Recycling and Conserving Construction Material to Save Money and Your Business
Those who make their living in the construction industry have a lot to worry about these days- and I am not talking about the slump in commercial and residential construction. In the face of rising fuel prices and the surging cost of raw materials, many small and medium-sized contractors are realizing that in order to keep operating they must change the way they do business.
To that end, numerous builders, contractors, and demolition companies are learning how to best conserve and recycle their resources. Here are a few of the most successful ideas:
Get what you need for cheaper:
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Shop at a stores that sell used building materials and check out your local materials exchanges.
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Keep your eye on the global markets for price-volatile, commodity items, such as wood, metal, and aggregates and where possible negotiate bulk purchases for future projects and advance buys.
Make the most of what you have:
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Many raw materials, such as wood, metal, drywall, and concrete can easily be recycled for resale or reuse. You should research your options to see whether it pays transport material to a recycler or to recycle on site with your own equipment, such as a wood chipper or an industrial grinder.
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Fuel can also be conserved with the use of various location-based and telematic devices.
Plan ahead:
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Create a waste reduction or recycling plan for your business, and give it over to your employees.
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Use standard material sizes in your building plans
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Include the use of recycled supplies in your building plan
For more information on construction material recycling and waste disposal check out these sites:
The Environmental Protection Agency
www.epa.gov/epaoswer/non-hw/debris-new/index.htm
Wisconsin Department of Natural Resources
dnr.wi.gov/org/caer/cea/publications/pubs/section3/ie211.pdf
Winham Solid Waste Management
Constructionbusinessowner.com
www.constructionbusinessowner.com/
Building Materials Reuse Association
The Housing Stimulus Bill: Good for the Housing Industry; May Leave Homeowners in the Cold
Last month, the US House of Representatives passed a Housing Stimulus Bill addressing the foreclosure crisis that is currently gripping the nation. While the bill includes several items aimed at helping the housing industry, some are quick to point out there is little direct help for families facing a foreclosure.The bill, which is awaiting Congressional approval, has three major provisions that could provide a significant boost to homebuilders and other businesses involved with the housing industry:
Tax Exempt Mortgage Revenue Bonds
The housing bill includes a $10 billion increase in state revenue bonds to help refinance existing mortgages and prevent foreclosures. The money will also be used to provide mortgages for first-time home buyers. The housing bill will further provide another $4 billion in grants to states and local governments in order to buy and renovate abandoned and foreclosed homes.
Net Operating Loss Carry Back Expansion
This provision allows any housing-related business that loses money in 2008 and 2009 to use those losses to offset the taxes they paid in the previous four years, as opposed to the two years currently allowed by law. By allowing operating losses to be claimed now, homebuilders and other businesses that are suffering will be given instant financial resources to help them get through the economic downturn.
Tax Credit for Purchase of Homes
To encourage the purchase of foreclosed or newly built homes, a tax credit of $7,000 would be available to new home buyers which could be claimed over two years.
While the powers-that-be debate the provisions of the housing bill and the extent to which it will actually help families facing foreclosure versus the housing industry itself, one thing is for certain: any intervention on the part of the government will bring some measure of welcomed relief to an ailing industry.
2008 Trends in the Acquisition of Construction Equipment
According to the 2008 Wells Fargo Construction Industry Forecast, even with signs of a slowing economy American contractors are looking this year to buy, lease, and rent additional construction equipment. The forecast, which was conducted last fall, was based on more than 1,150 telephone surveys with executives of construction contracting companies and construction equipment distributor firms throughout America and Canada. According to those surveyed, 37% of contractors expect to make equipment purchases in 2008, which is only 5% fewer than the previous year’s forecast.
What are contractors buying?
A third of contractors who plan to buy construction equipment are considering both new and used equipment, up from 19% with similar plans a year ago. Almost half of contractors plan to buy only new equipment in 2008, while 20% are looking to purchase only used machinery.
Thirty-eight percent of the contractors who plan to invest in equipment in 2008 expect to purchase at least one highway truck. The most common expected purchases among contractors include: hydraulic excavators, rubber-tire backhoe loaders, wheel loaders and crawler dozers.
Trends in leasing and renting
According to the industry forecast, the percentage of contractors looking to rent or lease equipment in 2008 is expected to rise to 19%. Just over half of contractors find renting or leasing a good alternative to purchasing construction equipment, especially for equipment that is not often used. One-third said they rent to meet unexpected needs, and 21% said lower cost makes renting an attractive option.
Contractors rent or lease a wide range of equipment including: loaders, backhoes, dozers, forklifts and fork trucks
Finance issues
Over half of contractors (55%) and almost half of distributors (49%), said cash flow was one of the construction industry’s most serious problems for 2008. More than half of each group also considers profit margins and cost of capital to be serious issues.
When determining the right financial services provider, several factors are considered important. Top on the list was personal experience with the provider (89%), followed by construction industry reputation (81%), and interest rates (79%).