Prices $$$ in Construction Materials Continue to Rise

Posted by Steadfast Entities on August 17, 2021

The COVID pandemic continues to have far-reaching ripple effects on the economy and every part of society, including construction.

Just last month, the US Bureau of Labor Statistics released their July 2021 report, showing another 0.6% increase in the price of construction materials. In Vermont alone, there were “double-digit percentage increases in the selling prices of materials used in every type of construction” compared to this time last year. For example, “the producer price index for steel mill products more than doubled from July 2020 to last month, leaping 108.6 percent.”

In addition to the raw materials, pandemic backups and price hikes are affecting transportation and fuel costs, further adding to high end prices across all of construction.

These commodities come from all across the world, where many countries still face serious pandemic delays. David Fultz, Senior Vice President of TDIndustries, reminds people to consider the multifaceted and far-reaching requirements of every construction project:

“South America is still in the middle of the pandemic, which creates tremendous disruptions in mining that stresses the supply chain. Additionally, it’s a lot harder to get our hands on international products due to import/export disruptions. Weather is another significant factor.”

Unpredictable weather in particular can ruin inventory and put manufacturers way behind. When already faced with pandemic limitations and struggles, suppliers are finding it harder than ever to bounce back, leading to massive shortages and delays across the world.

While only time can help us get past the pandemic, there are some actions we can take now to alleviate the pressure on the industry. The Associated General Contractors of America, for example, have urged President Biden to remove current tariffs and quotas on essential construction materials like steel and lumber.

“These tariffs and quotas are artificially inflating the cost of many key materials and doing more damage to the economy than help,” said Stephen E. Sandherr, the Association’s Chief Executive Officer.

No matter the answer, there’s no doubt that we’re not through this yet. Until the pandemic has quieted down across the world and manufacturers are able to recover, construction materials pricing will continue rising, making projects more expensive.

To read the Associated General Contractors of America Inflation Alert, click here.

For more details on specific materials cost rates and trends, visit YieldPro.com.

New $1.2 Trillion Infrastructure Bill Passes

Posted by Steadfast Entities on July 20, 2021

INVEST in America

This month, the House of Representatives passed the INVEST in America Act, a bipartisan infrastructure bill that opens up billions in new funding for sustainable construction projects across the country.

The new deal includes $973 billion in investment over the next five years and $1.2 trillion if continued over eight years.

Sustainable Infrastructure

The bill focuses on newer and greener methods of transportation and infrastructure expansion, including renewable energies, electric vehicles, and more public transportation options. While this shift away from oil and coal-based energies has some worried, the focus on sustainability is going to mean great things for the industry.

Specifically, the bill will create 82,000 jobs in the sector, add $62 billion in wages, and boost the industry’s GDP by $75 billion, according to Construction Dive.

Where’s the Money?

According to the White House’s fact sheet on the bill, financing will come from:

Reduce the IRS tax gap
Unemployment insurance program integrity
Redirect unused unemployment insurance relief funds
Repurpose unused relief funds from 2020 emergency relief legislation
State and local investment in broadband infrastructure
Allow states to sell or purchase unused toll credits for infrastructure
Extend expiring customs user fees
Reinstate Superfund fees for chemicals
5G spectrum auction proceeds
Extend mandatory sequester
Strategic petroleum reserve sale
Public-private partnerships, private activity bonds, direct pay bonds and asset recycling for infrastructure investment
Macroeconomic impact of infrastructure investment

Long-Term Growth

This bill is a testament to how crucial our industry is, not only for America’s history, but for our future. As we pivot to be more sustainable and focused on technology, many new and exciting opportunities lie ahead. We’re excited to meet new challenges head on!

Need the latest in heavy equipment tech and expertly-trained operators? Drop us a line: jhworthy@steadfastentities.com

What NOT To Do: The 5 Biggest Construction Fails in the US

Posted by Steadfast Entities on July 6, 2021

Structure and safety go hand in hand. Without strong structural engineering and expert construction, there’s no guaranteed safety for those using the road, bridge, building, or space. Here’s a look at the 5 biggest construction fails in United States history and how they could have been avoided.

