Be prepared for OSHA’s increased focus on safety training as an important component in accident prevention. Take advantage of this limited time offer. Sign up now—OSHA 10 hour for $85 and OSHA 30 hour for $216—special pricing until July 30. To enroll, contact Cindy Regier at cregier@abcpnw.org.
Do you like golfing? Looking for a short-term volunteer opportunity? Sign up today to help plan the ABC PNW Golf Tournament! The tournament will be held on August 26 at the Langdon Farms Golf Club in Aurora, Oregon. Call or email Laurie Kendall at 503-726-5440 or lkendall@abcpnw.org if you are interested in volunteering.
The price of construction materials and supplies rose 1.1 percent in April, according to the May 18 producer price index (PPI) report by the U.S. Labor Department. This marks the sixth straight monthly increase. Prices for construction materials are up 5.7 percent from the same time last year.
Prices for iron and steel jumped 5.1 percent last month and are 37.7 percent higher from April 2009. Similarly, steel mill product prices are up 5.1 percent and are up 24.7 percent from the same time last year. Softwood lumber prices continue to trend higher as they increased 4.5 percent for the month and are 28.5 percent higher on a year-over-year basis. Nonferrous wire and cable prices increased 1.6 percent last month and are up 12.4 percent over the past 12 months. Prices for fabricated structural metal products increased 1.1 percent in April, but are down 1.5 percent compared to the same time last year. Price fluctuations in plumbing fixtures and fittings continue to be marginal as they increased 0.3 percent for the month and are up 0.8 percent from April 2009.
In contrast, prices for prepared asphalt, tar roofing, and siding fell 0.6 percent for the month and are down 5.8 percent from April 2009. Prices for concrete products also fell 0.3 percent last month and are down 2.2 percent from the same time last year.
Crude energy prices slid 5.9 percent in April and natural gas prices fell by 19.2 percent. Over the past three months, crude energy prices are down 10.8 percent after jumping up 24.5 percent from the previous three month period.
Overall, the nation’s wholesale prices are down 0.1 percent for the month, but are 5.7 percent higher from the same time last year. However, core prices, which exclude energy and food, are only up 1 percent from April 2009.
“Today's producer price index data supports the proposition that construction materials prices can rise even when the prices of oil and natural gas are falling,” said Associated Builders and Contractors (ABC) Chief Economist Anirban Basu. “A number of nonfuel related prices continue to edge higher in April, most notably iron and steel. This seems to be a reflection of an ongoing pattern of construction materials price increases attributable in part to robust levels of economic activity in China and other parts of the emerging world.
“Western economists predict that China's economy will expand roughly 12 percent this year. For its part, India and her 1.1 billion people are expected to experience 8 percent growth in economic activity in 2010. Correspondingly, the emerging world is scooping up loads of commodities and materials, driving global prices higher in the process,” Basu said.
“This pattern may be repeated in May as oil prices continue to slide. Yesterday, oil prices touched below $70 per barrel – a potential source of relief for construction contractors that are working hard to manage their cost and bids in the midst of a still sluggish economy,” said Basu. “However, given the global dynamics, other construction materials and supplies may continue to experience rising price levels making the overall cost of construction more expensive at a time when purchasers of construction materials remain particularly price sensitive.”
There is a critical choice facing contractors and subcontractors right now: “Do we sit tight and let government and big labor organizations take over our industry with endless regulations and employer mandates? Or do we get involved and support targeted efforts by ABC’s Free Enterprise Alliance to stand up on behalf of the very people that make this country great…merit shop builders and contractors?
Unfortunately, our region’s participation is far below other regions across the United States. Wade Pope, the Free Enterprise Alliance Trustee for Region 1 is asking that each ABC Chapter make an immediate investment of at least $5,000. We need your help in order to do this. Unlike PAC contributions that must be personal, FEA is allowed to take Chapter and company checks or credit cards. Give here.
On Wednesday May 5, the Building Codes Structures Board approved the final amendments to the 2010 Oregon Energy Efficiency Code (OEESC). The division held a rulemaking hearing on the adoption of the new code in March and received public comment on the provisions regarding mass walls. The division addressed the comments and the board's approval of the provision was the last step in the administrative process to adopt the new code.
The 2010 OEESC will take the place of chapter 13 in the Oregon Structural Specialty Code. Based on the 2009 IECC, Oregon amendments significantly strengthened the energy efficiency requirements of the code. The final version of the draft code is available on the BCD website here.
The code will be effective July 1, but for plans submitted through September 30, it will be up to the builder whether to build to Chapter 13 or the 2010 OEESC. After October 1, the 2010 OEESC will be mandatory. The division is currently working with the ICC on the printed version. Printed copies of the code are expected to be available in July.
As education is a key component of the introduction of any new code, IEC Oregon is gearing up to provide you training courses. We will be sending out the dates and registration forms in the next couple of weeks, so keep a look out for an email from us.
The IRS has released the average premium for the small group market in each state for the 2010 tax year for purposes of computing the Code Sec. 45R tax credit for eligible small employers that make nonelective contributions toward their employee’s health insurance premiums. The premiums must be made under an arrangement that requires the employer to pay at least 50 percent of each participating employee’s premiums for coverage provided by a qualified health plan.
Code Sec. 45R was added to the Internal Revenue Code by section 1421 of the Patient Protections and Affordable Care Act (P.L. 111-148, enacted March 23, 2010). The credit for 2010 is equal to 35 percent (25 percent in the case of a tax-exempt organization) of the lesser of: (1) the amount of nonelective contributions paid by the eligible small employer on behalf of employees under the arrangement during the tax year; and (2) the amount of nonelective contributions the employer would have paid under the arrangement if each such employee were enrolled in a plan that had a premium equal to the average premium for the small group market in the state (or in an area in the state) in which the employer is offering health insurance coverage.
Additional average premium rates for the small group market in certain areas within certain states may be issued at a future date. In no event will such rates be lower than the premium rates for a state as a whole.
The average premium for the small group market in Oregon is $4,681 (employee-only) and $13,723 (family coverage). For Washington, the average is $4,543 (employee-only) and $10,725 (family coverage).