Some alternative-energy developers that could gain millions in federal energy loan guarantees under the stimulus program may have shaky finances, according to financial filings and outside reviews. However, executives defend their start-ups’ strength and potential, while a U.S. Energy Dept. official is confident the feds’ investment will be repaid. Solar energy developer Solyndra, Fremont, Calif., which received a $535-million DOE guarantee last year, has not showed a profit since its 2005 founding and was reviewed negatively last month by accountant Pricewaterhouse Coopers, which questioned its future. Tyngsboro, Mass.-based Beacon Power, which has a conditional $43-million guarantee to build a 20-MW
Construction’s unemployment rate declined for the first time in seven months, as the industry gained 15,000 jobs in March, the Bureau of Labor Statistics said April 2. This uptick is the industry’s first monthly increase in jobs, seasonally adjusted, since June 2007. But the 24.9% jobless rate, while down from February’s 27.1%, is still above the 21.1% rate in March 2009. Construction economists praised the latest number but were wary about whether it signals a longer-term jobs trend.
In roughly a year on the market, federally subsidized Build America Bonds for public-works projects have soared to $90 billion in volume and saved localities more than $12 billion in interest costs, the Treasury Dept. says. In a report released April 2, Treasury says that the Build America Bonds (BABs), created under last year's American Recovery and Reinvestment Act, have increased in volume to $90 billion as of March 31. That equals more than 20% of the market for new municipal bonds. Critics have charged that investment firms' underwriting fees for issuing the new bonds have been too high. Treasury
The stunning rejection of a $321-million loan by the U.S. Dept. of Energy has start-up automaker V-Vehicle Co. weighing its next move. The loan, to come from DOE’s Advanced Technology Vehicles Manufacturing program, would have funded a $241.2-million renovation at the former Guide Corp. headlight plant in Monroe, La., and provided another $79.9 million for vehicle design and coordination with up to 30 suppliers. V-Vehicle said the loan was rejected because of questions about the company’s financial viability. Company founder Frank Varasano said earlier the company had raised $86.5 million in private funds. The company’s plan also was supported by
Prevailing wage rules required by the federal stimulus program may drive up costs and cause some projects to miss their goals, according to a new study by the U.S. Government Accountability Office. The study, ordered by Senate Minority Leader Mitch McConnell (R-Ky) and released on March 25, contends that 40 federal programs with construction funding authorized under the 2009 American Recovery and Reinvestment Act are now subject to the wage rules under the federal Davis-Bacon Act. Seven programs are brand-new, and 33 were not previously covered by the law. They account for $102 billion of the $309 billion appropriated for
...Insight steel analyst. But even those price levels may be too high. “I don’t see how low worldwide demand can support these prices,” he points out. Steel prices are being driven not by demand but by a surge in scrap prices. “Scrap prices have gone crazy since late 2009. They are now just below 2008’s peak, and they could end up duplicating the 2008 spike,” says Anton. “Right now, inventories are thin, which is allowing higher prices to sneak back in. But once inventories are restocked, I think we will see prices fall back off.” The China Connection The inventory
The three index tables on this page each represent various components of ENR’s two primary indexes. The Materials Price Index is the materials component of both ENR’s cost indexes. The Common Labor Index is the labor component of ENR’s Construction Cost Index, and the Skilled Labor Index is the labor component of ENR’s Building Cost Index. Related Links: ENR's Complete First Quarterly Cost Report 2010 View entire construction economics section on enr.com ENR publishes only cost-index history tables in its First Quarterly Cost Report. However, ENR’s Website, enr.com, will keep you current with historical data and monthly updates. Historical tables
If there is any good news this quarter for the glass curtain-wall and window-wall sector, it is only that things probably can’t get much worse. That’s what glazing contractors, owners and architects are saying this spring as prices for glass-wall systems continue to tank. Source: Bureau Of Labor Statistics. Producer price index. Related Links: Economics: Despite Upturn in Steel, Lumber and Energy Prices Deflation Sweeps Cost Index Board Markets: Survey Shows Contractor Confidence Slowly Rising Homebuilding: Lumber, Wallboard Prices Perk up With Modest Rebound Executive Pay: Key Players Dodge Salary and Bonus Squeeze Methodolgy: What is Driving Costs ENR's Complete
Foreclosures, unemployment, tighter lending and unstable prices weigh heavily on the commercial housing sector, but falling demand has not had a similar effect on the cost of materials. Photo: Pulte Corp. Production cuts at U.S. and Canada mills propelled a 40% price increase since 2009. Related Links: Economics: Despite Upturn in Steel, Lumber and Energy Prices Deflation Sweeps Cost Index Board Markets: Survey Shows Contractor Confidence Slowly Rising Glass: Recession Shatters Prices, More Cuts Expected During 2010 Executive Pay: Key Players Dodge Salary and Bonus Squeeze Methodolgy: What is Driving Costs ENR's Complete First Quarterly Cost Report 2010 City Indexes:
The construction industry has been suffering for two years through the toughest recession in 20 years, perhaps longer. The depth of the downturn has burned away the industry’s natural optimism, and major firms are taking a hard look at the market and at the U.S. economy. However, they now are starting to believe that a recovery should begin next year. Related Links: Economics: Despite Upturn in Steel, Lumber and Energy Prices Deflation Sweeps Cost Index Board Homebuilding: Lumber, Wallboard Prices Perk up With Modest Rebound Glass: Recession Shatters Prices, More Cuts Expected During 2010 Executive Pay: Key Players Dodge Salary
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