Friday, July 31, 2015

REGIONAL CONSTRUCTION INDUSTRY UPDATE – August, 2015



Welcome to the August, 2015 Gregory Management & Consulting Services (GMCS) REGIONAL CONSTRUCTION INDUSTRY UPDATE. 

GMCS continues to expand our products and services to meet the needs of our industry and expanding client base.  We have expanded our operational foot print over the last six (7) months and are now supporting a large and growing international client base with operations in Canada and throughout the United States for both unionized and non-unionized contractors and associations.  We are currently administering over 150 collective bargaining agreements across North America and providing First Chair Negotiating Support for 35 first collective bargaining agreements. In addition, we have expanded our supervisory training programs for those contractors interested in providing support to their organizations and staff that are experiencing union organizing efforts.


GMCS is focused on facilitating communication and collaboration amongst our construction employer associations, constructors, facility owners, building trades and governmental bodies with an emphasis on creating a centralized, focused community that actively promotes labor harmony, industry advancement, contractor opportunities and workforce development.

Is your firm looking to fill key positions within your organization?  With over 25 years of industry contacts & experience within the Philadelphia metropolitan region and developed industry relationships to work from, GMCS has become a powerful recruiting organization in this region’s construction industry marketplace.  Our goal is to provide our clients and candidates with superior quality recruitment services while maintaining the highest degree of integrity, confidentiality and professionalism.  Go here to find out more about our Employer and Candidate Services.  GMCS maintains an active network of experienced industry professional candidates that are currently exploring their next career opportunity.  GMCS actively markets these candidates to both regional and national firms as well as partnering recruitment agencies throughout the country.  Interested candidates and employers should contact Wayne Gregory today at wegregory@gregorymcs.com to discuss the best GMCS employment and recruitment solution for you.

We currently have several excellent candidates that are interested in making a move within the regional marketplace.  GMCS is making those candidates available to interested employers at no cost.  Interested firms should contact Wayne Gregory @ wegregory@gregorymcs.com for more information. 

Sponsorship and marketing opportunities are available to industry stakeholders and contractors; interested firms should contact Wayne Gregory @ wegregory@gregorymcs.com for more information. 

Regional Industry Employment Candidates Looking for new and rewarding challenges:

GMCS is looking to place an experienced Commercial Construction Project Manager that is highly interested in transitioning into the Real Estate Property Management side of the industry. (EMPLOYER FEES WAIVED):

GMCS is looking to place an experienced Facility Manager that has an extensive facility maintenance background with leading Philadelphia institutions. Experience level ranges from HVAC service to senior management roles. Candidate is highly interested in transitioning into a new position within the Tri-State area. (EMPLOYER FEES WAIVED):

GMCS is looking to place an experienced commercial construction industry professional with a broad background in human resources, with particular emphasis on labor relations and employee benefits.  BA, MBA, and JD degrees; Certified Employee Benefit Specialist and Compensation Management Specialist designations. (EMPLOYER FEES WAIVED):

Interested firms should contact Wayne Gregory @ wegregory@gregorymcs.com for more information. 

Another trophy office building comes on the market:

Roughly three years after buying Five Tower Bridge for $73 million, the owner of the premier office tower in West Conshohocken, Pa., has decided to put the property up for sale.

Some in the commercial real estate industry believe the property could set a new sales record for suburban office buildings and trade somewhere in the neighborhood of $375 a square foot, according to estimates. If it does come in at or near that price, it will exceed a $360 a square foot record set late last year when Radnor Court sold.

Read more here…

Walnut Street corridor seeing property sales

The sales activity and prices for the buildings underscore what a hot retail corridor Walnut Street has become and these new owners are likely anticipating that it will continue to gain even more traction.

Pearl Properties reportedly paid $10.5 million for 1527 Walnut St., a 3,415-square-foot property, according to sources. The property was in the news earlier this year when it was struck by falling debris from a nearby building and caused a partial collapse of its roof. The structure, which had housed a Lululemon store, has been vacant since the incident happened in February.

Read more here….

CEO: Brandywine plans loft-style offices, residences on 2100 block of Market:

Brandywine Realty Trust plans to develop loft-style offices and residential units on the land it bought this month along the 2100 block of Market Street in Center City, president and chief executive Jerry Sweeney told analysts Thursday in a conference call.

The offices would be similar to those at the 1900 Market St. building that Brandywine is now renovating, Sweeney said. That structure, known as the Stock Exchange Building, is being upgraded with open floor plans and collaborative work and meeting areas.

Read more here….

STRIKE UPDATE: AGC Washington DC and the Metropolitan Regional Council of Carpenters, Philadelphia settle over a year long Labor/Contract dispute:

The new contract reflects the continued commitment of the Washington DC Contractors and the Metropolitan Regional Council to grow the union market share in the Washington, DC area.

The Four-Year Agreement (5/1/14 through 4/30/18) provides for a total Wage-Fringe Benefit Package increase of $4.30.

Read more here…

STRIKE UPDATE: Construction stops at about 30 sites as union concrete workers strike:

Workers strike at Hudson Yards and other sites around the city due to a labor dispute.

Construction partially ground to a halt at an estimated 30 major sites across the city Wednesday morning after a group of concrete workers went on strike. Among the stalled sites are the Related Companies' massive Hudson Yards project and Time Equities' 50 West St. condo tower. The workers belong to a union umbrella group called the New York City District Council of Carpenters.

Read more here…

STRIKE UPDATE: Bricklayer strike halting construction projects:

A strike by Bricklayers Union Local No. 1 is bringing multiple projects in the St. Louis area to a halt — including City Walk and the construction of a Whole Foods in the Central West End.

The strike began June 1 when the existing collective bargaining agreement with the Mason Contractors Association expired.

