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Industry Dirt

November 1, 2008

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Construction Industry Ranks No.1 in Occupational Fatalities

The U.S. Bureau of Labor Statistics (BLS) reported 5,488 fatal work injuries in 2007, or 3.7 deaths per 100,000 workers, which represents a 6% decrease from 2006 figures. The preliminary result of the 2007 Census of Fatal Occupational Injuries (CFOI) is the lowest annual preliminary total since the census was first conducted in 1992.

The construction industry experienced the highest fatalities of any private-sector industry reporting 1,178 fatalities, or 10.3 deaths per 100,000, which is an overall 5% decrease from 2006 figures. Site preparation contractor fatalities decreased 13% to 149, including 60 transportation incidents (73 in 2006), 49 from contact with objects and equipment (67 in 2006), 11 from falls (16 in 2006), 21 from exposure to harmful substances or environments (five in 2006), three from fires and explosions (four in 2006), and five due to unnamed events or exposures (seven in 2006). Construction equipment operators experienced a total of 54 fatalities, comprising 10 in the Paving, Surfacing and Tamping Equipment Operators category and 44 in the Operating Engineers and Other Construction Equipment Operators category. The construction and extraction occupations reported 1,152 fatalities, or 12.1 per 100,000 workers, including 19 suicides and 39 deaths from assaults and violent acts.

Overall key findings include a 13% rise in workplace homicides, or 610 fatalities; fatalities among non-Hispanic black or African American workers increased by 5% in 2007 to 591, which is the highest number reported since 1999; fatalities among Hispanic workers decreased by 8% to 908. Of the 5,488 fatal occupational injuries in 2007, 959 deaths, or 17%, occurred among foreign-born workers, and 44% of those were born in Mexico, and 18% were born in Asia.

The Census of Fatal Occupational Injuries, which is part of the BLS occupational safety and health statistics program, compiles a count of all fatal work injuries occurring in the U.S. each calendar year. The program uses diverse state, federal and independent data sources to identify, verify and describe fatal work injuries. More than 21,000 unique source documents were reviewed as part of the 2007 data-collection process. CFOI data are published annually with a one-time revision approximately eight months after the preliminary release. Final results for 2007 will be released April 2009. The preliminary data is available at www.bls.gov/iif/oshcfoi1.htm.


President Approves $8 Billion to Delay Highway Trust Fund Crisis

President Bush signed into law on Sept. 15 an amendment to the Internal Revenue Code that authorizes the transfer  of $8.017 billion from the general treasury to restore the Highway Trust Fund. This legislation enables hundreds of construction projects across the country to continue. U.S. Secretary of Transportation Mary E. Peters said the legislation was needed because Congress ignored more than three years of warnings. “Time and again, the president has warned Congress of the pending shortfall and submitted fiscally prudent budgets to close the gap,” Peters said.

The Highway Trust Fund was created by the Highway Revenue Act of 1956 and is used to finance and maintain the Interstate Highway System. The fund consistes of a Highway Account, which funds highway and intermodal programs, and a Mass Transit Account. The Highway Trust Fund is financed by tax revenues from fuels, truck-related taxes, such as truck tires, sales of trucks and trailers, and heavy-vehicle use.

The Congressional Budget Office had estimated that the fund would experience a $1.4 billion shortfall beginning in fiscal year 2009. The predicted shortfall, however, was accelerated as a result of decreased summer driving and the subsequent decline in gas-tax revenue—a major source of income for the Highway Trust Fund—together with increased spending during the summer highway construction season. According to the DOT, in September, the Highway Trust Fund’s Highway Account took in $2.7 billion but had requests for $4.4 billion in reimbursements. Peters said the crisis could have been avoided if Congress had acted on the president’s February 2008 proposal to transfer funds from the surplus in the Highway Trust Fund’s Mass Transit Account, a move that Peters said would have had no effect on current transit investments, according the DOT’s Office of Public Affairs.

To avoid future shortfalls, Peters said it was time to implement new funding mechanisms that respond to today’s transportation challenges and are in keeping with national energy policies. “The current approach may have made sense 50 years ago,” Peters said, “but it is ineffective and unsustainable when we are trying to reduce congestion and encouraging Americans to embrace more fuel-efficient cars.”

