MCAA Regional Report, Region B

Alabama
The total construction market is presently very good. Late spring for the state, according to the architectural community, should be extremely active. Masonry Subcontractor pricing currently does not reflect growing market conditions. Pricing has been stagnant or decreasing over the last quarter. Reasons that are affecting this is the labor subcontractor that is performing work for the majority of the local masonry subcontractors and more new masonry contractors entering the construction market. School work will be increased dramatically this next year because of a Billion Dollar bond issue. Also the state currently is financially stronger and can spend more money on Primary education in the state.

University, college and institutional construction has been and will continue to be strong over the next two years. All of the state schools have monies currently for expansion.

Retail and Strip center construction has been very good for the last year and will continue to be strong this next year. Many smaller towns that are growing are just now seeing the Big Boxes come into the city. Most of this work is being performed by Masonry contractors that subcontract the labor on their projects.

Automotive industry was strong over the last year but from what is on the boards will probably be slower for the next year unless there are announcements in the very near future. This industry has pulled a lot of very bright trainable people from the construction business. The quality of supervision in our area is suffering.

Housing is not flat in the state but it has slowed considerably. The metropolitan areas still are showing some growth. The northern part of the state has more promise here than any other area in the state excluding the southwest portion of the state.

Florida
Residential construction is down. Block producers are reducing production to match needs. Commercial work is down slightly.

Georgia
The overall construction market in Georgia for commercial work is flat or slightly declining. Residential construction continues its downward spiral. Experts believe that the 2" half of 2007 may show residential turning around to a degree.

General contractors in Georgia claim to be busy but the number of subcontractors looking for work tells you that preconstruction may be busy but few projects are coming to fruition.

Kentucky
The economic outlook for 2007 is positive. Housing was down a record percentage in 2006 and there is hope for improvement. Brick sales were still solid. The private sector was very solid in 06' and indicators are showing a steady increase for 07'. There is huge one of kind developments going on in downtown Louisville. We have several research facilities happening in both Louisville and Lexington. All of our top ten cities across the state have recorded growth economically. Our state government ran a surplus and there are many brickslblocks projects underway and still coming. Ft. Knox has a tremendous amount of work that is all very masonry friendly. Local architectural firms are reporting high activity and have a positive outlook for 2007. We have several firms located here in the fortune 1000 but one of our flagship companies, Ford Motors, is in major struggle and there are concerns for our (2) local plants futures. U.P.S. is doing another billion dollar expansion and is instrumental in attracting firms to our region.

Mississippi
No state chair.

North Carolina
Most predictions are for steady growth and continuing favorable conditions. However, a number of contractor members have suggested their backlog of work is down from a year ago. Institutional and military construction continues to be especiaily strong. Residential has apparently moderated somewhat. Most all areas of the state report favorable economic conditions for masonry.

South Carolina
Work in South Carolina has remained steady over the last year and 2007 looks to be about the same. The size of the average projects for the next six to nine months appears to be smaller. Work is available but is still competitive. Several of the big box stores, such as Target and Kohls continue to build. The support stores that go with the big boxes are also being built. Unit price work continues to gain a foothold in the larger projects. General contractors sometime use several on the larger projects.

Resort work is still going strong. The Myrtle Beach and Charleston areas are still building. Condos, resort areas as well as all the support facilities make for a robust work environment.

One of the largest segments of the masonry work that is available is in the construction of hospitals. Hospital construction is being performed all over the state. Most of them are still using masonry on the exterior skin. New work as well as additions to existing hospitals is ongoing. We are seeing many satellite hospitals being built in smaller markets.

The school market in the state has slowed somewhat. Many of the school districts have completed their building programs for the next several years. Most of the school work for the next year will be in the smaller towns and in smaller districts. Single schools will be more the norm.

Tennessee
Work Statewide is still fairly strong. All areas of the state, East, Middle and West are all above average busy, although it is not being reflected in their pricing. Overall things are still good. Friends in the architectural community are reporting more work than they can handle. There has been a surge in high rise retail/condo work in our area.

Virginia
No report as of this writing.

Alabama
There are very few organized activities related to the Masonry business taking place currently; a very sad state of affair.

Florida
Florida Concrete & Products Assoc. is heavily promoting CMU for multi family construction. The brick people have practically stopped any promotion.

