Companies Worldwide are Optimistic about Future Trade Activity with the U.S.

Global companies are positive about plans for future trade activity with the U.S., according to new research report entitled Terms of Trade: Understanding Trade Dynamics in the U.S. The research found that two-thirds of survey respondents (66%) anticipate that their company’s trade with the U.S. will increase over the next five years and more than four-in-ten (43%) expect an increase of more than 10%.

“The confidence in the United States as an exporter of products bodes well for manufacturing companies,” said Brian Gallagher, Director of Marketing, with O’Neal, Inc., an integrated design and construction firm. “While there will  be challenges with international trade,  there are increasing opportunities for U.S.-based manufacturers to export goods.”

The research, conducted by the Economist Intelligence Unit on behalf of American Express, is a survey of 531 executives at companies worldwide examining global trading relationships, looking at how companies trade, the challenges they face and how they expect international trade with the U.S. to change based on recent trends.

While opportunities for trade abound, international trade is not without difficulties. Companies trading with the U.S. face a number of challenges to navigate. Exchange-rate volatility, transport costs and delays, trade-related infrastructure and making payments were identified as their top challenges.

“Optimism about the outlook for global trade presents opportunities for U.S. businesses looking to export internationally,” said Guillermo Brenes, Vice President of Global Currency Solutions at American Express. “The survey shows that a number of the challenges to international trade are within the span of a company’s control, so there are practical ways in which companies can improve upon their own trade experience.”

Quality of U.S. Trade-related Infrastructure Ranks High

 Survey respondents gave high marks on the overall quality of trade-related infrastructure in the U.S. Over two-thirds of survey respondents (69%) rate the U.S. infrastructure as “very good” or “excellent,” and only 2% consider it to be “poor.” The trade-related infrastructure companies rely on most includes:

•    Digital communication technology (42%)
•    Port facilities (31%)
•    Road network (26%)
•    Cold transport and storage facilities (25%)
•    Warehousing (26%)
•    Rail network (16%)
•    Air links (13%)
•    Other specialized transport and storage (7%)

The findings are based on an executive survey of 531 companies that trade with the US, conducted by The EIU in March and April 2016, as well as desk research and interviews with experts.

ABC Carolinas Construction Conference to be held in Greenville, SC

The Associated Builders and Contractors (ABC) of the Carolinas will host its 2016 Carolinas Construction Conference this month in downtown Greenville. The annual regional event will be held at the Hyatt Regency Greenville, and will feature exciting programs, events and speakers. The conference kicks off on Thursday evening, August 11, and wraps up Saturday night, August 13.

Each year, the leaders of construction-related businesses from across South Carolina and North Carolina come together at the ABC Carolinas Construction Conference. This year’s theme, “Built on Merit, Driven by Passion,” sets the tone for the conference’s programs. The 2016 ABC Carolinas Construction Conference is sponsored by Sears Contract, Inc.

“ABC is excited to host our annual Construction Conference in downtown Greenville this year and look forward to showcase the city,” said Doug Carlson, president and CEO of ABC Carolinas. “ABC is the construction association of choice and many of our member companies have worked on the revitalization of Greenville's downtown area.  We are pleased to hear about the plans for continued growth.”

 

Conference Speakers include:

·         Greenville Mayor Knox White

·         Sam Wyche, former coach of the Cincinnati Bengals

·         Mike Chibbaro, Battlefield Leadership

·         Alex Miller, FMI

·         Brad Humphrey, Pinnacle Development Group

 

Special events and activities include:

·         BMW Driving Experience and Performance Center Events

·         Golf Outing

·         PAC Reception

·         Casino Night

·         Vendor Showcase

 

"We have created a conference program that will provide knowledge, insight, and tools that the leaders of the construction industry can use to impact the productivity and profitability of their businesses,” said Brian Gallagher, marketing director for Greenville-based O'Neal, Inc. and ABC Carolinas Board Member.

 

To learn more about the conference or to register, please visit www.abccarolinas.com for more details.

Construction Growth Forecasted for 2016

According to a recent forecast by FMI, a consulting group specializing in the engineering and construction industry, construction activity will continue to grow in 2016. FMI reported that construction put in place will slow to a 6% growth rate in 2016.

