MCAA Regional Report, Region E

Words: Tod Boucher, Tony Denegri, Dick Dentinger, Robert HeitkampIowa - 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

Kansas
No report

Minnesota
Shakespeare once said "these are the times that try a man's soul." Amen to that!!

The economy, both at the national level and here in Minnesota continues to drag. The national recession has sent the construction industry into a severe downturn. Both construction companies and construction workers have been hit hard by the down turn in the economy. From June 2008 to June 2009, Minnesota lost 18,000 commercial and residential construction jobs—16.2% of the employment in that sector, according to AGC reports. Areas like Duluth, Minnesota loss 31% of their construction employment. The Twin Cities metro area has experienced a similar loss of jobs and job opportunit ies. These numbers and percentages have not improved in the last six months.

According to a recent Federal Reserve Bank of Minneapolis poll, more than 80% of the overall construction industry responded that they expect sales and projects to be down or unchanged in 2010. Coupled with the weak economy and tight bank credit, builders and developers are not looking to move forward fast in the Upper Midwest. The design build market approach is of increased interest to owners and developers in order to control costs. Redevelopment of existing buildings has also increased in interest for the same reason.

Stimulus money has come and gone! These much needed and quickly used up federal dollars moved into the road and bridge sector of the construction industry. While graciously received, these millions of dollars were not unable to turn around a very depressed construction industry; nor were they expected to do so.

What is needed, according to AGC leaders and others, is "vertical stimulus dollars," that would feed into buildings and construction projects surrounding buildings—both public and private. A strong effort was made to pass such a vertical stimulus bill in the 2009 legislative session, but the effort failed. Talk continues around another effort for the 2010 session, which begins in early February. Both management and unions are strongly supporting another bill this legislative session.

The state legislature is expected to pass a large bonding bill in the 2010 session. This public side of the ledger effort will improve the construction picture but passage in May will not mean much new work in 2010. Priming the construction pipe is fine, but the pipe is presently very long and very, very dry.

I noted an interesting story in the business section of the January 17 Minneapolis Star Tribune regarding the loss of manufacturing jobs in the region. Minnesota has lost 36,000 jobs (11 per cent) in our state's manufacturing workforce. The point of the story was that some jobs are gone for good! In manufacturing, food processing, retailing, transportation, and storage the recession not only has forced layoffs and shutdowns but a new way of thinking regarding buildings. They will be smaller and their location may be moving back down town in order to better manage the costs and limited profits of these major hurting industries. Construction of the buildings needed by the other economic drivers will be back but the lay of the land will be di f fe rent . This eco nomic condition that we are experiencing appears to be more then a recession; it may also be a retransformation of the way we do business. And that includes the construction industry.

The Minneapolis and St. Paul markets were blessed to have two major new stadium projects underway over the last 20 months.

The University of Minnesota constructed a new Football Stadium for the Minnesota Gophers Big Ten Football team. The project featured masonry in a big way in an attempt to fit in the already masonry heavy college campus. At its peak it employed as many as 100 workers on the masonry crew. The first game in the new stadium was played early last fall.

In addition, and simultaneous to the Gopher Stadium, the Minnesota Twins baseball team built a new outdoor ballpark in Minneapolis. This brand new baseball park also helped to prop up our slow construction market. The Twins stadium featured plenty of ‘home grown' Kasota Stone and over four hundred thousand concrete block. It provided months of regular employment often with masonry crews as large as 80 workers. The job is done, with the first games scheduled for early April.

A third stadium? There are now efforts underway on many fronts to secure funding for a new Minnesota Vikings Stadium. This major project #3 would be an extremely well timed ‘stimulus' project for the local construction market.

The 2010 Minnesota legislature and the Governor have a major budget deficit to deal with again this session. A big bonding bill is expected to be a part of the economic stimulus package for the state. Construction ready and jobs involved are high on the criteria list for bonding projects that year. The bill may reach $1 billion!

Missouri
2009 Bricklayers' Hours ran approximately 34% behind 2008 and continue to decline. All market segments have seen a contraction and budgets are being tightened accordingly. 2010 projections are steady to slight down tick.

