Scrop Iron: Reported United States aggregated spot market prices per gross ton shown for each commodity are based on all Management Science Associates’ (MSA) Raw Material Data Aggregation Service (RMDAS) participants’ actual order data submitted to and processed by MSA as of the 20th of each respective “buy month,” rounded to the whole integer. A map of RMDAS regions is available at http://rmdas.msa.com, as is a further explanation of RMDAS methodology and an accompanying disclaimer.

No. 1 HMS defined as prepared obsolete scrap, 5 feet long and under. Additional pricing information on each grade can be found at www.RecyclingToday.com.

© 2018-2019 Management Science Associates Inc. All rights reserved RMDAS is a trademark of Management Science Associates Inc.

Copper - LME Pricing: Source: London Metal Exchange, www.lme.com

Aluminum - LME Pricing: Source: London Metal Exchange, www.lme.com

Stone and Aggregate Pricing: *Index is based on 1982 average price as 100; Source: U.S. Bureau of Labor Statistics

Wood Scrap: Source: North American Wood Fiber Review; Detailed pricing and analysis for California and other U.S. regions is available by subscription at www.woodprices.com.

There is no time like the beginning of a new year for looking ahead to forecast where we’re heading. At the outset of 2020, questions abound regarding a possible recession, political uncertainty and ongoing trade wars. But despite some potential headwinds on the horizon, the construction sector is still riding the wave of heavy demand.

To understand where the construction sector is trending, Construction & Demolition Recycling reached out to Associated Builders and Contractors (ABC) Chief Economist Anirban Basu and Associated General Contractors of America (AGC) Chief Economist Ken Simonson to get their predictions on what to expect in the year to come.

A look back

To understand where the construction industry is heading, it helps to look back on how things played out in 2019. Basu says some of the most notable shifts in the construction sector were a weakening private nonresidential sector and a strengthening public nonresidential sector.

“For several years, private nonresidential construction spending outpaced the rate of growth observed in the public sector, yet that changed in 2019,” Basu says. “As of October 2019, public nonresidential spending was up 10.4 percent year over year, while private nonresidential spending contracted 4.3 percent. Private sector weakness is largely attributable to a 16.3 percent year-over-year decrease in the commercial category. The approximately $16 billion decline in that category accounted for 82.4 percent of the decline in private spending from October 2018 to October 2019.

“Public sector growth has been fueled by rapid growth in the educational category and in infrastructure-related categories such as highway and street, transportation, sewage and waste disposal and water supply. ABC’s Construction Backlog Indicator for September 2019 showed 11.8 months of backlog for contractors in the infrastructure category, the highest reading of any segment. The increased levels of infrastructure spending stand out as one of the most significant stories of 2019.”

Simonson points to three major turnaround stories witnessed in 2019 that help paint the picture of the current state of affairs in construction.

“Single-family homebuilding tailed off sharply from early 2018 until mid-2019, then began a pickup that should carry over into 2020 thanks to the sharp decline in mortgage interest rates in the fall of 2019,” he says. “Public construction spending accelerated across both infrastructure and building categories, and though the outsized gains in early 2019 faded later in the year, public spending should be at least modestly higher again in 2020. Retail construction spending, which increased 5 percent from 2017 to 2018, collapsed in 2019 and is likely to fall still lower in 2020 in light of all-time-high store closings.”

Demand

One indisputable positive trend in the construction space is the backlog of work contractors are reporting. This portends that demand will keep companies busy in 2020.

Basu says that despite some concerning indicators surrounding employment trends and private nonresidential spending, work backlog remains lengthy for most. He points to ABC’s Construction Backlog Indicator, which showed that the average contractor had nearly nine months of overall backlog in September 2019. This was roughly the same level observed throughout the third and fourth quarters of 2018 when the industry was enjoying record growth.

Simonson agrees that while backlogs remain strong, there are other question marks surrounding employment that have contractors concerned.