In 2015, construction added 11% growth to reach nearly $1.1 billion in construction put in place since 2008.  Signs that the rate of growth for the industry is slowing reduced the forecast for 2016; however, construction put in place will reach $1.6 billion.

The increase in construction activity has also spurred growth in construction employment. The U.S. construction industry added 37,000 net new jobs in March 2016 according to an analysis of  the recent  U.S. Bureau of Labor Statistics release by Associated Builders and Contractors (ABC). On a year-over-year basis, construction employment expanded by 301,000 net new jobs, the industry’s largest annual increase since May 2015.  

“Naturally, consumer spending-led recoveries such as this more directly impact residential construction segments than nonresidential," said ABC’s Chief Economist Anirban Basu. "Accordingly, the residential construction recovery continues to be a bit more forceful and that is likely to continue during the months ahead.”

Improving consumer economic and physical health and a growing population demanding new technologies and housing are contributing to the forecast of projected growth.. Those consumers, especially younger consumers are also highly mobile and gravitating most often toward larger cities for jobs and entertainment. With all the good news for construction markets, FMI notes that it must also echo the sentiments of the Federal Reserve and say: "Global economic and financial developments continue to pose risks,"

FMI recommends cautious optimism for 2016 and offers these forecasts for some key sectors:

• Manufacturing – Manufacturing construction took a heavy hit during the Great Recession, but it has more than caught up as of 2015, with a whopping growth of 44% for the year and a more modest 9% growth expected for 2016. In either case, new records are being set for manufacturing construction investment. While, at 76.1 for February 2016, manufacturing capacity utilization is still below the long-term average of 78.5, there are signs that new capacity is being well utilized. 
• Residential Construction  – FMI forecast residential construction will grow at a rate of 6% for 2016, with the largest rate of growth in multifamily housing (12%). Compared to 2015, growth will be cut by more than half. There are signs that some of the slower growth is due to homebuilders—like most all contractors—having difficulties fnding qualifed labor, thus needing to increase wages to attract more workers.
• Lodging – Lodging construction continued to rise above even increasingly optimistic forecasts for 2015 to end the year with 31% growth. At this point, FMI again expects the rate of growth to cool, but, at 15% for 2016, it will still be the fastest-growing construction market. With an expected value of $24.3 billion for 2016, this market is well below its high of $35.8 billion in 2008, but we expect these numbers to be more sustainable with a mix of new venues and refurbishing established locations.
  Office – After a strong show of growth in 2015 (22%), we expect office construction to cool in 2016 to a still respectable rate of 9% growth. Much of the growth has come from an increase in employment, especially in high-tech job markets. These high growth rates will taper off to more sustainable rates in 2017 and beyond. Continued growth in the technical sector and in larger metropolitan areas like New York City will keep rents and absorption of new space high.
  Power – After a strong year in 2014, power construction declined sharply in 2015, losing 14%. FMI expects another 4% drop in 2016, thus giving up the gains realized since 2012. The power industry is in flux due to changing fuel supplies using more natural gas and less coal as well as variable rates of growth in alternative energy sources like solar and wind. Power plants must be updated to keep up with changing requirements as well as to manage distributed generation sources. Despite losing subsidies and the lower cost of oil and gas, wind and solar power generation facilities are growing. The power industry will continue to consolidate as the average consumer reduces power use, but growth will slow in 2016 and 2017.

Download the Q1 Construction Outlook

CIM Holds Record Breaking Auction at the World of Concrete

The National Steering Committee (NSC) for the Concrete Industry Management (CIM) program – a business intensive program that awards students with a four-year Bachelor of Science degree in Concrete Industry Management – raised more than $925,000 in gross revenue at its annual auction, held in conjunction with the World of Concrete on Wednesday, Feb. 3.

"The NSC of the CIM program is pleased to report that the 2016 World of Concrete Auction
surpassed our highest gross proceeds total ever,” commented Mike Philipps, CIM Auction
Committee Chairman. “This Auction is a great example of the high value the concrete industry
places on the CIM program. We had a record in terms of the value of donated items and
attendees at the Auction that helped make this year’s event a tremendous success."

