MCAA Regional Report, Region E

ECONOMIC CLIMATE AND FORECAST

Iowa
No report.

Minnesota
According to the Minnesota Department of Labor, January's seasonally adjusted unemployment rate declined by one-tenth of a percent point to 4.1 percent compared to December numbers. The national rate was 4.7%. The largest over the year increase in claims was in the construction industry, up by 700 claims or 10 percent. January's job loss was a result of weakness in construction, manufacturing, and financial activities. Construction lost 2,300 jobs. According to the Bureau of Labor Statistics, Minnesota had 128,200 employees in construction-up 200 for one year ago. Our record high is 130,600 jobs in December of 2004.

In 2005 the Minnesota legislature did pass a bonding bill close to $1 billion, and another one is being put together of similar size in the 2006 session. According to Federal Reserve of Minneapolis' reports, construction activity continues to grow in this region. Employment grew in 2005 and the Feds are predicting continued growth in 2006. However, energy and materials prices rose significantly last year, both in construction and in consumer spending. Housing markets are showing signs of cooling, according the Reserve.

Missouri
As of January 2006, Bricklayers' hours are up compared to January 2005. There appears to be a lot of work in the region, with big work commercial growing steadily. Schools, both on an elementary and collegiate level, are looking good. Big box retail has slowed and stand-alone retail is flat yet lifestyle centers, a mix of loft apartments above retail stores, is steadily growing. Office space is starting to show improvement. A lack of large blocks of contiguous space is forcing larger tenants to consider new construction. Institutional construction is growing.

MASONRY MARKETING ACTIVITIES

Iowa
No report.

Minnesota
Nearly 30 secondyear apprentices from BAC Local # 1 MN/ND visited International Market Square in February for a building tour to see how load bearing masonry buildings of the early 20' Century were built. They also visited the IMI office there to learn about the library and information resources available to them. Nineteen architects and engineers from The Benham Group, a St. Paul firm, attended a lunchbox program by IMI also held in February. The last three sessions of the Engineers' Masonry Series at the University Of Minnesota- College Of Continuing Education drew over 250 people. MC&MCA members provided ideas and participated in the final program on "Jobsite Solutions."

A result of this last program was that CASEIMN would like to have masonry contractors submit descriptions of their most common "bugaboos" they see on plans or specs that engineers are responsible for. These items will be gathered by Olene Bigelow at the IMI office and provided to CASEMN for them to use in a program for their organization in the fall.

All of this was discussed in a very positive, constructive manner at the final program session, and enthusiasm is high for reaching solutions to any challenges that are out there. Email your thoughts to obigelow@imiweb.org, or mail to her at IMI, 275 Market St., #5 1 1, Minneapolis, MN, 55405. Planning for next year's series will begin in April or May. Anyone having ideas for program content is asked to call Olene Bigelow, 61 2-332-2214.

Two days in February were U of M architecture student days for Olene Bigelow and Mark Wickstrom. Bigelow presented a program in lecture format for 81 fifth-year students February 14 and Mark Wickstrom did a masonry building demonstration for the same group February 16. Each class period is only slightly more than an hour, so the material had to consume two class periods.

The students, members of Prof. Sharon Roe's Structures class, are in their final semester before graduation, and many are already doing part-time internships in design firms.

IMI and CASEIMN (Council of American Structural Engineers), in cooperation with Dr. Arturo Schultz, civil engineering professor from the University of Minnesota, will again present the Engineer's Masonry Short Course first conducted last summer. The course will be held March 21 - April 25 this year, and is designed to serve young engineers who were unable to take a masonry course before finishing college.

Plans are under way for the 11^th Minnesota Masonry & Concrete Academy held at St. Cloud State University. For over 10 tens this academy has been targeting technology education, or "tech-ed, teachers to introduce them regarding masonry and concrete in their preparation of high school classroom activities and new career options for their students. Trainers at the Academy from the BAC Local #I MNIND training program and Local #1 field staff have been visiting these high schools to do classroom presentations, participate in Career Day programs and provide all-day hands-on activities for those schools requesting help. Hundreds of high school visits have happened since the program was launched in 1996.

