Arlington, Virginia). Clark has partnered with several energy majors in various ventures. The company has been awarded a $5 billion super energy savings performance contract by the U.S. Department of Energy.
Acciona Solar Power is an affiliate of Acciona Energy, which in turn is a part of Acciona SA's North American group of subsidiaries. Acciona SA (MCE:ANA) (Madrid, Spain) has been involved in sustainable green energy, water treatment and other infrastructure ventures for more than two decades. The company's operations span more than 30 countries. |
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GSE Systems Wins Westinghouse Contract for AP 1000 Nuclear Reactor Simulators
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BANGALORE, INDIA--August 7, 2009--Researched by Industrial Info Resources (Sugar Land, Texas)--GSE Systems Incorporated (AMEX:GVP) (Sykesville, Maryland), a global pioneer in real-time and training simulators, has secured a contract from Westinghouse Electric Company LLC (Monroeville, Pennsylvania) to build a full-scope nuclear reactor simulator for Westinghouse's AP 1000 reactor. GSE, a self-professed preferred vendor of Westinghouse, will build the simulator solution based on the reactor design specific to the geographic area.
The multimillion-dollar deal involves building high-fidelity simulation prototypes for the AP 1000 reactor, with the capability to mimic real-time plant operations involving human-machine interface. The prototypes will demonstrate the layout, process design, and control-room functions of the reactor model.
The AP 1000 technology from Westinghouse is becoming a preferred technology in the region. Westinghouse already has signed engineering, procurement and construction (EPC) contracts for six of the proposed 14 U.S. nuclear power plants that are to be based on the AP 1000 model. Under these contracts, Westinghouse is also required to provide a plant simulator, in addition to building the nuclear plant itself.
The simulation solutions planned for the current phase will focus on common features applicable to all future AP 1000 installations in the U.S., making them reusable in all plants in the country. However, GSE hopes to work on plant-specific contracts in the future, once customized reactor configurations are available. According to GSE sources, the AP 1000 simulators will be the first simulators for advanced third-generation nuclear power plants that will be used to train personnel at these plants, even while the plants are under construction.
As a part of deals signed in 2007, GSE also will provide a full-scope simulator for the twin AP 1000 project proposed by Sanmen Nuclear Power Company (Zhejiang, China), and also will upgrade existing reactors in the U.S., United Kingdom, Mexico, Germany and Russia, in addition to providing related services.
Construction activities at the Sanmen site were scheduled to begin this year. Of the four proposed units -- two each at Haiyang and Sanmen -- the first unit is slated to come on stream by late 2013, with the remaining three expected to start functioning by 2014-15. GSE is also expected to provide a new reactor core and thermo-hydraulic codes to Russian Research Institute for Nuclear Power Operations for use in its 1,200-MW AES-2006 VVERs, 18 units of which are planned to be built by 2020.
AP 1000 technology, the only advanced third-generation reactor with a design certification from the U.S. Nuclear Regulatory Commission, is renowned to be the safest reactor to date. The reactor has been designed based on proven technology, offering improved performance levels as well as passive safety systems. The AP 1000 is also the most economical plant in the world, with the design comprising 35% lesser pumps; 85% lesser cables; simplified safety systems with 50% lesser valves and 80% lesser pipes; and 45% lesser overall seismic building volume.
GSE Systems is a global player, providing real-time simulators and educational solutions across a range of sectors such as manufacturing, processing, power, and government functions. GSE's integrated solutions comprise domain-specific hardware, related software, and training packages. The company has completed over 349 installations worldwide over a period of 30 years. It has a customer base of over 100 clients across 40 countries.
Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy related markets. For more than 26 years, Industrial Info has provided plant and project opportunity databases, market forecasts, high resolution maps, and daily industry news |
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Dow Corning to Invest More Than $4 Billion in Next Five Years
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June 18, 2009--Researched by Industrial Info Resources (Sugar Land, Texas)--The world's largest organic silicon manufacturer, Dow Corning Corporation (Midland, Michigan), a subsidiary of Dow Chemical Company (NYSE:DOW) (Midland) and Corning Incorporated (NYSE:GLW) (Corning, New York), will invest more than $4 billion in the next five years. Industries to receive the investment are said to include solar energy, infrastructure, cosmetics and others. Sources from the senior management level of Dow Corning disclosed that most of the investment will come to the photovoltaic industry and will be focused on the Chinese market.