Masonry Marketing Activities

Iowa
No report

Kansas
No report

Minnesota
Midwest Masonry Promotion Council The following is a summary of the MMPC's efforts:

AIA/CES LUNCH PROGRAM
4th quarter MMPC marketing efforts have focused on the architectural community where the "Affordable Masonry" AIA continuing education program has been presented on average twice weekly including AIA state conventions in North Dakota and Minnesota along with guest appearances at MMPC member presentat ions. The program focuses on both the sustainable qualities of masonry as well as how to reduce first costs of masonry construction with the MMPC as a resource. As a result the MMPC is becoming known as a provider for masonry related education and as a resource for masonry related assistance with subsequent calls for value engineering. Lunch programs have also resulted in the opportunity to partner with MMPC member contractors and producers at the presentations. Architectural contacts have and cont inue to be made in conjunction with new MMPC member companies in outstate areas to engage new MMPC members with architects in their communities.

AIA MINNESOTA CONVENTION BOOTHS
MMPC members helped staff our second year presentation booth(s) in the exhibition hall at the annual AIA Minnesota state convention. While attendance was diminished due to current economic conditions the MMPC was able to make arrangements with over a dozen A/E offices to present the "Affordable Masonry" presentat ion while building relat ionships with new and existing MMPC members both as booth volunteers and as member companies who also had booths.

AIA MINNESOTA CONVENTION PRESENTATION PROGRAM
The "Noteworthy Details" program that was presented by Craig Hinrichs and three other architect/designers as a feature program at the AIA Minnesota State convention resulted in a vastly increased presence of the MMPC to leading architects in a wide variety of Minnesota A/E offices. The program had one of the highest program attendance numbers at the convention with nearly 300 architects attending a program that included sections on the MMPC and MMPC.info website along with inspirational presentations on the artistic qualities of masonry.

AGGREGATE READY MIX ASSOCIATION BUILDING EXCELLENCE AWARDS PROGRAM
Awards were given in 9 categories along with a "project of the year" where Craig Hinrichs was one of the jurors for the annual ARM Building Excellence Awards program as a courtesy to the ARM trade association in Burnsville, MN.

AIA SOUTH DAKOTA CONVENTION BOOTH
The MMPC responded to a request from contractors, producers and suppliers in the Sioux Falls, SD area to be present at the AIA South Dakota annual state convention on Oct 15-16. This resulted in a number of contacts made with architects and potential MMPC members. The MMPC has been soliciting membership of over 20 potential members in the Sioux Falls area who have expressed interest in 2010 membership. Also working on setting up a group presentation of the MMPC "Affordable Masonry" program to Sioux Falls area architects.

FINANCE AND COMMERCE ARTICLES
The MMPC is writing monthly articles on the current state of the masonry industry for Finance and Commerce magazine on an alternating schedule basis with Gary Botzek, resulting in a MMPC presence to key decision makers in the general business community.

MMPC MEETING WITH CEMSTONE MARKETING PERSONNEL
An onsite meeting and further discussion has been held with marketing personnel from a number of Cemstone companies to review possible joint marketing efforts.

ENERGY CODE MEETING WITH HOWARD NOZISKA, ENCOMPASS
The MMPC was present at a meeting with MCMA members and Howard Noziska to discuss energy code calculations and the requirement for licensed authorship. Mr. Noziska was asked if he would be interested in contributing technical expertise to MMPC programs to which he agreed.

MMPC ANNUAL MEETING
The October 21, 2009 Annual Meeting of the MMPC presented an opportunity to recognize MMPC members with framed membership plaques with special recognition of MMPC charter members. This was an opportunity for a general message and face-to-face networking with many of the MMPC members that are not involved on the MMPC boards or on MMPC committees. Photographs of the awards presentation to individual companies were taken and posted on the gallery page of the mmpc.info website for MMPC membership to review and download. Results included a confirmation of the value of the MMPC to member companies while recognizing their contribution to our successes.

PRESENTATION TO SW MINNESOTA ICC BUILDING OFFICIALS
The MMPC participated along with Superior Concrete, Concrete Materials, and TCC in a presentation to 50 building officials of the International Code Council in Redwood Falls on Nov 18. Mark Wickstrom from the BAC training center also gave a masonry demonstration via arrangements made by the MMPC. Results include a presence to government officials in the SW corner of the state of Minnesota with reference to future marketing efforts to local communities along with groundwork for future joint efforts with the BAC training centers educational program for University of Minnesota architecture students.