“Contractors almost universally report that they are busy with backlogs that have not softened,” he says. “Based on their statements and the record number of job openings, it appears contractors expect to stay busy; their major worry is finding enough workers, not finding enough work to pay them.”

Simonson continues that although both Bureau of Labor Statistics (BLS) data on construction employment and Census Bureau figures on construction have indicated a substantial slowing in hiring and spending since early in 2019, the likelihood is that most firms may have trouble filling openings that come available.

“The worker shortage may become even more acute now that the overall unemployment rate is at a 50-year low and many industries are competing for workers,” he says.

Similarly, Basu points to ABC’s September Construction Confidence Index that showed more than 60 percent of contractors intended to increase their staffing levels during the following six months as an indicator of an ongoing hiring crunch.

“This [desire to hire] comes at a time when the U.S. construction industry reports unprecedented levels of job openings and industry unemployment hovers near an all-time low. Given healthy levels of backlog and relatively robust levels of spending, we do not anticipate the worker shortage lessening in 2020—quite the opposite,” Basu says.

Infrastructure

Although the much-discussed federal infrastructure package that was a key talking point in the first half of President Trump’s term has seemingly been put on the backburner, infrastructure spending has remained strong spurred by local and state investments.

“One of the sources of strength for the U.S. economy over the last year was the pickup in infrastructure spending,” Basu says. “While the federal government has yet to fashion a full-fledged infrastructure plan for the nation and the Highway Trust Fund is set for insolvency by 2021 absent congressional action, infrastructure-related outlays remain a good news story. So far, it has been state and local governments that have come to the rescue, supported by rising collections of income, sales and property taxes.”

He says these investments have been especially beneficial for the water/sewer, transportation, and highway and street construction segments.

Simonson says this state-specific infrastructure spending should carry over throughout the new year, particularly as it pertains to road construction.

“With 33 states having increased highway funding in the past seven years, those revenues are now growing by enough to support a significant pickup in highway construction,” he says. “In addition, there is more construction of toll roads, bridges and tunnels than there was previously. These trends should continue through 2020. Airport construction also increased sharply in recent years but may have plateaued, although it should remain at a high level. Major mass transit overhauls or expansions are underway in several metro areas. Sewer and drinking water investment have rebounded from a long collapse but are likely to increase only modestly in 2020.”

Political uncertainty

It has been said that “business likes certainty,” but questions and uncertainty in the legislative and political realm will likely abound throughout 2020 due to today’s unsteady climate.

According to Basu and Simonson, some of this uncertainty, specifically around tariffs, has begun to affect the construction sector.

“The major effect of the trade wars and tariffs has been heightened levels of uncertainty,” Basu says. “There are warning signs that this has begun to affect private construction segments. As 2020 progresses, keep a close eye on private construction spending levels and backlog. These could represent an emerging source of weakness as trade disputes persist and uncertainty mounts.”

“Some contractors were hit directly by the imposition of steep tariffs on steel and aluminum,” Simonson says. “Those were one-time impacts, that for many companies, have now reversed as a cooling U.S. and global economy has brought down many commodity prices. The real damage to construction is in projects that may have been canceled, postponed or scaled back as manufacturers, logistics and transportation companies, and ports experience higher costs on imports and retaliation for U.S. tariffs.”

Basu says that from a policymaking perspective, a lot is on the line with the upcoming 2020 presidential election regarding the future of health insurance, defense contracting, trade relations with China and other partners, taxes and regulation. He notes this uncertainty could lead to a pause in both household and government spending.

“For households, [the election could] translate into uncertainty regarding federal taxes, state and local tax deductions, incentives to purchase electric vehicles, social assistance, payments to farmers, etc.,” Basu says. “Even state and local government policymakers face growing uncertainty regarding future federal spending on infrastructure and social programs like Medicaid.”

He says that this heightened level of uncertainty could result in a “wait-and-see” approach being adopted by households, businesses and governments, which would further halt economic activity amid the already-slowing global economy. Still, Basu says an “inverted yield curve and other indicators have been flashing yellow for months even as the U.S. labor market performs brilliantly.”

