Signs of the Times for Construction

Denise Holtby, Reed Construction Data

Google Reader is a very cool application for those of us who are news junkies. Basically, it allows you to group all of your RSS feeds in one place, then scroll through the headlines quickly. When you see an article you want to investigate further, a single click takes you directly to the source.

The ability to scroll through headlines quickly has another added benefit… it’s easy to spot trends when you’ve got so much news coming at you from all over the web.

Lately, two trends have caught my eye:

(1) Notices of layoffs and plant closings by some of the major building products manufacturers are coming in at the rate of two or three a week.

For example, construction supplier USG Corp. plans to cut about 10 percent of its workforce in response to adverse U.S. market conditions. Meanwhile, the U.S. economic slowdown is taking its toll on Canadian wood product manufacturers, too. Weyerhaueser announced it will shut its Hudson’s Bay, Saskatchewan mill in July 2008.

(2) Several mega projects have been cancelled, put on hold or have had their construction start dates pushed back lately. Rising construction costs, a slow economy and tighter credit markets are definitely taking their toll.

For example, Petro-Canada has cancelled a $760-million pipeline extension that was to be constructed along the St. Lawrence River. The company is also reconsidering a $1-billion regasification plant planned for Gros Cacouna, Quebec. In Las Vegas, Donald Trump hasn’t decided on a construction start date for the planned building that will be an identical match to his new $1.2-billion, 64-storey Trump International Hotel and Tower.

Finally, another sign of the times with a twist. Thanks to continued high demand for copper, which is used to make bronze and brass, thieves are now robbing graveyards.

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