Thanks to the Chinese government's efforts to promote the development of renewable energy, China has become the world's largest photovoltaic battery manufacturer. The Chinese government's favorable policies toward the photovoltaic industry also make the world's photovoltaic industry players deem China a proper investment destination.
Industry analysts believe that if the country continues to subsidize photovoltaic industry as it did this year, China's domestic demand for relevant products will expand further. At present, 98% of photovoltaic batteries manufactured in China are intended for export--a lucrative business, as the worldwide value of the solar energy market has expanded from $8 billion two years ago to $19 billion today.
Dow Corning now has two products in the solar energy industry: polycrystalline silicon, the raw material for making crystal silicon solar battery, and silicon tetrahydride, the major material used to produce pellicle solar batteries. At present, all of Dow Corning's production facilities for these two products are situated in the U.S., and the company has not established production plants in China.
However, a senior manager with Dow Corning said that the company was planning to build a silicon tetrahydride production facility in China and that Jiangsu province in southern China had the best chance of hosting this plant.
Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy related markets. For more than 26 years, Industrial Info has provided plant and project opportunity databases, market forecasts, high resolution maps, and daily industry news. |
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Has the North American Chemical Industry Seen the Bottom?
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SUGAR LAND--June 17, 2009--Researched by Industrial Info Resources (Sugar Land, Texas)--The North American Chemical Processing Industry (CPI) hit some very low spots earlier this year, with plant closures experienced across most segments of the industry, multiple bankruptcies, and failed mergers and acquisitions, among many other problems all related to the global economic slowdown and recession. Now the question everyone wants to know the answer to is, "Has the CPI seen the bottom yet?" Despite there being no way to definitively answer this question, we can look at the amount of project activity that has been canceled, placed on hold or delayed until 2010 that were originally planned to take place this year.
As the second quarter nears a close, Industrial Info has identified nearly $3 billion in capital and maintenance projects they have been delayed or rescheduled until next year. In addition, an estimated $780 million originally planned for the second quarter of 2009 was canceled entirely -- nearly twice the amount seen in the same quarter last year. These cancellations and delays were identified as part of Industrial Info's plant and project surveys included in its North American Project Database, which tracks and monitors spending at thousands of CPI sites across North America.
The slowdown has gotten deep enough to effectively delay even the smallest of in-plant capital projects, not just the large expansion or addition plans. Based on current project activity, there appears to be little change for the better in the near future. Spending for the CPI will continue to be stressed through 2009, although the outlook for significant improvements in 2010 appears good.
Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy related markets. For more than 26 years, Industrial Info has provided plant and project opportunity databases, market forecasts, high resolution maps, and daily industry news. |
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Kentucky Contractors Can Expect Various Business Benefits from a Relationship with Union Ironworkers
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SUGAR LAND--April 2, 2009--Researched by Industrial Info Resources (Sugar Land, Texas)--Construction contractors are expecting various business benefits from a relationship with Union Ironworkers throughout Kentucky. Among the expectations is a well-trained, drug-free and safe work force in the Kentucky industrial manufacturing and construction market. More than 160 industrial projects totaling nearly $14 billion have been scheduled to begin as contractors prepare for the upcoming construction season.
To address the coming work, Union Ironworkers have committed to the development of a more productive work force, which is the most significant benefit that Union Ironworkers provide. Additionally, Union Ironworkers offer flexible help, lower safety-related costs and the development of strong project supervision. Union Ironworkers also provide significant business benefits to contractors, including no benefits-administration costs, savings from utilizing apprentices to lower overall crew costs and lower turnover, as most of our members are working for a career, not just a job.
"Contractors throughout the state of Kentucky can expect various business benefits that range from a productive work force to lower turnover as a result of our extensive training program," said Bill Kelley, business manager and financial secretary/treasurer for Ironworkers Union Local No. 372, Cincinnati, Ohio.
A more productive work force will be required as the current economic downturn begins to impact the construction industry in Kentucky.
"Nationally and locally we are preparing for the increase in work once the economy is back on track," Kelley said. "In addition to an accreditation program for our apprenticeship training programs throughout the country, our apprenticeship coordinators are working hard to certify more apprentices and journeymen in current welding techniques in preparation for more work. This anticipated work has us all preparing for the appropriated stimulus package that will help get the country back on track," Kelley said. |
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Will the Economic Slowdown Put a Damper on Energy and Reliability Projects?