Georgia
The Georgia Concrete Products Association's Georgia Masonry Institute has renewed efforts to show the competitive and long lasting values of masonry in comparison to tilt wall and metal stud walls. With the overall market down, it seems a perfect time to be pushing our products in anticipation of better market conditions.

Kentucky
Our promotional arm of masonry, Kentuckiana Masonry Institute continues to give masonry a face through our annual awards program, educational credit programs for local architects, scholarship support for our collegiate architectural programs and a host of other activities. Our local suppliers and manufactures continue to give great support and fund many radio ads through the BIA and Southern Brick Alliance. Brick has and continues to be the material of choice on our homes in Louisville.

Mississippi
No State Chair.

North Carolina
NCMCA's major marketing effort continues to be financial support (both directly from the Association and from individual NCMCA members of the MasonrySystems.org project. In November, NCMCA participated with the Carolinas Concrete Masonry Association and Brick Southeast to provide an exhibit promoting masonry vocational instruction and masonry systems for facility construction at the North Carolina School Board Association's Annual Conference.

South Carolina
No report as of this writing.

Tennessee
The Masonry Institute of Tennessee has been very busy in the architectural community. MIT offers a minimum of 4 Certification courses each year. MIT's masonry online course is up and running and looks to be a great success so far. Our membership has grown by some 25%. MIT is currently courting several universities' construction management students. MIT is going to send three University Professors to a workshop in Louisville, KY hosted by The Masonry Society. The workshop is a forum for professors new to masonry education and those looking to further enhance their knowledge of our industry. The workshop is being held March 11-13.

Virginia
No report as of this writing.

Alabama
Currently the only program operating with more than one Masonry company is in Southwest Alabama. The other masonry programs in the state are being sanctioned by individual companies and there are very few of these. In fact the only formal program I know of is one in Birmingham.

Good news may be on the horizon. An organization called the CEFA (Construction Education foundation of Alabama) is trying to put together something for the Masonry Craft. The organization is supported by the AGC, ASA and a number of other organizations. This organization may be instrumental in putting together a formalized program for the Masonry industry along with other trades.

Florida
Apprentice and pre-apprentice training continues to be the main focus of the Masonry Association of Florida.

Georgia
The Masonry Association of Georgia is beginning its second year in its new training facility. Classes are about full and talk of expanding to additional nights to handle the need is being considered. The 2007 budget for training was fully funded due to the combined efforts of the brick, block and cement industries, the masonry contractors and to a degree, some general contractors.

The Masonry Association of Georgia is teaming again with the Construction Education Foundation of Georgia for their Construction Career Expo 2007. Last year saw 2.100 high school and technical school students attend the Expo. This year, it is anticipated that 3,000 students will come through the Expo that is held in conjunction with the SkillsUSA Competition.

Kentucky
The workforce development situation is still developing. Our apprentice classes are full. The most important issue for stable labor growth in our area is the continued presence of the growing Spanish population. The Spanish population is entrenched all across our state. They work on our buildings, houses, pick our tobacco, work with our horses, serve our fast food, etc. They are in virtually every service sector of labor. No longer a transient workforce, many are working for firms as employees rather than contract labor. Future legislation regarding the immigration situation is being watched carefully.

Mississippi
No State Chair.

North Carolina
NCMCA will join with the Carolinas Concrete Masonry Association, Brick SouthEast and the North Carolina Masonry Instructors Association to provide materials, labor and judging for the North Carolina State and Regional SkillsUSA Masonry Contest in April. More than 100 masonry students are expected to participate. For now, NCMCA's major initiative is the Association's Masonry Contractor Certification program. Some 160 individuals are participating. As of the end of February, seven of the 11 total classes will have been completed. The first series of classes should produce the first group of NCMCA certified masonry professionals by the end of the summer. The entire series will be repeated beginning in October. The Annual NCMCA Apprentice Masonry Skills Contest is May 19, 2007 at the CEMEX facility in Winston-Salem. Some 40 to 50 Association Apprentices will compete for major cash and tool prizes.

South Carolina
Training has slowed drastically. The vocational schools continue to provide the most training. On a positive note, we have seen an increase in the interest in masonry as a career option. We have received several requests for participation in career days and offers to speak to high school students. Most of these requests have come thru Melissa at MCAA. We have not experienced any shortage of masons and look for 2007 to be about the same.

