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CONSTRUCTION KNOWLEDGE BLOG

October 30, 2012

A Dangling Boom
Filed under: safety — Tags: — nedpelger

One big wind gust from Hurricane Sandy left a crane boom dangling 1000′ above West 57th Street in NYC. This 90 story building will be the tallest in the city that includes residences. The New York Times calls it a “Trophy address for some of the world’s richest people.”  The top floor condos are being sold for $90M US each.

httpv://www.youtube.com/watch?v=2uQcb9KISiY

The 30 second video above gives a great sense of standing on the street and seeing this catastrophe. Nearby buildings have been evacuated and the electricity and gas turned off in the vicinity. They are concerned, of course, about the boom falling and creating a natural gas explosion.

Hat tip to my brother Jim for sending this info from way out in Montana. We both stayed at a hotel nearby in the luxurious 1990s. Glory Days.

CONSTRUCTION KNOWLEDGE BLOG

October 29, 2012

What Mags Do You Read?
Filed under: General Technical Skills — Tags: — nedpelger

When I was a young whippersnapper in this wonderful construction business, I tended to peruse many free construction magazines. I believe it helped me to learn the language of Pre-Engineered Building Contractors

HVAC Contractors

and Residential Builders.

I’d page through the magazines, see the new products and occasionally read the articles about the challenges and rewards of that trade. I learned more about the various trades and made better decisions about what I wanted to do for my work.

As I’ve matured (a nice word for gotten old), I seem to have less free time and more money. So now I read ENR for current construction news and The Economist to help inform my world view. Of course, I also read some triathlon related mags to fuel my hobby.

So what magazines do you read? And why?

CONSTRUCTION KNOWLEDGE BLOG

October 26, 2012

Beware the Apartment Bubble
Filed under: Industry outlook — Tags: — nedpelger

Yesterday I wrote about the continuing spotty recovery in the US construction market. Today I saw an article from economist Jed Kolko that dovetailed nicely. His research indicates that in the 100 largest cities, buying a home is 45% cheaper than renting. He compares mortgage payments and taxes vs rents. The actual list of cities shows a gap from 24% to 70%.

I know we’ve been building lots of apartments in recent years and it seems many other contractors have also jumped into this market. So with all the new apartments being built (with high rents that follow new construction costs) and all the foreclosed houses starting to come back on the market, some price adjustments seem likely.

I’d expect to see rents start to come down and home prices go up a bit. Be careful not to get caught too far on the wrong side of this change.

As an aside, it’s interesting to see a sharp economist provide insights. Jed Kolko’s page says, “He transforms real estate data, economic trends, and public policy debate into digestible insights for home buyers, sellers and renters.” I like digestible insights.

CONSTRUCTION KNOWLEDGE BLOG

October 25, 2012

Construction Forecast for 2013
Filed under: Industry outlook — Tags: — nedpelger

McGraw-Hill predicts a 6% increase in overall construction spending for 2013. That follows a likely 5% increase from 2012, so the trend continues positive. Unfortunately, that 6% increase would take us to a total US construction spending of $484B, 25% below the 2007 spending of $641B and well below the 2008 spending of $559B.

A fascinating aspect of the recovery is it’s unevenness. Single family housing gained 27% in 2012 and is projected to gain 24% in 2013. On the other hand, institutional and public works will likely fall.

Of course, the recovery varies widely of geography as well. So look carefully at what you build, for whom, and where you build it. You may be able to change one of those variables and substantially change your outcome.

Don’t do the same thing over and over and expect a different outcome. Take some time to think, then have the courage to change something.

CONSTRUCTION KNOWLEDGE BLOG

October 24, 2012

Wind the Clock, for Tomorrow is Another Day
Filed under: People Skills — Tags: — nedpelger

Lex sent me this inspirational piece from the Letters of Note site. In 1973,  E. B. White , author of Stuart Little andCharlotte’s Web, received a letter opining on the bleak future of the human race. White responded with the following, beautifully written letter.

North Brooklin, Maine

30 March 1973

Dear Mr. Nadeau:

As long as there is one upright man, as long as there is one compassionate woman, the contagion may spread and the scene is not desolate. Hope is the thing that is left to us, in a bad time. I shall get up Sunday morning and wind the clock, as a contribution to order and steadfastness.

Sailors have an expression about the weather: they say, the weather is a great bluffer. I guess the same is true of our human society—things can look dark, then a break shows in the clouds, and all is changed, sometimes rather suddenly. It is quite obvious that the human race has made a queer mess of life on this planet. But as a people we probably harbor seeds of goodness that have lain for a long time waiting to sprout when the conditions are right. Man’s curiosity, his relentlessness, his inventiveness, his ingenuity have led him into deep trouble. We can only hope that these same traits will enable him to claw his way out.

Hang on to your hat. Hang on to your hope. And wind the clock, for tomorrow is another day.

Sincerely,

(Signed, ‘E. B. White’)

Here’s a family photo of Mr White. He looks trustworthy to me…he’s holding a dog.

CONSTRUCTION KNOWLEDGE BLOG

October 22, 2012

Understanding Fracking
Filed under: Energy — Tags: — nedpelger

I had to make a decision this morning on a HVAC system for a small retail center we are designing and pricing. An all electric heat pump system would be the lowest first cost, but I thought of the likely future fuel costs. I think gas will be a more economical future fuel than electricity or oil. So I decided to go with gas furnaces and a split system for the air conditioning.