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SUGAR LAND--February 27, 2009--Researched by Industrial Info Resources (Sugar Land, Texas)--At this time last year, the Chemical Processing Industry (CPI) of North America was still riding high on a wave of momentum that had been built over the previous three very strong investment years. There were a large number of projects on the drawing board to reduce operating costs through increasing production efficiencies, reducing energy consumption and capturing waste heat sources where practical. Even a significant number of cogeneration units were under consideration despite costs and excessively long delivery times on equipment.
Almost everything in the market has changed since this time last year, although the focus on energy and reliability projects hasn't lost its place on the list of priority projects. In fact, they have likely moved up in importance. The global economic downturn has placed increasing pressure on everyone in the CPI to scrutinize operating costs, including manufacturing processes, that are known to be wasting heat, electricity or are otherwise grossly inefficient. More than $100 million in capital and maintenance projects with some focus on this type of process improvement have been identified as apart of Industrial Info's North American Project Database.
Energy reduction projects come in many different methods and greatly range in size. Often they are accomplished through increasing process reliability to ensure consistent run times on equipment and enabling plant operators to accurately predict feedstock consumptions and energy requirements. In a time where demand is at a dramatic low, reducing redundant processes that consume unnecessary power generally provides a quick savings. Reducing operating rates or eliminating processes often equals a reduction in the amount of over-the-fence steam that must be purchased, in some cases reducing yet another very costly expense as the cost for energy continues to escalate and remains volatile.
The CPI currently operates nearly 9,000 megawatts (MW) of power generation from within the boundaries of its chemical plants, and several new generation unit additions are planned for the coming year, including several upgrades or overhauls. Columbian Chemicals Canada Limited (Marietta, Georgia) has long considered the addition of on-site power generation for its carbon black plant in Hamilton, Ontario. The recent and sharp declines in the price of natural gas feedstock now at the disposal of utility providers have delayed progress for projects such as these. Despite these delays in the short-term, on-site generation generally has a very positive long-term benefit for plant owners producing large amounts of waste heat or steam and will likely prove to be cost effective as commodity prices begin to inch back upward again.
Industrial Info Resources (IIR) is a marketing information service specializing in industrial process, energy and financial related markets with products and services ranging from industry news, analytics, forecasting, plant and project databases, as well as multimedia services. |
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ConocoPhillips Ends 2008 With Steep Losses
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SUGAR LAND--January 30, 2009--Researched by Industrial Info Resources (Sugar Land, Texas)--ConocoPhillips (NYSE:COP) (Houston, Texas), a company that reported huge profits for the first three quarters of 2008, has ended the 2008 fiscal year with an overall loss in net profits for the year. For 4Q08, ConocoPhillips had a net income loss of $31.76 billion, resulting in an overall loss for the year of $17.0 billion.
In a press release regarding the earnings, the company stated that "fourth quarter 2008 results include certain items related to the substantial decline in global equity markets, commodity prices and margins, as well as the company's asset rationalization efforts and revised capital plans." The most significant of these impairments included a $25.44 billion impairment of goodwill in the company's Exploration & Production segment and a $7.41 billion impairment of ConocoPhillips' investment in the Russian oil and gas company Lukoil (OTC:LUKOY) (Moscow). Even adjusting for these and other impairments, earnings for the quarter were substantially lower than 4Q07. Adjusted earnings for 4Q08 were $1.91 billion, compared with adjusted earnings of $4.11 billion in the fourth quarter of 2007.
The primary reason for the company's erosion of profits is the significant fall in the price of crude oil. "Crude oil prices were significantly lower during the fourth quarter as our realized group price was $52.82 a barrel," said Chairman and CEO Jim Mulva in a conference call regarding the earnings, noting that this was $59.37 less than the third-quarter price.
When asked, Mulva was hesitant to go into specifics about how capital expenditure would be reduced, saying that details would be provided at an investor meeting in March. He did say that some refinery upgrades would be deferred and that drilling projects in North America would be cut back until oil prices returned to friendlier levels.