The signature item this year was a Mack Granite® Axle Forward model mounted with a
McNeilus 11-cubic-yard Bridgemaster® concrete transit mixer, donated by Mack Trucks, Inc.
and McNeilus Co., a Division of Oshkosh Truck. The winning bidder of the mixer truck was Roy
Simmons with Rockingham Redi-Mix, Inc.

An addition to the list of industry items donated to the annual Auction this year was a 1951
vintage Ford Ready Mix truck. This vehicle was restored and donated by Dean Leaman of Allied
Concrete Materials. The winning bidder of this unique item was Steve Ireland of SD Ireland
Concrete.

In addition to the live auction, a silent auction was also held. This year CIM had record proceeds
from the silent auction. Auction items included cement, concrete saws, drills, mixers, vibrators,
safety equipment, screeds, fiber transport systems, dust collectors, decorative concrete tools,
water meters, pumps, generators, training sessions, reference books, advertisements, laptop
computers, sports travel packages, and golf and vacation travel packages.

“We were blessed to have the incredible support of the World of Concrete show management,
Informa and Ritchie Bros. Auctioneers,” said CIM Marketing Committee Chairman Brian
Gallagher. “We thank the many companies such as McNeilus Companies, Inc., Mack Trucks,
Inc., Somero Enterprises, and the numerous companies that donated items to the Auction to
make it a complete success.”   

Again this year, NSC partnered with GiveSmart - a user-friendly bidding technology service
providing customized auction and event solutions primarily for nonprofit organizations. With
GiveSmart, participants were able to register for the auction, sneak preview silent and live
auction items, make a donation, and bid on their favorite silent auction items immediately. Once
again this year, participants who were not able to attend the live auction were able to bid online
during the event.

Foreign Direct Investment in the United States

The following article originally appeared on the South Carolina Economic Developers Association site.

Foreign direct investment (FDI) in the United States has been a key driver in the recent manufacturing recovery. Capital investment in automotive, chemical, textile, aerospace and other manufacturing and production facilities by foreign-owned companies has been on a steady increase in the Southeast United States.

While reshoring activity accounts for a portion of this investment, the upsurge that may be most beneficial to U.S. workers is how investments are being redirected based on the new economics of manufacturing in the U.S. According to the Organization for International Investment (OFII), it is insourcing, or foreign direct investment (FDI) in the United States, that truly bolsters U.S. manufacturing. The OFII’s Foreign Direct Investment in the United States 2014 Report showed that in 2013, manufacturing accounted for one-third of cumulative FDI, in an amount exceeding $900 billion.

The Global Supply Chain Institute at the University of Tennessee conducted a study on outsourcing and global supply chains and reported that companies are adopting regional supply chain models. “Our research suggests that global supply chains across the world will eventually break into a series of supply pods where regional procurement and manufacturing operations will supply the major demand centers of the area, at least for a significant percentage of production requirements.”

These trends from the large U.S. market are attractive to many corporations overseas because companies are increasingly making their products in multiple stages from supply networks in many countries that are linked together by trade and investment. Some other attractive and key advantages that provide incentive to FDI are:

• Proximity to markets
• Dependable infrastructure
• Training and education
• Business-friendly regulatory environments

Southern states have a strong lead in building their manufacturing base. A 2011 Southern Business Development article stated “of total investments made in this country by foreign-owned companies since 2001, the South’s take has averaged 43 percent of the U.S. annual total.” The growing roster of facilities that have already been built increases the likelihood that new manufacturers will be close to their customers if they, too, build facilities in the south. A solid infrastructure, encompassing not only roads but ports and waterways, is already in place. And a 2014 USA Today article credited the south with a trifecta of incentives: “lower costs, generous state incentive packages and right-to-work laws.”

With continued growth on the horizon and a suite of advantages working in America’s favor, manufacturers will continue to look at capital investments in the United States.

SMPS Panel to Focus on Manufacturing

The Port of Charleston and the Upstate’s I-85 corridor – two undisputed economic engines of South Carolina united by the newly established inland port.

Volvo, Daimler and Boeing – three powerhouse manufacturers making blockbuster job announcements in the Lowcountry.

BMW, Toray & Michelin – three of the Upstate’s nearly 1,400 manufacturers pledging over $3.95 billion in new building construction and expansion projects in the Upstate in 2014.

