News Briefs: September 2021

by | Sep 1, 2021

Effects of a California union ruling, construction cost indicators, global projects report and more.

California Union Ruling May Have Long-Term Effects

The Supreme Court has, since 2019, made a string of decisions narrowing labor unions’ power to recruit and run their memberships. One such decision, Cedar Point Nursery v. Hassid, 594 U.S. (2021), states that a regulation in California law allowing union organizers the right to enter an agricultural employer’s private property to recruit and organize those workers violates the employer’s federal constitutional rights under the Fifth Amendment.

The regulation had been in operation since 1975 and allowed union organizers to meet with workers for an hour before work, after work and during lunch breaks for as many as 120 days per year. The contention was due to the owner of Cedar Point Nursery having found union reps on his property in the early morning hours without proper notice. 

Although long-term repercussions are not yet completely clear, the ruling’s implications for could be significant for contractors working in the state.

Construction Cost Indicators Available for Q2 of 2021

Rider Levett Bucknall has released its Quarterly Cost Report for Q2 of 2021. The report features construction cost information for 14 markets in the United States and Canada, statistical information critical as contractors attempt to balance resultant pandemic costs into the near future. While the report illustrates a market still in flux, it also includes indicators across eight building sectors.

Insights include, among others:

  • The Consumer Price Index experienced a slight increase coming into 2021, up 1.70% from the previous quarter.
  • While the national unemployment rate continued to recover, it remains nearly double the rate from this time last year (3.8%).
  • Technology is increasingly valuable.

“One of the lessons learned from the past year is the central—and growing—role that technology plays in the AEC industries,” says Julian Anderson, FRICS,president of Rider Levett Bucknall North America in a press release. “The degree of operational efficiency that connected technologies affords is a true game changer, providing transparency, accuracy and consistency to all stakeholders while accelerating the design process. From cost estimating to streamlining workflows to digital twins, these tools are transforming the landscape of design and construction.”

The Q2 report can be accessed in its entirety at rlb.com/americas.

Global Projects Report Available From InEight

InEight, a global construction project management software company, has released its first annual “Global Capital Projects Outlook. ”The document uses survey data from 300 of the world’s largest capital project owners and contractor construction professionals to draw conclusions on the industry, such as:

  • 92% of respondents are either fairly or very optimistic about their future, and 91% believe their organization to be resilient. 
  • 71% see digital transformation as the biggest short-term source of opportunity, with data analytics, artificial intelligence and machine learning considered the top-three most critical for success.
  • Over half of both owners and contractors say projects completed on or ahead of schedule and on or under budget have increased during the last three years.

This trend is set to continue with 83% confident of completing future projects on or ahead of schedule, and 82% confident of doing so on or under budget.

Read the whole report at ineight.com/globaloutlook-2021.

 

ABC Opposes Tax Deduction Changes

More than 100 trade associations, including Associated Builders and Contractors, joined forces to oppose potential legislation from Sen. Ron Wyden, D-Ore., that would weaken the Section 199A pass-through tax deduction. As chairman of the Senate Finance Committee, Wyden intends to propose changes to the Tax Cuts and Jobs Act, to include phasing out the deduction for Americans making over $400,000 in annual business income and removing the perk entirely for those making over $500,000.

Objections to the bill include that the current provision is an essential part of the tax code, as well as that it helps individually and family-owned businesses remain competitive during present-day economic turmoil. 

Wisconsin and Michigan Work Toward Solar Legislation

The Michigan Municipal League, which advocates on behalf of more than 520 municipalities across the state, joined with the Michigan Community Solar Alliance to support bipartisan legislation (House Bills 4715 and 4716) that would allow community solar projects in Michigan, making additional tax revenue available to municipalities across the state. MCSA members include ABC Michigan and several business groups.

Likewise, the Wisconsin Community Solar Economic Alliance, a coalition of business, health and renewable energy organizations, is lobbying for passage of Republican legislation that would allow businesses and residents to invest in private “community solar” gardens. The renewable energy program would allow for the buying of solar shares in solar facilities that sell electricity to utilities which then credit customers for their portion of the energy produced. The alliance includes several nonprofit organizations: Associated Builders and Contractors of Wisconsin, Renew Wisconsin, the Wisconsin Conservative Energy Forum, the Wisconsin Grocers Association, Organic Valley and Advocate Aurora Health.

NWiR and NCCER Announce Collaboration to Promote Roofing Industry
National Women in Roofing and NCCER announced a formal agreement to mutually support each other’s organizations as they both seek to promote the roofing industry. “We know that representation matters when talking to people about why roofing is such a great industry, and it particularly matters when trying to recruit traditionally underrepresented populations,” says Brenna Driver, area sales Manager, Owens Corning and a member of the NWiR Board of Directors and chair of the Industry Recruitment Committee.

In addition, NWiR will support NCCER and other organizations through participation in the nationwide Careers in Construction Month, a campaign held every October to increase public awareness of construction careers and inspire the next generation of craft professionals and make an impact on the perceptions of a career in construction.

“We are looking forward to working with NWiR on increasing awareness of the roofing industry as a career option, and particularly reaching women to share available training, credentials and a fulfilling career pathway,” says Holly Mathis, Build Your Future manager for NCCER.

Author

  • Construction Executive

    Construction Executive, an award-winning magazine published by Associated Builders and Contractors, is the leading source for news, market developments and business issues impacting the construction industry. CE helps its more than 50,000 print readers understand and manage risk, technology, economics, legal challenges and more to run more profitable and productive businesses.

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