Quick take

Who can you trust?

One construction manager out there seems to be pulling out all the stops in making itself “trustworthy.” According to a Conference Board of Canada report, The Dalton Co. Ltd. has made trust the cornerstone of its business operations.
Wait a second… aren’t all construction companies trustworthy? Don’t the reams of contract verbiage and platoons of construction lawyers ensure that? To coin a phrase, “Don’t make me laugh.”
Trust can be a scarce commodity in our business. Dalton has taken the steps to implement a culture of trust, along with the systems needed to resolve problems quickly and equitably.
“If you don’t have clear standards, you can’t hold people accountable,” notes Andrew Dalton, the firm’s C.E.O.
“Dalton has put in place systems and processes that have made the company a model for restoring trust in the construction industry as a whole,” says Michael Bassett, senior research associate of the Conference Board.
The systems devised by Dalton are interesting, but I won’t go into detail here. Suffice it to say that regular communication among team members and the customer is key, client needs are central to the firm’s definition of success and team members are held fully accountable to that standard.
The process starts with staffing; the firm will only hire staff who will fit its trust-oriented culture. “You can train skills; I don’t think you can train trust,” says Dalton.
Most reputable builders out there consider themselves to be trustworthy - mostly. But putting your own firm aside, who do you really trust among your partners, suppliers and customers? I suspect it’s the ones that rigorously protect their reputations for doing what they say they are going to do, when they say they are going to do it.
It’s a sad comment on our industry that it would be necessary - or even possible - to single out a firm for its emphasis on trust.

Jim Barnes
Editor
On-Site

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Last poll: Innovation

Last time, we were wondering whether our readers felt that any real innovation had occurred in their businesses over the past few years. The answer was a resounding “Yes!” Only nine per cent of readers said they had made no innovations over the past five years. More than half of the others claimed that their innovations had been “substantial."
We asked them:

Has your company made a substantial innovation in how it handles its work over the past five years - in equipment, systems or new markets?

Here's how they responded.

One respondent commented:

“After more than four decades of being self-employed I was forced in 2005 by the provincial government of B.C. to become certified to be able to carry on my service to my customers – i.e., design and install sewer systems.
The way it came across is that the health inspector is no longer involved, and the responsibility and liability now rests with the contractor. Now the extra costs (liability) are passed on directly to the customer, while the Government still collects the taxes with less service.
In our small community there were about ten owner-operators doing this type of work. When these new regulations came into effect, only two remained - with the unknown liability given as the largest reason to opt out.
Yes, innovation is great - but some times it is forced on us, so we must be able to embrace it.
- Mario

When we considered the various kinds of innovation to be found in construction, we forgot to include the innovation necessary to deal with government red tape!
- Editor

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LIFE AT THE NEXT LEVEL Ice cream lovers rejoice Calling all swingers No mandatory H1N1 vaccination visit the all you need to know about everything place for people 50-plus www.EverBetter.ca

Quick stats:

Toronto strike impacts July building permit numbers

A slight July downturn in building permit activity was worsened by a municipal workers’ strike in Toronto that lasted for most of the month, according to data published by Statistics Canada, Ottawa. The $4.6 billion in permits issued represented an 11.4 per cent decrease from June. Building permit totals for Ontario dropped 27.5 per cent, to $1.4 billion.
Nation-wide, the residential numbers are looking up.
Single-family permits increased 5.2 per cent to $1.8 billion, a fifth consecutive monthly increase.
Multi-family permits declined 19.3 per cent to $824.3 million in July. (Excluding Toronto, they increased 8.0 per cent).
The non-residential numbers are not as healthy.
Commercial permits decreased 18.6 per cent to $1.0 billion.
Institutional permit totals fell 19.7 per cent to $734 million.
Industrial permits declined by 20.5 per cent to $264 million, again attributed largely to the strike in Toronto.
Six provinces recorded increases in the permit values. The total value of permits increased in half of the 34 census metropolitan areas.
The Building Permits Survey covers 2,400 municipalities, representing 95 per cent of the population, and presents seasonally adjusted data. The value of engineering projects (e.g., waterworks, sewers or culverts) and land are not included.

