California 4, February 8, 2023

February 12 2023

AGC: Contractors Share Optimistic Outlook for New Year

A recent survey of its members by the Associated General Contractors of California (AGC of California) found that contractors are generally feeling optimistic about the construction industry’s outlook and their companies’ financial and hiring prospects in 2023.

“Our members’ feelings of optimism for their business run in tandem with an equally strong urge to grow the construction industry and hire more talent to join the industry,” said Peter Tateishi, chief executive officer, AGC of California. “As AGC of California continues to focus on delivering value for our members and the industry through our advocacy efforts, we also heavily invest in building a future workforce to meet the needs of the California construction industry that is both innovative and inclusive.”

Some key statistics from the third annual AGC of California 2023 Optimism Survey include:

• More than 58 percent of respondents said they expect business activity in California to be strong or moderate in 2023;

• More than 65 percent of respondents expect the construction industry in California to stay the same or grow in terms of expansion;

• Approximately 49 percent of respondents felt optimistic about California’s construction industry overall, outnumbering those respondents with a more pessimistic outlook (25.5 percent) by nearly two to one. One-quarter of respondents were “neutral” (neither optimistic nor pessimistic) in their outlook; and

• A strong 70.4 percent of respondents said they were optimistic about their own companies’ prospects and success in 2023.

To capitalize on the market opportunities ahead, many firms plan to continue to grow their workforce and increase their talent pool. In fact, nearly 56 percent of survey respondents expect to increase their hiring in 2023 over 2022 levels either slightly (33 percent), moderately (15.1 percent) or significantly (4.7 percent).

CONTRACTORS page 4

Caltrans photo

According to a recent survey conducted by the AGC of California, more than 65 percent of respondents expect the construction industry in the Golden State to grow in terms of expansion or remain at similar levels to 2022. A strong 70.4 percent of respondents said they were optimistic about their own companies’ prospects and success in 2023.

Firms Expect Hiring, Wages, Prospects to Increase This Year

CONTRACTORS from page 1

On the revenue front, nearly 58 percent of firms said they expect their revenue to increase either significantly (10.1 percent), moderately (25.7 percent) or slightly (22 percent) in 2023, while 22.9 percent expect it to remain the same and 19.3 percent expect 2023 revenue to decrease. Asked about net profit, some 54.1 percent of respondents anticipate it will increase over 2022, while 22.9 percent expect it to remain the same and 15.6 percent expect it to decrease slightly.

“AGC of California members acknowledge apprehension of a potential recession, but interestingly, the majority of respondents expect their companies to continue to grow net profit and revenue in the coming year,” said Tateishi. “Respondents also expect to increase hiring in 2023 and AGC of California is continuing to capitalize and expand on our many workforce development programs that prepare future workers for jobs in our vital industry.”

Respondents’ concerns for the construction industry in 2023 in California include the threat of a potential recession (70.4 percent), workforce shortages (68.4 percent), regulatory requirements (62.2 percent) and increased pay and benefits (52 percent), to name a few. Asked to choose the single issue they are most concerned about, 21.4 percent of respondents cited the threat of a potential recession, followed by workforce shortages (20.4 percent), regulatory requirements (17.4 percent), increased pay and benefits (11.2 percent) and unreliable infrastructure investment (8.2 percent), among others.

The 2023 Optimism Survey is an annual questionnaire AGC of California issues to evaluate association members’ and the construction industry’s optimism regarding their business outlook in the coming year. The survey, sent via email, newsletters and posted on social media, garnered 109 responses, 93.6 percent of whom are members. Survey par-

ticipants were 56 percent contractor members, 20.2 percent associate members, 16.5 percent specialty contractor members, with 7.3 percent unsure and they represented the vertical construction building division (56 percent), highway and transportation division (47.7 percent) and the utility and

infrastructure division (31.2 percent) of AGC of California. By total dollar amount of work in 2022, 20.2 percent performed $500 million and above, 22 percent performed $100 million to $500 million, 11.9 percent performed $25 million to $50 million and more than 28 percent performed $25 million or less.

About Associated General Contractors of California

Since 1920, the Associated General Contractors of California (AGC of California) has worked alongside members to provide advocacy, education, career development, and networking opportunities to experienced and next generation construction and contracting professionals. AGC of California advocates for contractors with state and local governments, while helping members connect with industry leaders through services, innovative programs, and events.

For more information, visit www.agc-ca.org. 

Caltrans

Respondents’ concerns for the construction industry in 2023 in California include the threat of a potential recession (70.4 percent), workforce shortages (68.4 percent), regulatory requirements (62.2 percent) and increased pay and benefits (52 percent).

photo

Caltrans photo

Nearly 58 percent of firms said they expect their revenue to increase either significantly (10.1 percent), moderately (25.7 percent) or slightly (22 percent) in 2023.