Hyatt Regency Walkway (1981)

Deaths: 114

The walkways on the second and fourth floor of the Hyatt Regency Hotel in Kansas City, Missouri collapsed under the weight of guests, falling onto a busy lobby below. A total of 114 people were killed and another 200 injured.

The sleek, new lobby opened in 1980 and featured walkways anchored by steel rods. The problem lay in the connection between a single set of hangar rods threaded through to a double-rod system anchored to the upper walkways. This placement caused undue stress and would never have passed an inspection, yet somehow no one noticed the fault during construction.

This incident could easily have been prevented by more knowledgeable contractors and a more thorough safety inspector during initial construction.

The Knickerbocker Theater (1922)

Deaths: 98

This DC theater collapsed during a silent move and just two days after the biggest blizzard in the city’s history. The weight of the snow caused the building’s roof to buckle, killing 98 and injuring 133. One of the worst disasters in the city’s history, immediate emergency response was delayed and unorganized as hundreds rushed to the area. Subsequent investigations blamed the use of arch girders rather than stone pillars to support the roof.

This disaster could have been prevented by managing risk in construction and accounting for all possible types of weather in that region. Better maintenance of the building (i.e., removing the snow more quickly) would also have been critical in this situation.

Willow Island (1978)

Deaths: 51

A West Virginia power station cooling tower was under construction and the contractor was building scaffolding. Unlike standard scaffolding methods, however, this contractor bolted scaffolding to the cooling tower itself and poured concrete each day to raise the scaffolding higher. As the tower reached 166 feet, a crane pulling up a bucket of concrete fell toward the inside of the tower and the previous day’s concrete collapsed.

All 51 construction workers on the tower fell to their death as the scaffolding crumbled, making it the deadliest construction accident in U.S. history. OSHA and the National Institute of Standards and Technology were quickly involved. Their investigations pointed to concrete that had not sufficiently cured, missing or defective bolts, and rushed construction.

This tragic accident shows the importance of safety inspections at the worksite and taking time to finish steps completely, even when there’s pressure to finish a job.

L’Ambiance Plaza (1987)

Deaths: 28

A 16-story apartment building in Bridgeport, CT collapsed during construction, killing 28 workers. While many still debate the cause or causes of this disaster, one resulting investigation concluded that the lifting assembly for these slabs was at fault.

Observers of the accident and workers onsite also noted that the accident was highly preventable and that it showed the deficiencies of the lift slab construction technique. Following the event, a federal investigation was conducted into the techniques used on the job.

This accident demonstrates the importance of using the most modern, technologically-advanced, and proven techniques in construction. While you don’t want to be using tech that hasn’t been field-tested, you also don’t want to be a stick in the mud avoiding newer, safer construction options.

Champlain Towers South Collapse (2021)

Deaths: 18

This surfside condominium building collapsed in Miami, Florida, killing 18 and injuring 11 more. Of the 136 total units in the building, 55 were destroyed. Just a couple years before, an inspection had found severe problems with the building that went unrepaired.

The cause of the disaster was multifaceted and included long-term degradation of reinforced concrete in the underground garage. The building was also shown to be sinking at a faster rate than surrounding buildings (about 2 millimeters/year), creating tension. Moreover, poor waterproofing practices meant that the areas beneath the pool deck had deteriorated and weakened the structure.

This disaster shows how critical environmental factors are in the engineering and construction process. A better understanding of the surrounding environment and long-term maintenance could have saved this building from its sinking, water damage, and deteriorating concrete.

Don’t rely on inexpert operating engineers or overused equipment – Steadfast Entities prides itself on using the best in modern technology and expertly-trained operators for every job. Be safe, be effective, and be Steadfast! Contact us for your next job: jhworthy@steadfastentities.com

Construction Unions

Posted by Steadfast Entities on June 22, 2021

Unions truly make the world go round. Their legacy of advocacy has built our construction industry to what it is now and had long-lasting impacts on the way we view labor in America.

The History of the IUOE

The International Union of Operating Engineers (IUOE) has a similarly rich history.

