![]() Spending on construction projects saw a healthy 7.2% increase in April over the same month a year ago, according to new figures released by the U.S. Census Bureau. The increase over March of this year was a more modest 1.2%. Private construction in general has been moving steadily upward for all this year. Notes the Census: “Residential construction was at a seasonally adjusted rate of $845.4 billion in April,” which is above the “revised March estimate of $841.6 billion.” Meanwhile, “nonresidential construction was at a seasonally adjusted rate of $655.3 billion in April, 2.4% above the revised March estimate of $640.0 billion.” “The nonresidential sector is still chugging along,” noted Nick St. Denis, the director of research for Key Media & Research. In comments published by the US Glass News Network, St. Denis remarked: “Volume of demand continues to show strength, and improving pricing is helping drive these larger year-over-year increases.” Anirban Basu, chief economist with the Associated Builders and Contractors, remarked in a statement: “Manufacturing-related construction spending growth continues to lead the way, but even segments that had been weak such as lodging are picking up steam.” Also in a statement, Joseph Natarelli, construction leader with the New York-based Marcum Accountants and Advisors, acknowledged that the construction industry faces a number of current challenges. “However,” he remarked “there are also opportunities, such as the need for new infrastructure and continued growth of the residential market.” In fact, construction spending in the manufacturing sector has seen a 103.8% increase since last spring; with lodging up by 40.8%; conservation and development seeing a 31% increase; and water supply project spending posting a year-over-year gain of 26.6%. By Garry Boulard
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![]() Work is expected to begin soon on the development of a new master plan for a 150-acre campus located just to the west of downtown Denver. The home to the University of Colorado at Denver, Metropolitan State University of Denver, and the Community College of Denver, the Auraria Higher Education Center campus is a tree-lined space populated with buildings of varying vintage, public squares, and green space. The campus is also home to around 38,000 students and around 5,000 faculty members and staff. Now the AHEC has announced the launching of a new campus master plan project designed to provide a blueprint for future construction, space use, landscaping, and architecture at the site. To that end, the Sasaki design firm, which has offices in Denver and New York, among other cities, has been selected to lead the development of the master plan. In a press release, Tyler Patrick, principal campus planner at Sasaki, said the plan, which is intended to layout the needs of the campus for the next decade, will emphasize how to best “reuse and rehabilitate existing buildings, as well as communicate additional development opportunities to serve students, faculty, staff, and the broader Denver community.” The Auraria campus is not just an entity to itself, but, according to the 2015 book The University as Urban Developer, “a catalyst for the development of neighboring housing, retail, and cultural facilities.” Work on the Auraria campus master plan is expected to enter the development design phase this summer and fall, with a final campus plan completed by early next year. By Garry Boulard ![]() A New Mexico plan to develop strategic housing investments is expected to be soon formulated as part of a larger effort to increase affordable housing across the state. The plan comes with the formation of a Housing Investment Council tasked with addressing shortfalls in available housing resources, as well as ongoing and obstacle-ridden regulatory and zoning policies that negatively impact new housing development. In announcing the creation of the Council, Governor Michelle Lujan Grisham remarked: “It’s time to go big on affordable housing.” Continued the Governor: “We need thousands of homes to meet demand and give New Mexicans a stable foundation.” Earlier this year members of the New Mexico State Legislature approved up to $82 million in funding for new and updated housing, trying to address an issue that has become more potent as the average price of a home in the Land of Enchantment has surpassed the $284,000 mark. That figure, according to Zillow.com, is up from $177,000 just five years ago. As constituted, the Council is made up of both public and private leaders and will also be tasked with the facilitation of public-private partnerships to get more homes built. One focus of the effort is expected to center on new tribal lands housing. In a press release announcing the formation of the Council, Lorrie Chavez, chief executive officer of the Santo Domingo Housing Authority, which is based in Sandoval County, remarked: “When you look at housing and think about housing in Native communities, we live in multigenerational housing and that leads to overcrowding.” By Garry Boulard ![]() The overall size of the U.S. economy has grown by more than 5% in the last four years, with what is described as a “core inflation” lower than many countries and an exceptionally strong labor market. These are the highlighted points emphasized in a posting just released by the Department of the Treasury. Using the two-year anniversary of the American Rescue Plan as a jumping-off point, two Treasury Department officials contend that the economic recovery from the Covid 19 pandemic has occurred “much faster than after recent recessions.” Those