In what is being described by economists as an either a shocking, or depending upon who's doing the talking, slightly surprising result, last month saw a gain of 216,000 new jobs nationally. According to a just-released report from the Bureau of Labor Statistics, the job gains were in almost every segment, and significantly higher than the consensus 160,000 to 175,000 jobs that most economists had predicted for the month. The gain was significantly greater than November's numbers, which came in at around 173,000, and even more, were above a three-month final quarter rolling average of 164,000. The most recent figures, said Labor Department Acting Secretary Julie Su, "demonstrate an economy that's growing at a strong and steady pace, which was a consistent story throughout 2023." Su added that looking at the entirety of last year, "jobs grew by an average of 225,000 a month, totaling 2.7 million jobs created in 2023." Remarked the Washington Times: "The latest data reflect an economy and a job market that are decelerating back to pre-pandemic norms." Among the gainers: the government sector, with 52,000 new jobs in December; leisure and hospitality, up by 44,000; technical services, with a 25,000 gain; and social assistance, up by 22,000. Construction employment witnessed a healthy jump of 17,000 new workers. Of that figure, 8,000 were in nonresidential building. Nonresidential specialty employment was up by 4,300; with the residential specialty sector up by 1,600. In a countervailing trend, the heavy and civil engineering sector lost 500 jobs in December. "Construction employment increased for the ninth consecutive month, with the nonresidential segment adding jobs at a particularly rapid pace," noted Aniban Basu, chief economist with the Associated Builders and Contractors. But taking note of increased construction worker pay, Bass cautioned: "The combination of faster wage growth and a smaller labor force suggests that interest rates could remain higher for longer." By Garry Boulard
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A growing microchip manufacturer based in Colorado Springs may be about to embark upon a major facility upgrade, thanks to a new infusion of federal funds. The company Microchip Technology produces a wide variety of microcontrollers, power, and battery management analog services, not to mention linear, interface, and wireless products. Launched in 1989, with its headquarters in Chandler, Arizona, the company has long had a wafer fabrication facility in Colorado Springs, as well as Tempe, Arizona and Gresham, Oregon. Now the Department of Commerce has revealed a preliminary agreement that could send upwards of $90 million in funding for Microchip Technology to modernize its Colorado Springs operation, with another $72 million to be used to expand the Oregon facility. The funding would come through the CHIPs and Science Act and would be used to target increased microchip production at both the Colorado and Oregon operations. Although the deal has not yet been finalized, Laurie Locascio, Commerce Department undersecretary, remarked that by "investing in the production of semiconductors here at home, we are capitalizing on the ability to strengthen our domestic supply chain." Locascio continued that such investment also empowers America to "produce systems and the components we need, and our allies need, and we rely on for our collective national and economic security." Early last year, Microchip Technology announced its intention to spend upwards of $800 million on its Colorado Springs campus, which is located at 1150 E. Cheyenne Mountain Boulevard, on the southeast side of the city. By Garry Boulard An organization representing the governments of all 33 counties in New Mexico is hoping to see state funding set aside for the building, upkeep, and renovation of district courthouses across the state. The group, New Mexico Counties, hopes to see funding secured for such efforts during this year's short session of the New Mexico State Legislature, which will start business on January 16 and wrap things up one month later. Noting the ongoing expense of building and upgrading those courthouses, New Mexico Counties wants to see lawmakers establish a fund of some $20 million for such work. Although county magistrate courts and state district courts often share space in larger combined judicial complexes, it is the counties that usually foot the bill for maintaining such facilities. "This is something that we have considered as an unfunded mandate for many years," Joy Esparsen, the executive director of New Mexico Counties, recently remarked to legislators. In a document submitted to the Revenue Stabilization & Tax Policy Committee last month, it was noted that state district courthouse construction can often "reach well over $50 million, and the addition of a single judge can cost a county $2 to $3 million for renovation and increased operational support." The New Mexico Counties document also asserts that maintaining district courthouses should be regarded as an increasing state responsibility, adding that the "rising costs of construction, security, and IT necessitate a shared revenue stream." By Garry Boulard Construction and professional business associations are vowing to spend time in court in the months to come challenging the newly implemented Project Labor Agreements signed into law by President Biden in December. The ruling is expected to immediately apply to up to 120 individual federal construction projects. Federal construction projects exceeding $35 million will be required to enter into a PLA to establish the conditions and terms for workers on such projects. It is estimated that nearly 200,000 workers on federal construction projects will be impacted by the PLA’s ruling. While the controversial ruling comes with some flexibility, allowing various federal agencies in some cases to opt out of adopting it, critics says the mandate is likely to significantly raise the costs of construction on the projects where it's implemented. The Associated Builders and Contractors has called the PLAs both anti-competitive and inflationary, charging that it will “reward special interests with government contracts at the expense of taxpayers and the principles of free enterprise and open competition in government procurement.” The Associated