Simonson says that while every election affects the construction industry differently, the fate of infrastructure spending could ultimately rest in whether or not there is one-party control of the White House and both houses of Congress. If not, he says federal funding for highways and other infrastructure projects could be tied up in disputes over party lines for years.

About that recession

Since the Great Recession, the United States has enjoyed a longer-than-normal period of growth. While this has caused some to speculate on whether a pending recession is inevitable in the near future, Basu and Simonson say the evidence doesn’t necessarily point in that direction for 2020. “I don’t try to model the economy myself, but I pay attention to surveys such as the Outlook Survey of 53 professional forecasters that the National Association for Business Economics released on Dec. 9, 2019,” Simonson says. “None of those respondents forecasted a recession in 2020, though the median forecast is for slower growth than in 2019 (which was expected to be slower than in 2018). I agree, although I expect single-family homebuilding and home sales to provide a boost to the economy.”

Basu says that as the economy enjoys reasonably healthy momentum leading into 2020, he too sees a slowdown on the horizon.

“We expect economic growth to slow as 2020 progresses and as elections approach,” Basu concludes.

Nothing is certain when it comes to predicting the future, but being able to read the tea leaves on where the construction industry is heading can help contractors ready themselves and their businesses for what’s next.

The author is the editor for Construction & Demolition Recycling magazine and can be contacted at aredling@gie.net.

The tools used in the construction and demolition trade are wide-ranging and constantly improving. Sledgehammers evolved to handheld breakers, and shovels gave rise to excavator buckets. Whenever possible, manufacturers work to increase the productivity and safety of the tools contractors use every day.

Quick couplers are no different. These aftermarket excavator add-ons increase efficiency by eliminating the need to manually remove mounting pins, greatly reducing the time it takes for excavator operators to switch between attachments. Like all other tools, quick couplers are being constantly improved upon. When making a purchase decision, contractors should consider the application, hydraulic or mechanical configurations, safety features and additional performance features like tilting capabilities to get the most from their investment.

Convenience with a coupler

A quick coupler is an investment that adds convenience and flexibility to a fleet in just about every application. Without a coupler, switching between a bucket, ripper, rake, mechanical grabs, etc., can cost valuable time. Although couplers might make the machine heavier and slightly reduce the breakout force, they increase the speed and agility of attachment changeout. Considering traditional changeouts can take up to 20 minutes, a quick coupler can be transformational for decreasing the time it takes to tackle a job that requires different attachments.

If operators are switching out attachments every couple of days rather than every couple of hours, there may not be a need for a coupler. But if a contractor is using a variety of attachments throughout the day or wants to increase productivity with one machine on a site, a coupler is a must-have piece of equipment. Quick couplers can even reduce needed maintenance and cost, since operators may resist switching attachments when manual changeouts are required if he or she doesn’t want the hassle. However, utilizing the wrong attachment for the wrong work is a surefire way to increase wear.

A note on hydraulic vs mechanical couplers

Most manufacturers offer couplers in two configurations: hydraulic or mechanical. Each has its advantages and disadvantages related to size, cost and operating system.

A mechanical (or manual) coupler can offer lower cost, fewer components and a lighter overall weight. They’re typically the best choice if a job doesn’t require multiple attachment changes daily, or if price is the most critical consideration. Mechanical couplers have a similar purchase price to hydraulic couplers, but the requisite complex installation procedure often presents a large difference in fees.

With a mechanical coupler, however, convenience and safety can be compromised. Operators are required to physically leave the cab of the machine and use manual force to position the pin into place, causing the changeout process to take longer. It often involves two workers, and is an overall more difficult process. With a hydraulic coupler’s ease-of-use features, operators save time and effort by completing the process from inside the cab. This improves efficiency and safety.

