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CONSTRUCTION KNOWLEDGE BLOG

February 18, 2013

More American Construction Jobs
Filed under: Industry outlook — Tags: — nedpelger

ENR annouced today that international energy pipeline giant Tenaris SA plans to build a $1.3B US manufacturing facility south of Houston. The 1 million-square-foot facility will complete in 2016.

Texas Gov. Rick Perry said Friday that Tenaris, the world’s No. 1 producer of steel tubing for the oil and natural gas industry, is receiving $6 million from the Texas Enterprise Fund to close the deal.

Perry said he persuaded the Luxembourg-based company to choose Texas while expanding its U.S. workforce during his economic development trip to Italy last year.

The plant will feature a seamless pipe mill, heat treatment and premium threading facilities. It is expected to eventually produce 600,000 tons of pipe annually.

The highly automated plant will produce many construction jobs but only 600 permanent jobs. As I’ve written before, that trend of bringing manufacturing back to the USA (for products to be used in the USA) will continue, but the automated plants won’t spew jobs like in the past.

In some other good news, ENR reported that New York state and local agencies will receive $287 million in emergency federal highway aid to reimburse them for repairing roads and bridges damaged by Hurricane Sandy and other storms. That’s a good chunk of cash for NY infrastructure projects.

So the construction recovery news continues on a positive trend. Many of my customers seem bullish on business prospects and want to improve their offerings with new facilities. If you have business decisions to make, consider this trend and be aggressive.

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