General Contractors of America isn’t too crazy about the ruling either. In a statement, Stephen Sandherr, the association’s chief executive officer, said PLAs “discriminate against contractors and workers by essentially only allowing firms that employ union workers to compete for federal projects.” Sandherr also said the PLAs will “force taxpayers to pay more and wait longer to see new federal projects built.” In officially endorsing the PLAs rule, President Biden said the mandate means that projects funded via the 2021 Infrastructure Investment and Jobs Act will “move faster and without delays, giving taxpayers better bang for their buck.” Biden added that “workers will have the security and peace of mind that collective bargained wages and benefits bring, better pathways to good-paying jobs, and stronger health and safety protections.” Biden’s move has won widespread support throughout most of the country’s labor movement. In a statement, Steve McGarvey, president of the North America’s Building Trades Union, asserted that PLAs have in the past prevented work stoppages, while also achieving “substantial, direct cost savings by standardizing contract items for highly skilled craft workers.” The PLA is set to go into effect on January 22. By Garry Boulard One of the largest privately held agricultural equipment manufacturers in the country appears to be making plans to build a new facility in southern Arizona. Based in Williamsburg, Iowa, the Kinze Manufacturing company was founded in 1965 and thrives today selling a wide variety of row crop planters, grain auger carts, and high-speed tillage equipment. According to media reports, the company last month purchased for $4 million a site in metro Casa Grande measuring some 443 acres. The purchase, according to the Breaking News Network, may well signal a “likely surge in agricultural activities in the area.” The news service also notes that the Casa Grande project could result in “increased farming innovations and advancements, given Kinze’s reputation for cutting-edge farming solutions.” Those innovations have included an autonomous harvesting solution that can run multiple combines and autonomous carts at the same time; and a multi-hybrid planter, allowing farmers to change hybrids automatically depending on soil conditions. The company has several times expanded its manufacturing space in Iowa, putting up a 128,000- square-foot facility in the last decade to accommodate the building of a popular planter model, as well as a 2,800-square-foot engineering facility in the nearby city of North Liberty. By Garry Boulard Plans for the construction of the Rancho Viejo Solar array project on the south side of Santa Fe remain very much up in the air as it works its way through the approval process. Proposed exactly one year ago by the Arlington, Virginia-based AES Corporation, the project, to be built on some 800 currently vacant acres of desert land, would be capable upon completion of providing 96 megawatts of solar generation, along with 48 megawatts of battery storage. That energy, in turn, according to the company, could power up to 30,000 homes. Founded in early 1981, AES is defined as a utility and power generation company, supplying power to residents and businesses in more than a dozen countries. One of the largest such companies of its kind, AES in 2022 saw revenues in excess of $12.6 billion. The project has met with some opposition from nearby neighbors expressing concerns about the large amount of water that will be required to sustain the facility, as well as the possibility of a fire caused by the heating up of lithium-ion cells. An online petition, which was established last summer and has so far received just under 1,000 signatures, contends that the proposed facility "poses undue risk and/or harm upon the public." The water usage factor is partly centered on what would be a need for up to 50 million gallons during the project's construction, as well as another 980,000 gallons, at the most, to yearly maintain the facility. In order to become reality, the project must first be reviewed and approved by members of the Santa Fe Planning Commission. An exact timeline for when work on the project will begin has not been announced. By Garry Boulard Architectural designs for residences housing older people are usually centered on such matters as installing grab bars everywhere, non-slip bathroom flooring, and shower spaces with built-in chairs. But an innovative program launched by the American Institute of Architects has challenged architects to come up with designs that address an equally important facet of living: well-being. The AIA's Design for Aging Knowledge Community asks architects to provide "relevant research on characteristics, planning, and costs associated with innovative designs for living." To that end, the association has established a Design for Aging Review Award which, according to an AIA press release, recognizes architects who demonstrate innovative design solutions to improve the quality of life for older adults within specific project constraints." Of the five most recently announced award-winning projects, three are located in the West and include the Aegis Living Lake Union in Seattle. That project, with an emphasis on well-being themes, plays off the aesthetics of the adjacent 580-acre Lake Union. In so doing, the project, designed by the Ankrom Moisan architectural firm, which has offices in Seattle, references wood rowing shells, and provides a subtle nod to the "rhythms of rowing seen in the brick herringbone detailing around windows, the entry canopy, and custom designed steel balcony railings." A second project, heading down the West coast, is seeing the expansion of the Rose Villa Senior Living complex in Portland, a 22-acre campus that has "reimagined senior living communities." The project places an emphasis on wood-formed structures, with a "palpable sense of outdoor living" prompted by oversized windows, garden terraces, and balconies. The Rose Villa complex project was designed jointly by the Scott Edwards Architecture firm of Portland, and Gawron Turgeon Architects of Scarborough, Maine. A western project is seeing the design of the Gramercy Senior Housing complex in Los Angeles, a project with building heights on a campus that provide residents an "extra measure of