MCAA Regional Report, Region G

Words: Michael SutterArizona - Glenn Hottmann
Colorado - No State Chair
New Mexico - Randy Saponaro
Utah - Alan Johnson
Wyoming - Jim Thompson

Workforce Development

Arizona
The Apprenticeship program is currently operating both in the Phoenix area and the newly formed Tucson Chapter. The enrollment for our first year apprentices has suffered along with several drop outs in second and third year classes due to the economic situation. On the other hand, our introduction of Masonry at the High School remains to be a great success.

Economic Conditions/Forecasts

Utah
Economic conditions for Utah are not very good but some states are better than others and most are a little brighter than economic conditions in other parts of the country. Utah, Wyoming, Colorado and New Mexico are some of the states where economic conditions are a little better than others. Unemployment in these areas are averaging 6 1/2 to 7 1/2 % unemployed. Most states are seeing more stimulus money coming in for new military facilities and for freeway and bridge improvements and expansions. This should help a little bit in the construction world. Most economist in this region, are predicating growth in mid 2011.

Due to the downturn in the economy, the masonry sector, both residential and commercial have come almost to a complete stop. There seems to be more Public work at hand due to the stimulus packages or bond passages.

Arizona Masonry Contractors Safety Program continues to promote safety, despite the economic situation with the continuing support of the SCF (State Compensation Fund). Our loss ratio continues to improve.

Materials are readily available. There are signs that some prices are increasing or trying to. The material suppliers are being very competitive in the market. It is important to check prices on a per bid basis.

The economic situation with in the state continues to be bad and is predicted to be through 2010. Housing starts are still down. The commercial section is not developing at all due to the overstock of retail space available. Public work is showing some signs of moving, but not enough to support our states Masonry industry.

Masonry Marketing Activities

Arizona
The AMCA (Arizona Masonry Contractors Association) and the AMG (Arizona Masonry Guild) have teamed up to promote the Masonry industry and 20/20 vision. There have been committee's formed to address the needs of our industry in Commercial, Residential, and Municipalities within our state. Through the programs, we can insure that quality productions and workmanship can be provided to our customers.

Utah
The Utah Masonry Council has formed a group to work on getting quite a few more mason contractors, to qualify for the national certification sponsored by the MCAA. Several contractors attended and showed interest. Another group is working with state legislators to bring back bid limits, allowing contractors to bid work appropriate to their financial strength. Weak and poor skilled mason contractors are starting to go out of business. All the more reason to belong to local and national contractor associations to assist with education to build stronger more intelligent business practices.

Competitors/Trends

Utah
Utah is experiencing desperation by numerous contractors bidding precariously low, in order to obtain work. Some say they are bidding at extremely low margins and often below the actual cost of the work in order to get cash flow. As they hurt themselves they hurt legitimate qualified contractors in getting contracts with even some reasonable sense of profit margin. Contractors are working harder to differentiate themselves from others, giving the GC's a reason to use them over the low bids that are coming in from others.
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