officials, Benjamin Harris, assistant secretary for economic policy, and Tara Sinclair, macroeconomic policy deputy assistant secretary, assert that the U.S. has “performed better than other G7 countries,” with the nation’s household consumption having returned to “pre-pandemic levels by the second quarter of 2021.” Acknowledging that inflation rates have been high during the months of the pandemic recovery, Harris and Sinclair suggest that things could have been worse, pointing to longer and higher inflation in the countries of Europe, while also touting a domestic job market that has by comparison been strong. “U.S. employment has reallocated from lower wage industries to high-wage and higher productivity industries,” they write, adding that domestic employment has “also shifted to industries with higher average hours worked, implying a stronger recovery in hours relative to employment.” Such reallocation of labor, Harris and Sinclair conclude, “may drive further gains in labor productivity going forward.” By Garry Boulard ![]() The oldest town in Colorado, founded in 1851, is receiving federal funding for work that will lead to the cleanup of, among other things, a local aquifer and acequias. The funding is coming in the form of a $500,000 grant from the Environmental Protection Agency designed to fund environmental site assessments, while also developing cleanup plans. Located near the Colorado/New Mexico border, San Luis has a population of around 600 people and has been challenged by several abandoned industrial properties whose deterioration threatens the irrigation and water supply of the town. In earlier applying for what is officially known as a Brownfield Assessment Grant, town officials mentioned a handful of abandoned garages, as well as a trash service, that could be targeted for remediation. The San Luis application added: “There are numerous other brownfield sites just long Main Street, but for brevity, we have outlined some of the highest priority brownfield catalyst sites.” The EPA grant will be used to conduct environmental site assessments, with the goal of remediating those sites: “Cleanup and reuse of these properties will address pollution and provide new opportunities for job creation,” the EPA noted in a press release. Funding from the grant may also lead to the renovation of several structures in San Luis, as well as the creation of community gardens and trails. By Garry Boulard ![]() Plans are moving along for the upgrading of a grand, century-old public building in Colorado Springs. Located at 221 E. Kiowa Street, the 40,000-square foot Colorado Springs City Auditorium, designed in the Classical Revival style, is listed on the National Register of Historic Places and still functions as a public venue for any number of concerts, conferences, and meetings. Operated jointly by the City of Colorado Springs and a group called the Colorado Springs Community Cultural Collective, the structure is expected to soon see work to its exterior and an extensive redesign of some interior space. Plans are also calling for the construction of a 7,000 square-foot addition to the south side of the building, while two interior floor levels will be built to replace the current arena seating, along with a partial basement that will include an orchestra pit. Studio and office space will comprise around 19,500 square feet, with ground floor retail space about nearly 12,000 square feet. The project will also see some Americans with Disabilities Act compliance work, with the overall design of the building’s upgrading being spearheaded by the Denver architectural firm of Semple Brown Design. The renovation cost for a structure that originally cost $425,000 to build is pegged at around $87 million—up from an earlier estimate of $53 million. Work on the project is expected to begin sometime next year. An exact timetable for its completion has not yet been announced. Referred to by locals the Grand Old Lady, the auditorium is the subject of a film released earlier this year, appropriated called The Grand Old Lady Documentary. By Garry Boulard ![]() New job creation came in at the 339,000 mark in May, an increase that surprised analysts, representing the latest the latest upturn in a steady upward pattern first reported in January of 2022. According to the U.S. Bureau of Labor Statistics, the 339,000 jump was the strongest increase since the first month of this year. In April, the upturn came in at 294,000. A narrative accompanying the new BLS numbers noted that “job gains occurred in professional and business services, government, health care, construction, transportation and warehousing, and social assistance.” The construction sector saw the addition of some 25,000 new jobs in May, with residential, nonresidential, heavy and civil engineering, all seeing increases. Overall, new job growth in the industry is up from just over 152,000 a year ago to around 156,100 today. In looking at the latest construction job figures, an Associated General Contractors of America press release noted that “construction firms are boosting pay and taking other steps to recruit workers amid tight labor conditions.” Other sector growth: profession and businesses services, up by 64,000; health care with a 52,000 gain; and leisure and hospitality, which had taken a hit during the Covid 19 years of 2020 and 2021, up by 48,000. At the same time, actual wages in May grew by only 0.3%, down from a more substantial 4.4% gain in April. Responding to the newest job report, President Biden said: “The really good news is that working-age Americans are participating in the labor force with