What do these numbers mean for South Carolina’s manufacturing industry, specifically in the ten-county Upstate region? Will Greenville remain in the top ten list of “America’s Engineering Capitals”  (#6, Forbes, 2014) or will future growth head to the Lowcountry within the decade to come? Join representatives from South Carolina’s top manufacturing corporations and leading economic development officials on August 25^th for a panel discussion as they weigh in on the state of manufacturing with regard to business recruitment, supply chain development, recent investments and challenges/opportunities for the A/E/C industry.

Panelists include:

• Catherine Hayes, Executive Director, SC Automotive Council
• Andy Carr, Regional Vice President, SC Manufacturing Extension Partnership
• Max Metcalf, Government & Community Relations Manager, BMW Manufacturing
• Brian Gallagher, Marketing Director, O’Neal (Moderator)

Low Oil Prices Driving Factory Construction

Despite the drop in oil prices, investment in new factory and plant construction in the United States has steadily increased for the last four quarters. According to a recent article inBloomberg Business Week, How Cheap Oil is Fueling a Surge in New Factory Construction, capital investment in new manufacturing facilities surged at a 95% pace from January to March 2015.

“While the drop in oil prices has lead to a decrease in investments related to oil drilling, there has been an increase in capital investment in oil refining and chemical production facilities,” said Brian Gallagher, Director of Marketing for O’Neal, Inc., an integrated design and construction firm that specializes in process chemical and manufacturing facilities. “The United States is enjoying a manufacturing renaissance.”

Over the last four quarters, capital investment in factories increase by an average of 64%. That represents the strongest level of investment since 1958. The automotive and chemical sectors are the leading segments for new plant construction. Bloomberg cited data from the Census Bureau and the Bureau of Economic Analysis in their report.

“There’s a manufacturing boom underway tied to the chemical industry” building new plants that refine oil and natural gas into other products, said Joe Carson, director of global economic research at AllianceBernstein LP in New York. “The gift is long term. The energy renaissance triggers a manufacturing revival.”

A recent report by PriceWaterhouseCoopers (PwC), predicts the shale gas revolution could add one million U.S. manufacturing jobs by 2025 and reduce manufacturing expenses by $11.6 billion a year through that time. One industry that stands to benefit significantly is the chemical industry. PwC reported chemical companies are investing more than $15 billion in capital to upgrade and build facilities in North America due to natural gas availability.

Project Definition Improves Industrial Project Delivery

Manufacturing professionals today have access to more information than at any point in history, and it is incumbent upon them to make use of that information in order to stay competitive. One way that they are doing this is through a greater investment of time and energy in early-stage development of capital projects — i.e., ”project definition,” which is typically part of the preconstruction phase. An interactive and collaborative definition process can bring a greater level of detail to planning and is a critical starting point for successful project delivery.

Project definition helps the owner determine if the project is viable or not, aligns project expectations, and helps define a roadmap for the project delivery process. It results in early identification of possible problems and where they might occur, allowing for risk mitigation. The result is a reduction in the number of changes, unexpected costs, and variations of schedule during the execution of the project. The process also promotes alignment and efficiency among team members.

Read More In Area Development Magazine

Reimaging the AEC Sales Role

A recent article in the Harvard Business Review examines the future role of sales people in the business-to-business (B2B) environment. The article is based on “Death of a B2B Salesman,” a new report from Forrester Research, and encourages companies to transform their sales models by incorporating digital media into their processes.

For the last several years, I've had the opportunity to write and speak on the topic of how technology is impacting the B2B buying process. The Forrester study highlights some significant trends that should get the attention of CEOs, CMOs and CSOs in the architecture, engineering and construction (AEC) industry. The study reveals that B2B buyers want to self-educate themselves by going to sellers’ websites to learn about offerings, and a majority of buyers prefer to make purchases online. Forrester also reported that many sellers continue to force customers to deal with a sales representative to learn about prices and complete the transaction.

While actually procuring design and construction processes online is general not feasible, the findings of the report are still valid. My own research over the last few years has indicated that buyers of design and construction services are increasingly using the web to review and validate companies-and even specific company employees-via social networks, technical articles, videos, and other means.