Tennessee
Contractors signatory to BAC Local #5 Tennessee have a contract through May of 2008. Middle Tennessee is the only area that still has several Contractors signatory as an Association. Contractors are so busy trying to find people, let alone good people, and it is growing increasingly arder to do.

Local #5-BAC and JATC had two new apprentice classes this year due to the quality of the applicants. There are currently a total of 36 Apprentices in the 2nd and 3rd year classes. We have a full time instructor that is jointly paid by the Union and the JATC. So far this arrangement has worked fine.

Virginia
No report as of this writing.

Alabama
Traditional tilt-up construction is becoming more popular for some of the industrial warehouse and office space. We have seen some tilt-up construction for office buildings which has not been a problem in the past.

We are seeing more of the thin-set fake stone appearing on many of the smaller C and B class office buildings. Typically the skin of these buiiding is fake stone and metal stud construction. This keeps the weight of the façaded own thus reducing the overall structure cost of the building.

Insurance costs are continuing to escalate. Finaiiy companies furnishing insurance for their employees is becoming a major positive selling point.

Florida
Tilt up and precast concrete has become our largest problem; some statistics show that we are losing 11-1 3 million concrete masonry units per year to that industry.

Georgia
The Atlanta market has become a labor broker market. Very few "masonry contractors" actually have any employees. This has created communication and quality problems. The ability of the actual turn key contractor to compete has also been greatly affected.

Kentucky
The private market is starting to see some of our traditional office veneer work go the way of tilt-up. Office building developers have taken a page from the massive warehouseldistribution designs and are putting up cheaper tilt-up shells for two/three story office complexes and still getting their office square foot pricing. They are hideous compared to our traditional brickistone veneers but they are getting clients to move in. It is a concern in this area.

Mississippi
No State Chair.

North Carolina
No real change from a year ago. The masonry market remains strong but competing systems continue to erode market share. Unfortunately, Carolina designers and owners continued their open-mindedness to what are often inferior building systems. MasonrySystems.org needs to be brought up to speed quickly. A very vaiuable tool in addressing this challenge. Also, NCMCA is supportive of the Carolina Concrete Masonry Association's "masonry homes" initiative, which seems to be enjoying some success in the Raieigh and Charlotte markets.

South Carolina
OSHA continues to be more and more active. Fall protection and Competent Person citations have risen over the last year. Employee exposure to sound and dust look to be on their watch list.

We are seeing the use of outside consultants looking over the building envelope. These consultants are working with each of the players to insure that all parts of the envelope work together and prohibit water intrusion into the building. We have seen several big box projects use tilt up panels. We have worked with several General Contractors to convince the owners that tilt up is neither cheaper nor quicker. This will be an on going situation.

Tennessee
I.C.F. (Insulated Concrete Forms) continues to be a force to be reckoned with. I.C.F. distributors are targeting school superintendents and state facility mangers. The sales pitch is an R value of 27 for their product along with cost effectiveness and speed of construction. There is a plan in the works to start a counter marketing offensive using the benefits of foam insulation and cavity insulation to combat the R value sales pitch, as well as focus on the maintenance free product that our industry provides.

In Tennessee the TOSHA inspection rate depends on which area of the state you are located, Eastern TOSHA visits aimost every Commercial job site of any size; while Middle and West inspections are down from previous years. Inspectors are looking hard at fall protection hazards, regulations, and silicosis. Safety training and request for documentation of it has seen great increases in recent years. Dollar amounts of fines have risen in recent years. Fines have doubled, tripled, and even quadrupied the amount of what they used to be. Most large general contractors are requiring on site masonry supervision to attend the 30 Hour OSHA course.

Bidding trends remain the same in the Tennessee area with a mix of Design-Build and Open/Competitive Bid Projects. The Federal Government 90% Design-Builds at Ft. Campbell and it seems to be the way they will continue to do business on the base. The use of Type 5 Building Construction continues to be the government's new building trend. This allows for use of wood studs and lap siding, although we haven't seen any such designs so far. There are very few projects that can be negotiated anymore; contractorslowners want to see at least three bids.

State Legislative Issues - One of the latest issues we have been fighting and trying to change is having to use the low bidder on state funded projects. Many times the government goes with the low bid instead of the best bid. We are in the process of changing that.