AGC suggests materials cost calm ending soon Governator passes PMI bill NSF develops testing protocol for septic tank and grease trap separating devices Fluidmaster hosts 50th Anniversary event Falcon Stainless contributes to Habitat for Humanity

AGC suggests materials cost calm ending soon

The Associated General Contractors of America (AGC) released its fifth Construction Inflation Alert, warning owners, budget setters and contractors to expect larger materials and labor cost increases in 2008 than they have experienced in the past 12 months.

“Nonresidential construction has had a banner year so far in 2007 and we’ve seen spending on nearly every segment increase compared to 2006, despite the plunge in homebuilding,” said AGC chief economist Kenneth Simonson. “The materials cost surges that plagued the industry in 2004-2006 have slowed dramatically, and labor remains available in most markets.

Simonson warned that many observers expect that the end of the calm is coming soon, “The worsening slide in homebuilding and turmoil in the credit markets threaten some types of nonresidential construction. At the same time, some materials costs are beginning to turn up again, and labor costs have started to accelerate.”

The cumulative increase in the producer price index (PPI) for construction inputs since December 2003 (28 percent through August 2007) remains more than double the 13 percent increase in the most common measure of overall inflation, the consumer price index (CPI) for all urban consumers. Labor costs, in contrast, have risen at similar rates for construction and for the private sector as a whole.

The cumulative difference matters because the estimates for many projects now being bid, especially public facilities, were prepared in 2003-2005 under the assumption that construction costs would escalate at the same rate as the CPI. That divergence explains why some projects are being canceled, delayed or redesigned.

“The housing meltdown and the more recent credit market turmoil do have some spillover effects on nonresidential construction,” noted Simonson. “Retail, suburban office and local government construction are especially affected by the drop in homebuilding, home sales, and property values, respectively. Tighter lending standards and financial-firm layoffs will trim construction of offices and other income-producing properties, such as hotels and warehouses.”

Meanwhile, the nonresidential industry has benefited from greater availability of specialty trade workers who have lately shifted from residential work. Simonson added, “But wages have begun rising more steeply for specialty trade contractors, suggesting that the number of workers suitable to switch is close to exhaustion. In the next several months, the rate of wage increases is likely to reach 5-5.5%, up from a recent 4.5% gain.”

Labor costs are likely to accelerate further as well if residential building begins to draw back specialty trade contractors in late 2008.

For the first time, the Construction Inflation Alert shows the cumulative price change since December 2003 and trends in construction wages.

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Governator passes PMI bill

Governor Arnold Schwarzenegger and the state of California have passed the Plumbers Manufacturing Institute’s (PMI) “California Toilet Efficiency Law” -- Assembly Bill No. 715 CHAPTER 499 -- this past October. Particulars of the inner workings of the bill are as follows:

• AB 715 establishes a reasonable and workable market transition plan to high efficiency toilets and urinals in California.
• The Plumbing Manufacturers Institute (PMI) developed the AB 715 market transition plan and requested that Assembly Member Laird incorporate this plan into his legislation.
• PMI appreciates Assembly Member Laird’s agreement to include the market transition plan in his AB 715.
• The AB 715 plan prescribes a specific timetable that will provide the industry with the necessary time to gradually convert existing 1.6 gallon per flush models to high efficiency models. 
• The AB 715 plan phase-in commences in 2010, requires an increasing percentage of models to be high efficiency during a four-year period, and requires 100 percent of models to be high efficiency toilets and urinals by January 2014.
• The engineering and development work required to do this will require significant investment by every manufacturer. The structure and timing of the market transition plan established by AB 715 acknowledges the technological challenges and capital costs required to develop designs and construct new tooling for all of the configurations of toilets and urinals, in order to transform entire product lines to successfully perform using at least 20% less water.
• This plan is sound and enforceable, and will avoid a repeat of the performance problems experienced in the early days of 1.6 gallon per flush toilets when that standard was prematurely mandated.
• Individual PMI members are giving their assurances as manufacturers that we can transition the market successfully with the program proposed by this legislation.
• PMI is encouraging the AB 715 market transition plan to be implemented in other states as well as at the federal level.

