2005 Awards of Excellence competition winners announced
To recognize achievements in the National Commercial Building Industry, the National Commercial Builders Council of NAHB annually sponsors the Awards of Excellence. This year’s winners demonstrate inventive use of technology, ingenuity in overcoming design and construction challenges, and innovative use of energy-efficient features.

Cement shortages surface in some areas — Q&A

A surge in construction activity coupled with limited shipping availability for imported cement is tightening supplies in some areas of the United States.

Why is the supply of cement falling short of demand?

Several factors have converged to create tight supplies of cement, the key ingredient in concrete, which is used in nearly every type of construction.

First, strong construction markets have increased demand. The flare in demand arrived on the heels of an unusually active winter for construction, traditionally a down period when plants can stockpile cement in anticipation of the spring construction surge. Instead, there was no letup in demand during the 2003/04 winter and little opportunity to prepare a strong inventory for spring when construction activity traditionally increases.

Another factor is freight — limited availability of transport ships and escalating shipping rates. Construction is a cyclical industry, and the United States depends on imported cement to fill the gap between domestic production and fluctuating demand. According to figures from the U.S. Geological Survey, 2003 U.S. portland cement consumption was 107.5 million metric tons. Of that total, 23.2 million tons or 21.6% was imported cement.

Since the beginning of the spring 2004, shipping rates have skyrocketed and availability of ships is limited. The booming Asian economies are straining worldwide cement capacity and shipping availability. Subsequently, these conditions make imports of cement more expensive and difficult to acquire.

How many states are affected by the cement shortage?

According to the latest Portland Cement Association (PCA) survey, 35 states are experiencing shortage conditions. Since PCA's last survey, Texas, Arkansas, Missouri, Indiana, Ohio, Pennsylvania, New Jersey, Delaware, Vermont, New Hampshire, Arizona, New Mexico, and Utah have been added. Nebraska has been removed from the list. It should be kept in mind that not all portions of each state are characterized by tight supplies. Northern Ohio and Indiana, for example, reportedly have ample supplies. Tight supplies in the southern portion of these states result in PCA's map showing tight supplies. The point here is the methodology used in the PCA shortage map tends to exaggerate the national shortage assessment.

Green = no shortage    Yellow = tight supply

 How is the shortage affecting construction projects?

Cement shortages are having the most visible affect on smaller companies, builders, or contactors due to delays or postponement of their projects. To PCA’s knowledge, no highway or major construction projects have been negatively affected by the recent shortage.

Doesn’t the cement shortage benefit cement companies?

Shortages are bad for cement companies. Their goal is to sell more cement, not less. Shortages can damage customer relationships and create opportunities for competing construction materials such as asphalt, wood, and steel to gain market share.

How long will the shortage last?

Shortages are regional. Some areas are having critical supply problems. In other areas, there is no shortage. The length and severity of the shortage depends on the region.

The potential exists for the easing of shortage conditions in some regions during the fourth quarter. This assessment is based on two phenomena materializing later this year, namely easing housing demand and increased import supply.

What are cement companies doing to bolster supply?

The short-term solution is to import more cement. Longer term, cement companies have announced plans to expand manufacturing capacity by 17 million tons by 2009 — roughly an 18% increase in domestic capacity.

Zoning laws, permit activity, and regulatory roadblocks have long been a problem for heavy industries such as cement and will continue to limit the actual realized amount of expansion.

Why doesn’t the industry build more plants?

The U.S. cement industry's ability to close the gap on its dependence on foreign imports rests with expanding domestic production capacity. However, the extremely slow pace of permitting new facilities and plant expansions present significant hurdles to accomplishing this in the short-term.

Are there additional long-term issues the industry needs to address during a supply shortage for cement?

As the population grows, the needs for housing, infrastructure and nonresidential construction will continue to place additional demand on the industry. Furthermore, the anemic economic growth conditions that have gripped Asia, Europe, and South America are disappearing, leaving less cement available to import into the U.S. Nevertheless, with the expansions planned by U.S. cement companies, supply and demand should be balanced in the future.

What countries provide the bulk of cement imports?

Canada is the top foreign supplier accounting for just over 24% of all cement imports into the U.S. The next two largest, and relatively recent t sources of cement imports are Thailand and China.