One of ConocoPhillips largest projects involves the Wood River refinery and terminal in Roxana, Illinois, which ConocoPhillips jointly owns with the EnCana Corporation (NYSE:ECA) (Calgary, Alberta). Industrial Info is currently monitoring 20 active and planned upgrades, turnarounds, additions and expansions at the facility, including the addition of a delayed coker unit and sulfur recovery unit. The combined total investment value of these two unit additions, both of which are scheduled to be complete in 2010, is $700 million. Understandably, some of these upgrades and additions will possibly be delayed as ConocoPhillips revises its capital-spending strategies. In December of this year, the company completed the addition of wet gas scrubbers to two fluid catalytic cracking units at the site. The projects carried a combined estimated investment value of $55 million. |
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Valero Reduces Production to Match Lower Demand
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SUGAR LAND--January 29, 2009--Researched by Industrial Info Resources (Sugar Land, Texas)--Valero Energy Corporation (NYSE:VLO) (San Antonio, Texas) recently reported earnings for the fourth quarter and fiscal year 2008, which ended December 31, 2008. A noncash loss of $4.1 billion, caused by writing off the company's entire goodwill balance, brought significant losses on paper, leading to a net income loss of $3.28 billion for the quarter and $1.13 billion for the year. Even when this loss is excluded, the company's annual net income still dropped from 2007 figures.
Excluding the goodwill impairment loss, the company had 4Q08 net income of $732 million, compared with $567 million in 2007. For the entire year, however, income was significantly reduced. Excluding the loss, net income for the 2008 fiscal year was $2.9 billion, down 37% from 2007's net income of $4.6 billion. As previously reported by Industrial Info (see October 30, 2008, news article - Valero Delays Projects for Major Maintenance Turnarounds and Reduces Capital Spending by Nearly $2 Billion Through 2009 - for more information), Valero is curtailing capital expenditure in order to help keep the company's head above water in the slowing economy. The company is also reducing output in order to be on a more even footing with the current reduced demand for petroleum products.
"Looking at market conditions for the coming year, the sluggish economy is clearly a headwind against demand growth for refined products," said Valero's Chairman and CEO Bill Klesse. "To help stabilize margins, refiners must continue to use discipline in matching production with demand. At Valero, we are managing our run rates according to market demand. For example, we will shut down the entire Texas City refinery instead of running portions of it during scheduled maintenance this quarter. At our Corpus Christi East Plant, we have shut down the fluid catalytic cracking unit, which primarily produces gasoline. Across our system, the average utilization rate at our fluid catalytic cracking units is currently in the range of 70% to 75% of capacity."
The turnaround at the Texas City refinery is scheduled to begin in late January or early February this year and involves the inspection and maintenance of the DHT kerosene hydrotreater unit, Crude Unit 3 and the delayed coker unit. The total investment value of this maintenance is estimated to be $26.5 million. In addition, during the turnaround, Valero will also perform upgrades to the refinery's delayed coker unit, requiring an estimated investment of $10 million. |
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Exelon's Profit Jumps 26% on Higher Output and Lower Costs
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SUGAR LAND--January 27, 2009--Researched by Industrial Info Resources (Sugar Land, Texas)--Exelon Corporation (NYSE:EXC) (Chicago, Illinois) has announced that its fourth-quarter 2008 net income has increased 25.8% to $707 million, compared with $562 million in the same quarter in 2007. The company said that part of the growth is attributable to increased nuclear power output and lower purchased power costs. "Despite the impact of the deteriorating economy, we achieved out 2008 goals of operating excellence in generation and delivery," Chairman and CEO John Rowe said. However, revenues fell 1.2% to $4.49 billion, compared with $4.55 billion in 4Q07.
The company experienced strong growth in its Exelon Generation segment, posting net income of $553 million, compared with $343 million in the fourth quarter of 2007. Other fourth-quarter highlights included a hostile takeover bid of about $6.2 billion for NRG Energy Incorporated (NYSE:NRG) (Princeton, New Jersey). After the bid was rejected by NRG's board, Exelon presented the offer directly to NRG shareholders in an exchange offer that was to expire on January 6, 2009. On January 7, Exelon extended the deadline to February 25, 2009, the company stated.
As part of our North American Project Database, Industrial Info is tracking 31 active Exelon projects worth $7.53 billion. The projects range from a $1.5 million maintenance outage to a $6 billion grassroot nuclear power station.
"With the momentum of a strong fourth quarter behind us, we are focused on continuing to deliver top-tier operations, managing our costs and meeting our financial targets in 2009," Chief Financial Officer Matthew Hilzinger said.