ARCHITECTURE MN MAGAZINE
An advertisement for the MMPC "Noteworthy Details" program at the recent AIA Minnesota state convention was produced and published in the Nov/Dec 2009 issue of Architecture MN magazine to end our current advertising contract. Future advert ising in the magazine is currently on hold pending approval by the MMPC board of directors. While advertising in Architecture MN magazine has played an important role in introducing the MMPC to the architectural community, cost considerations have become an issue to be addressed with the possibility of reduced frequency of MMPC ads limited to key issues (architects directory etc.).

MMPC. INFO WEBSITE
Additional images and links have been added to the MMPC.info website on a regular basis along with a review of website amenities to architects during the AIA cont inuing educat ion lunch programs and at the "Noteworthy Details" presentation at the AIA Minnesota state convention. A joint meeting of the MMPC Commercial and Marketing Committees was held where preparat ions were made to complete the Cost Guide link on the website along with a reorganization of masonry gallery photographs by building type as resources to architects.

MMPC NEWS QUARTERLY NEWSLETTER
The Fall 2009 MMPC Newsletter has been distributed to MMPC members and to a large number of architects at continuing education programs and at state AIA conventions. The winter 2010 newsletter will be published electronically and in print form in early January 2010. The quarterly newsletter serves to publicize the MMPC and its ongoing activities to our members and to the design community.

MMPC OFFICE LOCATION
It was decided at the November 24 meeting of the MCMA board of directors in Mankato that the MCMA would no longer require an office space at the Burnsville Lehigh locat ion. ARM of Minnesota has been notified that their sublease to the MCMA would be final effective at the end of January 2010. It was decided that MCMA administrative responsibilities carried out at the Roseville office of Capitol Connections did not require a physical MCMA office space and that MCMA board members would meet at the current Burnsville office on January 21, 2009 to sort and remove records and MCMA collateral to their respective offices. A number of options are being investigated for potential relocation of the MMPC office space resulting from the loss of the equal share rent agreement with the MCMA.

MMPC MEMBERSHIP INCREASES
MMPC membership continues to grow thanks to the vigilant efforts of MMPC Membership Committee members and the successes of the MMPC with the area design community.

MMPC LOGO REVISION
Design of the new MMPC logo approved by the MMPC board of directors has been integrated in all MMPC marketing collateral. Notepads with the new logo and MMPC.info website designation have been produced along with a limited number of MMPC calling cards that were distributed at the AIA Minnesota convention and at AIA continuing education programs.

VIDEO MARKETING PRODUCTIONS
A number of MMPC members have agreed to participate in MMPC educational video productions to be added to the MMPC.info website and incorporated in AIA continuing education programs. A second MMPC AIA continuing education program is now under production with high definition video from recording sessions. Video clips from MMPC member expertise in a wide variety of masonry related topics will join those already imbedded in MMPC presentations to enhance the learning process with a creative graphic presentation technique.

INTERNATIONAL MASONRY INSTITUTE ACTIVITIES
From new construction to restoration, traditional refractory work to the latest in sustainable design, IMI programs helped keep masonry center stage in Minnesota and North Dakota in 2009. IMI combines training, technical assistance and market development programs to show design and construction decision makers how masonry offers the best solutions.

Key initiatives in 2009 included sustainability, structural masonry design, new products and systems, and upgrade training/certifications. To learn more about these programs and their impacts, go to www.imiweb.org.