For more information visit PCA's Web site at http://www.cement.org/ [return to top]

Steel imports decline slightly in October; year-to-date up 50%

Based on preliminary Census Bureau data, the American Iron and Steel Institute (AISI) reported this last Tuesday that the United States imported a total of 3,210,000 net tons (NT) of steel in October, including 2,576,000 NT of finished steel. Imports in these categories declined 11.7% and 9.2%, respectively, compared to September, but year-to-date remain 50.2% and 49.7% higher than the same period last year. The gain of nearly 50% in finished steel imports is more than three times the 14.4% increase in steel consumption. As a result, the finished steel market share in this period has risen from 15.9% to 20.5%.

There were significant increases in October compared to September in several products, including tin-free steel (up 100%), bars-light shapes (up 41%) and cold-rolled sheets (up 21%). For the year-to-date compared to last year, imports are up substantially in almost all major product lines, including hot-rolled sheet (up 70%). Reflecting the effect of high import levels and some market softening, hot and cold-rolled sheet “spot” prices in October declined 5.6% and 2.3%, respectively, from September levels, as reported in Purchasing Magazine. These were the first such declines since May 2003.

“The October data remind us that the U.S. and world steel markets are subject to change,”

David S. Sutherland, president and CEO of IPSCO Inc. and chairman of AISI, said. “The good news is that globally competitive steel producers in the U.S. and NAFTA region are today in a strong position to support North American customers in construction and manufacturing. The task for government is to ensure that unfair trade does not undermine this significant progress. That will require market-based exchange rates, continued steel import monitoring, strict trade law enforcement and ongoing efforts to address world steel structural imbalances,” he said. [return to top]

Don’t let storm water fines blow your budget
Get more information on storm water permitting with an important new resource on the NAHB Web site. Go to www.nahb.org/stormwaterforum to find the Storm Water Information Exchange. This is a channel through which our environmental policy staff routinely hears from HBA staff and members about great programs and strategies that are working in localities throughout the country. From participating in the development of local storm water ordinances, to finding new, cost-effective Best Management Practices, to locating storm water training programs close to home, this forum should connect you with the solutions you need to satisfy the EPA’s National Pollutant Discharge Elimination System permitting requirements. For more information, contact Amy Ericksen at 800-368-5242 x8662. [return to top]

Proposed OSHA rule on Hexavalent Chromium excludes Portland Cement

A proposed rule by the Occupational Safety and Health Administration (OSHA) on hexavalent chromium does not extend to Portland cement, a building material that contains trace amounts of the chemical.

The NAHB Board of Directors advocated that policy at its fall meeting in Columbus, OH, in early October, only days before the Federal Register published the rule excluding Portland cement.

NAHB has urged OSHA to exclude Portland cement from any proposed rulemaking, because it has not been shown that the small trace amounts of hexavalent chromium found in wet cement cause contact dermatitis.

At a meeting this year of the Advisory Committee for Construction Safety and Health (ACCSH), NAHB member Mike Thibodeaux commented that studies show there is no inhalation hazard associated with the chemical in cement and that contact dermatitis from handling cement most likely comes from the alkalinity and abrasiveness that are properties of the material.

NAHB has said that OSHA’s outreach and education efforts offer a better strategy for addressing skin contact with Portland cement and wet concrete. Current OSHA regulations already require personal protective equipment for handling wet cement.

OSHA was ordered by the U.S. Court of Appeals to develop a proposed rule for hexavalent chromium by Oct. 4 and it must finalize its standard by Jan. 18, 2006.

Some trade unions are lobbying to have cement included in the regulation, but NAHB will remain engaged in the rulemaking process until a final standard is issued.

For more information, e-mail George Middleton, or call him at 800-368-5242 x8590. [return to top]

MasterFormat™ 2004 Edition: A re-tooled classic is now available

Forty years after its introduction as the industry-wide format for organizing construction information, the 2004 edition of MasterFormat™ released on Nov. 10 after undergoing the largest transformation in its history.

MasterFormat is a master list of titles and numbers for organizing data about construction requirements, products, and activities used for well over 70% of the commercial and institutional building projects in the U.S. and Canada.  The resource aids project delivery by facilitating communication among architects, specifiers, contractors, suppliers, and others, which helps them meet building owners’ requirements, timelines and budgets.

The changes in the new MasterFormat reflect the rapid growth in the amount and complexity of construction information generated for today's increasingly complex buildings since it was last updated in 1995. 

