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“The Nation’s Best Read Construction Newspaper… Founded 1957.” April 21, 2012 • Vol. VIII • No. 8 • 470 Maryland Drive • Ft. Washington, PA 19034 • 215/885-2900 • Toll Free 800-523-2200 • Fax 215/885-2910 • www.constructionequipmentguide.com
Inside
Construction Materials Prices Spike in March
WCA Makes Changes, Eyes Future Expansion...17
Alex Lyon & Son Holds April Sale in Houston...53
Attendance Strong for Ritchie Bros. Auction...54
Table of Contents ........4 California Section 17-19 Paving, Compaction & Milling Section ......35-49 Auction Section ....53-63 Business Calendar ......58 Advertisers Index ......62
Highway 12 Jameson Canyon Road Widening Project Begins Caltrans, the Solano Transportation Authority (STA) and the Napa County Transportation and Planning Agency (NCTPA) broke ground April 4 on the much-anticipated Highway 12 Jameson Canyon Road Widening Project. “Caltrans is excited that the improvements to Highway 12 sought by residents of this region are now underway,” said Acting Caltrans Director Malcolm Dougherty. “The project will reduce congestion and provide jobs for the region.”
The project will widen nearly 6 mi. (9.7 km) of Highway 12 from two to four lanes between the Highway 12 and Highway 29 interchange in Napa County to Red Top Road near Interstate 80 in Solano County. A concrete median barrier will also be constructed along this stretch of the highway. Highway 12 is a major link between Napa Valley, the Central Valley and the Bay Area. The see PROJECT page 10
Hawaii Sen. Passes $500M Package to Spark Construction Growth HONOLULU (AP) A $500 million construction package aimed at stimulating job growth has cleared the state Senate. The “Invest in Hawaii Act of 2012” would fund numerous capital improvement projects across the state. These repair and maintenance projects would update aging infrastructure at state facilities and address health and safety concerns. The bill focuses on funding projects that are
ready to begin to avoid delay in creating muchneeded construction work. The capital improvement projects also would help Hawaii businesses that provide supplies and other support to the construction industry. The state’s estimated repair and maintenance backlog exceeds $1 billion. If the bill also clears the House, funding would be available for public works projects at schools, health centers and other state-owned properties.
The cost of construction materials jumped in March, even as the amount contractors charge to complete projects remained stagnant, according to an analysis of producer price index figures released April 12 by the Associated General Contractors of America. Association officials noted that the spike in materials prices continues despite relatively weak overall demand for construction, and cautioned that current market conditions could force some firms out of business. “Price shocks for a number of key construction materials may have caught contractors by surprise in a period when overall inflation remained very moderate,” said Ken Simonson, the association’s chief economist. “Even though the increases are generally small compared to the high levels of last March, contractors have not been able to pass along these new costs, putting firms at risk of insolvency.” Simonson cited increases in March for diesel fuel, up 3.5 percent for the month after rising 3.0 percent in February; gypsum products such as wallboard, up 2.2 percent after increasing 5.1 percent in February and 5.9 percent in January; and aluminum mill shapes, up 1.2 percent after a 1.9 percent rise the previous month, as particular problems. Overall, the producer price index for construction materials prices increased by 1.4 percent between February and March, following a rise of 0.9 percent from January to February. Even as materials prices spiked in March, the amount contractors are able to charge for completed projects remained relatively flat, the construction economist added. He noted, for example, that the amount contractors charge for new industrial building construction declined by 0.2 percent between February and March. Meanwhile, the amount contractors charge for new warehouse construction rose by see PRICES page 10