Signs of Life? Unemployment remains remarkably high in the building trades. Before any recovery occurs, more buildings will have to be built...or renovated. One small, positive sign: The Boston Globe reports that the paralysis in the office building market may be beginning to thaw. Twenty-one bidders went after 470 Atlantic Avenue on Independence Wharf. It was purchased by Credit Suisse for $106 million. Sale is a vote of confidence in the value of the Boston real estate market.
Other Signs? August home sales were up, for the second month in a row. Prices also are rising. "The housing crash is over in Boston," said Mark Zandi of Moody'sEconomy.com. "Sales, construction and pricing have all passed their bottoms. It's not going to back quickly, but it's on the mend."
Residential: Inventories of homes in the state have fallen sharply this year. Median single-family home price was just above $250,000 in February, according to the Globe. Yet it increased above to $300,000 in each of the last 3 months.
But Problems: The Mass. unemployment fund is almost broke, even as more people are being laid off.... Recently the state predicted (another) $600 million shortfall in revenues... headline in Wall Street Journal (WSJ)): Drought of Credit Hampers Recovery.
Tough in Detroit: Situation is far, far worse in Detroit. WSJ did a recent story on the city, as did TIME. Median price of a Detroit home: $7,100. (Not a misprint.) Population has dropped by over half since 1950, and unemployment rate is 28.9% - triple the national average.
Major Merger: The region's two largest general contractors are combining. Suffolk Construction, the region's largest builder, is acquiring William A. Berry. The new Suffolk Construction will be a 1,200 employee juggernaut. And you thought they were tough beforeŠ
Smart Settlement? Much debate over the recent settlement between employers and the Carpenters Union. At a time when construction jobs are hard to come by, the new carpenters' agreement calls for an increase of $5.75/ hr. over next 3 years. Almost entire increase expected to go towards health and pension costs. New journeyman carpenter rate: $37 in wages, $23 in benefits.
Elections: It is probably not an easy time to be an official of a construction union. High unemployment means many discontented members. Boston Plumbers Local 12 will elect officials for 3-year terms on December 12. Business Manager Kevin Cotter and all 3 agents are expected to run again.
Happiness Factor: According to the Wall Street Journal, if you are looking for happiness, you should become a plumbing contractor (or at least run your own business.) Recent WSJ story focused on plumbing contractor in Kansas -- and used him as an example of how business owners outrank 10 other occupational groups in overall well-being. The report showed that the more control you have over your work, the happier you are. "Despite the recession, it still pays to be your own boss," said the head of the Gallup Poll, which interviewed over 100,000 people.
Tax Tip: If you do own a business, the stimulus package may contain a useful incentive. Section 179 of the IRS code now allows a $250,000 first year deduction for capital spending.
Chinese Drywall: No more drywall is being imported from China, because of a major health problem. Millions of drywall sheets imported during the building boom are now known to contain excess sulfur. The sulfur causes nosebleeds, headaches, as well as corrosion in electrical and plumbing systems. Estimated 60,000 to 100,000 US homes are affected; some are now worthless. Many lawsuits.
Export: Massachusetts' largest export to China is recycled cardboard.
Congratulations: To Stephen Affanato, who has succeeded Leo Reed as the Executive Vice-President of the New England Mechanical Contractors Association. Stephen has served as the very able assistant to Tom Gunning, Jr. of BTEA. Taking Stephen's place at BTEA will be Tom Gunning, III, who has worked in the trades and also in the Benefit Office of Ironworkers Local #7.
NY ROOFERS: Our friends at the Building Trades Employers Association (BTEA) report that the New York Roofers Union lost 97% of its value in the Bernie Madoff scandal.
Data: There are 12,368 licensed plumbers in Massachusetts. (That's NOT including gasfitters). Many plumbers hold 2 licenses: both journeyman and masters.
Doc Does It All! A Nantucket MD is suing in Superior Court, challenging the state's plumbing law. After being warned that it was illegal, he personally installed 4 bathrooms, a kitchen and laundry in his island home. Doc was asked at a plumbing board hearing whether he would be happy to have an unlicensed, untrained homeowner performing eye surgery. Doc apparently does not understand that improperly installed plumbing has caused thousands of deaths over the years. Like medicine, ours is a licensed trade, and there are good reasons for this. (Info thanks to IAPMO'S Gordon MacEwan.)
Endocrine Problems: Serious problems may lurk in our water supplies. Modern chemicals and drugs pass through the systems of humans and animalsŠand then often end up in drinking water. Potential for major health problems, since we may be drinking drugs, and not even realize it. These drugs can affect the body's internal chemical system -- the endocrine system. A report from Yale: "There is a greater incidence of infertility and girls are entering puberty earlier. The incidence of boys born with defects in their genitalia has also increased. Is this a result of the increase of endocrine disruptors in our water supply?"
Reminder: Use Drain Shooter for your drain cleaning! Union company with great prices, skilled workers. 800-42-SHOOT
What Is A Pipefitter? Many people are puzzled by the difference between a plumber and pipefitter. While the two trades have their own inside-jokes about what the difference is, here it is in a nutshell: a plumber works on potable water and waste systems, and in many states (like Massachusetts) also does the piping for gas and medical gas systems. Pipefitter works on heating piping, also on air conditioning, and refrigeration.
Web sites: Two local organizations have web sites that are worth looking at. The Local 12 website has a surprising amount of current information on local and national issues. Also, take a look at the website for our new Plumbing Museum located in an old icehouse donated by the J.C. Cannistraro Company in Watertown.
Last WWI Vet-- A Plumber: The NYT featured a long article about Britain's last surviving World War I veteran, plumber and author Harry Patch, who died this year at age 111. At age 100, Harry began speaking out about the horrors he had experienced as a machine gunner in Flanders in WWI. He said, of the Germans, "Irrespective of the uniforms we wore, we were all victims." He became a celebrity in Britain these last years, and his funeral was carried live on national TV. Two Germans were among the pallbearers.
