Season's greetings to all!
Tickets: Starting in January, state plumbing investigators will be issuing tickets to plumbers and others who violate the plumbing code. There will be immediate fines for plumbers who are on jobs but do not have their licenses. Additional fines will be issued for lack of permits, illegal apprentice / journeymen ratios, and use of improper materials.
No To CSST: The Plumbing Board recently issued an abrupt change in its policy on "CSST" -- the flexible, corrugated stainless steel tubing used in gas piping. CSST was authorized several years ago. But there are concerns about the need to ground the system, since lightning strikes have been known to create pinholes and dangerous gas leaks. Until the problem is resolved, CSST is banned in Mass.
Weakened Codes? The New York Times reported that the federal government and a group of real estate developers had tried to block proposed building code changes that would require more stairways and fireproofing in skyscrapers. But the International Code Council (ICC), whose basic code is followed in many states, ultimately decided to resist the feds, and establish the new, stricter standards.
Economy: Wow, it's rough. A group of plumbing contractors reportedly tried to qualify for Troubled Asset Relief Program (TARP) funds. Treasury Secretary Henry Paulson was asked during Congressional testimony if relief funding would be given to plumbing contractors who wanted to qualify as a financial institution to use TARP funds to refurbish foreclosed properties. Paulson said: "We certainly are not going to give money to plumbing contractors. And we're not going to give money to a lot of other people and institutions that are applying. We've had a very clear focus here right now."
Obama: Meanwhile, the incoming Obama administration is reportedly planning to spend hundreds of billions of dollars on new infrastructure programs --roads, bridges, schools, water projects, utility upgrades. In meeting with governors, he said that many such projects could come on line quickly, and put people to work. Governor Patrick, who is close with Obama, has been talking about bringing these dollars to Massachusetts.
Mains: The Globe reports that this year there have been 35 water main breaks in Boston. Obama's infrastructure money could be put to good use here.
Real Estate: The big problem at the moment for contractors: the frozen credit markets have forced many developers to put projects on hold. Many jobs that were expected to begin soon will not start until the credit markets loosen up and builders can get money again. Many are hoping that money will become available by the spring. But no guarantees.
Filene's: One of the most visible projects affected by the economic downturn is the former Filene's property in Downtown Crossing. The project was recently halted - leaving a hole in the ground. That has Mayor Menino upset. Now, Menino is helping the developer find new funding, while the project is being redesigned. Work is expected to resume in the spring. The new tower will be slightly narrowed, and will have 32 stories instead of 39. 166 condominium units are eliminated, while the amount of commercial space will increase.
Long Term: Despite the current recession, Boston will remain a vital center for business --and for construction. Even in October, in the midst of the economic meltdown, plans were announced to replace the Government Center Garage with two towers of 42 and 52 stories. One tower might open as early as 2014.
Universities: In past recessions, institutions of higher education often "picked up the slack" by doing projects at a time when contractors were hungry for work. Boston's colleges often used recessionary times to pull out their checkbooks and build new buildings. But not this timeŠHarvard's endowment lost 22%, or $8.1 billion between July --October. Like other institutions, they are now holding off on new projectsŠNortheastern put off plans for a new dorm, and BU has put future construction on hold.
Unemployment Insurance Rate: Employer paid unemployment insurance rates are expected to rise 8% in 2009. More people will need benefits.
No Joe: The famous "Joe the Plumber" from the presidential campaign may not have been much of a plumber (he never had a license), but Samuel Joseph Wurzelbacher won't be unemployed. He's got a new book out, and may have speaking tours.
No Work Hours: A major report in The Boston Globe says that over 1 million men have lost their jobs in the past year, while the number of working women has actually increased slightly. Men are apt to work in jobs hard-hit by the recession: construction, manufacturing and financial services.