“Working conditions for construction and stationary workers in the late 1800s were, at best, appalling,” the IUOE website says. Wages were very low, hours were long, and benefits nonexistent. On December 7th, 1896, eleven innovative individuals formed what is now known as the IUOE. They all shared the unique ability to operate dangerous steam boilers, putting them in a position of greater leverage with companies.

Through the Great Depression and two World Wars, this organization continuously advocated for and advanced the rights and needs of workers. Their hard work helped develop iconic buildings and places.

“San Francisco’s Golden Gate Bridge, the Panama Canal, Chicago’s Sears Tower, Toronto’s CN Tower and Sky Dome, New York’s Empire State Building and Holland Tunnel, the Statue of Liberty, Vancouver’s Lions Gate Bridge, the Alaskan Pipeline and Hoover Dam—all are monuments to the skills of the members of IUOE.”

What the Union Does

Unions are fundamental to supporting workers through collective bargaining, legislative action, and extensive training programs. Over the years, unions have directly or indirectly brought about:

The Department of Labor
Labor Day
The end of child labor
Railway Labor Act
Guaranteed union wages
8 hour work day
40 hour work week
The National Labor Relations Act
Minimum wage
Fair Labor Standards Act
Fair Employment Practice Commission (FEPC)
Equal Pay Act
Occupational Safety and Health Act
And much more!

Explore more about the history, legacy, and current activities of the operating engineers’ union by visiting the IUOE website here.

Do you need operating engineers?

Steadfast is signatory with IUOE Local 542, which is a blend of heavy equipment operators in building and construction, along with C&D Branch division members who are employed at quarries, landfills, equipment dealers, shipyards, breweries, manufacturing, airports, bridges, and public works. Local 542 employs a rigorous training program for all journey and apprentice operators and our partnership ensures a satisfied customer. Contact us today: 1-855-449-0777.

Spotlight on Heavy Equipment Operators

Posted by Steadfast Entities on June 8, 2021

In this blog post we’re going to focus on those who operate heavy machinery, safely and effectively building the world of tomorrow. These equipment experts are highly trained and skilled, combining a love of playing with big toys with safety and competency. Here’s how you can get started as an operating engineer!

Operating Engineers Need…

Physical stamina
Sound judgement
Strong teamwork skills
Hand-eye coordination
Troubleshooting

How to Get Started

First, graduate high school or get your GED. Take any available vocational training classes. Read, watch videos, and take initiative to learn what you can. Get to know the basics of the most common heavy equipment.

Photo from Heavy Equipment Rentals

Next, many find some local classes and start attending school to become an operating engineer. However, schooling on your own isn’t always required!

Getting a job in a relevant field may earn you an apprenticeship or the employer may send you to school on their dime. Either way, jumping right into the job market can help you earn while you learn. Over time, you can work your way up to operating the machinery you prefer. Especially in construction, on-site experience is considered much more valuable than classroom time, so scoping out possible jobs first is a wise choice.

Getting an Operating Engineer Job

If you’re brand new to construction, you can start with a general contracting company. These companies might not require as much experience yet will allow you to learn different kinds of machinery in low-risk environments.

Operating unions can also help you get trained and employed in your local area through apprenticeship programs.

The Pros and Cons

As of May 2020, operating engineers make an average of $49,770/year. Some specialized operators, like pile driver operators, can make upwards of $63,370. Of course, apprentices earn less and someone with less experience has to work their way up over the years to be an operating engineer, so this income may be a few years off.

About 49,500 new operating engineer openings are projected each year coming up, with a steady growth over the next decade, so it’s a strong career choice with future prospects.

Operating engineer training, certifications, and union dues can cost thousands. Students may be able to get scholarships or employers may pay for necessary training, but those pursuing this type of work should keep potential costs in mind.

Operating engineers sometimes have to work on dangerous or extreme projects, with unpredictable weather or worksite conditions. Operating engineers need to remain alert and impervious to changing weather in order to operate their machines safely and effectively. This is why sound judgement is important when operating under pressure.