The HBR article, written by James A. Narus, a professor of business marketing at Wake Forest University, encourages firms to rethink its sales funnel and integrate digital marketing into the overall sales and marketing process. In my book, Building Business with Social Media, I discuss how technology is impacting the process for finding, attracting, and retaining customers. Efforts to establish thought leadership and become a knowledge provider will provide buyer with information to educate themselves to them make purchase decisions.  Digital marketing effort must be integrated into the sales and marketing process. AEC firm leaders must encourage and promote cohesion between the sales and marketing efforts to better align with the behaviors of customers.

According to the Forrester study, sales people can still be important to the process by adding value to the customer's purchasing process. The study describes the role of  today’s field salesperson as an educator, negotiator, consultant, solution configurator, service provider, and relationship manager.

As with every function in business, the sales role is evolving. Companies in the AEC industry must continually analyze their customer's buying process and proactively integrate digital marketing into their sales approach to meet their buyers needs.

Gallagher Named to List of Most Influential in the Construction Industry

I am honored to have been named to Procore Software's list of Top 20 Influencers in the Construction Industry . Procore evaluated hundreds of Twitter accounts to find the most topical, engaging content and compiled a list of the top 20 influencers to help their audience find the best content out there. Please follow me: @bgallagher13






























































About Procore Technologies Inc. Procore Technologies, Inc. provides cloud-based construction management software to clients across the globe. Using its award-winning suite of construction management software, hundreds of thousands of registered Procore users manage all types of construction projects including industrial plants, office buildings, apartment complexes, university facilities, retail centers and more. The Procore and free CurrentSet by Procore mobile apps for iOS and Android can be downloaded from the App Store or Google Play. For more information about Procore Technologies, or for a free online demo, visit: http://www.procore.com.

Construction Put In Place to Grow 8 Percent in 2015

According to FMI, a consulting firm specializing in the construction industry, total construction put in place for 2015 is predicted to grow 8 percent. This supports earlier FMI predictions that CPIP will top $1 trillion in 2015, something the market has not seen since 2008. This indicates that the economy is on track for a resilient recovery.

“The FMI report is consistent with the increased level of activity we have been experiencing,” said Brian Gallagher, Marketing Director for O’Neal, Inc., an integrated design and construction firm. “Private sector activity, particularly capital investments in manufacturing, process chemical and other industrial sectors is ahead of last year.”

Geographically, larger cities are experiencing strong construction growth due in part to increases in rents and declining inventory for housing and office space. The sectors expected to experience the highest growth rate are:

•Lodging construction – 16 percent CPIP growth
•Commercial construction – 15 CPIP growth
•Manufacturing construction – 11 CPIP growth
•Office construction – 11 CPIP growth
•Residential construction – 9 percent CPIP growth

“The current growth cycle appears to be broad-based and sustainable.” Randy Giggard, managing director of research services for FMI. “Most of the new construction activity is in the private sector. Projects dependent on government spending, especially those involving infrastructure, continue to be at the mercy of politics.”

To obtain a copy of the report, please visit FMI.

Manufacturing Leaders Optimistic According to Barometer

According to the quarterly Manufacturing Barometer from PricewaterhouseCoopers LLC, more U.S. manufacturers are expecting to make money and create jobs.

The  report showed that 60 percent were planning to grow their workforce and 68 percent were optimistic about the U.S. economy in 2015. The survey panel predicted their companies’ revenues to grow by an average of 5.8 percent in the coming year, with 85 percent expecting growth.

“We certainly share that optimism with the manufacturers,” said Brian Gallagher, Director of Marketing for O’Neal, Inc., and integrated design and construction firm that specializes in industrial and process-intensive facilities. “Investment in capital projects has been steadily increasing.”

Overall, 43 percent of US industrial manufacturers surveyed plan major new investments of capital over the next 12 months (2015) – up 7 points on a quarter-to-quarter basis, but on pace with a year ago (43 percent). Yet they plan to spend less. Their mean investment as a percentage of total sales was a notably lower 3.3 percent compared to a typically higher inves

Highlights from this quarter’s report:

• Economic sentiment is up among US industrial manufacturers across a range of key indicators.
• Aiming to fill the skill gap, the majority of respondents plan to hire new workers.
• Concerns regarding legislative/regulatory pressures dropped.

