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TECHNOLOGY and CONSTRUCTION BG July_Aug_09:Layout 1 7/8/09 1:46 PM Page cov1 THE MAGAZINE OF THE MASTER BUILDERSʼ ASSOCIATION OF WESTERN PENNSYLVANIA JULY/AUGUST 2009 TECHNOLOGY and CONSTRUCTION Mid-year Update on the Market Making the Case for Tilt-up When Will the Commercial Debt Market Return? BG July_Aug_09:Layout 1 7/8/09 1:46 PM Page cov2 BG July_Aug_09:Layout 1 7/8/09 1:46 PM Page 1 C ONTENTS2009 PUBLISHER The new Consol Arena Tall Timber Group got an impromptu www.talltimbergroup.com makeover after the Penguins’ Stanley EDITOR Cup victory. Jeff Burd 412-366-1857 [email protected] CONTRIBUTING WRITERS Suzanne Elliott Jon O’Brien PRODUCTION MANAGER Carson Publishing, Inc. Quellé Diggs ART DIRECTOR/GRAPHIC DESIGN Carson Publishing, Inc. Jaimee Greenawalt CONTRIBUTING PHOTOGRAPHY Carson Publishing, Inc. FEATURES & DEPARTMENTS ADVERTISING SALES Jeff Burd 3 PUBLISHER’S NOTE 30 LEGAL PERSPECTIVE 412-366-1857 Labor law issues in Congress. 4 NEWS FROM MORE INFORMATION: THE STREET 32 FINANCIAL PERSPECTIVE Where are the ‘green shoots’ BreakingGround is published by Economist and the Brookings Institute rank Pittsburgh region in commercial mortgage Tall Timber Group for the Master highly, Dept. of Homeland securitization? Builders’ Association of Western Security cracks down on 34 Pennsylvania, 412-922-3912 or employers, Green Building MANAGEMENT Alliance new office becomes PERSPECTIVE www.mbawpa.org the first LEED Platinum in Integrated project delivery: Western PA. lower case or upper case ‘I’. Archive copies of BreakingGround 8 REGIONAL 37 MBE/WBE SPOTLIGHT can be viewed at Professional Mechanical Sales www.mbawpa.org/articles MARKET UPDATE & Services, Inc. $30 million projects keep No part of this magazine may be popping up, while housing 38 TREND TO WATCH weakens. reproduced without written permission The case for tilt-up by the Publisher. All rights reserved. construction. 10 NATIONAL This information is carefully gathered and MARKET UPDATE 42 BEST PRACTICE compiled in such a manner as to ensure Mid-year look at the forecasts Lean practices come to maximum accuracy. We cannot, and do construction. not, guarantee either the correctness of all 12 WHAT’S IT COST? information furnished nor the complete Energy rises but prices seem 44 AWARDS AND absence of errors and omissions. Hence, stable. CONTRACTS responsibility for same neither can be, nor is, assumed. 14 FEATURE STORY Technology and construction. 47 FACES AND Keep up with regional construction and NEW PLACES real estate events at: 23 PROJECT PROFILE www.buildingpittsburgh.com Butler Color Press expansion. 48 THE INDUSTRY 28 FIRM PROFILE IN THE COMMUNITY Case Technologies. IBC CLOSING OUT People, technology & design. BreakingGround July/August 2009 1 BG July_Aug_09:Layout 1 7/8/09 1:46 PM Page 2 BG July_Aug_09:Layout 1 7/8/09 1:46 PM Page 3 Publisher’s Note ’ve found myself increasingly occupied with thoughts spread nationalization could result, already under- of economic recovery of late. As I researched the eco- way. It could also lead to a formal U.S. dollar deval- nomic factors that effect construction and real estate uation, as FDR did by revaluing gold (and then to make an educated forecast about the market for confiscating it).” the second half of 2009, I was struck by how many Iopinions about the economy are now available on the Newsweek’s edition that week featured an article by Web. What I discovered was that the amount of doom Fareed Zakaria, entitled ‘A Capitalist Manifesto’ that saying out there in the economic and business media has offered the opinion that the world was not spinning out of made it difficult to analyze the status of the recession/re- control. He pointed out that similar financial crises had covery dispassionately, especially since the signs are be- occurred every decade or so, and that each crisis had ginning to turn positive. spawned reasoned predictions that finance as we knew it was over, each prediction also proved to be wrong. In the weeks prior to the printing of this edition of Break- His theory is that capitalism isn’t in crisis, just finance for ingGround the economic news began to shift decidedly a while. more positive in direction. Not good, mind you, but more positive. Unemployment dropped significantly, factory or- Finance has a history of messing up, from the Dutch ders increased, corporate purchasing managers’ senti- tulip bubble in 1637 to now. The proximate causes of ment went positive, and some of the housing news these busts have been varied, but follow a strikingly involved better performance than last year. It will be similar path. In calm times, political stability, eco- months before we can gauge this as a turn or just a stop nomic growth and technological innovation all en- off before another leg down, but the news machine does- courage