MCAA Regional Report, Region E

Words: Olene Bigelow, Tod Boucher, Tony Denegri, Dick Dentinger, Mark Wickstrom, Robert Heitkamp, Craig Hinrichs, Toby MaddenIowa - Tod Boucher
Kansas - Tony DeNegri
Minnesota - Dick Dentinger
Missouri - Robert M. Heitkamp, Jr.
Nebraska - No State Chair
North Dakota - No State Chair
South Dakota - No State Chair

Economic Climate and Forecast

Iowa
No report as of this writing.

Kansas
No report as of this writing.

Minnesota
AGC of American estimates that construction employment is down 22,800 jobs or 17% from the construction employment peak of February 2006. Employment totaled 11,000 workers in residential and nonresidential construction October 2008.

The construction industry in Minnesota is watching and hoping for a strong federal and state stimulus package of investments in the infrastructure of the state and the country. Shovel ready jobs will be the key to a stimulus package.

According to AGC of America analysis, the economic impact of a stimulus investment in Minnesota would add an additional $1 billionin nonresidential construction spending and would add about $2.4 billion to the state’s Gross Domestic Product. That size investment would provide $755 million to personal earnings and create or sustain 21,000 jobs.

7,100 of those jobs would be on-site construction jobs located in the state. 3,400 of the new jobs created would be direct and indirect jobs associated with construction supply materials and services. The majority of these jobs would be located within the state. 10,500 of these jobs would be created when construction, supplier, and service providers spend their incomes.

In 2007, a total of 202,000 jobs were supported by the direct or indirect outlays associated with the state’s nonresidential construction spending. Nonresidential construction spending in Minnesota totaled an estimated $9.7 billion in 2007 and contributed a total of $23.3 billion to the state GDP–just over 9%.

In 2007 annual pay of all construction workers in Minnesota averaged $50,699, which is 13.3% more than the average of all private sector employees. Minnesota had 18,000 construction companies in 2006. 93.7% of those firms were considered small business with 20 workers of less.

According to the Ninth District Federal Reserve office in Minneapolis, the Ninth District economy has slipped into a recession. According to the National Bureau of Economic Research, the arbiter of when recessions begin and end, the US economy slipped into a recession staring in December 2007. Employment and consumer spending conditions in the Ninth District largely echo those of the nation. According to Toby Madden, a regional economist of the Fed, business leaders in the District expect the recession to continue deep into 2009. Leaders are reflecting a pessimistic outlook for their own businesses and communities. One reason for the pessimism is credit conditions, whose outlook is the worst in the 18-year history of the poll.

The 2009 Minnesota legislature is dealing with a $5.25 billion deficit and is awaiting the Governor’s budget the last week of January. They will work through May– and maybe longer–to achieve a “balanced” budget with huge cuts in programs expected and tough votes on tax increases possible. One or two bonding bills maybe part of the economic stimulus package in the state. The bonding ability of the state is tied to a 3% debt service based on overall budget. We are already at that point. Construction continues on two new stadiums; one for the University of Minnesota Gopher football team on campus, and a new Twins baseball stadium in downtown Minneapolis. The I35 bridge construction was completed in mid-September 2008! More bonding construction based investments are needed through out the state, but may not be able to be accomplished due to the debt service limits.

Missouri
2008 Bricklayers’ Hours ran approximately 12% behind 2007. All market segments have seen a contraction, and budgets are being tightened accordingly. Some projects are on hold indefinitely. To date, 2009 has continued in this same trend. However, bidding for new work is increasing.

Nebraska
No state chair.

North Dakota
No state chair.

South Dakota
No state chair.

Masonry Marketing Activities

Iowa
No report as of this writing.

Kansas
No report as of this writing.

Minnesota
Our newly organized Midwest Masonry Promotion Council is up and running well! Technical Marketing Director Craig Hinrichs is working full time to reclaim market share for masonry in commercial and residential buildings in the upper Midwest. Hinrichs, an architect, is meeting with decision makers: including architects, engineers, owners, and developers to discuss their building plans and suggest ways that masonry goods and services can be included in the building mix.