Safety benefits of hydraulic couplers

Most coupler-related injuries are the result of an operator not properly securing the safety pin on semi-automatic or manual models. Numerous injuries, some resulting in fatalities, have occurred as a result of poor coupler connections and dropped buckets. According to a study conducted by the U.S. Occupational Health and Safety Administration (OSHA), there were 15 injury-related accidents between 1998 and 2005 in the U.S. involving the unanticipated release of excavator buckets from quick couplers on hydraulic excavators. Eight of those accidents resulted in fatalities.

Failure to properly engage and lock the coupler is likely the cause of accidents in most cases. According to OSHA, unintended coupler releases tend to happen because users may not be aware of changeout hazards, they fail to properly insert locking pins or they have insufficient training on installation and testing procedures. To decrease the likelihood of accidents, manufacturers developed solutions via hydraulic couplers to ensure proper engagement and minimize the possibility of injuries from operator error.

While a hydraulic coupler doesn’t eliminate all risk of dropped attachments, there are features that make them a safer option than mechanical couplers for preventing work site injuries.

To ensure operators engage the locking pin correctly, some systems feature red and green LED lights as well as a warning buzzer that let the user know whether or not the pairing was successful. This heightens operator awareness, helping them manage the system and prevent dangerous situations.

Since most serious accidents occur within the first five seconds of latching the attachment, some manufacturers have added features that make it virtually impossible for operators to unintentionally drop attachments.

One of these features is a wedge-locking principal that combats improperly locked pins. This requires the coupler to connect to the attachment in two separate places. This constantly applied working pressure continuously readjusts the wedge, keeping both pins firmly against the quick hitch and the attachment securely in place.

Advanced designs also offer a safety knuckle that securely latches instantly and automatically onto the first of two pins. This prevents the attachment from dropping, even if the operator forgets to complete the process. The safety knuckle works independently from the wedge that secures the second pin, preventing the release of the first pin even if the hydraulic system fails. Operators change attachments by first releasing the wedge, then placing the attachment in a secure position on the ground before releasing the safety knuckle.

For added safety, operators can look for a time-out feature offered by some manufacturers that automatically re-engages the safety knuckle. If the operator doesn’t fully detach the safety knuckle within the time-out window, the knuckle re-engages itself. This timing feature, which is customizable but usually occurs after 5 to 12 seconds, helps to prevent dangerous situations. Without this feature, there’s increased risk of the operator forgetting the attachment is unlocked and dropping it, either after lifting it off the ground or after unlocking it in the air.

Additional features and options

Simply adding a standard coupler to a fleet can save time and money, but there are additional features that can increase productivity even more.

Some hydraulic couplers and their paired attachments deliver 360 degrees of rotation. For added capacity, some manufacturers offer a universal joint that also tilts—often known as a tiltrotator. Couplers of this nature pair continuous rotation with tilting capabilities, making them even more efficient and productive than a standard coupler. They’re often built with a streamlined design, making them ideal in tight areas and applications like road construction, forestry, landscaping, utilities, railway and city snow removal.

Tiltrotators can cost a bit more and weigh more than a standard hydraulic coupler, so users should consider the features before selecting one.

Another aspect of couplers users should consider is whether or not the equipment is fully hydraulic. Some manufacturers have developed systems where up to five hydraulic circuits can be coupled comfortably and safely from the driver’s cab. A special locking system absorbs the resulting spreading forces between the valves without transferring them to the quick coupler. A fully hydraulic device allows for quick changes without extra manual effort. A system of this nature represents the next logical step for couplers, and the fully hydraulic direction of development will likely result in even greater safety standards.

Making an informed decision

As tools and technology evolve, contractors will increasingly find more options at their disposal. Efficiency and safety often go hand in hand, and they’re both equally important. Luckily, by analyzing applications, understanding the risks and optimizing the system for the company’s specific needs, contractors can find a quick coupler that can both enhance efficiency and improve safety.

Francois Martin is the general manager of Kinshofer North America. He can be contacted at f.martin@kinshofer.com.