AGC of California graphic

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Industry Gathers for California Rental Rally Trade Show

CRA (California Rental Association) held its annual Rental Rally Tradeshow at South Point Hotel and Casino in Las Vegas on Jan. 22 to 25.

The Rental Rally featured a boot camp for rental leaders, round table discussions and other educational events; including a demo event at Dig This Vegas, where attendees were able to experience hands-on demonstrations with machines brought on site by vendors and could also try their hand at larger excavators located on site, where they raced to see who could get the basketball into the tire first.

On Jan. 24, the show kicked off with a keynote speaker, retired U.S. Navy SEAL and NASA astronaut Capt. Chris Cassidy, who energized the group on the importance of achieving goals and effective leadership.

Once the exhibit hall opened, the floor was buzzing with activity as rental leaders from around California visited the booths of roughly 100 vendors. Vendors had the chance to enjoy the CRA show and its fun and energetic crowd. The location is great for attendance as it allows the attendees a fun destination, organizers said.

The show was wrapped up with a Rental Palooza Party held at the Ahern hotel, where attendees were treated to a pre-1977 car show, dancing and an awards ceremony and celebrated 77 years.

The CRA was formed in 1946 as the California Trailer and Rental Yard Association by a group of individuals who understood the many things that could be accomplished by working together and the sharing of ideas. As CRA looks to the future, it wants to help store owners remain competitive and successful and encourages them to take full advantage of the many offerings at the Rental Rally.

CRA Rental Rally is held annually at the South Point Hotel and Casino in January.  CEG

(All photographs in this article are Copyright 2023 Construction Equipment Guide. All Rights Reserved.)

Sonsray, the largest Case dealer on the west coast, was on hand along with members of the Case team, ready to discuss the many opportunities available with its lineup of equipment available for rent. (L-R) are Mike Wright, Southwest regional manager, Sonsray; Justin Condor, product specialist, Sonsray; Bryan Bernardino, general manager, Sonsray; Mark Davis, sales specialist, Case; and Randy Snider, general manager, Sonsray.

The team from Volvo Construction Equipment & Services includes (L-R) Chris Raulinaitis, compact/utility sales representative, VCES; Kris Villarreal, compact/utility sales representative, VCES; Phillip Ransom, general manager, sales operations and remarketing, VCES; Cheyenne Clements, marketing manager, and VCES; Ed Galindo, e-mobility product manager, VCES. The Volvo ECR25 electric excavator allows you to have all of the power and performance you need in its compact design, while working toward a sustainable future.

Doosan Portable Power and Volvo Construction Equipment & Services create a great partnership with a wide variety of generators to suit the needs of any job site. (L-R) are Ed Galindo, e-mobility product manager, VCES; Chris Raulinaitis, compact/utility sales representative, VCES; Phillip Ransom, general manager, sales operations and remarketing, VCES; Cheyenne Clements, marketing manager, VCES; Kris Villarreal, compact/utility sales representative, VCES; and Darrin Martin, district manager — Western U.S., Doosan Portable Power.

With 12 distribution locations throughout the United States, Summit Supply continues to expand its footprint and parts and equipment distribution. Summit Supply offers rubber tracks and undercarriage wear parts, rubber track pads or flatproof solid tires for compact equipment. Representatives from the business development team include (L-R) Jake Jones, Talor Garlick and Kyle Gracey, business development managers of Summit Supply.

(L-R): Eric Whistlecroft, regional sales director, Western region; Joshua McCluer, regional sales manager, Western region (Southern California, Hawaii & Guam); and Steve Adams, aftermarket manager, Western region of Wacker Neuson, with the versatile DW30 wheel dumper. Attendees of the show love the compact design and appreciate the versatility of this wheel dumper by Wacker Neuson.

Volvo Construction Equipment & Services had both the ASV RT-50 compact track loader and the Volvo Electric ECR25 excavator for customers to try. Equipment Share had the Yanmar the ViO35-6A mini-excavator for customers to demo.

Gov. Newsom Unveils $2.5B Transportation Investment

Gov. Gavin Newsom recently announced an award of more than $2.5 billion to 16 ongoing public transportation projects in the first wave of a historic infusion of state funding to expand transit and passenger rail service throughout the state, helping to cut planet-warming pollution.

“The projects funded represent critical transportation and will provide alternatives to driving with access to a modernized, public transit system,” said Governor Newsom. “California is unwavering in our commitment to our world-leading climate agenda, including record levels of investments in public transportation projects to electrify fleets, expand and improve service, and spark ridership growth.”

