MCAA Regional Report, Region H

Words: Ron AdamsCalifornia - Joel Guth
Hawaii - Stanley Wada
Nevada - No State Chair

California

Economic Conditions/Forecast
2008 has proved to be economically challenging for California and the nation. As we move into 2009, the message has not improved. According to UCLA’s economic forecast released in December 2008 by the Anderson School of Business, the jobless rate is expected to peak in 2009 and continue at 8.7% meaning nearly one in ten workers will be out of work. The report continues with the optimism that seeds of a slow recovery may take root later in the year. Much depends on how the new Obama administration and Congress deploys their stimulus program.

Adding fuel to the downward economic spiral, the California budget deficit grew to $41.7 billion through November 2008 from July 2008 as reported by Gov. Schwarzenegger. To keep “essential” services from shutting down, the Governor instigated emergency measures beginning immediately in December 2008 which diverted most current infrastructure funding to the central fund. The result is that some state funded projects that were under construction have been ordered shut down while new projects that were near to be completed are frozen until further notice. The sad consequence for the construction industry is that this action falls in the middle of an already depressed market. Perhaps California will benefit with a large share of the new Obama Administration’s proposed infrastructure stimulus plan.

Workforce Development
Training programs continue albeit at a reduced rate. With available jobs in the market place at near 35 year lows, the cutbacks in funding and a significant decline of enthusiasm to support current programs, 2009 will prove difficult for all training programs. Surviving programs will be those that downsize early, seek alternate secondary funding sources and operate on shoe string budgets to carry themselves through to the other side. Ultimately, these survivors will be the strongest and best training programs ready to ramp-up for the next market expansion.

Masonry Marketing Activities
Work continues on uniting the concrete block manufacturers and mason contractors to discuss an aggressive concrete masonry advancement program. The concept is to set-up a universal funding mechanism for the multi-state (CAL & NV) program that would set a fixed dollar amount such as $3.00 or $4.00 (paid by all purchasers without expense to the manufacturers) on each pallet leaving the manufacturing plant and collected by all manufacturers working together in unity for the “common good” of the industry. This plan makes it fair and equal to all contractors just as it allows all manufacturers and contractors to equally reap the benefits of an expanding market. The collected funds would be “pooled” and administered by an elected Trust comprised of manufacturers & contractors. These representatives would be responsible to select, contract with, and monitor professional firms to carry out aggressive concrete masonry advancement programs as well as industry programs in the two states. As concrete masonry market share continues to spiral downward, the need for such a program could not be greater.

CAL OSHA
The new silica standard became effective October 22, 2008. It is advisable for all contractors to read, understand, and incorporate the standard into their company safety programs as well as integrating the standard at every jobsite.

CCMCA/Membership
The California Conference of Masonry of Mason Contractors Association (CCMCA) has experienced a 26% drop in membership which is a direct result of the current market shutdown. In these difficult times, survival of member associations such as CCMCA will necessitate “lean” budgets, reliable secondary funding sources, and instill a renewed vigor and confidence in the membership to “hang in there” because it will get better.

Hawaii

Public works projects continue to hold pace while private work and residential has significantly reduced according to Brian Awakuni, Director of the Hawaii Masonry Institute. Membership is holding, but expenditures have been reduced 20% due to economic conditions. Mr. Awakuni noted that several public works projects that if launched, would help keep work continuing at a moderate pace.

Nevada

In early January, the California Conference of Mason Contractors Association (CCMCA) in collaboration with MCAA and the Masonry Institute of America (MIA) hosted two round table discussions, one in Las Vegas and one in Reno, on the concept of forming a masonry contractors association in the state. The ideas brought forth by the Nevada Contractors were just like we all share about why we belong to an association and what we expect from it in return. Some of those ideas discussed were “marketing masonry”, “training”, “enlisting speakers to discuss local industry matters”, “learning about new products & equipment”, “having a gathering membership to discuss market conditions as well as a forum to learn and appreciate our fellow competitors”.

It was discussed that CCMCA could establish a Nevada Chapter and pull contractors and suppliers together to form the association while CCMCA would act as the glue in an administrative position and perform such duties as set-up of periodic meetings, keep the members informed through news letters and news briefs as well as helping with membership. CCMCA and its coalition partners will continue to help the Nevada Contractors coalesce into an association.

MCAA Regional Report, Region H

California

Hawaii

Nevada

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