Value of building permits, by province and territory
Residential and nonresidential, Nov. 2008 to July 2009, $ million

Seasonally adjusted. r=revised, p=preliminary.
Source: Statistics Canada

Construction registers slight employment gain in August

Part-time and private-sector numbers led to a slight increase of 27,000 jobs in total employment in Canada in August, according to Statistics Canada’s Labour Force Survey. At the same time, the unemployment rate grew 0.1 percentage points to 8.7 per cent, as more people participated in the labour market.
Most provinces recorded employment gains in August.
Employment increases were recorded in retail and wholesale trade (+21,000) and finance, insurance, real estate and leasing (+18,000). These were offset by losses in business, building and other support services (-33,000) as well as educational services (-17,000), according to Statistics Canada.
Significant employment losses have occurred in most industries, especially manufacturing and construction, since the October 2008 peak. While manufacturing has continued its decline, construction employment has stabilized, registering 1,142,200 in August for a 1.1 per cent increase over July.

Employment by class of worker and industry, thousands  

Source: Statistics Canada

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Canada retains top spot as U.S. machinery destination

Canada easily kept its top position as the dominant destination for U.S. construction machinery exports in the first half of 2009, as reported by the Association of Equipment Manufacturers. The report consolidates U.S. Commerce Dept. data with other information. U.S. exports dropped 36 per cent during the first half of 2009 to $6.4 billion (U.S.), compared to a 2008 number of $10.1 billion at mid-year 2008.

The top 10 markets for U.S.-made construction machinery in the first half of 2009 were:

The chart that follows shows U.S. construction machinery exports for the first six months of each year since 2004. "Other Top Ten" merges the markets that did not make the top ten every year.

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New in the Forum

On-Site's Forum is a collection of industry articles and white papers that our editors deem to have value for the Canadian construction community at large. Here are the most recent additions:

Load concentration: not all trailers are the same
Rated load capacity is not the only important consideration in specifying a trailer, as this article from Rogers Brothers Corp. points out. [2009-09-02]
Cozying up to your banker can cure the recession shivers
Times are tight in the credit markets. Here are some practical tips on making sure you can get access to money when you need it, from the Business Development Bank of Canada. [2009-09-02]
The buzz on BIM, by Barry Reid and Chantal Bateman
Building Information Modelling can be a valuable tool for contractors in clash detection and in determining the impact of new technologies on schedules, as this article from Georgia-Pacific points out. [2009-08-20]
What prevents you from wearing your safety harness? by Alicia Brady
Despite current knowledge of the importance of fall-safety hardware and procedures, these accidents still occur regularly, according to B.C.'s Construction Safety Network. Why?
Dehumidification vs. heat in construction-drying applications, by Garrett Freeman
High moisture levels can be a huge problem in any construction project. This article from Munters examines some of the benefits of dehumidification technology.
10 ways to prevent fuel theft
These tips on fuel management from 4REFUEL Ltd. may help improve your balance sheet.

News Bytes

The truth about LEED
The North American construction industry - from the owners on down - have bought into sustainable construction in a big way. The main agent of change has been LEED, the Leadership in Energy & Environmental Design program administered in Canada by the Canada Green Building Council.
But is the investment paying off? The Institute for Research in Construction at National Research Council Canada  has taken a first step toward answering this question in a report entitled Do LEED-certified buildings save energy? Yes, but …
Authors Guy R. Newsham, Sandra Mancini and Benjamin J. Birt compared data on energy use in 100 LEED-certified buildings with energy use in conventional buildings. They also assessed energy use in terms of  LEED certification level and energy-related credits achieved in certification.
The bottom line? “On average, LEED buildings used 18 to 39 per cent less energy per floor area than their conventional counterparts,” says the report.
But that wasn’t all. The report goes on to note that 28 to 35 per cent of LEED buildings used more energy than their conventional counterparts. As well, energy use showed little correlation with certification level or energy credits achieved.
The authors caution that these are preliminary findings and that further analysis is needed. They noted that “Further work needs to be done to define green-building rating schemes, to ensure more consistent success at the individual building level.”
www.nrc-cnrc.gc.ca

Drapeau handles Link-Belt
Consultants F. Drapeau, Inc. is now a Link-Belt crane distributor for Quebec, announces Brax Snyder, manager, Worldwide Sales for Link-Belt Construction Equipment Co. of Lexington, Ky. Drapeau has branches in St-Mathieu-de-Beloeil and Terrebonne. Link-Belt manufactures telescopic-boom and lattice-boom cranes.
www.linkbelt.com

