Commercial Meeting Growing

December 11, 2006
/ Print / Reprints /
ShareMore
/ Text Size+
Commercial contractors catch up with each other during a coffee break at the 3rd Annual ACCA Commercial Contractors Roundtable and Design/Build Conference. Pictured (left to right) are Larry Cook, TD Industries, Dallas; Curtis Anderson, Air Systems Engineering Inc., Tacoma, Wash.; Dave Jones, Midstate Mechanical, Phoenix; and Garry Floeter, CHC Mechanical, Cookeville, Tenn.

ATLANTA - October brings the falling of leaves to most of the country. The Peachtree City is no exception, though nearly 180 attendees at the 3rd Annual HVACR Commercial Contractors Roundtable and Design/Build Seminar didn’t expect the cool breezes and temperatures that greeted them when they stepped off the plane. However, things warmed up once the two-day conference began at the Hilton Atlanta Airport and Towers on Oct. 25.

Ken Simonson, chief economist for the Associated General Contractors, Washington, D.C., opened the meeting with his outlook for construction. According to his prepared briefs, two worries have appeared on the construction scene: a plunge in housing activity and the soaring costs of materials. The concern with the recent downturn in residential housing is that it may begin to pull down other types of construction such as commercial.

Simonson said that though single-family housing is weak, the U.S. economy generally looks robust. Unemployment is unusually low, industrial production in manufacturing is rising, and manufacturing capacity utilization, at 81 percent of capacity, is above its long-term average for the 10th straight month. Private nonresidential construction spending was up 24 percent and public construction was up 10 percent in the 12-month period ending August 2006.

The nonresidential market sectors showing the greatest strength have been lodging, up 46 percent; multiretail, up 38 percent; hospitals, up 26 percent; manufacturing, up 24 percent; multifamily housing, up 19 percent; and warehouses other than ministorage, up 16 percent.

Construction materials have been hit heavy with price increases, and Simonson expects that trend to continue, albeit not as severe. “Over the next several months, as residential demand for materials diminishes and the 12-month comparison shifts to months most affected by Hurricanes Katrina and Rita, the upward pressure will be still less,” he said.

However, the industry should expect that materials cost increases will usually outpace the 3 to 4 percent annual rate of increase in the consumer price index (CPI) or overall producer price index (PPI). Simonson reasoned that building contractors are constrained to use generally fixed quantities of materials for which there is worldwide demand and often a slow-growing supply, and they must pay to have the materials physically delivered.

WORKSHOPS IN ATLANTA

In addition to the informative general session, the two-day conference included a slate of educational sessions, a product showcase, and plenty of networking time for commercial contractors. Most of the educational sessions were conducted by successful HVAC contractors sharing best practices from their own companies. Attendees could attend up to five complete sessions as they chose from 15 that were offered in a concurrent format.

Twelve corporate sponsors hosted the product showcase and several rolled in a mobile product demonstration in the parking lot.

According to ACCA spokesperson Kevin Holland, “This event is a great opportunity for our commercial membership to focus on those topics of most importance to their business, and to spend valuable time networking with each other.”

The 2007 ACCA Conference and Indoor Comfort Air Expo will be held March 6–8, at Disney’s Coronado Springs Resort in Lake Buena Vista, Fla.

For more information, visit www.acca.org.

Publication date: 12/11/2006

Did you enjoy this article? Click here to subscribe to The NEWS Magazine

Recent Articles by Mike Murphy

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

2014 MCAA Annual Convention

Scenes from the 2014 MCAA Annual Convention in Scottsdale, Ariz.

Podcasts

NEWSmakers: Julian Scadden

Training is an ongoing process. Julian will discuss how you can generate maximum return on time and energy invested training by following a three part process. Listen to this podcast to get expert tips on training, tracking and follow up. 

More Podcasts

ACHRNEWS

NEWS 04-21-14 cover

2014 April 21

Check out the weekly edition of The NEWS today!

Table Of Contents Subscribe

SERVICE CALLS POLL

Which statement on service calls best applies to your business?
View Results Poll Archive

HVACR INDUSTRY STORE

plumbing-hvac.gif
2014 National Plumbing & HVAC Estimator

Every plumbing and HVAC estimator can use the cost estimates in this practical manual!

More Products

Clear Seas Research

 

Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications, Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.

DON'T MISS A THING

Magazine image
 
Register today for complete access to ACHRNews.com. Get full access to the latest features, Extra Edition, and more.

STAY CONNECTED

facebook icontwitter iconyoutube iconLinkedIn i con