First it was President Obama, the bearer of economic stimulus gifts. Now it’s Obama the budget-cutter. Related Links: Proposed Cuts As part of his budget request for the next fiscal year, the President has proposed terminating or trimming back 121 federal programs, which officials say would save an estimated $16.7 billion in 2010. By ENR's estimate, $1.5 billion of the terminations and reductions, outlined by administration officials on May 6, are in construction programs at agencies such as the Army Corps of Engineers, Environmental Protection Agency and the Energy and Transportation departments. The administration also is proposing to reduce the
Funds totaling $786.5 million from the American Recovery and Reinvestment Act will be applied to accelerate biofuels research and commercialization. On May 5, the Dept. of Energy announced it would award $480 million for integrated biorefinery technologies that produce advanced biofuels, bioproducts and heat and power in an integrated system. Awards will be up to $25 million for pilot-scale projects and $50 million for demonstrations. All projects are to be operational by 2012. In addition, funding for two or more biorefinery projects awarded in the last two years will be increased by $176.5 million to expedite construction. An additional $110
Chief financial officers of more than 100 large and small engineering firms are forecasting 4% average annual growth for the group in 2009, the lowest average since 1996, according to a survey by New York City-based industry management consultant EFCG Inc. The firms, which had 2008 revenue totaling $43 billion, are more optimistic about prospects in 2010, expecting 5.5% growth. CFOs had expected 10% revenue growth for 2008 in the same survey done a year ago, says EFCG President Paul J. Zofnass. Among respondents, 59% say their current outlook for 2009 was unchanged from a few months ago, while 32%
Flights at Chicago Midway International Airport will continue to take off as usual, but a multibillion-dollar deal to privatize the airport will remain grounded, at least until the U.S. economy refuels. The sale, valued at $2.52 billion and set up for a 99-year lease, was scheduled for signatures on April 6, but Midway Investment and Development Co., a joint venture of Citi Infrastructure Investors, John Hancock Life Insurance Co. and Vancouver Airport Services, failed to come up with the capital needed to close the deal. MIDCo finally broke talks with the city in late April after it was granted a
The construction industry is surprisingly collegial, considering how competitive it is. Contractors, designers and subcontractors regularly talk to one another, even to their intense rivals. As people in the industry share insights with each other about their particular markets, firms often ask about broader market conditions or about markets beyond their focus or geographic locale to see if their experience matches that of others around the country. With this in mind, ENR is introducing a new Construction Confidence Index survey. Slide Show Image: Sue Pearsall/ENR How Different Groups View the Market The overall results should come as little surprise, as
Even with billions committed by the U.S. military to Guam infrastructure upgrades to support proposed troop redeployment there, the U.S. Government Accountability Office says the tiny island needs more U.S. government help to cover its required share of costs to expand ports and roads, the power grid and water-wastewater facilities needed to accommodate a projected 15% population increase. GAO says that the U.S. Defense Dept. is funding infrastructure costs on Guam “directly related” to the movement of 17,000 U.S. Marines and dependents from the island of Okinawa and from other locations, as well as providing “some funds toward civilian infrastructure.”
The value of new construction starts through the first two months of 2009 totaled just $52.7 billion, or 45% less than the opening two months of last year, according to McGraw-Hill Construction. However, the year-to-year declines are skewed by comparisons to five megaprojects started in the first two months of last year, which totaled over $12 billion. “If these five unusually large projects are excluded from the January-February 2008 statistics, the nonresidential building market for the first two months of 2009 would be down 35% [instead of 51%], while total construction would be down 37%,” says MHC’s chief economist Robert
The Environmental Protection Agency on April 15 announced its plan to distribute $600 million in American Recovery and Reinvestment Act (ARRA) funds for cleanup at 50 Superfund sites across the United States. The EPA says the funding will accelerate the hazardous waste cleanup already underway and fund new cleanup projects at the sites. Meanwhile, that same day, the Interior Dept. announced that it would distribute $260 million in economic recovery investments through the Bureau of Reclamation for drinking water projects to help address the devastating drought in California. Overall, BuRec will distribute $1 billion in ARRA funds for water project
More than 100 proposals for electric-transmission projects were submitted to the Western Area Power Administration by April 3, the deadline for applications to be funded with $3.25 billion in borrowing authority under the American Recovery and Reinvestment Act. The Lakewood, Colo.-based marketing agency is reviewing the proposals, which are in various states of shovel-readiness, and will announce its selections by June.
The forecast shrinks the anticipated decline in 2009 construction starts to 15% from an earlier estimate of 20% or more. This is fueled by weak residential and commercial markets and the “emerging loss of momentum for institutional building,” according to the report. Projections say the American Recovery and Reinvestment Act of 2009 will hike public works project starts by 10%, “enough to cushion what was shaping up to be a particularly tough year for construction,” says the report by MHC, publisher of ENR. “The public works jump-start will be the saving grace for the year,” says Robert A. Murray, MHC
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