Commodities

Building, Demolition Industries Still On Track

Recorded numbers from late 2000 and forecasts for the first half of 2001 are pointing to a continued hectic work pace for construction and demolition companies, at least in some building industry sectors. Steady C&D activities in 2001 should keep materials flowing to C&D recyclers.

Numbers compiled by F.W. Dodge, Lexington, Mass., for late 2000 portray a 14% increase in non-residential construction start-ups in December over the previous month. The solid December numbers for commercial and industrial construction were partially offset by declines in residential and infrastructure.

The year ended as a growth year for the industry overall, although the growth pace slowed noticeably from the three previous years.

"The 3% increase for total construction in 2000 compares to the 10% gains averaged during the 1997-1999 period, so the rate of growth for the construction industry has clearly subsided," says F.W. Dodge vice president Robert A. Murray.

New hotel construction projects helped boost December numbers, including a Phoenix-area resort and the $70 million renovation of a Chicago hotel. New office projects also got underway in Seattle; San Jose, Calif.; Austin, Texas; and Stamford, Conn.

Regionally, residential construction remains strong in the West and Southeast, while Midwest growth was slower.

Ironically, in the midst of an energy crisis in the West, December saw a drop-off in the electric utility construction sector of the infrastrucure segment. The prior seven months contributed to a robust 2000 in that segment, however.

For 2001, FMI, Raleigh, N.C., is forecasting a 5% increase in construction contract values. FMI chief economist Thomas Loy foresees a 5% drop in residential construction activity, but predicts strong activity in several nonresidential building and infrastructure segments will create an overall healthy amount of activity.

Loy foresees new retail construction growing by 6%, while utility companies will spend $5 billion dollars more on construction than last year-a 13% increase.

Highway construction, which was flat (but still high-volume) in 2000 will grow by $15 billion, or 3%, according to Loy's forecast.

New constructions and renovations in the education segment and the warehouse segment will help offset a cooling in the office building market, FMI predicts.

On the demolition side, Michael Taylor, executive director of the National Association of Demolition Contractors (NADC), says feedback from the 800+ member contractors of that association indicates they are staying busy. "There is still a huge amount of work being done," says Taylor, adding that "it's a very competitive industry and you have several companies working hard for the same contracts."

States Look To Boost Carpet Options

Private and public sector representatives from seven states are formulating national plans to increase the recycling and reuse of discarded carpet.

The Midwestern Workgroup on Carpet Recycling, consisting of representatives from government agencies, industry associations and carpet manufacturers, is planning to create an independent, industry-funded third-party organization that will be responsible for meeting carpet recovery goals and providing reuse and recycling options.

Third party organizations such as the one envisioned have been established in Europe in several industries. In the U.S., the Rechargeable Battery Recycling Corp. is similarly structured to help keep batteries out of landfills.

"Product stewardship, and this agreement specifically, presents a unique opportunity for states through cooperative efforts to explore new ways of accomplishing environmental goals," says Sherry A. Enzler, director of the Minnesota Office of Environmental Assistance, St. Paul.

Among the states that have agreed to participate in the carpet recycling initiative are California, Iowa, Maryland, Massachusetts, Minnesota, North Carolina and Oregon. A meeting will be held March 21 in St. Paul to make further plans and to welcome more participants.

Florida Recyclers Air Complaints

A workshop held in Tallahassee, Fla., recently brought together C&D recyclers and landfill owners in that state to discuss several issues.

Several speakers as well as attendees offered their views on a variety of key issues in the Sunshine State, including flow control, the health of end markets, and the economic viability of recycling C&D materials versus land-filling them.

Recyclers of C&D materials were outspoken in their statements against flow control regulations that have been enacted in some cities, particularly in south Florida. C&D recycling opportunities in the state cannot grow, they contend, until these solid waste companies no longer have franchise-guaranteed control over the C&D debris stream.

While recyclers pledged to seek legislative action, waste company officials vowed to oppose any such efforts.