Industrial Info Resources (IIR) is a marketing information service specializing in industrial process, energy and financial related markets with products and services ranging from industry news, analytics, forecasting, plant and project databases, as well as multimedia services. |
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National Unemployment Situation Worsens with 524,000 Jobs Lost in December
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SUGAR LAND--January 12, 2009--Researched by Industrial Info Resources (Sugar Land, Texas)--The sharp increase in the unemployment situation in the United States continued through December 2008, making the year the worst since the end of World War II in terms of total jobs lost. About 524,000 additional unemployed workers added to the total jobs lost during the year in December, driving the unemployment rate to a whopping 7.2%, the highest since 1993. During the final four months of 2008, 1.9 million jobs were lost, according to the most recent Department of Labor statistics.
Both manufacturing and construction jobs took major hits during the final month of 2008. About 149,000 manufacturing jobs were lost, the largest monthly decline since August 2001, while the construction industry added 101,000 jobs to the dismal total, raising the unemployment rate within the construction sector to 15.3%. Factory job losses topped 791,000 in 2008 with nearly half of those losses occurring during the fourth quarter. Since September 2006 almost 900,000 construction jobs have been lost.
Within the manufacturing sector, the largest job losses were felt, once again, in the fabricated metal products sector, down 28,000 jobs for the month, and the motor vehicles and parts sector was down 21,000 for the month. In addition, management job losses were larger than expected in December with 8,000 management positions being eliminated. Architectural and engineering job losses were also up during the month as 7,000 jobs were lost in that sector. The only real employment highlight for the month was the 45,000 jobs created in the education and health services sector.
As spending continues to decline in most sectors coming into 2009, the unemployment news is not expected to get much better in the near future. This puts increasing amounts of pressure on President-elect Obama and the new Congress to put together some kind of stimulus package sooner rather than later. Analysts are predicting that at least another 1 million-1.5 million jobs will be lost through the end of March before the unemployment situation begins to stabilize. By June, job losses are expected to retreat to the 200,000 per month.
While the proposed tax cuts are expected to have only marginal impact on the recession facing the nation, the jobs program aimed at the infrastructure sector of the country could help the unemployment situation significantly by the end of 2009. This would be especially true within the construction sector, where workers are itching to get back to work. The real problem becomes the length of time it will take to not only get some form of stimulus passed but implemented. The immediate need for jobs will not be quenched by any kind of package passed in the next few weeks. It will take several months for the affect to truly be felt.
Industries across the board have been streamlining operations for months now, contributing heavily to the massive monthly unemployment numbers. Hopefully, the majority of this streamlining is completed now, or will be completed within 90 days so the nation can truly begin the process of replacing these jobs. However, for this to happen, spending will have to be cranked up and that will take some time. In addition, the failing American automotive sector may well contribute more jobs to the unemployment numbers in the coming months as they begin their governmentally mandated restructuring by April 1, 2009.
The first quarter of 2009 will give us a good indication of where things are heading not only in terms of unemployment but also in terms of overall spending within the manufacturing sector. If spending can be increased, the unemployment numbers will decrease, especially among the construction sector. However, for this to happen, companies will need to have reached the bottom of their streamlining programs and there are no indications that this will occur until at least April.
Industrial Info Resources (IIR) is a marketing information service specializing in industrial process, energy and financial related markets with products and services ranging from industry news, analytics, forecasting, plant and project databases, as well as multimedia services. |
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While Economy Falters, Shaw Group's Future Looks Strong
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SUGAR LAND--January 12, 2009--Researched by Industrial Info Resources (Sugar Land, Texas)--While many U.S. companies and institutions are struggling in the face of the slowing economy, notable exceptions exist. One of these is The Shaw Group Incorporated (NYSE:SGR) (Baton Rouge, Louisiana), which reported significant growth in profits in its first-quarter 2009 earnings report. While many companies have had to lay off increasing numbers of employees, the Shaw Group has continued growth and new hiring for the past several quarters. Shaw provides engineering, design, construction, maintenance, consulting and other services across business segments: Fossil & Nuclear Power, Power Maintenance, Energy & Chemicals, Fabrication & Manufacturing, and Environmental & Infrastructure.