Badger joins Manitex
Manitex International, Inc. of Bridgeview, Ill. has acquired Badger Equipment Co. of Winona, Minn., a manufacturer of rough-terrain cranes and material-handling products, from Avis Industrial. Manitex is a supplier of boom-truck cranes, rough-terrain forklifts and other vehicles. The total value of the transaction was $3 million. “We are particularly excited about the opportunity to introduce the new 30-T. rough-terrain crane, which we will begin to ship against orders in-hand in this current quarter,” said Manitex chair and C.E.O. David J. Langevin.
http://manitexinternational.com

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Calendar of events

September 16 to 18: National Design-Build Conference The event provides information on design/build projects of all sizes and includes the Design-Build Fundamentals Tutorial. It is being organized by the Canadian Design-Build Institute. The site is the Hyatt Regency Chicago, Chicago, IL. www.cdbi.org

September 20 to 22: Annual Fall Conference The annual fall conference of the British Columbia Road Builders will be held at the Grand Okanagan Resort and Spa, Kelowna, BC. www.roadbuilders.bc.ca

September 22: Fall Concrete Seminar. Includes a comprehensive seminar program, table-top exhibition and social events. The American Concrete Institute - Ontario Chapter will hold the event at the Mississauga Grand Banquet Hall, Mississauga, ON. www.aciontario.com

September 23 to 26: 25th IIDEX/NeoCon Canada. This design-oriented show and conference includes the Green Building Festival and the World Green Building Council Summit.  The Direct Energy Centre, Toronto, ON is the site for this event. www.iidexneocon.com

October 1 to 2: Session #26. Topics at this conference will include Building Information Modeling (BIM) and performance specifications for concrete.  The Strategic Development Council (part of the ACI Foundation) event will be held at the Inverness Hotel & Conference Center, Denver, CO. www.concretesdc.org

October 6 to 8: ICUEE. The International Construction and Utility Exposition will co-locate with the new H2O-XPO exhibition that targets water and wastewater utility equipment and products. The Association of Equipment Manufacturers and the National Rural Water Association will hold this show at the Kentucky Exposition Center, Louisville, KY. www.icuee.com.

October 17: The Last Blast - Fall Steam Up. Antique construction equipment, including some rare steam-powered machines, will be demonstrated under power.  The Historical Construction Equipment Association of Canada will hold the show at the Simcoe County Museum, Minesing, ON. www.hceacanada.org

October 28 to 29: Canadian Waste & Recycling Expo This trade show for the waste, recycling and public works markets includes a seminar program. Sponsored by a number of industry associations, the event will be held at the Vancouver Convention & Exhibition Centre. www.cwre.ca.

November 3 to 4: BUILDEX Calgary will co-locate with Construct Calgary/Homebuilder & Renovator Expo and DesignTrends Calgary. The MMPI Canada Inc. events will take place at the Calgary Stampede Roundup Centre, Calgary, AB. www.buildexcalgary.com.

November 5 to 7: Design-Build Conference and Expo. An extensive conference program will have a special focus on sustainability.  The Precast/Prestressed Concrete Institute (PCI) has slated the event for the Gaylord National Convention Center, Washington, DC. www.designbuildexpo.com

November 8 to 12: Fall Convention, sponsored by the American Concrete Institute. With a theme of "Spice up your Concrete" the event encompasses more than 300 committee meetings, over 30 technical sessions and the Forum on Sustainability. The site is the New Orleans Marriott hotel in New Orleans, La. www.aciconvention.org.

November 15 to 17: Annual Conference. This Association of Equipment Manufacturers conference will address business challenges related to the recession. Roundtables will include special reference to the situation in Canada.  The site is the Westin Diplomat Resort & Spa, Hollywood, FL. www.aem.org

December 2 to 4: Construct Canada, Home Builder and Renovator Expo, Concrete Canada and the National GreenBuilding Conference will be co-located, offering more than 200 seminars and 1,050 exhibits at the Metro Toronto Convention Centre. MMPI Canada is the organizer and numerous industry associations are sponsors of the event. www.constructcanada.com.

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Next issue: September/October

The biggest technology news in construction machinery today is the Tier 4 emissions standard - the subject of the lead article in our next issue. We'll also be featuring stories on dump trucks and construction trends in the Oil Patch.
That's in addition to all our regular business columns... Construction Software, Contractors and the Law, Risk and Industry Statistics, not to mention the Funny Photo contest!
If you have any questions or suggestions, contact the editor, Jim Barnes, at (416) 764-1612 or editor@on-sitemag.com
For a subscription, click here.

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