MCAA Regional Report, Region B

WORKFORCE DEVELOPMENT

ALABAMA
Apprenticeship program is still operational but is going through a transition of instructors; numbers are still about the same. We hope our summer beginning class will be better than last year.

North West Florida program is doing well. The work for this area is still very strong thus allowing for more apprentices in the program.

FLORIDA
No report as of this writing.

GEORGIA
The training program for apprentices sponsored by the Masonry Association of Georgia worked hand in hand with the Construction Education Foundation of Georgian in a Career Expo in April of 2005. Over 1,500 high school students attended this two day expo that was held in conjunction with the Skills USA Competition. Plans are in the works for the 2006 Career Expo.

KENTUCKY
The workforce development situation has returned to better form. Our apprentice classes are full. The most important issue for stable labor growth in our area is the proper use of the growing Spanish population. The Spanish population is entrenched all across our state. They work on our buildings, houses, pick our tobacco, work with our horses, serve our fast food, etc. They are in virtually every service sector of labor. No longer a transient workforce, many are working for firms as employees rather than contract labor. Language barriers are being broken and creative ideas have arisen to make use of this workforce.

MISSISSIPPI
No State Chair.

NORTH CAROLINA
NCMCA participated with other Carolina masonry trade associations in the Annual NC SkiIIsUSA State Conference in April, which includes regional and state masonry competitions for high school masonry students. About 100 students participated. Masonry association representatives visited winners' schools and presented thousands of dollars in awards at end-of-school awards nights and assemblies. Dallas Caudle of Central Cabarrus High School won the NC High School Masonry Contest and advanced to Kansas City for the SkilisUSA Nationals. Josh Morrison earned the right to represent North Carolina in the Post-Secondary contest at Kansas City. Todd Hartsell instructs both students. NCMCA's annual Apprentice Skills Contest for Association members was held in May at Greensboro, NC. Josh Morrison won "First Place," followed by Dallas Caudle in second. Both young men are apprentices with McGee Brothers Company in Monroe. In June, North Carolina won three "Gold Medals" at the Kansas City SkillsUSA National Conference. Caudle won the high school gold medal for masonry, Morrison won the post-secondary gold medal for masonry, and the Caldwell County Career Center won a "Gold" for "Team Build," a competition that includes a masonry component. NCMCA will participate in the 52nd Annual North Carolina Department of Labor State Fair Masonry Apprentice Contest during October.

SOUTH CAROLINA
Training has taken a backseat for a few years. The vocational schools continue to provide the most training. The only problem being reliant on the vocational schools is that more and more schools are deleting masonry from their curriculum. On a positive note, we have seen an increase in the interest in masonry as a career option. We have received several requests for participation in career days and offers to speak to high school students. Skills challenges are showcasing the work of the mason and they are getting some positive results. The infusing of the Hispanic workforce has taken care of any shortfall in masons. Language is becoming less of an obstacle in dealing with the Hispanic workforce. Bi-lingual superintendents are more available and bridge the language gap.

TENNESSEE
Negotiations to start soon with BAC Local #5 Tennessee with the total area having contracts through spring of 2006. Middle Tennessee is the only area that still has several Contractors signatory as an Association.

Local #5-BAC and JATC started a new apprentice class the 2nd week in August with 11 new folks. This gives us a total of 46

Apprentices in the lst, 2nd, and 3rd year classes. We have a full time instructor that is jointly paid by the Union and the JATC. So far this arrangement has worked fine.

VIRGINIA
The apprenticeship programs in the area are having an increase in enrollment as of the last quarter.

ECONOMIC CLIMATE, MARKET EXPANSION & INITIATIVES FROM COMPETITIVE PRODUCTS

ALABAMA
Institutional construction is still very strong statewide. Retail is beginning to pick back up in most of the heavily populated areas in the state. Hospital construction is not as strong as last year but there is still a substantial amount of work available.

The waterfront areas of Alabama and the Northwest Florida coast are extremely busy and we anticipate this to continue for the next 2 to 3 years.

FLORIDA
No report as of this writing.

GEORGIA
The overall construction market in Georgia is up slightly over the same time period in 2004. Retail, residential (both single family and high rise) and church work remain relatively strong markets. School work has dropped off to a degree which is surprising in light of the population expansion in Georgia. Office buildings continue to remain stagnant.

No new products have made any headway in our market. Block manufacturers that build retaining wall products, still find this segment strong. The only hold back for that concrete masonry unit is the high rainfall totals for this year.

In and around the Atlanta metropolitan area, a number of significant projects originally designed with brick have been changed to EIFS/stucco. Some accent panels of brick may remain in some instances, but the square foot cost for this work is higher than it would be if the entire building had remained brick.

Brick manufacturers continue to push their product toward residential use. Lead times and overall availability of product for commercial work has impacted the architect/owner decisions to use the brick product.

KENTUCKY
The economic outlook for 2005 has been steady. Hopefully, the recent gas woes and Katrina fallout does not slow our progression. Housing continues to be strong while nationally it has fallen off. The private sector has been steady across our state. We are maintaining our masonry markets and recently conducted out first MASONRY VILLAGE competition through the Kentuckiana Masonry Institute and the J¬Town Chamber of commerce. This was our first endeavor and it was very successful. We hope to do the same competition at the Ky. State Fair.

MISSISSIPPI
No state chair.

NORTH CAROLINA
The construction market in the Carolinas has remained steady with conditions very good in most sections of the state. Masonry continues to lose market share to competing systems, however.