The company's first fiscal quarter of 2009 ended November 30, 2008. Gross profit was up 39% from the same period last year, moving from $135 million in 1Q08 to $188.1 million this quarter. More impressively, net income, at $62.8 million was up more than 69% from 1Q08's $37.7 million. Of the company's five business segments Energy & Chemical brought in the largest amount in terms of gross profit. The five segments' gross quarterly profits were as follows:
* Fossil & Nuclear - $51.8 million, up from $42.9 million last year
* Energy & Chemicals - $52.4 million, up from $16.4 million
* Maintenance - $11.7 million, down from $14.8 million
* Environmental & Infrastructure - $35.7 million, up from $35.1 million
* Fabrication & Manufacturing - $35.7 million, up from $35.1 million last year
The future continues to look quite rosy for Shaw. Within the Environmental & Infrastructure segment, 93% of the infrastructure is with the U.S. Federal Government, which not only provides current lucrative contracts, but places Shaw in a good position to benefit from the upcoming economic stimulus package discussed by the new administration. Additionally, Shaw and partner Westinghouse recently signed a engineering, construction and procurement contract with Progress Energy (NYSE:PGN) (Raleigh, North Carolina) for the establishment of two Westinghouse AP1000 nuclear units in Florida. While the value of the contract remains undisclosed, Shaw is stating that this represents the largest contract ever in the company's history.
Industrial Info recently reported that The Shaw Group topped the list in terms of value of projects for engineering and construction firms with $48.9 billion of industrial projects in North America. |
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2009 Could Be a Rough New Year for Ethanol, Leading to a 365-Day Hangover
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SUGAR LAND--January 8, 2009--Researched by Industrial Info Resources (Sugar Land, Texas)--Regarding the current credit crunch and how and whether plant operators will survive the present economic downturn. Although new plant construction has come to a standstill, the industry is not expecting a good time in 2009, leading to an industry self-medicated hangover.
The ethanol industry is suffering from a quick buildup and too much capacity. A number of ethanol plants across the country have put new projects on hold, curtailed production or canceled plans all together because of high corn prices and falling oil prices.
On the brighter side of things, second-generation ethanol is expected to continue industry growth when corn ethanol production hits the ceiling. Cellulosic ethanol can be produced from a wide variety biomass material, such as switchgrass, wood waste and municipal solid waste.
Addressing the need of getting more flex-fuel vehicles on the road will help erase the estimated 1 billion gallons of excess capacity sitting idle and more fuel pumps to dispense E-85 and other ethanol blends. It is estimated that it will take 12-14 years to turn over the U.S. automobile fleet into a flex-fuel fleet. Only about 7 million of our nation's 300 million-plus cars and trucks are flex-fuel vehicles.
Currently, there are 181 operating ethanol plants in the United States producing more than 11 billion gallons of the renewable fuel annually. By the end of 2008, the plant count grew by 48 new plants, adding more than 3.5 billion gallons of additional domestic capacity. |
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DuPont to Cut 2,500 Jobs and 4,000 Contractor Positions
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SUGAR LAND--December 5, 2008--Researched by Industrial Info Resources (Sugar Land, Texas)--On December 4, DuPont (NYSE:DD) (Wilmington, Delaware) announced plans to restructure the organization in order to reduce capital expenditure and increase cash flow. In a news release discussing the intended restructuring, DuPont stated, "A steep global decline in construction and motor vehicle sales and consumer spending has resulted in declining industrial production, intensified by inventory reductions across most supply chains. These conditions have precipitated a sharp downturn in demand during the fourth quarter." Central to DuPont's restructuring plan is the elimination of about 2,500 jobs, most of which will be in sectors related to construction and automobile-manufacturing in the U.S. and Western Europe. Additionally, about 4,000 contractor positions will be cut by the end of the year.
In a conference call regarding the company's restructuring, Chief Financial Officer Jeffrey Keefer said, ""The restructure actions are primarily targeted to enhance our competitive position in motor vehicle and construction-related businesses but also include repositioning actions relating to underperforming businesses." In regard to the job reductions, Keefer would not comment on which particular sites would be affected.
DuPont President and future CEO Ellen Kullman detailed the company's strategy regarding its workforce. "The first thing we did was to take advantage of the flexibility we've built into our workforce over the past several years," she said. "Our workforce design has been the most critical and highly skilled positions staffed with DuPont employees, and we use contractors for important, but less critical operations, so in a downturn we can retain highly skilled employees by temporarily displacing contractors and then moving them back as operations return to high gear. By the end of December, about 4,000 contractors will have been released from service with more displacements likely to take place in 2009. Of those 4,000, one-third have been replaced with DuPonters, and the remainder will not be backfilled."
The restructuring will result in a pretax charge of approximately $500 million in 4Q08. DuPont estimates that this charge will result in an earnings increase of $130 million in 2009 and $250 million annually thereafter. The restructuring costs will add to the fourth-quarter losses that DuPont is expecting. The company expects a pre-restructuring loss of $.20 to $.30 per share; the restructuring costs will result in an additional charge of $.40 per share, contrasting sharply with the company's previous fourth-quarter guidance, which estimated earnings of $.20 to $.25 per share.
