2018 Construction Boom

2018 Construction Boom

2018 is set to be the best year in the Construction industry since before the Financial Crisis of 2008.

Across numerous industries and sectors the stars certainly seem to be aligning to ensure that this year will be even better than last year in the Construction industry.

So what’s driving the Boom? We’ve compiled the 10 Reasons below that add up to a stellar year for the industry ahead.

10. Federal Tax Reform

Changes to the Federal tax code under the Tax Cuts and Jobs Act have Small Business Owners eager to make capital investments such as buying new equipment, building new offices and facilities, and kicking off expansion projects. The revised tax code allows them to capitalize on the up-front deductibility of those expenses. The National Foundation of Independent Business said in a recent article that Small Business Owner confidence hit an all-time high in December of 2017, with over 75% of small business owners planning on expanding their businesses in 2018. Now that small business owners can deduct the full value of any new capital expenditures they acquired in the new year, upgrading older equipment and launching new construction projects has never looked better.

9. Mother Nature’s Wrath

2017 proved to be the most costly year in US history when it came to Mother Nature’s property damage. According to a report by the NOAA, weather and natural disaster costs in the US and Territories exceeded $306 Billion last year, the highest in recorded history by nearly $80 billion. While of course terrible for victims and costly for those areas and people impacted, the silver lining is that a tremendous amount of rebuilding and repair is stretching into 2018. Thousands of construction projects are still underway or waiting to get kicked off. The billions of dollars committed by insurance companies as well as FEMA and other government programs are just reaching homeowner and business owner hands, and rebuilding, repair and restoration projects will be ongoing through this year.

8. Low Unemployment

Government statistics showed Q4 2017 to have the lowest Unemployment rates in two decades, with barely over 4% of job-seekers unable to find full-time employment. Consumer spending strength has also returned, with most retailers reporting the strongest Holiday season since before the 2008. More than 61% of US households reported having two or more full time wage earners, the highest number ever. All that buying power translates into businesses expanding to meet consumer demand as well as homeowners having the confidence to make home improvements and remodels.

7. Residential Real Estate Boost

Across the US, in major metro areas, real-estate prices reached all time highs in 2017. That has developers and homeowners all pushing a massive increase in real-estate building and construction. Homeowners want to take advantage of increased equity to finance remodel and additions, and developers are looking to exploit higher home prices with new construction projects this year while markets are heated. In a recent online Webinar, the National Association of Homebuilders demonstrated that over 70% of their members expect to hire more workers in 2018 to keep up with demand. And with interest rates still hovering at historic lows, there may be no time like the present to take out equity and refinance to cover an add on or remodel (see #4 below!).

6. Baby Boomer Cash-Out

Starting last year and ramping up this year, retirees are cashing in on long term tax-deferred retirement investments, particularly with stock markets at all-time highs. IRS tax regulations require certain types of investments to be distributed to the retiree before they reach age 71. As more and more retirees begin to approach that milestone and see equities at all-time highs, taking those distributions now makes more sense than ever. On the whole, retirees are gaining Billions of dollars, with one recent IRS report to Congress estimating that forced distribution of IRA investments would total $1.5 Trillion over the next 10 years. That’s $150 Billion per year leaving IRAs and hitting bank accounts. Aside from a travel and food, many retirees will look to remodel older homes or buy a retirement or vacation property. Many will also look to invest in rental properties to ensure steady income during and through their retirement. This should translate into billions of dollars yearly shifting from the equities markets and Wall Street over to Main Street industries like construction.

5. The Amazon Effect

More and more, businesses are following the Amazon-ification of everything, which means just-in time delivery and shipping. From Walmart to Costco to Gap, retailers across all categories are starting to offer free 2 day shipping and more of their product catalogs online. But competing with Amazon means that a single factory and warehouse in one part of the country no longer works. Amazon is famous for mastering the logistics of warehousing and shipping almost anywhere in the US in 2 days or less, and they did that by building dozens of warehousing and shipping facilities all across the country. Other retailers are following suit, building Warehouse and Commercial shipping near airports and population centers with sufficient demand. CNBC featured an article recently that indicates warehousing will be among the hottest sectors of Construction for the next several years.

4. Low Interest Rates

Even though the Federal Reserve has started to inch interest rates up, they are still low by historic standards. Additionally, with rates predicted to go up this year and next, businesses may seek financing for Construction projects this year, rather than wait and find themselves paying 1-2% more due to higher interest rates. Look for companies to push forward construction schedules to take advantage of rates before they move higher toward the end of this year and next.

