October 2001
U.S.
Bancorp Piper Jaffray
(Download PDF)
CMAC Report Finds Sand and Gravel Shortages Looming
Michigan Beltway Uses Innovative Asphalt Techniques
California Air Resources Board Adopts Rules to Limit Asbestos Exposure, Require Monitoring
CMAC Report Finds Sand and Gravel Shortages Looming
SACRAMENTO, Calif.—Policymakers and planners have failed
to consider whether local supplies of construction aggregates will be
available to meet the state’s urgent need of upgrading, maintaining
and building new infrastructure. This planning lapse is one of the conclusions
of a new study recently released by the Construction Materials Association
of California.
Finding that California’s construction industry provides over $108
billion, or 10 percent of the state’s $1.2 trillion gross product,
“The Aggregates Industry: Its Importance to California’s Economy
and Infrastructure” presents economic data documenting the contribution
that the aggregate industry, in its pivotal role as supplier of raw materials
for construction, makes to the California economy. Applied Development
Economics, a leading Sacramento- and Berkeley-based consulting firm specializing
in industry analysis, wrote the study in association with CMAC.
Maintaining access to locally available aggregates is especially critical,
as investment in California’s crumbling infrastructure has been identified
as one of the state’s most pressing concerns. Overcoming deficiencies
in the maintenance and development of transportation systems, school facilities
and affordable housing will depend upon local, low-cost, and large sources
of aggregates. According to Jim King, president of Applied Development
Economics, “The New Economy firms that are the engines of economic
growth in California cannot compete in the global marketplace if the state’s
basic infrastructure is not world class.”
Throughout California, many local sources of permitted aggregate supplies
are rapidly running out. Without local, low-cost and accessible quality
aggregates, California communities will be unable to sustain an attractive
quality of life or economy. According to the report, local and county
jurisdictions will need to give greater consideration to aggregates in
their land-use planning and policies, and provide for the development
of these resources at the local level.
Other Key Findings:
- The aggregates industry contributes $5.1 billion to the state’s gross product, including nearly $1 billion in federal and state taxes.
- Aggregate companies employ nearly 35,000 workers and provide over $1.5 billion in wages.
- Aggregate companies boost the economies of all 58 California counties.
- While construction increased by over $9.5 billion between 1995-99, California’s failure to invest in essential infrastructure is causing critical deficiencies in roads, schools, bridges, power plants, airports and water and sewage systems.
- A deteriorating infrastructure threatens California’s quality of life, public safety and competitiveness in the global economy.
A copy of the study is available from the Construction Materials Association of California, 1029 J St., Sacramento, CA 95814, or call (916) 554-1000.
Michigan Beltway Uses Innovative Asphalt Techniques
Grand Rapids, Mich.—Community and construction company
leaders met to review the progress of paving work under way on M-6, the
new Grand Rapids South Beltline.
The first asphalt for the new beltway was laid in June using an echelon
paving technique. The new technique requires two pavers to work together,
one slightly ahead of another, to achieve a uniform pavement across the
full width of the road. According to the Michigan Asphalt Pavement Association,
this technique reduces the opportunity for cracks, which enhances the
smoothness of the road and results in longer life.
At presstime, the pavement is about 40 percent complete. The paving of
the first 5.7 miles of M-6 from I-96 to M-37 will be finished this fall
and will include four lifts of asphalt, totalling 11 in.
“Our guys know people will be looking at this job under a microscope,
and they are responding with tremendous craftsmanship,” said Roger
Van Putten, division manager for Grand Rapids Asphalt, which is handling
the paving. “This road will be smoother than the German autobahn—smoother
than most racetracks I’ve seen.”
Paving contracts for the work were the subject of fierce bidding by six
firms, because of the Michigan Department of Transportation’s new
“alternate bidding” policy. Under the policy, the department
allows concrete and asphalt firms to both bid to build a road that will
meet the same smoothness and longevity requirements.
During subsequent legs of the project, the Michigan DOT will also be mandating
performance warranties for the first time in the state. Under the warranties,
road construction companies will be held responsible for road failures
such as potholes and cracks for years after the road is open.
“We have strongly backed MDOT as it has moved to modern management
techniques such as alternate bidding and performance warranties,”
said Dennis Rickard, president of Thompson-McCully Co., parent company
of Grand Rapids Asphalt. “We have no doubt that motorists and taxpayers
will be the beneficiaries of these new policies.”
Rickard said he expected the new road to last all of the 20-year design
life mandated by the state department for all highways.
“And when repairs are needed, we will be able to remove the top layer
of asphalt and replace it quickly, working at night, so that motorists
using the road won’t have to face complete road closures,” said
Rickard.
This phase of M-6 is the first full-depth asphalt highway built in the
Grand Rapids area. Techniques being used to build M-6 are based on asphalt
industry research.
California Air Resources Board Adopts Rules to Limit Asbestos Exposure, Require Monitoring
Sacramento, Calif. (AP)—A state agency adopted rules
limiting exposure to naturally occurring asbestos by requiring safeguards
at quarries, housing developments and some single-family homes where emissions
might be an issue.
The new rules adopted by the state Air Resources Board require builders
and miners to reduce dust emissions when working in areas with asbestos-containing
rock. They also allow local air-quality agencies to require expensive
air monitoring.
According to Alan Lloyd, the board’s chairman, the measures “better
protect Californians from the potential threat of cancer” as well
as diseases caused by exposure to asbestos fibers.
“We agree that there is more than enough science out there that asbestos
in the air is a health concern,” said Adam Harper, a policy analyst
with the California Mining Association. But he said the rules could lead
quarry operators and developers to shut down or go somewhere else because
of compliance costs.
While the presence of asbestos in serpentine has long been known, it was
generally believed to be limited to more sparsely populated areas. That
is changing as development stretches out from urban centers.
The new measure follows standards the board set in April to lower the
amount of asbestos allowed in rocks used for roads and decoration.
For mines and quarries, estimated costs range from $500 to $7,000, according
to the board. Statewide costs are estimated between $600,000 and $1 million
per year. Local agencies must adopt the rules by the end of November or
come up with stricter ones.
Framingham, Mass.—CEMEX won the CIO-100 award from
CIO magazine. The award recognizes organizations around the world that
excel in positive business performance through innovative practices and
products.
“In order to survive in the competitive business world, companies
rely on innovative ideas and development of those ideas into sound business
practices,” said Abbie Lundberg, editor in chief, CIO magazine. “Honorees
of this year’s CIO-100 have done just that and are being recognized
for their ingenuity and success.”
This year, CIO honors companies that demonstrate innovation to improve
products, services and relationships with partners and clients.