The gold rush of Marcellus Shale Gas, in PA and distributed throughout the world, makes me cast my design vote to natural gas as the economical fuel of the future. Right after I made that design decision, I came across this video that does a great job illustrating gas fracking (the controversial aspect of the process). I strongly recommend watching it to better understand the process.

httpv://www.youtube.com/watch?v=VY34PQUiwOQ&feature=related

Traditionally, electric heat costs about three times as much as gas or oil heat. Since electricity is a much higher entropy (think higher energy quality) fuel, it will likely always be more expensive than gas or oil. It’s easy to turn a motor with electricity than with fossil fuels (which require an engine).

For many years, I’ve told customers it isn’t clear which fuel source will be the most economical for the long term. For example, if nuclear reactors got more cost efficient, electricity would have been the winner. Now the uncertainty is over and natural gas will be the winner. Let me know if you agree or see it differently.

CONSTRUCTION KNOWLEDGE BLOG

October 19, 2012

Friday Fun (on a Road Bike): Bridges and Dams and Rails, Oh My
Filed under: Ned Weirdness — Tags: — nedpelger

If you have any interest in biking, and what the heck, even if you don’t, watch this cool video below. This guy rides through Great Britain showing the most amazing bike handling skills with charming background scenery. Watch till the end, as the tricks keep getting better.

httpv://www.youtube.com/watch?v=7ZmJtYaUTa0&sns=em

Hope you have a wonderful weekend. Remember to laugh, be amazed and show appreciation.

CONSTRUCTION KNOWLEDGE BLOG

October 17, 2012

Why Change is Hard
Filed under: Computers in Construction — Tags: — nedpelger

I’ve been writing about cloud computing for construction for a year or two, but have only pushed the easy parts of my construction management business into the cloud. I use DropBox to sync all my desktop computer files, so I have access to current files wherever I am. That works well and makes my Android phone much more useful.

I also really rely on PDF documents shared on Box.com with Owners, Architects, Trade Contractors, Code Officials, etc. We print many less sets of drawings and mail almost nothing. Both DropBox and Box.com cost a few bucks a month, but I save more than that in supplies.

So those two are the fruit that goes first into your bucket. They are easy, cheap and take almost no effort to set up. If you haven’t done them yet, get going.

I’m finding this next step more challenging. Moving my estimating, job costing and invoice approval system to a paperless, cloud accessed system seemed easy. Most bids come in as email attachments and lots of invoices do. But both also sometimes come as faxes and sometimes in the mail. So my system needs to handle all those formats, but I’d also like it to really not require me or my customers to have to print each document.

So I had to set up a coding system that uses numbers for sorting and I had to keep the number system from 0 to 9 because various computers sort the double digits differently. That’s just one of the challenges I’ve encountered as I’ve been moving through this process. I’ve been at it for two months and think I’ve just about got it.  When I’m comfortable it all works, I’ll post the process.

So why is change hard? Well, some is and some isn’t. I found the DropBox and Box.com changes easy. I’m finding the cost processing change more challenging. We humans are wired for routine tasks and our brains rebel against change. We need to utilize our will to get beyond what feels right and normal and set-up new processes. These new processes will eventually become habits, but it takes time and effort.

I’m willing to put in that time and effort because I believe a small business succeeds by the following:

  1. Amazing customer service
  2. Keeping current with technology
  3. Controlling overhead costs

So there’s my challenge for you. Fight the tendency to just keep doing the same thing. Because if you don’t, the game will change anyway and you’re probably not going to like the outcome.

CONSTRUCTION KNOWLEDGE BLOG

October 15, 2012

Fracking: From the Wild West to Research Mania
Filed under: Energy — Tags: — nedpelger

As I’ve noted a few times before, if you’re looking for work in construction, think deeply about the Marcellus Shale options. This Gold Rush of our times is spread throughout America and the world. The locations that that have Shale gas are booming.

An excellent article in ENR describes the changing game of the shale gas extraction. A few years ago, fracking was developed with great enthusiasm and little regard for the environmental consequences. There simply were no regulations, technical decisions tended to be left to the conscience of the operator. History teaches that the Wild West model doesn’t work too well.

With the EPA producing a report by the end of 2012 that documents the impact of fracking on adjacent water supplies, more regulations will follow. Fortunately, the technological race for improved methods will likely go faster and farther than the bureaucrats.

The huge amount of water currently used in the fracking process is both a large cost and an environmental challenge. Water treatment and recycling plants are being built and tested. Abandoned mine drain waters are being proposed for the fracking. Even waterless fracking systems, 95% inert nitrogen and 5% water which becomes like foam in use, are being developed and tested.

Shale gas will be an important part of the future world economy. If you’re looking for someplace to jump back in, consider the locations shown in the map above.

CONSTRUCTION KNOWLEDGE BLOG

October 12, 2012

A Day Made of Glass: Scenes that will Change Construction
Filed under: Computers in Construction — Tags: — nedpelger

Here’s a video that you really should take a few minutes to watch. You’ll be inspired to see the future and hopefully moved to make some changes to better accommodate.

httpv://www.youtube.com/watch?v=6Cf7IL_eZ38

Can you imagine a job site with several large glass screens which can show all the building plans? Imagine the designers thinking through how to best show the information that the guys need on site to build.

The current standard (generally badly drawn 2D architectural plans) is so poor, I don’t see it incrementally improving. When these new changes come, the firms that utilize them will thrive and the firms that don’t will die.

I know where I want to be on that continuum and am making steps to get there. Hope you’re the same.

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