World of Concrete Reveals a Construction Industry Starting to Move Forward

Contractors are in a hurry to get back to work. You could feel their engines revving at the first big trade show of the season (World of Concrete in Las Vegas, Jan. 24-27). More than 52,000 contractors actually looked excited about the prospect of starting a new year of work. At a World of Concrete (WOC) press conference, all-round smart guy Ed Sullivan mapped out the construction market cycle with optimistic grins. 

“We’re looking at a 12-year, peak-to-peak recovery — 2005 to 2017,” said Sullivan, chief economist for the Portland Cement Association (PCA), which represents cement companies around the United States and Canada. “So what do you do in that time period? Do you sit back and ride the market? Or do you proactively start to take market share?”

Both construction professionals and machine manufacturers agreed — it’s time to get moving. Now is the time to start increasing your presence in the marketplace. Even with Sullivan noting that the market will probably remain flat in 2012, with only marginal gains in 2013, he saw the trend of hiring starting to steamroll. “We could definitely see stronger activity in 2013,” he said.  “We’ve seen how jobs can heal, like the 3.7 million jobs created in 2010. Then the healing starts pretty quickly. We see 1.6 million jobs being created this year — compared to 1.3 last year — so that tinge of optimism is out there — as long as the job creation process can be sustained.”

On the show floor, contractors seemed to expect more work in 2012. They inspected the next generation of equipment with confidence, weighing the pros and cons of purchase. Caterpillar impressed with the release of five new compact-radius Cat E Series mini hydraulic excavators — the 303.5E CR, 304E CR, 305E CR, 305.5E CR and 308E CR SB — that all included (amongst many new things) the awesomely innovative COMPASS system, a high-tech digital control panel that integrates a zillion features (from machine security to hydraulic optimization) into one handy digital interface.

Construction software developers like Dexter + Chaney launched new ways for contractors to streamline businesses, including a web-based version of its Spectrum Construction software (version 14), which offers unprecedented accessibility into the cloud platform. Engine manufacturers like Subaru promised the first and only five-year warranty on its industrial engines and select lines of power products.

“We will not settle. We will always be the first in everything we do, and we will continue to be innovative,” said David Frank, Subaru vice president of sales and marketing, at a World of Concrete press conference. “Our five-year warranty — why is that important? We talked to the rental and construction folks, and asked them how long they’re holding onto equipment, and we found out that people are holding onto equipment about three to four years.”

Booths from Subaru to Doosan were filled with hungry contractors looking and listening. People in the industry seem excited. Matthew Frank of Matthews Construction Co. in Seaford, N.Y., had his thoughts posted on the WOC website. “I come both to buy, browse what’s here and see what’s new,” he said. “I spend a lot of money here. It’s a necessity. I tell everyone in the business to come to World of Concrete. If you’re in the business, you should be here.”

If you’re in the business, now is the time to start getting out. 2012 will be a year where contractors can get their foot in the door, on the ground floor. It’s only up from there. — Keith Gribbins, Managing Editor, kgribbins@benjaminmedia.com