Over the past few years we have seen competing wall systems “out market” the masonry industry. The new Midwest Masonry Promotion Council will work with these decision makers to convert specifications and designs back to masonry wall systems. Funding for the marketing effort has been provided from start up pledges from contractors and suppliers and now from continuing contributions based on bricklayer hours worked and masonry materials and services sold in our market area.

The following is a summary of the MMPC’s efforts:

*Minnesota School Boards Association convention attended January 15-16, 2009. Revised MMPC banners displayed targeted to masonry in school construction. Multiple contacts made with architect exhibitors for digital photography, and renewed acquaintances with numerous school districts personnel. *Winter 2009 Newsletter issued January 16 in printed and email format. Newsletter being sent to prospect ive members and architects list.

*Architecture MN magazine Jan/Feb 2009 issue with (2nd) MMPC ad featuring Minneapolis Light Rail Station by Weiss Masonry received by 10,000 mailing list. Artwork completed for next issue Mar/Apr 2009 featuring Gould’s Diamonds & Jewelry with credits for Northland, Anchor, and Stoneworks.

*Gray Block Committee. Met in December with Olene Bigelow, Mike Cook, Bill Dentinger, Jim Lundquist and Mark Severson at the United Labor Centre in Minneapolis. Craig Hinrichs attending Bentley software seminar on Jan 21, 2009. Request from Olene Bigelow to give short Bentley software presentation at MC&MCA convention. Working with Olene Bigelow to assemble conversion teams from future project contacts.

*University of Minnesota lectures series: Attending three seminars in Jan/Feb. Seminars sponsored by IMI, MCMA, and MC&MCA.

*MMPC assembling our own HSW masonry education program to become AIA/CES (Continuing Education System) provider for lunch and learn presentation to architects. Program will also be tailored for presentation to engineers and building owners.

*Member visits being scheduled. Dave Joslin at Northland Concrete & Masonry to schedule visit with Tom Deppa at Minnesota Brick and Tile.

*Photography request for MMPC Digital Library. Request for contributions in winter 2009 Newsletter, email request by Dave Joslin and phone calls from Todd Mittelstadt. Multiple contacts received by email from Tamelyn Holter.

*Case study photography. Winter construction photos taken at Spraungel project at 109th and Hwy 65 in Blaine. In-progress masonry construction to be included in digital library.

*MMPC website underway by Tim O’Toole with outline taken from “Masonry Solutions for Efficient, Expressive and Sustainable Design” and opening page graphics from MMPC display banners.

*MMPC Advisory Committee meetings being scheduled by Chairs of 6 committees. Committees include: Executive and Budget Committee/Membership Recruitment, Retention, and Dues Committee/Marketing Committee/Commercial Committee/Residential Committee/Education Committee.

International Masonry Institute Activities
BAC and IMI Teach Architecture Students: For the second year, twenty architecture students from the College of Architecture and Landscape Architecture at the University of Minnesota traveled to the BAC Local 1 MN/ND Training Center in St. Paul every Tuesday and Thursday morning from October through December to learn about masonry. Mark Wickstrom, Local 1 Apprenticeship and Training Coordinator, was invited by the University to teach the course, Arch 3250, a Masonry Workshop and was assisted by Olene Bigelow, IMI Minnesota rep.

Last year’s class of 7 sessions apparently wasn’t enough and the students wanted more! So, rather than seven 4-hour sessions, this year’s program consists of four teen 3-hour sess ions, increasing contact time from 28 hours to 42 hours. “I think they liked us,” Wickstrom wryly said, when the evaluations from the 2007 class came in.