A city’s construction casts an indelible mark on how its citizens perceive it. Everything from the size and concentration of buildings to the confluence of roads to the allotment of green space helps inform the look and feel of a place.

Ultimately, city leaders, developers, architects and contractors must work together to strike a balance between the form and function of man-made infrastructure and a town’s natural landscape. Sometimes function wins out.

Such was the case with the construction of the Alaskan Way Viaduct.

The Alaskan Way Viaduct was an elevated double-deck highway in downtown Seattle that was built in the 1950s to help solve the area’s growing traffic problem. While the two-mile-long structure helped relieve congestion, becoming one of the state’s busiest sections of highway and carrying 110,000 cars per day by the end of the 20th century, it doubled as a waterfront obstruction shielding residents and workers from nearby Elliott Bay.

Then, in February 2001, a 6.8 magnitude earthquake hit the city. After engineers assessed the damage, it was concluded that the highway could be susceptible to collapse in the event of a similar event in the future. Fearing the catastrophic repercussions of such an event, city leaders embarked on a years’ long quest to find an alternative way for citizens to get in and out of the city.

In January 2009, city officials came up with a plan. In the summer of 2011, it was made official: Crews would construct the world’s largest-diameter bored tunnel beneath downtown Seattle. Although the viaduct remained in operation throughout the tunnel’s construction, after it opened in February 2019, the stage was set to begin restoring the city’s waterfront via the highway’s demolition.

The task at hand

Kiewit Infrastructure West Co., Omaha, Nebraska, was selected as the contractor on the project, with Newark, California-based Ferma Corp. being selected as the lone demolition subcontractor in July 2018.

According to Ferma Corp. National Projects Division Manager Kelly Arnold, who oversaw the viaduct demolition, a substantial amount of planning was required on the front end of the project to formulate the team’s strategy.

“Ferma Corp.’s scope of work involved the complete demolition and removal of 1.5 miles of raised highway in the form of a six-story double-deck bridge. As is the case on all of Ferma’s projects, significant pre-project engineering and planning took place before we stepped on-site,” Arnold says. “First, our estimating team set up a high-level schedule incorporating each phase of the project to coordinate our efforts with those of the other contractors on-site. Next, we created a site-specific health and safety plan (SSHASP) and combined this with a demolition work plan specific to this project. … This document provided a template for safety and demolition operations specific to each area and task for the project. The SSHASP/demolition work plan took into consideration the necessary safety, personnel, equipment and material resources in order to perform the project safely and to meet or exceed our schedule. Every single task we performed was designed in advance of our demolition operations and communicated to personnel before the project commenced. This communication was repeated on a daily basis throughout the course of the project.”

After months of due diligence, viaduct removal work began on Feb. 12, 2019. The Ferma Corp. team, which totaled 12 on-site contractors, started with the upper deck of the highway, punching out the roadway between the girders. At parts where the highway was especially close to nearby buildings, contractors would saw-cut girders and lift them out with the help of cranes. Once the roadway between the girders and the girders themselves were removed, an excavator was then used to remove the columns and crossbeams. After the top deck was completed, Ferma Corp. started with the lower deck and removing the footing.

Arnold says Ferma Corp. utilized a range of company-owned equipment for the project. For the upper deck of the highway, he says the company mainly utilized a 108,000-pound Ferma FE50 demolition excavator with a 13,000-pound LaBounty MDP50R rotating processor.

For the lower decks, because of the restricted overhead clearance, they utilized a smaller Volvo EC220EL excavator equipped with a LaBounty MDP27R processor to wreck the girders and a LaBounty LMB 4035 8,000-pound hammer to slot the deck.

Specifically for wrecking girders, bents and columns, the company utilized a 420,000-pound Ferma-customized FE200 demolition excavator with a 35,000-pound LaBounty UPX1800 rotating processor and a 260,000-pound Ferma-customized FE115 demolition excavator with a 22,000-pound LaBounty UPX950 rotation processor.