PwC’s Manufacturing Barometer is a quarterly survey of US-based executives in large, multinational industrial manufacturing businesses. The survey captures participants’ assessments of the direction of the US and world economies and their company’s performance and expectations in such areas as revenue growth, margins, inventory, and costs. Other sections explore plans for investment, mergers and acquisitions, and hiring, as well as potential barriers to growth and much more.

To obtain a copy of the barometer report, visit PwC.

Manufacturing Leaders Optimistic According to Barometer

According to the quarterly Manufacturing Barometer from PricewaterhouseCoopers LLC, more U.S. manufacturers are expecting to make money and create jobs.

The  report showed that 60 percent were planning to grow their workforce and 68 percent were optimistic about the U.S. economy in 2015. The survey panel predicted their companies’ revenues to grow by an average of 5.8 percent in the coming year, with 85 percent expecting growth.

“We certainly share that optimism with the manufacturers,” said Brian Gallagher, Director of Marketing for O’Neal, Inc., and integrated design and construction firm that specializes in industrial and process-intensive facilities. “Investment in capital projects has been steadily increasing.”

Overall, 43 percent of US industrial manufacturers surveyed plan major new investments of capital over the next 12 months (2015) – up 7 points on a quarter-to-quarter basis, but on pace with a year ago (43 percent). Yet they plan to spend less. Their mean investment as a percentage of total sales was a notably lower 3.3 percent compared to a typically higher inves
Highlights from this quarter’s report:

• Economic sentiment is up among US industrial manufacturers across a range of key indicators.
• Aiming to fill the skill gap, the majority of respondents plan to hire new workers.
• Concerns regarding legislative/regulatory pressures dropped.

PwC’s Manufacturing Barometer is a quarterly survey of US-based executives in large, multinational industrial manufacturing businesses. The survey captures participants’ assessments of the direction of the US and world economies and their company’s performance and expectations in such areas as revenue growth, margins, inventory, and costs. Other sections explore plans for investment, mergers and acquisitions, and hiring, as well as potential barriers to growth and much more.
To obtain a copy of the barometer report, visit PwC.

Construction Put In Place to Grow 8 Percent in 2015

According to FMI, a consulting firm specializing in the construction industry, total construction put in place for 2015 is predicted to grow 8 percent. This supports earlier FMI predictions that CPIP will top $1 trillion in 2015, something the market has not seen since 2008. This indicates that the economy is on track for a resilient recovery.

“The FMI report is consistent with the increased level of activity we have been experiencing,” said Brian Gallagher, Marketing Director for O’Neal, Inc., an integrated design and construction firm. “Private sector activity, particularly capital investments in manufacturing, process chemical and other industrial sectors is ahead of last year.”

Geographically, larger cities are experiencing strong construction growth due in part to increases in rents and declining inventory for housing and office space. The sectors expected to experience the highest growth rate are:
•Lodging construction – 16 percent CPIP growth
•Commercial construction – 15 CPIP growth
•Manufacturing construction – 11 CPIP growth
•Office construction – 11 CPIP growth
•Residential construction – 9 percent CPIP growth

“The current growth cycle appears to be broad-based and sustainable.” Randy Giggard, managing director of research services for FMI. “Most of the new construction activity is in the private sector. Projects dependent on government spending, especially those involving infrastructure, continue to be at the mercy of politics.”

To obtain a copy of the report, please visit FMI.

U.S. Chemical Production Notches Highest Gain Since 2010

According to the American Chemistry Council (ACC), the U.S. Chemical Production Regional Index (U.S. CPRI), as measured on a three-month moving average (3 MMA) basis, continued to expand, rising by 0.2 percent in February following a downwardly revised 0.3 percent gain in January. The gain in February was the eleventh consecutive monthly gain. All major chemical producing regions posted consecutive gains in February.

Also measured on a 3MMA basis, chemical production by segment was mixed. There were gains in the output of organic chemicals, chlor-alkali, synthetic rubber, synthetic dyes and pigments, industrial gases, consumer products, and pharmaceuticals. These gains were partially offset, however, by declines in the production of fertilizers, coatings, adhesives, plastic resins, synthetic fibers, acids, pesticides, and other specialty chemicals.