3. Increased Contractor Confidence

A recent survey of the Independent Contractors of America group found that their members are all indicating an increase in requests for bids and busy schedules for 2018. Over 50% of members plan on making new Construction equipment purchases in 2018, and over 75% said 2018 should be busier than 2017. Numbers like that hint at more than just wishful thinking, and with all other indicators pointing to a boom year for new Construction, we’re inclined to agree.

2. Strong GDP

Jamie Dimon, CEO of Chase Bank, has gone on record foreseeing a 4% growth rate in Gross Domestic Product in 2018, the fastest pace since the late 90s and the dot-com boom. After several years of sub 2% annual GDP growth, 4% would be a welcome change for US companies. Since 1980, years with GDP growth above 3% were also years that saw spikes in New Home Construction, as well as Commercial and Manufacturing construction projects. If Mr. Dimon is correct, strong economic growth overall should provide the final catalyst the industry needs to see such growth in 2018. Maybe he was wrong about Bitcoin, but it seems he’ll be right about US GDP.

1. Infrastructure Spending

One area of Construction that lagged behind while the market grew has been Government projects. That should change in 2018, as the Trump Administration and a still Republican-controlled Congress have made Infrastructure spending a key piece of their legislative agenda in 2018. Look for the narrative to gain steam starting with the Spring congressional session. With 2018 being a mid-term election year, both parties will be looking to score points with voters by ensuring government funding comes to their state. Look for public works funding increases by the 2018 November mid-terms.

If you, too, anticipate the 2018 Construction Boom, you’re probably wondering how to capitalize on it.

In another article we’ll walk through what everyone from the average investor to the building contractor should be considering both in terms of investment and financing.

If you’re already a competitor in this very hot market, you’re probably thinking about buying equipment or finding the capital necessary for growth. Currency is one of the largest finance companies in the heavy equipment and construction industries, well positioned to help you compete. With Currency’s Express Finance, you can apply online and get approved in minutes. As a trusted partner of Rock & Dirt, you’re in good hands with Express.

Original article: http://blog.rockanddirt.com/industry-news/press-release/construction-surge-2018-heres-10-reasons/

Rush2Recycle

NFL announces zero waste plan for Super Bowl

The NFL, in partnership with PepsiCo, Aramark, U.S. Bank Stadium and the Minnesota Sports Facilities Authority, announced Rush2Recycle, a game plan to recover more than 90 percent-more than 40 tons-of stadium waste at Super Bowl LII on Feb. 4.

On game day, every chef, custodian and fan will be part of the team working to recover at least 90 percent of stadium waste by recycling bottles and cans; composting organic materials like food waste and serviceware; and repurposing items like discarded handbags, signage and construction materials through local community organizations. Continue reading

NY diverts more than 520 million of e-waste

NY diverts more than 520 million of e-waste

Commissioner Seggos says, “Over the first six years of the program, New York state has successfully diverted hundreds of millions of pounds of e-waste destined for landfills and combustion facilities to e-waste recyclers for reuse and recycling, helping conserve valuable natural resources.

DEC says it continues its efforts to address challenges associated with e-waste collection and recycling, particularly cathode ray tube (CRT) televisions and monitors by working with municipalities, industry representatives, recyclers and others to improve CRT collection and recycling. Continue reading

Industry Experts Share 2017 Highlights, 2018 Predictions

Industry Experts Share 2017 Highlights, 2018 Predictions

The waste and recycling industry started 2017 off strong, with commodity prices up from the year prior and the solid waste index once again beating the market.

“China’s proposed waste import ban is the most important systemic issue the industry has dealt with this year, and I think it will be something that we continue to deal with in 2018 and years to follow,” says David Biderman, CEO and executive director of SWANA. It’s a very substantial change for our local governments and our industry partners to manage the material in the wake of these restrictions.” In preparation of China’s waste import ban, materials management facility operators and recyclers in North America are working to make their material cleaner and finding other markets to enter, such as Southeast Asia, India and Latin America. “We would like to work with China to develop a mutual satisfactory timeline for these waste restrictions, and I am hopeful that the comments that we continue to file will either influence or have an impact on China’s waste import policy.” While many questions are left unanswered right now regarding the waste import ban and the challenges and opportunities that may come along with that ban, industry leaders are working with China and each other to try to reach a common ground. We’re hoping that China will work with us as partners to keep this very important market open.” Smarter Technology Comes Online This year was a groundbreaking year for technology in the waste and recycling industry, with new advancements being adapted in the truck and in recycling facilities. “There’s certainly been more automation and data collection at facilities and more management for collection this year, which has helped those in the industry make better business decisions.” Technology has also played a role in improving safety, which is important to those in the industry because the waste and recycling industry is on the top 10 most dangerous jobs in the U.S. “This industry is not a one-size-fits-all industry, and it’s exciting to see how these technologies, especially driverless vehicles, are impacting various areas of the industry.” Over the past couple of years, the industry, along with many other industries, has experienced a driver shortage.