This job certainly isn’t for everyone! It requires a lot of training, on-site job experience, and strong interpersonal and critical thinking skills. We’re proud of all the operating engineers who keep the country going!

Need an operating engineer?

Steadfast is proud to source the very best operating engineers and we’re signatory with IUOE Local 542, so you know you can rely on our people. Give us a call today: 1-855-449-0777

Constructing Connections: Why Word of Mouth is King

Posted by Steadfast Entities on May 11, 2021

Even in today’s streamlined, modern world full of email, social media, and millions of connections available in an instant, personal relationships reign supreme. In fact, 92% of all consumers around the world say they trust word-of-mouth referrals more than other forms of advertising (Nielson, 2012).

The construction industry is a perfect example of how important personal relationships are: according to the Home Improvement Research Institute (HIRI), 88% of all contractors primarily use word of mouth to grow their business (2020).

So why is word of mouth still so important?

Because relationships trump any digital convenience. Consumers and business owners are willing to risk having their groceries delivered for the sake of convenience, but they’re not willing to take a gamble with their roof, a new office building, or a highway construction project.

They need someone they trust and you can only trust people you know.

Don’t know a contractor? Well, you know other people and those people know contractors that they trust. It’s the next best thing, and it’s monumentally more effective than any amount of digital advertising. Relationships develop over time and a reliable business relationship depends on consistent communication and trust.

While business relationships are key, you can still build lasting connections and develop a strong online strategy at the same time! Social networking, when used correctly, can foster your in-person connections and encourage positive word of mouth.

Construction is a people-based industry.

From operators to subcontractors, you have to trust the people you work with in this industry. You’re not alone in a cubicle or working remotely, so positive communication is key. These connections are building industries while we’re shaping what the world looks like tomorrow.

Here are some tips to get your subcontractors and customers spreading the love:

Put customer service first, especially communication
Ask for and reward referrals to your business
Share your business accomplishments, community activities, and charity work
Create a community

No matter what, remember that construction is built by and for people, so don’t lose sight of the strong connections around you! Build tomorrow – one customer, subcontractor, or business partner relationship at a time.

How Philadelphia Construction Survived COVID-19

Posted by Steadfast Entities on April 27, 2021

Essential Workers

When it comes to the COVID-19 Pandemic, very few things have gone as expected and the construction scene in Philadelphia is no different. Like most large cities across the nation, construction projects ground to a halt in March 2020 as businesses waited for guidance on if and how they could return to work safely. However, the need for continued road and building maintenance, as well as the potential need for construction of new medical facilities, made construction personnel some of the first to be considered essential workers. By August 2020, new construction permits in Philadelphia were at record levels and the work has continued ever since.

Booming Construction

This stream of construction projects has held steady in Philadelphia for many reasons. First, many projects had already been planned and financed, and the halt during the early months of the pandemic created a bottleneck. So it makes sense that when workers were allowed to return to their projects, they made up for lost time.

Rushing Permits

Secondly, Philadelphia’s 10-year tax abatement rule on new construction was originally set to expire in early 2021 (it has since been delayed until 2022). Since the rule is based on when the permit was purchased and not on the groundbreaking of a project, many businesses bought permits preemptively to avoid any extra taxes. This secured several projects that may have been put off and helped continue the trend of increased construction in the city and surrounding areas.

Surging Markets

Another significant factor in the increased rates of construction around Philadelphia was the surging housing market. As interest rates dropped and many searched for larger homes to accommodate their new work-from-home lifestyle, construction bloomed. Since many workplaces went completely remote, many of those working outside Philadelphia are now able to truly call the city home.

Finally, institutional development around Philadelphia soared, bringing with it several new, large-scale construction projects. An increase in hospital and educational needs lead to expansion in the Navy Yard and University City, and thanks to the massive increase in online shopping, warehouse and other storage buildings also demanded construction and repair.