The Academy program has evolved into a full two-week summer session run through St. Cloud State University, and now also attracts students of construction management and project management. It's a wellknown fact that various form of Construction Management or DesignIBuild project delivery systems are in increasing use. Therefore, it is critical that students in these programs have positive learning experiences with masonry before they graduate. To that end, the Academy has broadened its focus to include both CM students and Technology educators, and it's a combination that is working well.

Dr. Kurt Helgeson at St. Cloud State, works with IMI and members of MC&MCA, MCMA and BAC Local #I staff to provide speakers for the sessions, transportation for the tours, tour guides, some meals, overnight lodging, printed materials, coordination of hands-on activities and other needed elements. In the words of one of the class members, the Academy " ... covered everything, from the quarry to the wall."

Class members commented most frequently on two things: One was the eye-opening effect of the tours and the other was the opportunity to hear from contractors, craftworkers, construction managers, association staff and manufacturers of masonry materials about the real-world challenges of getting a project built. Many were impressed with the number and variety of careers available in the masonry industry as well.

The MC&MCA is set to celebrate the winners and all the entries in our annual Excellence in Concrete & Masonry Construction and Design contest. 2006 marks our 25'h Contest! This year we will be announcing 11 masonry and five concrete project winners. Members enter their best commercial and residential buildings constructed in concrete and masonry. They were judged early this fall on location by teams of architects and other industry professionals. The winners were announced at our awards banquet held at the conclusion of a today convention on March 24-25. The winners have been notified in advance so they can invite owners, general contractors, and architects to the dinner. Participating judges are invited to attend the awards dinner as our guests. Over 200 people attended the awards banquet this year and we are expecting even more this year!

The winning entries are featured in a four-page, five-color public piece that is inserted in the annual AIA directory. Photos of the winning entries are scanned into our web site to "showcase" them to architects, owners, potential members, and the general public. The contest and awards banquet is one way to recognize the quality of concrete and masonry to the design community. One of our masonry winners landed on the cover of a natural masonry magazine!

The IMI submits our winning masonry award winners into the national BAC Craft Awards, a contest conducted by the International Union of Bricklayers and Craftworkers. Minnesota entries continue to win annually at the national level.

The MC&MCA provides a monthly newsletter and email alert system to keep our members and friends informed as to schedules, events, news, etc. We also print an annual Directory and Buyers Guide each April. Our annual golf outing in June fills out each year. We hold monthly membership meetings in order to provide members will face to face exposure to fellow contractors, suppliers, and industry friends and colleagues. All of our events are designed to break even or make Page money in order to keep the annual 4 dues at a reasonable level.

The MC&MCA will be awarding six scholarships at our annual awards banquet in March. Two scholarships went to bricklayer apprentices, two to concrete apprentices, one to a tile apprentice, and one to a laborer apprentice. Each scholarship is for $500 and is awarded directly to the student for his or her own needs. The winners are selected by the apprenticeship coordinator of each program to best determine the student with the need and the desire.

Our goals for 2006 include working closely with our construction industry contractors, as well as, suppliers of goods and services that our industry uses every day. We will continue to work with the architectural community to design and specify more masonry and concrete projects. We will also continue to work with the unions on employee recruitment and training. Other goals include providing programs and other membership services that our members want and deserve. We are meeting with and working with the MCMA and the IMI in order to better coordinate, partner, and cost-share programs and projects of interest and valued to the masonry industry.

Missouri
The Masonry Institute of St. Louis (MISL) continues to market to the design community, with weekly educational presentations specifically for architects, engineers, code officials and general contractors. Attendance has been at maximum levels for all sessions.

The MISL recently had market research completed for the region which identified two areas of growth for our industry: 1) marketing more aggressively to general contractors and homebuilders and 2) municipal ordinances. Due to brick's historic presence in the St. Louis area, ordinances have been and continue to be developed that support the use of masonry. The market research showed that local ordinances help to promote masonry as the viable cladding option and it is up to the manufacturers and installers to market through the proper channels to ensure competing products are not being used in place of masonry.

WORKFORCE DEVELOPMENT ACTIVITIES

Iowa
No report

Minnesota
The 2005-2006 Bricklayers & Allied Craftworkers: Apprenticeship Program will' end this school year with 71 apprentices enrolled in the metro portion of the program. This number includes 24 first year bricklayers, 27 second year bricklayer apprentices, and 20 apprentices working on their third year. In addition, there are 45 bricklayers apprentices enrolled in the out-state bricklayers program for a total of 116 students in the brick program.