SOUTH CAROLINA
Work in South Carolina has remained somewhat constant over the last six months. Work is available but is still competitive. Most all of the areas of the state have new projects and the local architects are busy. Several of the big box stores, such as Target, are in a major building campaign. The support stores that go with the big boxes are also being built.

Resort work is still going strong. The Myrtle Beach area is still building at a record pace.

Residential and condo construction spur commercial work. Grocery stores and retail stores complement the residential.

One of the largest segments of the masonry work that is available is in the construction of hospitals. Hospital construction is being performed all over the state. Most of them are still using masonry on the exterior skin. We are seeing many satellite hospitals being built in smaller markets.

The school market in the upper part of the state is still going strong. Many of the school districts are building additional schools to support the growing population. The older schools are being remodeled and brought up to date. The markets in most of the areas of the state except Greenville are staying with conventional built masonry construction.

TENNESSEE
Work Statewide is still fairly strong. All areas of the state, East, Middle and West are all above average busy, although it is not being reflected in their pricing. There is some slowing in certain type work, but overall things are still good. Friends in the architectural community are reporting more work than they can handle. There has been a surge in Industrial work in our area after a long drought.

The latest surge from competitive products is coming from Insulated Concrete Forms. There are a couple of schools that are going to try I.C.F., with an alternate to use traditional masonry backup system. Reasons given are cost effectiveness and scheduling restraints. Lick-N-Stick stone is starting to take a portion of the brick veneer we are used to seeing. We have built several projects where the stone was at least 25% of the veneer makeup. With steel prices surging again we have become equally as competitive with steel studs and sheathing. We hope to regain some of our market share back while materials are so expensive.

The Masonry Institute of Tennessee has been very busy in the architectural community. MIT offers a minimum of 4 Certification courses each year. MIT's masonry online course is up and running, allowing busy professionals to get continuing education credits while shuffling their busy schedules. Our membership has grown by some 25%. MIT is currently courting several universities' construction management students.

VIRGINIA
No report as of this writing.

GENERAL CONDITIONS

ALABAMA
The work force has changed dramatically in the last two years. Hispanics now represent the majority of the work force i.e. bricklayers, laborers, saw men, etc. The majority of these workers are illegal and are working for a legitimate masonry contractor. The market is changing.

Risk is being shifted everyday to the subcontractor. Schedules are being shortened with out reason. Overall market conditions are very litigious.

FLORIDA
No report as of this writing.

GEORGIA
Insurance issues continue to be a problem. Coverage is more limiting than in years past making many indemnification clauses more binding than coverage exists for. Many residential projects are facing problems due to residential exclusions by many insurance companies.

KENTUCKY
Most of our O.S.H.A. commentary relates to M.C.A.A. and the work they keep pursuing. We support their endeavors. However, recently we have begun experiencing a troubling issue from our state run O.S.H.A. Basically, they have begun to charge both the contractor and the subcontractor on one offense. The general then in turn back charges the subcontractor in effect hitting the subcontractor twice for one offense. This has never before taken place and there has begun an effort to court challenge these actions.

MISSISSIPPI
No State Chair.

NORTH CAROLINA
NCMCA membership continues to decline and is at the lowest point in the last eight years. Participation in most all of NCMCA's nine local chapters is down somewhat and is a serious problem for several of the chapters. The Association's annual meeting and convention in May was well attended, however. Members were enthused with presentations made by Ann Wolter, former executive director of the Rocky Mountain Masonry Institute, primarily concerning RMMI masonry certification program, and a presentation by New York engineer David Biggs concerning masonry aspects of the World Trade Center disaster. NCMCA recently elected to proceed with a masonry contactor certification program and hopes to have a "roll-out" of the program at the Association's convention in May 2006. NCMCA's Raleigh Chapter is partnering with the Carolinas Concrete Masonry Association (COMA) to present a total-masonry-construction workshop for school designers, planners and administrators November 10th Featured speakers are Texas architect Chris Huckabee and Pennsylvania School Superintendent Dr. Don Bell. Also in November, NCMCA will partner with COMA and Brick South East to provide an exhibit at the North Carolina School Boards Association Annual Conference.

SOUTH CAROLINA
OSHA inspections continue to spotlight fall protection. Daily scaffold checklist as well as daily toolbox meetings to talk about scaffold are the norm. Competent persons trained in scaffold building are being checked to see if their certificates are current. On the larger projects and those being built by the larger GC's, we are being pushed into providing on-site safety personnel. This will increase the cost of performing masonry.

We are seeing the use of outside consultants looking over the building envelope. These consultants are working with each of the players to ensure that all parts of the envelope work together and prohibit water intrusion into the building.

We are seeing jobsites becoming more focused on wall bracing and the safety zone requirements. The Wall Bracing Manual is a very valuable tool in dealing with this situation.

TENNESSEE
In Tennessee the TOSHA inspection rate depends on which area of the state you are located. Eastern TOSHA visits almost every Commercial jobsite of any size; while Middle and West inspections are down from previous years. Inspectors are looking hard at fall protection hazards, regulations, and silicosis. Safety training and request for documentation of it has seen great increases in recent years. Dollar amounts of fines have risen in recent years. Fines have doubled, tripled, and even quadrupled the amount of what they used to be. Most large general contractors are requiring on site masonry supervision to attend the 30 Hour OSHA course.

Bidding trends remain the same in the Tennessee area.

VIRGINIA
No report as of this writing.