Nearly all manufactured goods are produced using chemistry in some form or another. Thus, manufacturing activity is an important indicator for chemical production. Following a year of gains, manufacturing stumbled in part due to harsh winter weather and West Coast port disruptions.  Production expanded, however, in several chemistry-intensive manufacturing industries, including computers and electronic products, plastic products and apparel.

Compared to February 2014, total chemical production in all regions was ahead by 4.2 percent on a year-over-year (Y/Y) basis, its largest gain since July 2010. Chemical production was up from a year ago in all regions.

The chemistry industry is one of the largest industries in the United States, an $812 billion enterprise. The manufacturing sector is the largest consumer of chemical products, and 96 percent of manufactured goods are touched by chemistry. The U.S. CPRI was developed to track chemical production activity in seven regions of the United States. It is comparable to the U.S. industrial production index for chemicals published by the Federal Reserve. The U.S. CPRI is based on information from the Federal Reserve. To smooth month-to-month fluctuations, the U.S. CPRI is measured using a three-month moving average (3MMA). Thus, the reading in February reflects production activity during December, January, and February.

Read Report

Chemical Industry Highlights Manufacturing Growth

At a briefing held by the Congressional Natural Gas Caucus, ExxonMobil Chemical Company Senior Vice President Matthew Aguiar explained how domestic natural gas development is enabling growth in manufacturing investment and jobs, and the chemistry industry’s leading role.

The shale gas production boom has made America one of the world’s lowest-cost producers of basic petrochemicals, with a decisive competitive advantage in global markets. As a result, 225 chemical industry projects–new facilities, expansions and restarts–valued at $138 billion are planned or have begun. They could generate $93 billion per year in increased chemical industry output and at least 665,000 permanent new jobs by 2023. More than 60 percent of the new investment is by firms based abroad.

Mr. Aguiar pointed to ExxonMobil’s project in Baytown, Texas as a prime example. “When complete, the expansion will have created 10,000 construction jobs, including carpenters, electricians, welders, ironworkers, you name it,” he said. “All the new activity is expected to add 4,000 new, permanent local jobs, including 350 positions at ExxonMobil plants.”

Natural gas production benefits U.S. trade. “U.S. manufacturers will double their exports of plastics and other chemical products from 2014 to 2030,” Mr. Aguiar said. A report from Nexant, Inc. sponsored by ACC, found that gross exports of chemical products, including plastics, linked to plentiful and affordable natural gas could grow from $60 billion in 2014 to $123 billion by 2030.

Today’s briefing affirms that shale gas production is creating historic opportunities for our country, but our policies lag behind. The House energy plan released by Chairman Upton in February will modernize America’s energy strategy. With a focus on infrastructure, workforce development and energy savings, it addresses shortcomings in the current system and will help ensure manufacturers can continue to invest and hire in the United States.

Read Article

Foreign Direct Investment Bolsters U.S. Manufacturing

According to a new report by the Organization for International Investment, insourcing bolsters U.S. manufacturing. Foreign-owned manufacturers with more than 1,600 affiliates in the United States in employ millions of Americans in high-paying jobs.

“We’ve seen a significant increase in foreign direct investment in the manufacturing, chemical and pharmaceutical industries during the last year,” said Brian Gallagher, spokesman for O’Neal, Inc. an integrated design and construction firm. “This investment by foreign-owned companies  has a multiplier effect in that suppliers typically follow with additional capital investments in manufacturing facilities.”

Often, supplier companies locate nearby to furnish manufacturers with materials, component parts, and various support services, foreign investment in manufacturing provides significant employment spillovers. Economists estimate for each manufacturing job two to five additional jobs are created elsewhere in the economy.

The chemicals sector accounted for over $280 billion in cumulative foreign direct investment by the end of 2013. Transportation equipment and petroleum and coal products each had more than $100 billion in foreign investment through 2013, followed by the machinery sector at $87 billion. Over the years, international investors have brought know-how, technology, and innovation with them, boosting the overall competitiveness of U.S. manufacturing. Read report.

