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Construction Industry Update - December 2006Commercial Construction/Contractors
Smith & Howard CRITICAL ISSUES UPDATE (November 2006)
CONTRACTOR LICENSURE NOTICE: Little time remains for exam exemption application phase. In order to exempt Georgia’s licensing exam, applications must be completed and submitted to the State Residential and General Contractor Licensing Board by December 31, 2006. This is a one-time opportunity. The process is a time-consuming one, and requires multiple forms to be obtained from outside sources, or completed by you and/or your banker, accountant, owners, project architects and more. Please visit the Georgia Secretary of State’s web site at www.sos.state.ga.us/plb/contractors/ for complete details, and to download applicable forms.
FAST FACTS:
Highly Cyclical Demand - Commercial construction spending in the US rose 15 percent in August 2006 compared to a year ago.
Expenses - Prices for cement rose 5.6 percent year-to-date in October compared to the same period a year ago; steel rose 12.6 percent, according to Engineering News-Record. INDUSTRY UPDATE Private Sector Drives US Growth - Although the US residential market is declining, the commercial segment continues to be strong because of the private sector. Commercial construction spending increased 10.8 percent during the first seven months of 2006 compared to a year ago, as private sector projects jumped 12.3 percent. Spending on public construction declined 11.9 percent. Commercial projects accounted for less than 7 percent of total US construction spending through July. Using Illegal Workers Raises Costs - In addition to screening employees, experts are advising construction firms of the potential financial impact of using unauthorized immigrant workers. Contractors need to factor into estimates and negotiations the risks and costs of losing employees during projects. Recent job-site raids by authorities looking for illegal immigrants have resulted in fewer workers reporting to work, according to Southeast Construction, partly due to fear, boycotts, and demonstrations. About 12 percent of the construction industry’s workforce consists of unauthorized workers, according to the Pew Hispanic Center. The construction team at Smith & Howard is available to answer any questions or concerns you may have about the industry. Please feel free to call us at 404.874.6244. |
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