2009 IMI PROJECT INVOLVEMENT IN MINNESOTA AND NORTH DAKOTA
Bemidji Event Center gets more masonry and goes all union - $50 million;

Becketwood Chapel – project awarded to signatory restoration contractors;

Duluth Schools – Expansions, renovations and new buildings worth $350 million over 5 years;

Fort Snelling Restoration;

Coffman Student Union – University of Minnesota – rerestoration work;

Hennepin County – 1923 building restoration;

Schubert Theater Restoration – Minneapolis;

Power Plant – Center, ND –wall bracing issues for 40-foot-high walls;

St. Cloud Convention Center expansion, $47 million project Wichita Schools –$350 million school construction projects;

Hindu Temple – Maple Grove, MN;

Military dormitory at a Guard base in Joliet, IL;

MnDOT Building Restoration/repair;

Mankato Convention/Civic Center $35 million expansion, awaiting state bonding;

Rochester Civic Center expansion $70 million expansion – awaiting bonding bill;

Minneapolis City Hall – Restoration/Letter Carving project – to start May 31, 2010;

Refractory work – No. MN taconite and non-ferrous mining operations;

Lakewood Cemetery Mausoleum;

Hennepin County – renovation of the Juvenile Justice Center;

Northwestern College – Campus Center building – just starting;

North Dakota projects Six new border crossing stations with jail facilities, $15 - $25 million each;

$40 million hospital in Jamestown;

$10 million water treatment plant in Hillsboro;

Community and convention center expansions;

More dorms at Minot AFB;

UND brick replacement awarded to union contractor;

Twin Buttes School Goes Masonry
with Bentley structural masonry software: Twin Buttes, ND school was being planned as a precast concrete structure, until IMI showed architect and engineer how masonry was both pre ferable and achievable with masonry design software. IMI provided custom in -house software training for the project, via WebEx connection to five DLR offices: Minneapolis, Omaha, Lincoln, NE; Phoenix, Kansas City and Seattle.

Bemidji Regional Event Center Increases Masonry Use
A 2009 highlight was converting the Bemidji Regional Event Center to nearly all masonry, resulting in roughly twice as much masonry and more than double the work hours. Currently under construction, the facility will house convention and meeting space, plus a hockey rink the community and the Bemidji State University team.

2009 IMI Education and Outreach Events
Engineers' Conference at the University of Minnesota, 152 engineers

New Masonry Systems Workshop
April 28 – 15 demonstrators of six systems: rain screen walls (Buchtal, sold locally by CeramicTileWorks MN); Boston Valley TerraClad; Arris-Clip by ArrisCraft (distributed locally by Acme-Ochs Brick & Stone), plus demonstrations of Self Consolidating Grout (Twin City Concrete/Spec Mix), Prestressed Masonry, and AAC.

Presentations at BAC Local 1 MN/ND chapter meetings
St. Cloud, Bemidji, Grand Forks, Bismarck, Minot, Rochester and Mankato, plus cont ractor meetings in most locations.

The MC&MCA continues to support the Midwest Masonry Promotion Council. Working as a part of a team effort, we are stressing a masonry industry working together to market masonry goods and services in good times and bad. The MC&MCA, through the MMPC, continues to work with the architectural and engineering communit ies 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
MCA St. Louis completed the expansion of its facilities, doubling the meeting space and upgrading to state-ofthe-art audio / visual equipment.

With this expanded space, the Masonry Institute of St. Louis ("MISL") kicked off their 2009 – 2010 seminar series to the three segments of the design community – architects, engineers and code officials/builders – with a record 320 attendees at this joint session. The weekly design specific seminars are very well attended and we are confident they will surpass their attendance goal of 3,000 for the seminar year.

The MISL Residential Marketing Committee continues to promote their website, www.homeDESIGNstl.com, which allows builders and mason contractors to showcase their projects free of charge. MCAA staff lent technical assistance to archive featured projects on the site and added search capabilities so that consumers can readily select types of homes and style elements. The Committee continues to seek new projects to be featured on the site, as well as enhancing Google search capabilities and utilizing social networking sites. In 2nd Quarter 2010, the Committee will be hosting a residential sustainability program for builders, contractors and suppliers, featuring Gregg Borchelt.

The MISL Commercial Marketing Committee has mobilized a task group to meet with general contractors and community leaders, presenting our message that masonry is the more cost effective option for their projects. MISL Director of Engineering Darrell McMillian, P.E. has created handouts "A Tilt Up / Masonry Concrete Comparison – Perception vs. Reality" as well as "Masonry Premier Wall System" for use in these marketing campaigns, based on the Dan Zechmeister January / February 2009 StoryPole article on Page 16.