An MCA official said an ongoing pension dispute that is tied up in the court system is central to the disagreement..

Read more here…

Verizon Gives Employees App to Record Bad Union Behavior:

Verizon is distributing an in-house app to the company's non-union employees in the hopes of catching union employees engaging in bad behavior. Verizon and the Communications Workers of America (CWA) are currently negotiating a new labor contract, but the talks haven't been going well and the union has authorized a strike if a new deal can't be reached.

Verizon's currently training around 15,000 potential non-union replacements should the company not be able to reach a deal with the CWA, which includes around 38,000 Verizon workers. Presumably these 15,000 workers are all being asked to track and document any union shenanigans.

Read more here…

Lawyers delve into history in Convention Center labor case:

In its legal fight to keep union carpenters out of the building, the Convention Center's lawyers took a walk through the dark side of local labor history this week.

Legal briefs filed in the center's civil racketeering federal lawsuit against the Carpenters' union compared its actions to recent headline-grabbing convictions of members of Local 401 of the Ironworkers' union and of Local 30 of the Roofers' union - another racketeering case, dating back 30 years.

Read more here…

U.S. seeks 22-plus years for ex-Ironworkers leader Joseph Dougherty:

Once one of the city's most powerful labor leaders, Joseph Dougherty, the 73-year-old former chief of Ironworkers Local 401, will likely die in prison.

Read more here…

Joseph Dougherty rally a tough call for labor leaders:

A Patrick Eiding, head of Philadelphia's largest federation of labor unions, found himself facing a terrible dilemma.

Should he attend a Monday morning rally to support fellow labor leader Joseph Dougherty? Dougherty, 73, has been convicted of racketeering, and on Monday will be sentenced by a federal judge. He could get 15 to 25 years in prison.

Read more here…

Demand for Pa. construction workers on the rise: Increase driven by new projects, including healthcare facilities and senior living:

The number of people working in construction in Pennsylvania is up 4.5 percent from a year ago, the largest increase of any sector of the economy, according to new data from the state Department of Labor & Industry.

Pennsylvania added 10,400 construction jobs in the 12 months ended in June, bringing the total to 242,600 jobs. On a percentage basis, that outpaced gains in leisure and hospitality (up 1.5 percent), education and health services (up 1.4 percent) and professional and business services (up 1 percent), the labor department said Friday.

Read more here…

Value Temporary Enforcement Policy for Construction Work in Confined Spaces:

This memorandum provides guidance on the enforcement of the Confined Spaces in Construction standard published on May 4, 2015. The new standard goes into effect on August 3, 2015. Requests for an extension of the effective date have indicated a need for additional time for training and the acquisition of equipment necessary to comply with the new standard. OSHA will not delay the effective date, but instead will postpone full enforcement of the new standard for 60 days from the effective date of August 3, 2015 to October 2, 2015.

Read more here…

IRS curtails lump-sum payouts in DB plans:

The Internal Revenue Service and the Treasury Department have thrown a wrench into the pension de-risking plans of many corporations with new regulations aiming to eliminate the lump-sum payout option for retirees who already are receiving retirement benefits from their defined benefit plans.

Read more here…

MILLIMAN US: Pension Funding Index July 2015:

In June, the funded status of the 100 largest corporate defined pension plans increased by $36 billion as measured by the Milliman 100 Pension Funding Index (PFI). The deficit fell to $244 billion at the end of June primarily due to an increase in the benchmark corporate bond interest rates used to value pension liabilities. As of June 30, the funded ratio rose to 85.6%, up from 84.1% at the end of May. June marked the third consecutive month where interest rates rose and funded status improved.

Read more here…

Dodge Momentum Index Declines in June:

The Dodge Momentum Index fell to 118.3 (2000=100) in June, down 1.3% from 119.9 in May, according to Dodge Data & Analytics. The Momentum Index is a monthly measure of the first (or initial) report for nonresidential building projects in planning, which have been shown to lead construction spending for nonresidential buildings by a full year. With the June decline, the Index continued its lackluster performance thus far in 2015, and is now up just 2.2% when compared to June 2014.

Read more here…

ABI: Institutional Project Demand Drives Architecture Billings Index to Highest Mark Since 2007:

Paced by continued demand for projects such as new education and healthcare facilities, public safety and government buildings, the Architecture Billings Index (ABI) increased in June following fluctuations earlier this year. As a leading economic indicator of construction activity, the ABI reflects the approximate nine to twelve month lead time between architecture billings and construction spending. The American Institute of Architects (AIA) reported the June ABI score was 55.7, up substantially from a mark of 51.9 in May. This score reflects an increase in design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 63.4, up from a reading of 61.5 the previous month.

Read more here…

This e-mail newsletter has been provided complimentary to Associations and industry stakeholders by Wayne Gregory of Gregory Management & Consulting Services (GMCS).  Wayne Gregory has been the recognized regional leader in the areas of Labor & Industry Relations since 2005 and is continuing to serve the industry and its multi-employer Associations under the GMCS brand, Knowledge, Trust, Integrity and a unwavering commitment to Serve the industry.  From Association Management & Executive Leadership services,  Owner Representation, Government & Legislative Affairs & Subscription Services and Labor & Industry Relations, let GMCS help your Associations and organizations to forge a new and clear path forward.

We hope that you enjoy the new newsletter format and welcome all comments and suggestions regarding these changes.  You may forward those to Wayne Gregory @ wegregory@gregorymcs.com.

Best wishes to all for a safe, prosperous, healthy & harmonious 2015.

Sincerely,
Gregory Management & Consulting Services
LinkedIn: www.linkedin.com/in/waynegregory/
On the web: www.gregorymcs.com

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