an atmosphere of easy money and new n’t have the luxury of patience. forms of credit. Cheap credit causes greed, miscal- culation and eventually ruin. President Martin Van The media are in an interesting position right now. Since Buren described the economic crisis of 1837 in Watergate was being reported in the Washington Post, Britain and America thusly: "Two nations, the most no journalist seems willing to pass up a good crisis commercial in the world, enjoying but recently the without giving it undue weight (in fact, you can tell how highest degree of apparent prosperity and maintain- far along the reporting is when the crisis gets its unique ing with each other the closest relations, are sud- “-gate” suffix). The business reporters rarely get to dig up denly plunged into a state of embarrassment and such sexy stuff as the political beat, but they can match distress. In both countries we have witnessed the the political writers word for word in the doom depart- same [expansion] of paper money and other facilities ment. And right now, there is almost no conclusion that a of credit; the same spirit of speculation, the same business reporter could draw that you can legitimately overwhelming catastrophe." Obama could put that consider too crazy, especially after so many of the ‘crazy’ on his teleprompter today. reporters were predicting that a financial meltdown was due about this time last year. I think Zakaria’s a pretty smart guy. Apparently so do Yale and Harvard (where he got his PhD). His analysis of the The week of June 22 produced two articles that juxta- Iraq War has been a little spotty, and his economic cre- posed two somewhat different takes on where the finan- dentials aren’t as strong as his political credentials, but his cial crisis stands. theory that this crisis will end as all the others in American history, with a recovery, is probably going to be correct. The Harry Schultz Letter is a stock-picking newsletter with a burnished reputation of late because it accurately pre- At least for the near term, I’m going to try looking at the dicted a ‘financial tsunami’ last summer. Based on some economic data without reading the hyperbole of the an- intelligence that certain foreign embassies are being told alysts. Just in case there is a recovery, I want to be ready to quietly buy a year’s supply of that country’s currency, for it. the Schultz Letter now predicts that a bank holiday is in the offing. Their conclusion is: “Another FDR-style 'bank holiday' of indefinite Jeff Burd length, perhaps soon, to let the insiders sort out the bank mess, which (despite their rosy propaganda campaign) is getting more out of their control every day. Insiders want to impose new bank rules. Wide- BreakingGround July/August 2009 3 BG July_Aug_09:Layout 1 7/8/09 1:46 PM Page 4 News From The Street RANK CITY 1 VANCOUVER 2 VIENNA 3 MELBOURNE More Top Rankings for 4 TORONTO Pittsburgh (And This Time 5 PERTH It’s From Eggheads) 5 CALGARY The Economist ranked Pittsburgh America’s most liv- 7 HELSINKI able city. British magazine's ranking comes weeks after President Barack Obama chose Pittsburgh to 8 GENEVA host the G-20 Summit in September, calling it a sym- bol of economic recovery. Globally, the Economist SYDNEY 9 survey ranked Pittsburgh 29th most livable, and the city ranked first among all U. S. cities. Vancouver, 9 ZURICH Canada topped the list. The magazine considers sta- bility, health care, culture and environment, educa- 29 PITTSBURGH tion and infrastructure. The Brookings Institute listed Pittsburgh among the The Economist list of the world’s most livable cities. twenty cities faring best in the current recession. The Brookings Metropolitan Policy Program released its annual MetroMonitor, an interactive barometer of the health of America’s metropolitan economies. Based RANK CITY on the year ending March 31, 2009 the MetroMoni- tor looks "beneath the hood" of national economic 1 SAN ANTONIO TX statistics to portray the diverse metropolitan land- scape of recession and recovery across the country. It 2 OKLAHOMA CITY OK aims to enhance understanding of the underpinnings of national economic trends, and to promote public- HOUSTON TX 3 and private-sector responses to the downturn that 4 AUSITIN TX take into account metro areas’ unique starting points, weaknesses, and strengths—the potential "grass- 5 DALLAS TX roots green shoots"—for eventual recovery. 6 LITTE ROCK AR DHS to Focus on 7 McALLEN TX Prosecuting Employers 8 BATON ROUGE LA Who Hire Illegal Workers 9 TULSA OK Earlier this month, the Department of Homeland Se- 10 OMAHA NE curity (DHS) announced a shift in its workforce en- forcement priorities from the prosecution of illegal aliens working in the United States to the prosecu- PITTSBURGH tion of employers who knowingly hire them.
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