The class was given a designbuild challenge in which each team must design one of four light rail transit stations along the new “Central Corridor” line. This line will pass directly through the campus. The projects had to be predominantly masonry, contain at least one arch, and use two different bond patterns. Each team built an element from their overall design, using materials available at the training center on a 4 x 8-foot “footprint,” up to 6 feet high. At many sessions, coordination with the apprentice program was in place, where groups of apprentices worked with the architecture students to help execute their designs and act as technical advisors, further “bridging the gap” between the designer and the craftworker.

“Getting architecture students interested in masonry early is the best way for them to continue that interest when they get into practice,” Wickstrom said, “and getting them here to the training center reinforces what we are all about — that quality union training means quality masonry in the project.” Olene Bigelow, IMI Area Director assisted with the class, providing a series of technical lectures and design assistance. The students’ projects were judged by a group of architects, contractors, BAC union leadership and others in December.

IMI Pursuing New Materials, Systems, Design Tools - New Software Streamlines Load bearing Masonry Design
Over the past year, IMI and NCMA (National Concrete Masonry Association) have been working with Bentley Software Systems to develop a new version of Bentley’s structural design software to make designing load bearing masonry walls far easier and faster. With this technology, engineers will be able to design far more complex masonry buildings in a fraction of the time previously required. The system has the potential of significantly increasing the use of gray block or structural masonry systems once enough engineers become familiar with its use. To that end, IMI is working with engineering firms across the state to help them obtain and use this tool effectively and has committed significant resources to the project.

IMI’s education program for the software debuted in Minnesota at the Masonry Engineers’ Series at the University of Minnesota January 21 with over 40 people attending.

Annual Masonry Academy Put On Hold for 2009
The planning committee for the annual masonry academy has decided to place the event on hold for the summer of 2009. A number of reasons have been mentioned but the slow economy and the inability of teachers to take two or more weeks off this summer to pursue additional education lead the list. In 2008 partners from the masonry and concrete industries coordinated the 13th Annual Minnesota Masonry & Concrete Academy at St. Cloud State University. The Academy targeted technology education teachers in an effort to expose them to masonry and concrete in their preparation of high school classroom activities and career opt ions. The Academy attendees training included tours of a block plant, cement plant, a brick plant, and a construction site. Trainers at the Academy include Bricklayers Local #1 MN/ND apprenticeship coordinator, field staff, IMI staff, contractors and suppliers. The planning committee will revisit the event next winter and hopefully be able to bring the academy back on line in 2010.

Annual Excellence in Masonry Contest
2009 marks the 27th annual Excellence in Concrete & Masonry Construction and Design contest in Minnesota. Around 50 masonry and concrete building projects are annually entered and judged each fall. Winners are recognized at the awards banquet that concludes our two day convention in February 2009. The masonry and concrete project winners are featured in a four-page, five-color insert in the annual AIA directory, as well as being printed in the Construction Bulletin, a local construction publication. In addition, photos of our winners are scanned into our web site to “showcase” them to architects, owners and potential members.

Goals and Objectives
MC&MCA’s goals for 2009 include continued financial support of the successful Midwest Masonry Promotion Council. Working in partnership with suppliers, the MC&MCA is part of a team effort stressing a masonry industry working together market masonry goods and services in bad times and good times. The MC&MCA, through the MMPC, will continue to work with the architectural and engineering communities in the design process to encourage more use of masonry and concrete in all projects in the construction arena. We will also continue to work with the unions on employee recruitment and training. Other goals include providing programs and other membership services that educate and inform our members. We will continue to work with the MCMA, IMI and AGC to better coordinate, partner and cost-share programs and projects of interest and value to the masonry industry.

Missouri
The Masonry Executives Council has launched MasonrySystems.Org, a website which serves as a portal to masonry information for designers, builders and developers. MSO will promote the use and understanding of masonry wall systems through one unified source of easy-to-access information. MSO represents the collaborative efforts of the entire masonry community. One of the best features of this site is there is no special interest; its sole mission is to provide the design community and decision makers with the information they need to build with masonry. Lionheart Publishing has contracted to handle advertising for the site. We are in the process of implementing tracking mechanisms to quantify the number of new visitors to the site.