privacy," while "maximizing the light available to the surrounding parcels." A project belonging to Kevin Daly Architects of Los Angeles, the Gramercy design provides connections to the outdoors via multiple levels, ensuring that "residents can engage with their surroundings and neighbors without feeling crowded. The multiple level design particularly provides outdoor connections for residents "regardless of their age or mobility." The AIA's emphasis on designs for senior housing comes at a propitious time: according to the Census Bureau, there are now around 57 million people aged 65 years of age or older in the U.S., with forecasts that that number will increase to 80 million by the year 2040. By Garry Boulard Plans to build a multi-family residential development with some 412 units near a popular public park in Lakewood, Colorado, continue to divide residents as the new year begins. The project would go up on a four-acre site at 777 S. Yarrow Street just outside the east boundary of Belmar Park, a 132-acre space known for its abundance of trees, flora, and birds. The project belongs to the company Kairoi Residential, which is based in San Antonio, Texas, and would see the demolition of an existing office building, along with the felling of nearly 70 trees. Opponents of the project have said that the loss of trees will have a devastating impact on the birds who nest in those trees, while also voicing concerns about traffic and noise. Because the site is located within the boundaries of a defined urban renewal area, any development is governed by a use-by-right designation. That means that although residents have petitioned the Lakewood City Council to intervene in the matter, that body has limited powers to act. In an effort to reach out to the community, Kairoi Residential agreed to pause the project just over two months ago. In a message sent to the city council, Tyler Sibley, a principal of development for Kairoi, acknowledged that the company should have "worked to have a community discussion because of the importance of the neighboring park." It is not yet known when or if Kairoi will announce new plans for the site. The company has been particularly active recently in Colorado, purchasing for $161 million last fall the six-story Zia Sunnyside Apartments in Denver which consists of 434 high-end units. By Garry Boulard Plans are moving forward for the construction of a massive movie production facility in Las Cruces that will go up near Amador Avenue. The project belongs to the company 828 Productions, originally based in southern California as a boutique film financing and lending company, and will see the building of a 300,000-square-foot production complex that will include a sound stage, studio, and back lot. After months of talks, the New Mexico Economic Development Department announced it was contributing $3 million to the project in the form of Local Economic Development Act funding, with the City of Las Cruces originally kicking in another nearly $900,000. Las Cruces' contribution has recently been increased to a significant $2.8 million for the project, funding secured through the city's gross receipts tax revenue. At the time of the state funding announcement, Governor Michelle Lujan Grisham noted that New Mexico is "seeing a record number of productions from the film and television industry," adding that state officials were "extremely excited to welcome 828 Productions to Las Cruces." In the months since that announced, the company, establishing its headquarters in Las Cruces, has purchased three structures in the city for its work: One measuring 7,000 square feet; the second, nearly 10,000 square feet; and the third, measuring 30,000 square feet. In a presentation made before the Las Cruces City Council late last month, Jonathan Sepp, public affairs manager for 828 Productions, remarked that the company is "not just here making a movie or building a sound stage. We're really here to build, develop, and establish an industry in Las Cruces." According to city documents, the company has thus far financed 15 films, amounting to total expenditures of more than $50 million. By Garry Boulard Single-family home construction projects saw a decided increase nationally towards the end of 2023, spurred on by lowered interest rates. So says a new study issued by the National Association of Home Builders noting that overall housing starts were up by nearly 15% at the end of November. In seasonally adjusted numbers, this meant work on 1.5 million new units. "The single-family starts figure is remarkably strong," remarked Robert Dietz, chief economist with the NAHB, in a statement. Dietz added: "We would not be surprised to see this figure revised lower or fall back slightly, given the nearly 20% rise in November." That number is particularly impressive given that historically the month of November usually sees a decline in starts. At the same time, single-family permits inched upwards by 0.7%, for a 976,000-unit rate. The single-family starts have been on the upside since late last summer, resulting in the greatest number of completions nationally since early 2022. Despite those good numbers, overall single-family starts from late 2022 to late 2023 were down by 7.2%. Looking at the new year, Dietz remarked that the NAHB is "forecasting an approximate 4% gain for single-family starts in 2024 as mortgage rates settle lower, economic growth slows, and inflation moves lower." While generally moving upward over the course of the last decade, single-family construction took a sudden nosedive in the spring of 2022. That was when, notes the publication Wolf Street, "surging mortgages rates began to bite, unsold inventory began to pile up, and homebuilders were pulling back on new projects." "Many of the top national home builders have rosy forecasts for the coming year," says the industry news service Housing Wire, noting in addition that the U.S. "remains deficient by anywhere between 1.5 million and 7.3 million housing units due to a severe lack of supply produced between 2012 and 2019." On a cautionary note, Alicia Huey, NAHB chairman, said that although recent trends show a national rise in builder sentiment, "home builders continue to contend with elevated construction and regulatory costs." By Garry Boulard |
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