Pete Ruane, president of the American Road & Transportation Builders Association agrees. “The cash-flow crisis that is being temporarily averted by this action should be taken as a wake-up call for the new Congress and president,” Ruane said. “The federal responsibility to make the surface transportation capital investments necessary to keep the American economy growing cannot be sustained with a static, 15 year-old gas tax rate.”

For more information on the Highway Trust Fund, go to www.fhwa.dot.gov/reports/financingfederalaid/fund.htm.


Construction Academy Prepares Women for Leadership

The National Center for Construction Education and Research (NCCER) and the National Association of Women in Construction (NAWIC) held the second annual Women’s Leadership Academy in October at South Carolina’s Clemson University. “The academy is truly a career-enhancing opportunity for women in construction,” said Diane Greene, NCCER director of operations.

The Women’s Leadership Academy is intended to provide women with tools to elevate their careers and leadership roles within the construction industry. "While women in our industry have made great strides over the last decade, we are still faced with the challenges of working in a male-dominated industry. We continue to have to prove our qualifications in the industry,” Green said. “We are also challenged with balancing work and family life, as many women are still the primary caregiver at home."

Approximately 25 women attended the three-day academy. Intense training sessions addressed a variety of topics, including time management skills, productivity, leadership and management styles, negotiating and problem-solving techniques, and conflict resolution.

Upon completion, participants receive continuing education units from Clemson University and may receive industry-recognized credentials from NCCER’s National Registry. The 2009 Women’s Leadership Academy is scheduled for June 27-30, 2009, in Florissant, Colorado.

For more information, visit www.nccer.org and www.nawic.org.


ConstructMyFuture.com Names 2008 Scholarship Winners, Increases 2009 Awards

ConstructMyFuture.com announced the recipients of its 2008 scholarships in September. “Our winners displayed great initiative and potential,” said Nicole Hallada, AEM marketing director. “We are pleased to offer these scholarships to help them achieve their career goals in the construction industry.”

Andrew Retzlaff, William Gumbert and John Lynch were each awarded a $1,000 scholarship to be used for construction-focused education. Applications were evaluated based on essays, school transcripts and personal references. Retzlaff, of Mankato, Minnesota, will attend South Central College to become a heavy construction equipment technician with a focus on diesel mechanics and hydraulics. Gumbert, of Allenport, Pennsylvania, will attend Penn College of Technology for technology management and to become a heavy equipment technician/operator . Lynch, of Fort Mill, South Carolina, will attend Clemson University for construction management.

ConstructMyFuture.com is a cooperative effort of the Associated Equipment Distributors Foundation (AEDF), the Association of Equipment Manufacturers (AEM) and the Associated General Contractors of America (AGC) to promote construction careers among students, parents and teachers. ConstructMyFuture.com scholarships are available to students and construction industry professionals for higher-education tuition or for the purchase of tools for those who are entering or working in the industry. In 2009, ConstructMyFuture.com will offer 10 scholarships valued at $1,000 each, which are funded, in part, by Kobleco Cranes. “The industry has a new face today, with thousands of highly-skilled people needed in construction and related fields to utilize new efficiencies and technologies to build everything from homes and shopping malls to highways and skyscrapers,” Hallada said. “With these scholarships, we are helping to ensure a qualified workforce to meet future needs.”

To read the winning essays, or for a 2009 scholarship application, go to www.constructmyfuture.com.


BUSINESS NEWS

Caterpillar Inc. (www.cat.com) and Trimble (www.trimble.com) created a joint venture company and a distribution agreement. The new company, VirtualSite Solutions, integrates the expertise of both parent companies in product design and software development to transform the way contractors manage their businesses. The joint venture is focused on creating information-rich worksites allowing customers to more efficiently and safely manage their equipment fleets, reduce operating costs and improve productivity in the areas of fuel consumption, maintenance, worksite productivity and fleet logistics. The joint venture is located in Westminster, Colorado, home of Trimble’s Engineering and Construction product development and marketing; an office will also be established in Peoria, Illinois, where the joint venture staff will work closely with Caterpillar’s Electronics & Connected Worksite Division, which has enterprise responsibility for product-related hardware and software technology and Caterpillar’s global electronics strategy. VirtualSite Solutions will initially focus on applications for road construction, paving, heavy construction and quarry/aggregates worksites. A new distribution channel, SITECH, will be established to bring these technologies to users and will be the outlet for products and services for the aftermarket. Trimble will have primary responsibility for managing the SITECH dealer relationship. Caterpillar dealers will continue to be the channel for technologies integrated into new Caterpillar machines while forming strategic relationships with SITECH dealers to provide total site solutions for customers.