A small group visited the Michigan Mason Contractors Association to learn more about their Masonry Alternative Design program. The group picked up many useful pointers in how to formalize such a task group for our market.

The 2008 – 2009 Masonry Institute of St. Louis (“MISL”) seminar series to the three segments of the design community — a series for architects, one for engineers and another for code officials and builders — has seen record attendance since its September launch. MISL is confident they will meet their attendance goal of 3,000 attendees for the seminar year. The Mason Contractors Association of St. Louis is in the process of adding an addition to our building so that the ever-growing need for meeting space can be met.

The MCA Pointers, Caulkers and Cleaners (“PCC”) Committee have scheduled two presentations to the design community: On February 18, 2009, they will work wi th the MCA Associate Advisory Committee to present Stone Patching and Repair, and on March 25, 2009 they will be hosting a panel to discuss Caulking, Water-Resistant Coating and Cleaning with the architectural community.

The MISL Residential Marketing Committee continues to promote their new website, www.homeDESIGNstl.com. They held an introductory seminar to area real estate agents and developers. A presentation to residential mason contractors is being planned so that the contractors can learn more about how this site can showcase their work.

The MISL Commercial Marketing Committee has approved a proposal from Ducker Worldwide for development of a Strategic Marketing Plan for growth of masonry products in the St. Louis area, and we are looking for every opportunity to participate in Vision 2020.

The MISL was a sponsor of the November 2008 AGC Construction Exposition, in addition to having a booth at the expo.

The MISL 11th Annual Masonry New Products Forum will be held on February 10th for contractors and February 11th for the design community.

Nebraska
No state chair.

North Dakota
No state chair.

South Dakota
No state chair.

Workforce Development Activities

Iowa
No report as of this writing.

Kansas
No report as of this writing.

Minnesota
Bricklayers Apprenticeship Program Report
According to Bricklayers and Allied Craftworkers Local No. 1 Apprenticeship Coordinator Mark Wickstrom, the 2008-2009 program has 197 act ive apprentices (down 49 from fall 2008 start up), including students enrolled in the St. Paul based metro training center and 89 in the out-state program. The job classification breakdown of the Metro Apprentices reveals 37 bricklayers (down 14), 23 tile finishers (down 13), 25 tile layers (same), 15 PCC students (down 18), and 5 terrazzo workers (up 4). These numbers reflect an approximate 20% drop in apprenticeship volume.

The Bricklayers Local No. 1 Outstate Apprenticeship Program currently numbers 89 students (down 9). They include 32 bricklayers, 24 tile finishers, 17 tile layers (down 4), and 16 active students waiting for work hour’s accumulation.

Journeyman Upgrade Training Update
PCC students enrolled in the Bricklayers Apprenticeship program will be attending three consecutive weeks of training starting December 2008. The schedule will incorporate all first year apprentices in December 2008, all second year attendees in January 2009, and all third year students in February 2009. This training will be specifically tailored to the skills that are needed by the restoration professional. The decision to offer the training in this format was made after several meetings with contractors specializing in restoration work.

During the last training year, Journeyman Upgrade Courses were offered to the members of Local 1 MN/ND. There are 22 courses on a variety of subjects offered to Bricklayers that started in October 2008 and will run through April 2009. Likewise, there were 41 courses on a variety of subjects related to the Tile Finishers and Tile Layers during the same period.

The contact hours related to the Bricklayers Upgrade Training totaled 2070 hours. The contact hours that were generated in tile related Upgrade Training totaled 1018 hours. To view a schedule of the Journeyman Upgrade Training Courses please visit our website @ www.bactraining.org.