Changes in the metro brick program allow apprentices working in PCC to use their own specific courses. These changes were made due to industry demand and limited numbers of participants. During the PCC training students will receive JLG training and certification, suspension scaffold training and certification, and OSHA 10-hour certification. The students will also be trained in mortar removal, mortar matching, re-pointing mortar, caulking and cleaning, and new technologies. According to Mark Wickstrom, Apprenticeship Coordinator, these changes will strengthen cooperation with restoration contractors and promote participation levels of PCC apprentices. Currently the program has 11 active PCC students, including 11 of the 24 first year students.

Apprenticeships in out-state Minnesota and North Dakota are now using the identical training materials as those used in the metro program. All assignments, exams, and course materials will be processed at the metro facility instead of the previous practice of using a local community college. In the first four months of the newly adjusted outstate course work, the program has completed four outstate apprentices.

After pre-job training, the workers receive 55% of the Journeymen's wage ($15.34 per hour wages, $2.50 vacation, and $1.05 for dues, for a total of $1 8.89 per hour taxable income and benefits). The current hourly wage rate for a Journeyman Bricklayer in the Twin Cities Metro is $31.44 plus $11.50 for benefits for a total of $42.94 per hour taxable income and benefits.

The St. Paul based tile finisher and tile layer apprenticeship program will complete the school year with 57 students. That number includes 15 first year tile finishers and 15 second year finishers, as well as, 19 first year tile layers and 8 second year tile layers. In addition, there are 18 students registered as out-state tile finisher and tile layer apprentices for a total of 75 students in the Minnesota and North Dakota tile program.

In 2005, mason hours for the Bricklayers Local 1 of Minnesota and North Dakota totaled 3,320,2 19 hours. For the first quarter of 2006, the Minneapolis and St. Paul metro area will be down significantly. However, spring and summer hours are expected to be strong.

Once again this summer the Bricklayers and Allied Craftworkers Local Union #1 of Minnesota and North Dakota offered a six week pre-job training program starting on May 1. Last year 25 students enrolled in the program with 20 completing the classes, and eight being placed with contractors.

On May 1, our contractors will be entering the third year of the three-year labor agreement with the bricklayers, cement masons, laborers, operators, ironworkers, and carpenters. All of the new labor agreements reached with the union trades were focused on "journey worker training" and "worker readiness." MC&MCA was pleased with the efforts to improve in this area. Bricklayer's Local #1 is anxious about the new language in the agreement setting a minimum journeyman apprentice ratio of 10 journeymen to one apprentice. According to Wickstrom, they are hopeful that this new ratio is enforced and will greatly improve the employment opportunities for the apprentices.

Missouri
Every bricklayer and laborer is in the process of being 10-Hour trained and apprentices at the school have completed swing stage training. MISL presented the new International Residential Code to MCA contractors and builders and outlined its impact on future projects. MCA St. Louis's PCC Committee (Pointers, Caulkers and Cleaners) recently sponsored a two-day New Construction Masonry Cleaning and Restoration Masonry Cleaning program. In April St. Louis is hosting BIA Vice-President Gregg Borchelt, P.E. for a session of Single Wythe Clay Masonry Units. The PCC Committee will be providing caulking and sealant and tuckpointing training in the second and third quarters of 2006.

COMPETITOR/TRENDS

Iowa
No report.

Minnesota
No report.

Missouri
Non-residential construction, market share has been lost to precast, tilt-up, exterior insulation and finish systems (EIFS) and other masonry looking products. Currently panelized systems represent less than 2 percent of brick usage in square feet; however, usage is expected to increase due to lower Page installation and labor costs, better 7 quality control because it is prefabricated and faster erection time. Panelized systems are most commonly used in large projects but not in smaller projects that require more flexibility in design and the ability to adapt to new tenants. Long lead times and lack of load-bearing properties are seen as disadvantages to panelized systems.

Although in residential construction there is a growing market acceptance of vinyl siding, the majority of builders (71%) state that brick is standard on the homes they build. Vinyl is used in almost 100% of homes 2,501 - 3,500 square feet; however, that number drops substantially in homes over 3,500 square feet. Usage of stone dramatically increases in larger homes. Consumers recognize the value of masonry for its durability, aesthetic appeal and low maintenance.