The Future of Philly Construction

As we start to see a decrease in COVID cases and life regains some pre-pandemic feeling, will construction continue? While nothing is certain, there are no shortage of projects on the horizon. In December 2020, the Philadelphia City Council passed Philadelphia’s first residential development impact tax, meant to send millions towards new, affordable housing projects. With many companies planning on staying remote, a conversion of office buildings to apartments, hotels, and other businesses can also be expected.

No matter what happens, Steadfast will be there to meet all of your construction needs, and we look forward to watching Philly’s construction continue to thrive.

Recycled Asphalt and Vegetable Oil: How the City of Phoenix Created a Recipe for Success

Posted by Steadfast Entities on April 13, 2021

While mixing recycled asphalt and vegetable oil probably won’t make you popular in the kitchen, it has made an Arizona city one of the first to use recycled asphalt (RAP) on city roads and highways.

Being the fifth largest metropolitan area in the United States with a population of over 4.8 million people and 1,400 miles of paved road, Phoenix spends a lot of time and money repairing its major passageways. One way to save the city some money? Recycled asphalt.

Misconceptions about the durability of RAP, as well as a lack of shared research, have led many in road construction to overlook it as a more efficient means of paving laned roads. Solterra Materials, a Phoenix-based asphalt mix company, was convinced that it could be used and began performing a series of experiments mixing RAP with various rejuvenators. Eventually, they landed on the perfect recipe: RAP, Cargill’s engineered vegetable oil-based Anova® rejuvenator, and a slight asphalt grade bump.

Working in tandem with the city, Solterra procured a one-mile section of road in a highly industrial, heavily trafficked area for their testing. There they evaluated RAP properties at 10%, 15% and 20%, and worked closely with the Cargill team to add the exact amount of rejuvenator. The results found that the 20% RAP mix performed as well as virgin mixes, and had a 10% cost savings. It showed a flexibility index increase from 12 to 18.5 as measured by the I-fit, and had enhanced low temperature cracking resistance.

After seeing the results, it was a no-brainer for the City of Phoenix. Beyond its great performance, the 20% RAP mix also uses less energy, takes up less landfill space and ultimately costs taxpayers less money. They have included RAP in their standard paving strategy, and plan to start paving more roads with the mix this month. They’ll continue to monitor the performance of these roads over the next several months, but all those involved expect to see continued satisfaction.

Thanks to companies like Solterra materials sharing their research, perceptions around recycled asphalt are beginning to shift. As a company that prides itself in green building and the most efficient use of resources, Steadfast is thrilled to see moves like this being made in the asphalt industry. With the high performance, lower cost, and increased environmental friendliness, we expect it won’t be long until RAP starts making it way to those of us on the East Coast. When it does, we’ll be happy to see it.

We Love Our Toys

Posted by Steadfast Entities on March 30, 2021

The only difference between men and boys is the cost of their toys.
Anonymous

Let’s face it: we’re all just kids having fun with our toys.

Ask any little boy (and many girls!) between 4 and 8 years old what they want for Christmas, and odds are most of them will tell you a truck, crane, or some other small version of machinery.

There’s a love there that we all share, something magical about operating a mechanical device to move earth, crush garbage, and do things we could never do on our own. Modern machinery allows us to make the impossible happen, giving the operator a sense of wonder and control at the same time.

While technology keeps progressing, giving us newer and more interesting devices to play with, children also reap the benefits:

CleverLeverage listed many machines that are available in kid sizes, including excavators and diggers with backhoe attachments! Diggerland Theme Park also gives kids (and adults) the opportunity to use life-size machinery to crush and carry.

There’s a reason both children and adults get a kick out of operating machinery and exploring the possibilities of new tech: we love playing.

For many of us in the heavy equipment and construction fields, operating heavy equipment, playing with new gadgets, and exploring the cool things we can do with new technology is all part of the same childhood love.

At Steadfast Entities, we’re so lucky to keep playing with the things we love! Specializing in heavy equipment and modern construction technology, the opportunity to learn, explore, dig, crush, and move never ends.
This curiosity is so important, as technology is constantly defining the construction industry and moving us forward. Learning new and better ways of creating our world will carry us into the future. Explore some of the cool tech that Steadfast Entities has available here!

Author: Steadfast Entities