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NSF develops testing protocol for septic tank and grease trap separating devices

NSF International announced the development of a new protocol that addresses the health impact and environmental protection of septic tank and grease trap (solid and liquid) separating technology. Labrie Environmental Group is the first manufacturer to certify its pumping and liquid-solid separating system to the protocol.

NSF Protocol P340: Septic Tank or Grease Trap Solid and Liquid Separating Devices was developed for equipment that separate septic waste solids from liquids in septic tanks or grease and solids from liquids in grease traps. The protocol contains requirements to evaluate the materials, design, manufacturing, and performance of these types of equipment. 

Typical servicing of septic tanks or grease traps involves transporting a large volume of water to a disposal facility. Technologies have been developed to separate the solids from the liquids in septic tanks and grease traps, and then return the “treated water.” P340 now provides a means to test the effectiveness and efficacy of these devices.

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Fluidmaster hosts 50th Anniversary event

On October 5, 2007, Fluidmaster, one of the most popular name in toilet repair parts, hosted an event at company headquarters in San Juan Capistrano to celebrate its 50th Anniversary.  Among the 500 attendees who added to the success of the anniversary event were Fluidmaster employees, customers, partners, vendors and area dignitaries who have contributed to the growth and achievements of the company over the past 50 years.       

As part of the 50th anniversary festivities, guests were treated to a delicious lunch, live music, a tour of the plant, a walk-through of the newly-opened Adolf Schoepe museum and several moving speeches. Gary Harris, vice president of sales, served as master of ceremonies for the event and shared his background and rich history with the family-owned company before inviting key partners and Fluidmaster executives to address the crowd. 

President and chairman of the board Robert AndersonSchoepe gave a poignant speech about carrying on his father Adolf Schoepe’s dream and the pride he takes in the company's products, employees and service.  Scott Blackwell, product merchant, plumbing repair at The Home Depot, spoke of the retailer’s strong relationship with Fluidmaster and presented Robert AndersonSchoepe with a framed apron signed by key executives at The Home Depot including John Wicks, merchandising vice president. Rick Banner of Keyline Sales expressed his appreciation for the strong partnerships and solid products that Fluidmaster has continued to deliver over the years. David Young of Bank of America also gave a speech as Fluidmaster is the bank’s longest-standing partner at 50 years.

Additional presentations were made by Charles Varga, president of the San Juan Capistrano Chamber of Commerce; Joe Soto, Mayor Pro-Term; and Patricia Bates, Orange County Supervisor.  On behalf of the Fluidmaster employees, Terry Bland, cfo, presented Robert AndersonSchoepe with a crystal vase to show their appreciation for his great leadership and dedication to everyone at the company.  

While touring the museum dedicated to the Fluidmaster founder, Adolf Schoepe, attendees had the opportunity to view a new video about the history of the company and highlights of the past five decades.  As a memento, each guest received a blanket embroidered with Fluidmaster’s 50th Anniversary logo and those who participated in the tour took home an autographed copy of the new book based on Adolf Schoepe’s life, “From Immigrant to Innovator.” 

Fluidmaster’s success began with the desire and drive of founder Adolf Schoepe. Convinced that the existing toilet technology was inefficient and unreliable, he wanted to create a more advanced fill valve that worked with, rather than against, water pressure. In 1957, Schoepe’s vision became a reality when he revolutionized the toilet care industry by launching Fluidmaster’s innovative pilot fill valve technology.

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Falcon Stainless contributes to Habitat for Humanity

Falcon Stainless, in continuation of the tradition to support Habitat for Humanity, has donated enough installation kits to install water heaters for one year’s worth of home building. These installation kits are earmarked for U.S. building projects underway with Habitat for Humanity. This marks the seventh year that Falcon Stainless Inc. has supported the efforts of Habitat for Humanity. Falcons’ vice president, Melanie Wolff said, “We are proud to support the efforts of Habitat for Humanity, and we will continue to provide them with the best products for their building projects.”

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