To round out the work, Arnold says the team utilized a fleet of 16 additional excavators to perform multiple functions across the project.

Close quarters

Some parts of the Alaskan Way Viaduct were located within feet of adjacent buildings. This proximity required a concerted effort by Ferma Corp. to mitigate disruption to nearby people, property and businesses.

“I’ve been in the demolition business for 32 years, and this is one of the toughest jobs I’ve ever done,” Arnold says. “The most difficult aspect of the job from a demolition standpoint was its proximity to people, traffic and buildings. Demolition is an inherently dangerous field. This project posed significantly more difficulty due to all of these factors, each of which caused the project difficulty level to increase exponentially.”

According to Arnold, the close distance of the buildings to the highway helped inform Ferma’s every move. He says that his team had to adopt a measured, methodical approach to avoid complications and lessen the disruption to area businesses. This was facilitated by detailed coordination with Ferma’s engineering department and the project’s engineering partner, Las Vegas-based Sigma Engineering Solutions. The company also incorporated additional safeguards on the project such as hanging curtains to catch fly rock and wrapping the hammer attachments with rubber to keep dust down and prevent other flying debris. This made for a cleaner working environment and less disturbance to those living and working in the area.

Above all, Arnold says having such little room for error required the Ferma Corp. team to be fastidious about proper communication.

“Communication is key on every project, but even more so on this project.” Arnold says. “We consistently utilized many types of communication, including written, verbal, radio, direct line of sight and hand signals. These communication methods are achieved through a formal communication chain requiring clear, concise and timely messages; utilizing the appropriate platform; and [ensuring] the effective use of technology.”

Recycling right

A job the magnitude of the Alaskan Way Viaduct comes with a substantial volume of materials to process. Arnold says his team worked as quick as possible to sequester this material upon demolition so cleanup crews could make easy work of transporting it off-site.

“There was so much material, you couldn’t haul it out fast enough. You had to get it flattened and leveled out so you could work and then the cleanup crew would come in behind [and take it away],” he says.

Arnold says Ferma Corp. was able to recycle 100 percent of the demolished material on this project, which included more than 5,000 tons of rebar, 500 tons of steel and 120,000 tons of concrete. The steel, iron and metal were all recycled for beneficial reuse, while the concrete was crushed and utilized in the backfilling of the underground tunnel as per project specs.

Making way for change

After 10 months on-site, Ferma Corp. completed demolition work in December 2019. Arnold says that factoring in the baseline contract schedule plus changes made to the project post bid, his team was able to complete the project on time and within budget.

More importantly, according to Arnold, is the fact that the job went off without a hitch from a safety perspective.

“There is nothing more important than community safety, job site safety and the safety of our people,” he says. “One of the reasons Ferma Corp. was selected for this project is our historically strong safety program and subsequent results.”

Ferma Corp.’s commitment to safety and avoiding disturbances in the city did not go unnoticed, Arnold says.

“One of the most rewarding things is just seeing the public watching us work. We hear a lot of good [feedback] from the public, and you see some of the tenants up in these buildings put up big signs [encouraging our workers], it’s really nice,” he says. “Every project has its inherent rewards, but with this project in particular, it was pretty amazing to watch the Seattle community come together as one. As difficult a project as it was to perform, to see the response from the local community has been very rewarding.”

Arnold says this feedback, along with the overwhelmingly positive response they’ve gotten from helping restore the beauty of downtown Seattle, made tackling the project a rewarding experience for all of the Ferma Corp. team.

“Ferma Corp. is proud to have been part of this historic teardown project,” he says. “To have performed such a project without incident is a monumental feat. [We’re] making history here. [We’re] changing skylines forever. When you hear the [positive feedback], and people actually appreciate what you’re doing and they see you’re really just trying to beautify the city, that’s what it’s all about.”

The author is the editor for Construction & Demolition Recycling magazine and can be contacted at aredling@gie.net.