Industry Associations Reach Milestones Three of the leading industry associations, SWANA, NWRA and EREF, reported positive growth and highlights for 2017.

“Many people I’ve spoken with in the industry are pleased that the tax reform bill is being enacted, as it reduces corporate tax rates, allows full expensing of certain capital investments for the next five years and increases the cap on such expensing from $500,000 to $1 million,” says Biderman.

In addition to government policy, development of food waste reduction strategies, the use of smart technologies, the exploration of new performance metrics, finding new markets for the exportation of materials and the implementation of plastic bag bans round out the initial predictions for the new year.

As far as the state of solid waste goes, Hoffman predicts that the 2018 core solid waste organic growth should be 3 percent to 5 percent, the recycling growth should be 0.5 percent to 1.0 percent depending on the sales ratio and the topline growth should track at 1.0 percent to 6 percent.

Read Entire Article: http://www.waste360.com/business-operations/industry-experts-share-2017-highlights-2018-predictions

 

44.7 million metric tons of electronic waste in 2016

44.7 million metric tons of electronic waste in 2016

The world produced 44.7 million metric tons of electronic waste in 2016, according to a new United Nations report.

Global e-waste ― discarded electronic and electrical goods such as cellphones, laptops, televisions, refrigerators and electrical toys – rose 8 percent from 2014 to 2016, according to the Global E-waste Monitor 2017 report, published on Wednesday.

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US Aluminum Waste and Scrap Exports Surged 20%

US Aluminum Waste and Scrap Exports Surged 20%

The latest trade statistics published by the US Census Bureau indicates considerable increase in the country’s exports of Aluminum waste and scrap during the initial ten-month period of the current year.

The top five destinations of US aluminum waste and scrap shipments were China, South Korea, Canada, Mexico and India. The combined exports to the above five market destinations totaled $1.54 billion, accounting for 85% of all aluminum waste and scrap exports by the US through October this year.

China imported $945.8 million of aluminum waste and scrap from the US during this period. The imports during this period have already surpassed the total imports of $768.14 million during the entire year 2016. The imports from Canada totaled $477.9 million, accounting for just nearly 56% of total imports. The imports from the above five countries accounted for nearly 86% of the total imports by the US during the ten month period from January to October this year.

Read entire article: http://www.scrapmonster.com/news/us-aluminum-waste-and-scrap-exports-surged-20/1/66527

Global crude steel production increases

Global crude steel production increases

The 66 countries reporting to the World Steel Association (Worldsteel), Brussels, produced 145.3 million metric tons of crude steel in October 2017, a 5.9 percent increase compared with October 2016.

The crude steel capacity utilization ratio of the 66 countries in October 2017 was 73 percent, which is 3 percentage points higher than in October 2016. However, compared with September 2017, it is 0.6 percentage points lower.

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Section 179

Section 179

Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment during the tax year.

Fast Facts about the Section 179 tax deduction:

  • Tax code created to help businesses.
  • Valid on most types of equipment.
  • Can greatly help your bottom line.
  • Simple to use.
  • Enhancements typically expire at year’s end.
  • There is simply no better time than now.

Essentially, Section 179 works like this:

When your business buys certain items of equipment, it typically gets to write them off a little at a time through depreciation. In other words, if your company spends $50,000 on a machine, it gets to write off (say) $10,000 a year for five years (these numbers are only meant to give you an example).

Now, while it’s true that this is better than no write-off at all, most business owners would really prefer to write off the entire equipment purchase price for the year they buy it.

In fact, if a business could write off the entire amount, they might add more equipment this year instead of waiting over the next few years. That’s the whole purpose behind Section 179 – to motivate the American economy (and your business) to move in a positive direction. For most small businesses, the entire cost can be written-off on the 2017 tax return (up to $500,000).

Contact Us to Learn More!  1 (844) M-MAGNET (662-4638) /sales (@) moleymagneticsinc (.) com

imports of finished steel products by the US to grow

Imports of finished steel products by the US to grow

Based on the year-to-date import trends, the American Institute of Iron and Steel (AIIS) has predicted the total imports of finished steel products by the US to grow by nearly 16% during the entire year 2017.

As per data, finished steel imports by the country are likely to total 30.520 million net tons (Mt), significantly higher by 15.9% when matched with the yearly import total of 26.338 Mt in 2016.

The average finished steel imports during the current 3-month period from July to September 2017 based on preliminary imports has recorded 3.7% decline when matched with the rolling average of actual imports during the prior three months from April to June ’17.

Read entire article: http://www.scrapmonster.com/news/us-finished-steel-imports-forecast-to-grow-by-16-in-2017/1/66182