Volvo Construction Equipment (Volvo CE) (www.volvo.com) announced plans to move the majority of its motor grader activities from Goderich, Ontario, Canada, to the company’s U.S. facility in Shippensburg, Pennsylvania, by 2010. Volvo CE will incur an estimated restructuring cost of approximately $45 million U.S., to be recorded in the third quarter of 2008. The central parts warehouse in Goderich will be relocated to the Volvo Parts warehouse in Columbus, Ohio.

Gehl Company (www.gehl.com), a manufacturer of compact equipment used worldwide in construction and agricultural markets, signed a definitive agreement to be acquired for $30 per share by its largest shareholder, Manitou BF S.A., headquartered in France, a manufacturer and distributor of material handling equipment for the construction, agriculture and industrial sectors.

NorAm Construction Equipment (www.noram65.com) relocated its office to 50 N. Brockway Street #308, Palatine, Illinois 60067 effective Oc. 1. Telephone numbers, fax number and e-mail addresses remain the same.

Pennoni Associates (www.pennoni.com) opened a new testing laboratory at 506 Grove Street, Haddon Heights, New Jersey. The laboratory tests concrete, soils, asphalt, masonry and aggregate. This is the firm’s third construction materials laboratory, including two other accredited testing facilities located in Bethlehem and King of Prussia, Pennsylvania.

The construction equipment division of Yanmar North America (www.yanmar.com) increased the warranty on its line of excavators, loaders and backhoes to three years or 3,000 hours. This warranty covers all elements of the machinery.

McCloskey International (www.mccloskeyinternational.com), a designer and manufacturer of innovative screening and crushing products, announced that Holland Equipment Co. (www.hollandeq.com) is the company’s official distributor for Utah, southeastern Idaho and southwestern Wyoming and Celtic Equipment Inc. (www.celticequip.com) is its official distributor for Indiana.

Michelin North America (www.michelin-us.com) launched an updated version of the Michelin Earthmover Tires Web site, www.michelinearthmover.com. Features include new graphic designs; a tire selector, which allows users to input a machine type, manufacturer and model number and find appropriate tread designs; and a dealer locator.

Side Dump Industries (SDI) launched a new Web site, www.sidedumpindustries.com. The new site features information on the entire SDI product line, videos, a photo gallery, a dealer locator, an interactive blog, company news, testimonials and more.


PEOPLE NEWS

The Association of Equipment Manufacturers (AEM) (www.aem.org) named Robert G. Harvell and Scott R. Nelson to the AEM board of directors. Harvell is president and CEO of LBX Company LLC, Lexington, Kentucky. Nelson is president of Bobcat Company Worldwide and CEO of Doosan Infracore International, West Fargo, North Dakota.

Strata Systems Inc. (www.geogrid.com) appointed Joe Nagy to regional sales manager for the company’s north central territory, which extends from the Dakotas to the coast of Virginia. Nagy has more than 25 years of civil engineering and technical sales experience in the government, commercial and private sectors of the construction industry.

Also, Strata Systems Inc. (strata@geogrid) appointed Elizabeth (Liz) Nicholson to sales manager for the U.S. West Coast region. A former sales manager for a geogrid manufacturer, Nicholson brings more than five years of geosynthetics experience to Strata Systems and has expertise in the segmental retaining wall industry.

Doosan Infracore Portable Power (www.doosanportablepower.com) named David Stahlman as vice president of global marketing. Stahlman is responsible for strategic marketing initiatives worldwide for the full line of Ingersoll Rand branded portable equipment and is based at the Statesville, North Carolina, headquarters.

Godwin Pumps (www.godwinpumps.com) promoted Grant Salstrom to chief operating officer. Salstrom is responsible for all day-to-day operations involving service, parts, warranties and fabrication.


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