BAC Local No. 1 anticipates completing 50 apprentices at the graduation in April of 2009 (down 14 from fall start up), including13 bricklayers, 1 PCC, 11 tile finishers (down 13), and 21 tile layers (same). There are also around 16 apprentices in the out-state program that are in the process of compiling work hours to fulfill all the requirements for the journeyman status.

Through the first eleven months of 2008, mason hours worked by the Bricklayers Local 1 of MN/ND members totaled 12,711,697 hours. These numbers reflect a 6% decrease compared to the first eleven months of 2007.

This follows a similar drop in the 2007 year from 2006. The continued reduction in hours is complicated by the very poor investment performance in the various fringe benefit funds. We suspect these pension funds to be watched closely while the economy marks a slow climb back to better health.

April 30, 2009 marks the end of the second year of our current three-year labor agreement with the bricklayers, cement masons, laborers, operators, ironworkers, and carpenters.

Jobsite Safety
The most frequently cited safety standard in the construction industry in 2007 was violations with fall protection-unprotected sides and edges, according to Minnesota OSHA. State OSHA issued 80 citations during the year for this category. The second most cited construction standard was fall protection on scaffolds above 10 feet with 70 citations. Fall protection for residential application was the third most cited violation with 62 tickets issued. Lack of an AWAIR Program moved up to fourth place with 61 citations. 2008 numbers are expected to be reported in the near future.

Missouri
Currently there are 104 apprentices. The apprentice committee has used this slower period to work on a strategic plan for the school, outlining curriculum enhancements as well as needed resources. Bids are being reviewed to expand and modernize the school so that work can be completed prior to the anticipated future attendance needs.

The PCC (Pointers, Caulkers and Cleaners) Committee is working on a technical bulletin and specifications for water repellants.

The MCA has completed another section of its Codes and Standards Educational Series: Part III deal t wi th the International Building Code and International Residential Code. Part IV recaps the prior sections on Standards and MSJC and help attendees prepare for the exam.

Mr. Bill Kincaid, a senior loss control specialist with Lockton Companies, presented an introduction to Behavior-Based Safety Training on January 15, 2009.

Nebraska
No state chair.

North Dakota
No state chair.

South Dakota
No state chair.

Competitors/Trends

Iowa
No report as of this writing.

Kansas
No report as of this writing.

Minnesota
We continue to think “Green.” According to McGraw-Hill Construction, the value of green building construction starts was up five times in 2008 from 2005. They predict that by 2009, 82% of corporate America is expected to be greening at lease 16% of their real estate portfolios. But 2010, McGraw-Hill predicts that 10% of commercial construction started are expected to be sustainable.

We continue to see more and more commercial projects incorporating metal panel systems where masonry veneer was traditional used. In addition, the masonry construction industry in Minnesota has lost market share to other forms of construction, especially precast, EFIS, stucco, as well as, wood and steel stud wall systems. Much of this market share shift can be traced to advertising. The goal and purpose of the newly formed Midwest Masonry Promotion Council is to counter punch that advertising effort and win back construction market share for masonry systems, supplies, and workers.

MC&MCA current membership of 120 companies includes 62 contractor companies and 58 associate member companies. We continue to provide our members with a monthly meeting where industry representatives and other speakers are engaged to address our general membership. MC&MCA can be reached through the internet at www.mcmca.com. We provide a link to MCAA’s web site, as well as other state and national concrete and masonry sites. MCAA membership includes 14 Minnesota contractors.

The MC&MCA continues to promote a strong, positive image of our products and services, our members, our association, the MCAA and the masonry and concrete industry in general!

Missouri
All competing materials are feeling the effects of the slowdown. Interestingly, the area’s largest tilt-up contractor has moved into the hospital market, resulting in the use of more masonry for that contractor. We are expanding all opportunities to influence wall consultants, design builders and owners.

Nebraska
No state chair.

North Dakota
No state chair.

South Dakota
No state chair.

MCAA Regional Report, Region E

Economic Climate and Forecast

Masonry Marketing Activities

Workforce Development Activities

Competitors/Trends

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