CIM Holds Successful Auction at the 2015 World of Concrete

The National Steering Committee (NSC) for the Concrete Industry Management (CIM) program – a business intensive program that awards students with a four-year Bachelor of Science degree in Concrete Industry Management – raised more than $800,000 in gross revenue at its tenth annual auction, held in conjunction with the World of Concrete on Wednesday, Feb. 4.

"The NSC of the Concrete Industry Management (CIM) program is pleased to report that the 2015

World of Concrete Auction was, once again, a huge success,” commented Mike Philipps, CIM Auction Committee Chairman. “This Auction is a great example of the high value the concrete industry places on the CIM program. We had a record in terms of the value of donated items and attendees at the Auction that helped make this year’s event a tremendous success."
The signature item this year was Mack Granite® step forward axel model mounted with a McNeilus 11-cubic-yard Bridgemaster® concrete transit mixer, donated by Mack Trucks, Inc. and McNeilus Co., a Division of Oshkosh Truck. The winning bidder of the mixer truck was Ozinga Ready Mix Concrete, Inc.

“In an educational environment dominated by more traditional liberal arts programs, the CIM program is a welcome alternative that equips and empowers students with hands-on management experience that meets the urgent need for professionals in the concrete and construction industry” said Paul Ozinga, co-owner of Ozinga Bros., Inc . and CIM graduate. “As a fourth generation family business, it’s important for us to have a long-term outlook on sustaining our industry. For Ozinga, supporting the CIM program through their annual auction is a solid investment in our future because they are literally raising up the next generation of leaders in our field.”

In addition to the live auction, a silent auction was also held. This year CIM had record proceeds from the silent auction. Auction items included cement, concrete saws, drills, mixers,  vibrators, safety equipment, screeds, fiber transport systems, dust collectors, decorative concrete tools, water meters, pumps, generators, training sessions, reference books, advertisements, laptop computers, sports travel packages, and golf and vacation travel packages.

“We were blessed to have the incredible support of the World of Concrete Show Management, Hanley Wood Publications and Ritchie Bros. Auctioneers,” said CIM Marketing Committee Chairman Brian Gallagher. “We thank the many companies such as McNeilus Companies, Inc., Mack Trucks, Inc., Somero Enterprises, and the numerous companies that donated items to the Auction to make it a complete success.”   

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ABC Upstate Names 2015 Council Leadership Team

The Associated Builders and Contractors (ABC) of the Carolinas announces the 2015 leadership team for the organization’s Upstate (SC) Council.

Gavin Axson, Senior Project Manager for Brasfield and Gorrie, has been named Council Chairman. He will be working closely with the 2015 leadership team which includes:
• Chris Moore, Carolina Power — Past Chair
• Kyle Dillard, Ogletree Deakins — Government Affairs
• Chauncey Tschiffely, Trinity Consulting — Workforce Development
• Rob Wess, Yeargin Potter Shackelford — Membership
• Joan Krause, KBR Building Group — Public Relations
• Brian Gallagher, O’Neal — Board Liaison
• Bill Caldwell, Waldrop Mechanical Services — Board Liaison
• Brett Caldwell, Caldwell Constructors
• Bryan Finch, Hajoca
• Dan Polstra, Trane
• Matt Stalnaker, Dixon Hughes Goodman
• Ed West, O’Neal

“ABC is the only industry association that represents the entire construction team (general contractors, specialty contractors, suppliers, industry professionals) with an equal voice,” said Gavin Axson, 2015 ABC Upstate Chairman. “This year we will continue to address the issues of an aging workforce with our workforce development programs and outreach in an effort to attract young people to the construction industry. Another critical item of focus will be membership recruitment and retention.”

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Strong 2015 Predicted for Manufacturing

According to a new report recently  released by The MAPI Foundation, the research affiliate of the Manufacturers Alliance for Productivity and Innovation (MAPI), the solid growth in jobs and increasing replacement demand for equipment will provide a stable base for overall economic growth in 2016.

The MAPI Foundation predicts that inflation-adjusted gross domestic product will expand 2.8% in 2015 and 3.0% in 2016. Both are declines from the August report—of 3.0% and 3.3%, respectively.

Manufacturing production is expected to outpace GDP, with anticipated growth of 3.5% in 2015 (a decrease from 4.0% in the previous forecast) and 3.9% in 2016 (an increase from 3.6% in the August report).

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