Long Work Hours: For the first time since they began tracking working hours, it is now the rich who are the most stressed out and the most likely to be working extra hours. Since 1980, the number of men in the bottom fifth of the income ladder who work over 49 hours per week has dropped by half. But among top fifth of earners, long weeks have increased by 80 percent. The use of cell phones, Blackberries, etc. make it difficult for managers to escape their jobs.
Good News: The Air-Conditioning, Heating and Refrigeration Institute (AHRI) reports commercial gas water heater shipments for August jumped 39.3 percent compared with the same month last year. Commercial gas water heater shipments year-to-date are up 8.3 percent, compared with the same period a year agoŠOver next 10 years the HVAC is expected to grow very strongly, as concerns with heating and cooling efficiency become very important.
Health Insurance: A group of health insurers nationwide has recently proposed a path to universal health insurance. It is now expected that some sort of proposal will emerge during the early days of the Obama administration.
Why Health Care? There has been much talk recently about whether or not to bail out the Big 3 automakers. The head of the United Auto Workers Union, in a piece in the Boston Globe, claims that American automakers costs are high as opposed to foreign manufacturers --because in Japan, Germany and other countries health care costs for workers and retirees are paid by the government. Both the UAW and car manufacturers have joined insurance companies in lobbying for some sort of national health insurance.
Deer Island: During the 1990's, thousands of workers traveled each day to Deer Island in Boston Harbor, helping to build the vast new wastewater treatment plant--the second largest in the United States. Visitors on a recent Saturday could see that the plant had been perfectly maintained. Amazingly, the entire plant that weekend was being operated by a grand total of six (6) workers. A computerized control center monitors every aspect of the operation, including the precise levels and contents of those huge 14-story "eggs" (digesters) visible out at the far end of the Boston Harbor.
Big Water Pump: The New York Times reports that the Environmental Protection Agency (EPA) has killed a huge pumping project along the lower Mississippi River. The Army Corps of Engineers was ready to build a pump that could move 6 million gallons of water per minute out of floodplains and wetlands. EPA vetoed the project because of dangers to fish and wildlife.
No Pension: Local media reported that former Quincy Plumbing Inspector Ralph Maher lost his appeal to have his pension reinstated. Mayer pleaded guilty in 2003 to breaking into his city hall office in order to steal documents related to his job performance. The Quincy Retirement Board stripped him of his pension, and in November the State Supreme Judicial Court upheld the board's ruling.
Pilgrim Challenged: A nuclear watchdog group has appealed a federal ruling which would allow Pilgrim nuclear plant in Plymouth to operate another 20 years.
Most Ugly Building: An international group has voted Boston City Hall as one of the worlds "10 Ugliest Public Buildings." Meanwhile, Mayor Menino still hopes to build a new city hall on the South Boston waterfront. One complaint about his plan: no decent public transportation to the proposed site.
Close the Bars: 8 Boston taverns were recently closed because they had not complied with a state law which required fire sprinklers to be installed by November. The Globe reported that 283 city establishments needed sprinklers, but only 68 had installed them. Most got around the law by reducing their capacity below 100, or by convincing fire officials that they were restaurants, which are not subject to the law.
Construction Institute: This new group has already worked with U-Mass on a study concerning union vs. non-union apprenticeships. (Union programs produce graduates at a much higher rate.) Work has begun on a project with Cornell University which will examine the impact of union construction on the Massachusetts economy.
Congrats: To Monica Lawton, the CEO of the Associated Subcontractors of Massachusetts, who recently received the Corwin Award --the highest award in ASM. Monica has transformed her organization into a tireless, effective voice representing the entire subcontractor industry. If you are in the subcontracting business, you should be in touch with Associated Subs at the Associated Subs Web site or by calling 617-742-3412.
And Also To...: Glenn Kingsbury, the Executive Manager of the Boston Chapter of National Electrical Contractors Association (NECA). At a recent national event, Glenn won the Association Executive Distinguished Service Award, recognizing a staff executive who has made the greatest contribution to NECA's advancement.