DuPont emphasizes that the current sacrifices are necessary for future success. "In the short term," said Keefer, "our plans will maximize cash and in the long term correctly align resources, new technologies, products and capacity of our business for future market opportunities."
DuPont is certainly keeping an eye to the future. In October, the company broke ground for a first-of-its-kind cellulosic ethanol production facility with partner University of Tennessee. The pilot plant will use switchgrass and other non-food forms of biomass to create ethanol. |
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Construction Begins on $14 Billion Worth of North American Industrial Projects as Economy Deteriorates
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SUGAR LAND--November 24, 2008--Researched by Industrial Info Resources (Sugar Land, Texas)--Since the financial and economic collapse escalated in September 2008, 169 industrial projects began construction in North America. These projects represent $14 billion in total investment value.
The Power Industry had 17 projects start construction totaling $3.2 billion, followed by the Metals & Minerals Industry with 22 projects totaling $2.7 billion. Another notable industry was Food & Beverage, which had 40 projects kick off construction totaling $1.6 billion.
In the Chemical Processing Industry, Praxair Incorporated (NYSE:PX) (Danbury, Connecticut) began construction of a $300 million grassroot hydrogen plant in Richmond, California. Lurgi Incorporated (Memphis, Tennessee) is providing engineering services and ARB Incorporated (Pittsburg, California) is the general contractor. Once constructed, hydrogen from the plant will supply a nearby petroleum refinery owned by Chevron (NYSE:CVX) (San Ramon, California).
That's the good news for equipment and service providers. The bad news is that the number of project cancellations, project deferrals and projects placed on hold is increasing day by day, especially for the Power, Industrial Manufacturing and Metals & Minerals industries. Industrial Info is tracking anywhere from 20 to 30 projects per day that fall out of the active project category. As part of the North American Industrial Project Database, Industrial Info is monitoring more than 15,700 active projects, as well as 2,400 on hold and 8,800 canceled. |
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Pinnacle Gas to Scale Back Natural Gas Drilling Activity in 4Q08
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SUGAR LAND--November 19, 2008--Researched by Industrial Info Resources (Sugar Land, Texas)--Pinnacle Gas Resources Incorporated (NASDAQ:PINN) (Sheridan, Wyoming), an independent natural gas exploration and development firm, announced during a third-quarter conference call on November 17 that it plans to scale back drilling activity in the fourth quarter as a result of low and volatile pricing in the Rocky Mountain region. Year to date, the company drilled 113 wells. In the third quarter, Pinnacle Gas achieved net sales of 1.04 billion cubic feet of natural gas, up 16% compared with the same period last year. The increase in sales was largely attributed to the Cabin Creek and Deer Creek Kirby projects in Montana. Net income for the quarter totaled $8.9 million.
Pinnacle Gas currently has hedges in place for the remainder of 2008 totaling 7 million cubic feet per day at a floor price of $6.75 and a ceiling price of $7.48, Chief Financial Officer Ron Barnes said. He said the company has 4.5 million cubic feet per day of hedges in 2009 at a floor price of $6.87 and a ceiling price of $7.31.
President and CEO Peter Schoonmaker said Pinnacle Gas' management has been working to reduce development costs. "We will continuously review pricing and takeaway capacity and adjust our cost structure and development plan accordingly," he said.
The company currently has more than 120 wells producing gas and/or de-watering. "Over much of the last year, we were limited in our well production due to the lack of water management in place," Schoonmaker said. To resolve the issue, he said the company has built additional reservoirs utilizing temporary irrigation systems and injection wells, which were recently put into operation.
Looking forward, he said the company is taking a more conservative stance on drilling because of the financial and credit crisis, along with the volatility in the Rocky Mountain region. "We are currently reviewing our 2009 plan while aggressively reducing costs, which will allow us to focus on our core asset areas, such as Cabin Creek," Schoonmaker said.
Industrial Info Resources (IIR) is a marketing information service specializing in industrial process, energy and financial related markets with products and services ranging from industry news, analytics, forecasting, plant and project databases, as well as multimedia services.