In 2010 Mr. McMillian will be visiting the design community to showcase RAM-Bentley software capabilities.

MISL has teamed up with the Masonry Institute of Southern Illinois to provide funding to help Southern Illinois University-Edwardsville increase the offering of its structural engineering course, Design of Masonry Structures, to every other year instead of once every four years. This increased availability makes the course more attractive to undergraduate and graduate structural students. Thirty students enrolled in the course in 2009.

The MISL has partnered with CSI to present a products forum at our facilities on Wednesday, February 10, 2010.

Masonry Institute of St. Louis promoted MasonrySystems.Org at the AGC Build St. Louis Expo on September 29, 2009.

MISL Public Affairs Committee continues to work with Heartland Brick to identify leads for the promotion of masonry design standards. The Committee is also working with several local Planning and Zoning Boards to promote masonry ordinances, giving them sample masonry requirement language.

Workforce Development Activities

Iowa
No report

Kansas
No report

Minnesota
According to
Bricklayers and Allied Craftworkers Local No. 1 Apprenticeship Coordinator Mark Wickstrom, the 2009-2010 program has 198 active apprentices. That includes 74 enrolled in the St. Paul based metro training center, 32 in the outstate program, and 93 waiting on hours to complete their program. The metro apprentices include 29 in brick, 19 in PCC, 12 in tile finishing, 8 in tile laying, and 6 in terrazzo finishing. The outstate program includes 27 students in brick/PCC and 4 in tile laying. Wickstrom anticipates 44 apprentices completing the program by May 2010.

During the last training year journeyman upgrade courses were offered to members of Local 1MN/ND. There were 22 courses on a variety of subjects offered to bricklayers starting in September 2009. These courses will run through April 2010. To view a schedule of the journeyman upgrade training courses please visit the website at www.bactraining.org.

Through the first eleven months of 2009, mason hours worked by the Bricklayers Local 1 of MN/ND members totaled 1.9 million hours. These numbers reflect a 30% decrease compared to the first eleven months of 2008. The continued reduction in hours has had a negative affect on the fringe funds, as well. While a strong stock market will help these funds, the lost hours not worked will never be replaced or invested.

April 30, 2010 marks the end of the current three-year labor agreement with the bricklayers, cement masons, laborers, operators, ironworkers, and carpenters. Negotiations have not officially begun.

The most frequently cited safety standard in the construction industry in 2008 was violations with fall protection on residential job sites, according to Minnesota OSHA. State OSHA issued 109 citations during the year for this category. The second most cited construction standard was use of sloping or protective systems to prevent excavation cave-in with 95 citations. A workplace accident and injury reduction (AWAIR) program violations was the third most cited violation with 82 tickets issued. Fall protection-general requirements were in fourth place with 71 citations. 2009 numbers are expected out soon.

Missouri
The Bricklayers Joint Apprentice facility completed renovation of its training facility, increasing the classroom size and providing separate office space for the instructor and coordinator. There are currently 51 apprentices in the program. The JATC has filled downtime with Journeyman Upgrade Training to members of Bricklayers Union Local # 1 of Missouri. Courses include scaffold training, OSHA 10 and 30 Hour Training, and grout certification.

Due to the lack of work, the Laborers have suspended application to their apprentice program through April 2010. They also are utilizing downtime for training of existing members, offering refresher courses on forklift operation and maintenance, Hydromobile system, CPR and First Aid and OSHA 30-Hour Training.

Competitors/Trends in the Region

Iowa
No report

Kansas
No report

Minnesota
The construction downturn has affected the design community head on. Over 40% of the architects working in the Twin Cities areas have been laid off, according to good sources. The ones left continue to design green.

The masonry const ruct ion industry continues to compete head on with other wall systems including precast, EFIS, stucco, 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 MMPC is to counter punch that advertising effort and win back construction market share for masonry systems, supplies and workers.

Membership Development
MC&MCA current membership of 100 companies includes 55 contractor companies and 45 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. We may be down, but we are not out!

Missouri
Contractors are having to travel further for work. For the first time, we have seen a fire house designed as a wood structure with brick veneer. Of the little work that is out there, the majority is in schools as a result of government spending.
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