For more information or to order MasterFormat 2004 Edition, go to www.csinet.org/masterformat.  Orders also can be made by e-mailing to CSI at csi@csinet.org or calling 800-689-2900.  [return to top]

At IBS: Take advantage of NCBC offerings

The 2005 International Builders Show (IBS), slated to take place Jan. 13-16  , at the Orange County Convention Center in Orlando, has a great deal to offer all attendees. And, as a National Commercial Builders Council (NCBC) member, you've got an array of events and programs targeted for your particular needs and concerns. All the information you need to participate in the NCBC meetings and educational programs offered at IBS are included below.

The NCBC will hold a Trustees and General Membership meeting at IBS. The NCBC Trustees oversee the council, and while a small part of this meeting covers council business, a majority of the meeting features information to help you run your own business. Staff experts will address a variety of upcoming issues in commercial building.

The NCBC Trustees meets one day before the show opening, on Wednesday, Jan. 12, from 11:30 a.m. to 2:00 p.m. in room 222A of the convention center, and is open to all NCBC members. Plan now to attend — and bring some prospective members with you.

And while you’re there, make sure to attend the education programs organized by the Commercial Builders Council. For more in-depth information on these programs, check your IBS program guide.

Time                                    Program                                                                       Room                

NCBC Headquarters  

Wednesday, Jan. 12 – Saturday, Jan. 15

7:00 a.m. – 5:00 p.m.                                                                                                  104 A

Wednesday, Jan. 12, 2005

11:30 am – 2:00 p.m.            NCBC Trustees and General Membership           222 A

6:00 - 11:00 p.m.                  NAHB President’s Gala (invitation only)                      RC Ballroom

Thursday, Jan. 13, 2005

8:00 – 10:00 a.m.                 NCBC Planning                                                             230 A

10:30 a.m. – 12:30 p.m.       NAHB Opening Ceremonies                                         South Hall

1:00 – 3:00 p.m.                   Area Caucuses 1 – 7                                                     See program

3:30 – 5:30 p.m.                   Area Caucuses 8 – 15                                                  

3:30 – 5:00 p.m.                  From Residential to Commercial                            306

Friday, Jan. 14, 2005

8:00 a.m. – Noon                 Joint 2004 NAHB Executive Board                                JWM Palazzo A-D

1:00 – 5:00 p.m.                   2004 NAHB Board of Directors Meeting                       JWM Mediterranean Ballroom

Saturday, Jan. 15, 2005

8:00 a.m. – Noon                 2004 NAHB Board of Directors Meeting                        JWM Mediterranean Ballroom

1:30 – 3:00 p.m.                  You’ve Built It, Now Sell It                                         303

6:00   p.m.                            Annual Banquet and Installation Ceremony                  JWM Palazzo

Sunday, Jan. 16, 2005

11:00 a.m. – Noon                Recommended Bidding Procedures                       306

Italics – NAHB meetings; bold italics – educational programs; JWM – JW Marriott; RC – Ritz Carlton. [return to top]

Commercial Builder magazine star search
Commercial Builder magazine is looking for possible profile candidates to be featured in future issues of the magazine. If you know of a successful commercial builder that is either new to commercial, has recently diversified in the commercial building industry or is a seasoned veteran, please contact Commercial Builder magazine's publisher, Amy Larrabee, x8455.

Published quarterly, Commercial Builder is the official publication of NAHB's National Commercial Builders Council (NCBC). This business publication reached every NCBC member. Each issue of Commercial Builder contains an interview with a high-achieving commercial builder, plus features on issues and trends, product round-ups and a variety of regular columns. [return to top]

Member Advantage: NAHB Members Save 15% on Payroll Processing With Paychex®
Paychex® Payroll Processing makes automated payroll efficient and cost-effective for any size organization. Paychex offers an array of services including Paychex Payroll Service, Taxpay®, Flexible Pay Package and Paychex Human Resource Services. For more details on any of these services, call 800-729-2439, visit the Paychex Web site at www.paychex.com, and mention code 5685. Or go to http://memberadvantage.nahb.org, click "view all member discounts," and scroll down to Paychex to take the Online Tour. Paychex has more than 100 locations across the U.S.

For the most up-to-date details on the Member Advantage discount program and all of the participating companies, go to http://memberadvantage.nahb.org. Or visit www.nahb.org to explore the full range of benefits associated with membership in your local, state, and national home builders associations. [return to top]