April 17, 2014

CT Construction Digest April 17, 2014

United Rentals sees net income jump

United Rentals, Stamford-based global equipment rental company, announced first quarter net income of $60 million or 56 cents per diluted share, compared with $21 million or 19 cents per diluted share for the same period last year. Total revenue was $1.18 billion and rental revenue was $1.01 billion, compared with $1.10 billion and $916 million, respectively, for the same period last year. The company has reaffirmed its outlook for a full-year increase in rental rates of about 4 percent, and full-year total revenue in a range of $5.45 billion to $5.65 billion. “We’re off to a strong start in 2014, with notable year-over-year growth in rates, time utilization and volume,” CEO Michael Kneeland said, in prepared comments. “Despite the headwind of a harsh winter, we strategically managed our business to capitalize on pockets of opportunity. We now see solid demand in almost every market, giving us further confidence in our full year outlook. The feeling in the field is upbeat — our customers and managers are bullish about business prospects, including the long-awaited recovery in commercial construction. We plan to leverage our scale in this environment and bring in about $750 million of fleet in the second quarter.” The integration of the National Pump acquisition is going well, he said, and United Rentals recently opened three specialty branches in trench safety, power and heating, ventilating and air conditioning. United Rentals has reaffirmed its outlook for full-year 2014 free cash flow in the range of $425 million to $475 million, after net rental capital expenditures of about $1.2 billion and gross purchases of about $1.7 billion. During the first quarter, the company repurchased $43 million of common stock as part of the $500 million share repurchase program that was announced in October 2013. The company’s intention is to complete the program by April 2015.

Large projects drive construction cost escalation in first quater

Turner Construction Company announced that the First Quarter 2014 Turner Building Cost Index – which measures costs in the non-residential building construction market in the United States – has increased to a value of 885. This reflects a 0.80% increase from the Fourth Quarter 2013 and 4.24% yearly increase from the First Quarter 2013.  The increase in construction costs is the reflection of various market factors including constrained availability of labor, stability in commodity prices and competition in the market. Large projects in urban centers have witnessed an increased level of cost escalation while competition for small and medium-sized projects is working to restrain increase in construction costs. Approximately 90% of Turner’s business is performed under contract arrangements where Turner provides extensive preconstruction planning services before the contract price is fixed and before construction starts. By providing preconstruction services and utilizing enhanced procurement strategies, Turner effectively manages the market risks associated with cost-related issues.  Turner has prepared the construction cost forecast for more than 80 years. Used widely by the construction industry and Federal and State governments, the building costs and price trends tracked by the Turner Building Cost Index may or may not reflect regional conditions in any given quarter. The Cost Index is determined by several factors considered on a nationwide basis, including labor rates and productivity, material prices and the competitive condition of the marketplace. This index does not necessarily conform to other published indices because others do not generally take all of these factors into account.  CLICK TITLE TO CONTINUE

It helps to be prepared, with an AED

SOUTHINGTON — Since the mid-1970s, John Barrasso has trained thousands of people in the construction industry to perform CPR and to use an automated external defibrillator. It wasn’t until recently that he had to put his own training into action, which helped save a woman’s life.
On March 29, Barrasso and his wife, Elaine Barrasso, both Southington residents, attended an annual gala for the Connecticut Yankee Council of the Boy Scouts of America at The Waterview in Monroe when a woman fell out of her chair onto the floor. “The minister was giving an invocation and all of a sudden we have our heads bowed and we hear, ‘is there a doctor in the house?’” Barrasso said. “I saw a lady and gentleman run to the other side of the room. One was a doctor and one was a nurse.” Once people started helping the woman, Barrasso said someone shouted for a CPR valve mask that helps clear the airway. By habit Barrasso had one hanging on his keychain and ran to give it to them. CLICK TITLE TO CONTINUE
 
 
Norwich – With the Thames River as a backdrop and standing on a crumbling concrete lot, Gov. Dannel P. Malloy this morning announced $3.8 million in brownfields assessment grants statewide, including $200,000 for the city of Norwich to start a long-planned project to move the city boat launch to the Shipping Street area. The Norwich funding will assess 8.5 acres across five parcels in the Shipping Street-Terminal Way area, a blighted former industrial district that has been a target of city officials for redevelopment for the past decade. The funding announced this morning also includes $200,000 to the city of New London to assess 6.8 acres across two downtown parcels for mixed-use development including affordable housing and $200,000 to Preston to do environmental assessment on 13 buildings slated for demolition at the former Norwich Hospital property. Malloy said while the state's industrial past might have been the backbone of the economy years ago, those buildings and sites now present environmental and blight challenges.CLICK TITLE TO CONTINUE

Falls Village officials give OK for streetscape

FALLS VILLAGE — The Board of Selectmen gave strong support to the design of the streetscape and sidewalk project for Main Street in their approval during a meeting Monday. This came after resident Ellery "Woods" Sinclair read a letter at the start of the session in which he urged the board to oppose it. "The proposed plan is in part contrary to a primary priority of residents: to maintain the rural character of our town and community," Sinclair said. The town received a grant last summer of $450,000 from the Main Street Investment Fund for upgrades to the village center that include installing a sidewalk that will stretch from in front of the Falls Village Inn to the parking lot of Lee H. Kellogg School. It also calls for new landscaping, lamp posts, curbing and the installation of pavers.
First Selectman Patricia A. Mechare said the process has been very open, noting there's never been a downtown plan and this one comports with the town's Plan of Conservation and Development. She told Sinclair she disagreed with him about what the finished product would look like.