MCAA Regional Report, Region H

Words: Ron AdamsCalifornia - Ron Bennett
Hawaii - Brian Awakuni
Nevada - No State Chair

Workforce Development

California
The recently completed "Mason Development Center" of Northern California opened its doors on November 29, 2010 to continue training BAC 3 apprentices in the crafts of Masonry, PCC, Marble and Terrazzo. The new 16,000 square foot CMU facility is equipped with sophisticated silica containment systems, work water recycling systems, modern equipped classrooms and a host of energy efficient building sub-systems. In addition to training apprentices, advanced training will be offered to journeyman for foreman development, new-to-market material installation training, and first aid & CPR certification, as well as continuing education for contractors related to elevating business practices & ethics, code changes and the ever changing masonry industry.

The Mason Industry Training Association (MITA) continues forward with developing masonry classes in selected high schools, adult schools and state prisons.

BAC 4 of Southern California continues with their apprenticeship training programs on schedule.

Nevada
No report as of this writing.

Hawaii
No apprenticeship training programs operating at this time due to lack of work.

Economic Conditions/Forecasts

California
California continues to experience unprecedented pull backs in construction spending even with some stimulus funding making its way to the State. The predominant reasons cited by many news articles are unsold housing inventories, namely foreclosures, falling home prices driven by foreclosures and lack of qualified buyers, high unemployment and underemployment, depressed expected R.O.I. for commercial property, commercial defaults, and tight lending conditions. November unemployment stands at 12.4% which is ranked 49th (tied with Michigan) compared to all states and increased 0.1% compared to November 2009's rate of 12.3% according to D.O.L. statistics. Public works projects have sustained many "knock-down" blows due to the state's huge budget deficit still to be addressed. According to California Building Industry Association, continued weakening in the job market, high foreclosure rates, and tighter lending standards making it difficult for builders to get projects off the ground are creating the "perfect storm" to deter new construction. On the upside, economic forecasters seem to agree the worst is now behind us and that 'slow' growth is expected to build over 2011. That growth is expected to originate only in the private sector. UCLA Anderson Graduate School of Business forecasters don't expect unemployment to dip below 10% until late 2012.

Nevada
Like its neighbor, California, Nevada continues to experience the economic down turn but to a greater degree. According to D.O.L. statistics, November 2010 unemployment is at 14.3% compared to November 2009 of 12.3%, a 2% increase and is ranked 50th as the state of highest unemployment. Construction economic forecast articles suggest high unemployment, continuing foreclosures, and consumer spending restrictions will keep unemployment above 12% over 2011.

Hawaii
The economic downturn over 2010 did result in another 10% to 15% below the lower results of 2009 sales reductions for mason contractors in the commercial market. Tourism has increased, but historically, there is a lag from tourism increases that result in new construction. According to D.O.L. statistics, the November 2010 unemployment rate is at 6.4% which is 1/3 less than the national average of 9.8% and ranks Hawaii as No. 6 compared to all states. Two significant Oahu public works projects are expected to begin construction in the 1st quarter of 2011 — the light rail mass transit project and the new West Campus for the University of Hawaii. Additionally, military construction has been on an uptick and is expected to continue over 2011. The outer islands though are experiencing steep cut-backs in construction spending and that trend is expected to continue for 2011.

Masonry Marketing Activities

California
The much respected "Masonry Institute of America (MIA)", continues to update code publications, participate in code development and respond with professional responses to the design communities' questions. The Concrete Masonry Association of California & Nevada (CMACN) has also maintained its efforts to expand masonry use to the design community, as well as developing and testing new means and methods regarding masonry materials.

Nevada
No report as of this writing.

Hawaii
The Masonry Institute of Hawaii continues with its outreach program to deliver updated tech bulletins to designers and engineers as well as implementation of "new" products to the region such as burnished CMU which has excited local designers.

Competitors/Trends

California
Fierce competition among mason contractors has resulted in squashed pricing where current unit pricing compares to that of 15 years ago. The question so often asked is "How can the low bidders survive?" or "How can the low bidder satisfy material and labor cost much less make overhead or the unspoken word 'profit'?" As a participant in the masonry community, does it really matter to know the suffering consequences of a low, low bidder? The real message here is understand the long-term damage caused by low, low bidding that destroys the masonry marketplace for all participants and keeps masonry businesses from operating at their optimal financial health and viability. For low, low bidders, the prescribed expectation is there are probably many lessons to be learned — the hard way.

Nevada
No report as of this writing.

Hawaii
Some architects continue to want higher 'R' values from masonry, especially within the Corp of Engineers. Two major military barracks were recently completed or near completion where poly-styrene blocks were used and filled with concrete. This system offered a high 'R' value but took work away from masons as carpenter apprentices performed the work. The question raised is why does the Corp of Engineers require such high 'R' values in regions like Hawaii or other warmer climate states like Florida? The Masonry Institute of Hawaii suggests the Corp develop 'R' values based on particular geographical regions and discontinue with the "one size fits all" methodology — more work to be done on this issue.
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