The recent funding announcement is part of a larger, multiyear, multibillion-dollar investment to upgrade the state’s transit system to enhance mobility options, improve service and reduce overdependence on driving. The grants are administered by the California State Transportation Agency (CalSTA) as part of the Transit and Intercity Rail Capital Program (TIRCP).

“These historic investments in transit and intercity rail projects will help get these transformative projects over the finish line and into operation so the people of California can enjoy more of the mobility, safety, environmental and equity benefits that come with riding transit,” Transportation Secretary Toks Omishakin said. “With billions of additional state investments in the pipeline, more upgrades are on the way – putting California transit agencies in a strong position to compete for significant federal infrastructure funding to deliver even more improvements.”

Projects receiving funding include:

• A total of $600 million for LA Metro’s East San Fernando Valley Transit Corridor project to complete the 6.7-mile initial segment between Van Nuys/Orange Line and Van Nuys/San Fernando stations, scheduled by 2030. The project previously received $205 million in TIRCP funding;

• $407 million for the Inglewood Transit

Connector, putting it at full funding. Scheduled to be completed in time for service to support the 2028 Los Angeles Olympics, the project previously received $95 million in TIRCP funding;

• $375 million for the Santa Clara Valley Transportation Authority’s BART Silicon Valley Phase II Extension project, which will bring BART service to downtown San Jose and Santa Clara. Scheduled to be completed in 2033, the project previously received $750 million in TIRCP funding;

• $367 million for the Peninsula Corridor Electrification project, which is electrifying Caltrain rail service and acquiring new electric multiple unit trains for improved and more frequent service. Scheduled to be completed in 2024, the project previously received $20 million in TIRCP funding;

• $142 million for the Valley Rail project, ensuring completion of nine project components stretching throughout the Altamont Corridor Express and San Joaquin service areas. The project, scheduled to open in phases beginning in 2025, previously received $900 million in TIRCP funding;

• $19 million for the San Bernardino

A total of $600 million will be spent on LA Metro’s East San Fernando Valley Transit Corridor project to complete the 6.7-mi. initial segment between Van Nuys/Orange Line and Van Nuys/San Fernando stations, scheduled by 2030.

County Transportation Authority’s West Valley Connector Bus Rapid Transit and Zero-Emission Bus Initiative, which will introduce a new 19-mile bus rapid transit system connecting Rancho Cucamonga, Ontario Airport, Ontario, Montclair and Pomona. Scheduled to be completed in 2025, the project previously received $15

million in TIRCP funding.

In addition to the $2.54 billion announced for existing TIRCP projects, CalSTA will award another $1.14 billion to new transit projects and improvements at high-priority intersections where rail lines and public streets meet by the end of April, with billions more in funding over the next few years.

The announcement represents the first round of awards as part of a sixth cycle of TIRCP investment. With a total budget of nearly $25 billion, the 16 projects awarded funding today received grants in previous TIRCP cycles, and the additional state resources will help fill funding gaps to complete construction while protecting and leveraging significant federal and local investments. California transit agencies have already received more than $2 billion in additional federal funding since the passage of the Infrastructure Investment and Jobs Act a little more than a year ago and are competing for billions more in competitive grant funding.

TIRCP has provided more than $9.1 billion in funding to nearly 100 projects since 2015, funded primarily from Senate Bill 1, the Road Repair and Accountability Act of 2017, Cap-and-Trade program proceeds, and the General Fund. 

(All photos courtesy of Caltrans.)

Skanska Announces Replacement of 90-Year-Old Barstow Bridge

Skanska announced a $30 million contract with the San Bernardino County Transportation Authority to break ground on the new North 1st Avenue Bridge over the Burlington Northern Santa Fe (BNSF) railyard in the city of Barstow.

The existing two-lane bridge, built around 1930, will be replaced with a new two-lane bridge, including standard 8-ft. shoulder widths and an 8-ft. sidewalk. The replacement of the structure will provide safety ben-

efits and accommodate all legal truck and permit vehicles. This bridge serves as the main connector for schools, neighborhoods, hospitals and other services in the city of Barstow. These necessary safety improvements will continue to make positive changes to the city’s infrastructure.

Mike Aparicio, executive vice president of Skanska USA Civil’s West Coast operations, said, “We look forward to working with the San Bernardino County

Transportation Authority and its many other transportation partners to replace Barstow’s North 1st Avenue Bridge. The current structure was built more than 90 years ago and this project will provide a modern, safe and accessible structure. We are proud to be the team chosen in this first big step toward building a new structural and functional standard needed as the city continues to grow.”

Work includes:

• Construction of new 7-span post-ten-

sioned concrete box girder bridge over 17 BNSF tracks;

• Realignment of North 1st Avenue;

• Demolition of the existing 29-span steel truss and steel / timber girder bridge across the BNSF railyard; and

• Utility relocation, drainage improvements and lighting improvements. The project began in January 2023 and completion is anticipated in 2024. 