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Industrial Firms Review $464 Billion of North American Project Spending Planned for 2009
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SUGAR LAND--November 4, 2008--Researched by Industrial Info Resources (Sugar Land, Texas)--This is the time of year when corporations review game plans, identify targets and plan capital expenditures based on sales projections and economic conditions. Knowing what geographies and hot industrial sectors to target in 2009 will be paramount to the success of equipment and service providers as they chart a course of action for the coming year. Looking ahead to 2009, there are more than 5,200 industrial projects scheduled to begin construction. These projects total about $464 billion. This figure is forecast to decrease significantly as 2009 unfolds and projects are deferred, placed on hold or canceled.
Click-Here to view a chart showing the breakdown of planned industrial project spending by North American market region in 2009.
Looking at the chart of active projects, it is easy to see that Western Canada with $69 billion, the Southwest region with $60 billion and the Great Lakes region with $57 billion are attracting the most planned spending. Oil sands, mining, and oil & gas infrastructure projects will keep Western Canada (Alberta, British Columbia, Manitoba, Saskatchewan, Northwest Territories and Yukon Territories) head and shoulders above other regions for project spending. However, sustained low crude oil prices would make oil sands projects uneconomic in the short term, especially considering the escalating project-development costs incurred recently. Some oils sands companies have already announced spending cutbacks and delays for 2009 oil sands projects.
The Southwest market region, which includes Arkansas, Louisiana, Oklahoma and Texas, remains robust and leads all regions in the number of projects scheduled for construction start in 2009, with 911 projects. That's almost three times as many projects planned in Western Canada.
Traditionally strong, the Great Lakes region, which includes Kentucky, Illinois, Indiana, Michigan, Ohio and Wisconsin, has 711 projects in spite of the recent downturn in the automotive market, which is prevalent in the region.
Industrial Info Resources (IIR) is a marketing information service specializing in industrial process, energy and financial related markets with products and services ranging from industry news, analytics, forecasting, plant and project databases, as well as multimedia services. |
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Shaw Group Succeeds in Multiple Industries with $33 Billion of Projects in the U.S.
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SUGAR LAND--September 23, 2008--Researched by Industrial Info Resources (Sugar Land, Texas)--The Shaw Group Incorporated (NYSE:SGR) (Baton Rouge, Louisiana) is a global leader in engineering, construction and manufacturing for a large variety of industrial sectors including power, chemicals and environmental and infrastructure. At a recent engineering and construction conference, Shaw's Chairman and CEO, J.M. Bernhard, Jr., spoke about where Shaw currently stands as a business and the future of the company.
While Shaw participates in multiple industries, the company is very focused on the Power Industry, forecasting continued and sustained growth in the international and domestic power sectors during the coming decades. Shaw estimates that domestic electricity consumption will increase 7000 megawatts (MW) per year through 2030 and will continue providing construction, fabrication, engineering and maintenance for various types of power plants, including gas, geothermal, nuclear and fossil fuels. Shaw has a current backlog of power projects valued at $6.7 billion and is the leading company in the nuclear power maintenance sector, holding maintenance contracts on 41 of the 104 nuclear reactors in the U.S.
Bernhard spoke of the increased growth that he expects to see in Shaw's Fabrication and Manufacturing sector. "Our fabrication and manufacturing market actually trends across all segments," he said. "Ninety percent of every industrial plant in the world moves fluids, whether it's ethylene, steam, water, et cetera, and those fluids are contained by piping systems. And that's what we do, so it's from every spectrum, from ethanol and ethylene to nuclear power, coal-fired to gas-fired to paper mill. Anytime you move fluid, you need piping systems and we're the world's largest in that."
Industrial Info, as part of its International Industrial Database is currently tracking over $41 billion of active or planned projects throughout the world involving the Shaw Group or its international subsidiaries. Over $33 billion of these projects are occurring in the U.S. The projects cover a wide range of industries such as Power, Petroleum Refining, Chemical Processing and Industrial Manufacturing and range from maintenance turnarounds to grassroot construction.
While construction within the nuclear power industry often runs into several billion dollars in total investment, one of the larger conventional power projects currently under way is the $2.4 billion addition of an 800-MW coal-fired unit at the Cliffside Steam Station in Cliffside, North Carolina, which is owned by Duke Energy Carolinas LLC (Charlotte, North Carolina), a subsidiary of Duke Energy Corporation (NYSE:DUK) (Charlotte). Construction on the addition began late last year and is expected to be complete in the second quarter of 2011. The Shaw Group is acting as both engineering contractor and general contractor for the project. |
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