the highest rate in 15 years.” “We obviously have more work to do, but we’re trending in the right direction, and I think we’re making real progress,” he continued. By Garry Boulard ![]() Builders in Arizona are trying to recalibrate projects in the wake of an announcement made by Governor Katie Hobbs that regulators will not be approving new home building in one of the fastest-growing metro areas in the country. The new stricture pertains only to new developments in and around Phoenix that rely on only groundwater supplies. The Governor’s announcement comes as metro Phoenix continues to enjoy an unprecedented population boom of around 3.5% in the last three years, for a total population now of more than 5 million. Referencing a new study conducted by the Arizona Department of Water Resources indicating that metro Phoenix may not have enough groundwater to support current development forecasts, Hobbs remarked: “If we do nothing, we could face a 4% shortfall in groundwater supplies over the next 100 years.” The Governor said the ruling will not impact projects that are already in the building stage. What happens next for builders is anyone’s guess. Spencer Kamps, vice president of the Home Builders Association of Central Arizona, noted that even though home builders have in recent years built houses substantially increasing water efficiency, “We’re the only one that ultimately is stopped when groundwater issues arise.” Kamps, as quoted by the Reuters news service, also specifically noted that the new ruling does not impact commercial or industrial development. According to Kathryn Sorenson, research director at Arizona Stat University’s Center for Water Policy, developers may now be in the process of deciding whether to buy land for projects that are in the planning stage. In so doing, Sorenson told the Orange County Register, those builders may “incur the cost developing a whole new water supply.” By Garry Boulard ![]() Although the headquarters for the growing Space Force Space Training and Readiness Command has been located for the last nearly 2 years in Colorado Springs, a permanent location is now set for a base across the country in Brevard County, Florida. After months of uncertainty, the Air Force Department has announced that the Patrick Space Force Base in Florida along the Atlanta coast, will be the permanent home for what is known as STARCOM. STARCOM’s mission is to prepare combat-ready Guardians belonging to the U.S. Space Force to fight and win in what is described as an “operationally limited environment,” with an emphasis on space warfighting doctrine, tactics, and procedures. An Air Force press release also indicated that the Kirtland Air Force Base, just to the southeast of Albuquerque, is the “preferred location” for the Space Delta 11; with the Schriever Space Force Base, 10 miles to the east of Colorado Springs, tabbed as the Space Delta 12 location. The selection of the three sites, notes the Air Force in a statement, “came after conducting site surveys at each location to assess their ability to facilitate the mission and infrastructure capacity, while accounting for community support, environmental factors, and cost.” The Air Force announcement came after intense lobbying on the part of several Colorado officials to keep STARCOM in Colorado Springs. STARCOM began its operations in the Centennial State’s second largest metro area in the late summer of 2021. Although many of those officials expressed disappointment that STARCOM will not remain in Colorado Springs, the selection of Schriever for Space Delta 12 was applauded. “Colorado is the epicenter of our nation’s intelligence and national security space operations,” remarked Colorado Senator John Hickenlooper in a statement, “and basing these new units permanently in Colorado Springs only underscores that point.” Delta 12, operating under the direction of STARCOM, is tasked with testing and evaluating space systems to determine both their survivability and suitability. By Garry Boulard ![]() New legislation has been introduced in the House of Representatives with the goal of addressing the ongoing lack of workers in industries across the country. The Essential Workers for Economic Advancement Act, as proposed by Pennsylvania Representative Lloyd Smucker, will create a new nonimmigrant visa classification, authorizing employees to work in the U.S. for a period of at least 3 years. The visa classification, which is a part of the Immigration and National Act, will essentially establish a market-driven visa system designed to help employers find more laborers. The bill will also require the use of the E-verify system in order to make certain that only legal immigrants are hired. Smucker’s legislation will additionally mandate that such immigrant workers will be paid fair wages, using local wage data. The measure has won the support of the National Association of Home Builders, which has issued a statement contending that “such a temporary, flexible system would help address the chronic labor shortage in the residential construction industry.” An additional source of support has been announced via Chip Rogers, chief executive officer of the American Hotel & Lodging Association, who said, also in a press release, that the bill “would prove critical in helping hotels fill more than 100,000 jobs currently open across the nation.” The Essential Workers for Economic Advancement Act, otherwise known as HR 3734, is currently under review in both the House Committee on the Judiciary as well as the Committee on Ways and Means. By Garry Boulard |
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