Officials allocated $407 million for the Inglewood Transit Connector, putting it at full funding. It is scheduled to be completed in time for service to support the 2028 Los Angeles Olympics.

Rockview Farms Deploys Volvo LIGHTS Final VNR Trucks

Volvo Trucks North America customer Rockview Farms, a family owned and operated dairy business in Southern California, deployed two Volvo VNR Electric trucks to support farm-to-customer deliveries of local California milk. The zero-tailpipe emissions battery-electric trucks will help reduce noise and emissions in the neighborhoods surrounding Rockview Farms’ facility in Downey, California, which is the central hub for deliveries throughout the greater Los Angeles area. Rockview Farms’ Volvo VNR Electric trucks are the final two trucks to be funded through the award-winning Volvo LIGHTS project.

“Volvo Trucks commends Rockview Farms for being a good neighbor that has long demonstrated their commitment to the local community, which they are continuing to support by deploying zero-emission Volvo VNR Electric trucks for their local routes,” said Peter Voorhoeve, president, Volvo Trucks North America. “Delivering these two trucks to Rockview Farms is a nice closure to the successful Volvo LIGHTS project, which was focused on providing a range of benefits — cleaner air, reduced noise, workforce development opportunities, and more — to Southern California communities through freight electrification.”

Volvo Trucks deployed its first Class 8 Volvo VNR Electric trucks to fleet operators in 2019 as part of the Volvo LIGHTS project. Over the next several years, Volvo Trucks North America, South Coast Air Quality Management District, and 12 other organizations designed and implemented a

blueprint for the complete ecosystem needed to successfully deploy commercial batteryelectric freight trucks, eventually deploying more than 30 of these vehicles in California’s South Coast Air Basin.

“Our Downey facility is surrounded by neighborhoods, and as Southern California’s

hometown dairy since 1927, we strive to be a good neighbor in our hometown. We were excited to receive funding for the Volvo VNR Electric trucks to help reduce emissions from our daily operations, while also reducing noise, as the battery-electric trucks are very quiet,” said Curt DeGroot, owner, Rockview Farms. “Our drivers love them for those same reasons. We’ve had to keep the same drivers on the trucks, because once they drive the Volvo VNR Electric trucks, they don’t want to go back to driving anything else.”

The Volvo VNR Electric model produces zero-tailpipe emissions and significantly reduces heat, noise, and vibrations, allowing for the quietest and most comfortable experience, leading to greater driver productivity and job satisfaction.

TEC Equipment – La Mirada, a Volvo Trucks Certified Electric Vehicle Dealer, provides ongoing training to Rockview Farms drivers to help them understand how to optimize the range of the Volvo VNR Electric, including how to leverage regenerative braking benefits to add power back to the battery.

For more information, visit Volvo Trucks North America and the Volvo VNR Electric. 

AGC of California Names Its New Chief Operating Officer

The Associated General Contractors of California (AGC of California) has announced that Darla Macomber has been promoted to chief operating officer, a new position in the state’s leading construction industry association. In her new role, Macomber will oversee the development and implementation of all sales, recruitment, retention, government affairs services, engagement strategies, networking events and communications.

“As a long-time AGC of California staff member, Darla has helped shape our organization into a vital resource for our members and the construction industry at large,” said Peter Tateishi, chief executive officer of AGC of California, to whom Macomber reports. “Her work ethic and ideas paved her trajectory through our organization to become a shining example of what a career in construction can look like.”

Macomber first came to AGC of California 12 years ago as an executive assistant and she most recently served as senior vice president of member services before being promoted to her current position.

Prior to joining AGC of California, Macomber worked for a heavy civil contrac-

tor. Her connection with the construction industry dates to her childhood. Her mother is an active owner of an excavation company and inspired her to pursue a career in construction.

“I’ve been entrenched in the construction industry since my childhood,” said Macomber. “I’m thrilled to be the first COO of AGC of California and look forward to continuing to serve our members and the industry.”

AGC of California also announced the following promotions:

• Nasim Adeli to small/underrepresented business partnership manager;

• Yuhi Aizawa Combatti to director, diversity, equity and inclusion;

• Anh Marquez, special projects coordinator;

• Justina Moran, membership assistant, statewide;

• Mary Alyssa Rancier to senior public policy coordinator;

• Ashley Rowe to director, engagement, Northern California;

• Seraephina Tarriel to contract administrator; and

• Michael Woodbury to senior training and education coordinator. 

Volvo photo Volvo Trucks North America customer Rockview Farms deployed two Volvo VNR Electric trucks to support farm to grocer’s shelf deliveries of local California milk throughout the greater Los Angeles area.

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