MCAA Regional Report, Region F

Words: Robert AdairArkansas - Rob Barnes
Louisiana - No State Chair
Oklahoma - Al Slattery
Texas - Rob Barnes

Workforce Development

Arkansas
No active programs at this time.

Louisiana
No State Chair

Oklahoma
There are very few training programs left in Oklahoma. What training we could verify was being done by individual contractors and Vo-Tech Schools. The Union programs are struggling at this time and we do not foresee any change in the near future.

Texas
In the North East Texas Region the United Masonry Contractors Association in association with the Construction Education Foundation and North Lake Community College has 25 apprentices in their bricklaying and stone setting programs.

In the South East Texas Region the AMC of Houston in association with San Jacinto College has 8 apprentices in their bricklaying program.

And in the Central Texas Region the San Antonio Masonry Association currently has 10 apprentices in their bricklaying program.

At this time I know of no training activity in West Texas, which has very few contractors and is so spread out that they are not organized into any group at this time.

Economic Conditions/Forecasts

Arkansas
Some of the institutional sector projects will likely move forward to market to try to take advantage of a depressed economy and lower construction costs. While conditions appear to be improving, lending standards still remain tight and the market will likely see projects continue to move to market at a very slow pace. The lack of available funding will likely extend the recession in the construction sector until late 2011.

The Residential market has yet to recover and will likely see some signs of improvement late in the year or on into 2012. Growth will be due to the threat of rising interest rates, but could be hampered by the ability of the banks to write mortgages. Multifamily is expected to recover more expediently as people move from singe family to the multifamily market due to unemployment, age, and or lower wages.

Non Residential Building especially in the market segments of Commercial, Lodging, Office, Religious, Amusements and Recreation are all expected to remain weak in 2011. It would be very unlikely to see any significant growth in new starts before sometime midyear of 2011. Retail will likely see a continued decline until sometime in 2012. Recovery in these South Central market segments are expected to begin in sometime late 2011 or early 2012. Institutional is the only market sector potentially showing a positive growth rate in 2011. This market sector could see a slowed response to its growth pending legislative action on the federal government level.

Louisiana
No State Chair

Oklahoma
The outlook for Oklahoma is good at the present time. Approximately 80% of the current work loads are in government work, especially with school bond issues and stimulus funds. Lawton, Oklahoma is being driven by base changes, creating more work on base and in the commercial and housing market. OKC is faring better that Tulsa market due to the boom in the rebuilding of the downtown area. The oil and gas industry, even with the current market conditions, is presently driving major projects in the Oklahoma City area.

Texas
Construction activity in the state is expected to remain slow. The consensus among economists is that we have probably hit bottom. The year 2011 should be a transitional year with momentum building for 2012. The Texas economy is expected to remain about the same in 2011 and it was in 2010.

Bright spots will be military work stimulus funded highway and school construction. Current financial market conditions are providing a more desirable environment for the sale of school bonds and districts are seeing the opportunity to maximize their purchasing power. Even districts that do not have the need for new schools are looking to capitalize on the market by moving forward with renovation construction. There is some concern that the state's cap on school district funding for operating costs will affect some districts decisions to build new schools. Hopefully, this will be addressed in the next legislative session. Also, a concern in some districts is the declining tax base and unpaid taxes which could deter some from moving forward with new projects.

Utilities will be retrofitting existing coal fired plants to reduce emissions, boost output or change the base from coal to natural gas or biomass. It is expected that there will be more natural gas power plants and exploitation of the state's shale formation.

Warehouse and hotel markets will remain weak but there is some hope for retail. Private development will not move forward until the credit markets loosen up. While local and regional banks have started making loans they lack the capacity to replace what would have been funded by the major banks. High vacancy rates will deter developers from starting new projects.

Finally, housing starts remain flat at this time. Activity has slowed to match demand and builders have cut back sharply on new home production. Texas was fortunate not to overbuild as much as other areas and stopped major development early in the cycle.

Masonry Marketing Activities

Arkansas
There are no masonry marketing activities at this time.

Louisiana
No State Chair

Oklahoma
There is no formal masonry marketing being done at this time.

Texas
The Texas Masonry Council continues to try and be the marketing arm to the masonry contractors in Texas. Their activities include minor marketing campaigns to the AIA, local school boards and a Masonry day program to educate future architectural students at several universities about the potential for masonry. Texas Masonry Council has also undertaken a leadership role within the state to pull together names of companies from each regional chapter who do not belong to MCAA and are attempting to recruit new members for same.

Competitors/Trends

Arkansas
Arkansas remains stable though somewhat depressed. Outside competition has begun looking at some large specialized projects. Barriers to entry however are high due to licensing requirements, local competitor's ability to be more limber, and the inability for outside labor to draw from local worker base. Cost of construction in Arkansas is very competitive. Outside competition is finding it difficult to compete; they have many costs including distance, differential construction methods, and confidence of the local general contractors. Contractors have to remain vigilant and perform well to prevent outside competition from opportunity.

Louisiana
No State Chair

Oklahoma
No information at this time.

Texas
As Texas has remained one of the stronger economies nationally we are seeing increased competition from other more depressed markets. This trend continues to grow but the barriers to entry into the construction market in Texas are high. Cost of construction in Texas is extremely low in comparison to other large states. Outside competition is finding it difficult to compete; they have many costs including distance, differential construction methods, and confidence of the local general contractors. This is mainly due to the number of local large firms in the major cities across the state. Competition is already high which helps to keep the price down, and stave off competition. Contractors have to remain vigilant and perform well to prevent outside competition from opportunity.

Stucco and Drywall contractors are becoming an increasing threat with the substitution of adhered veneers. They are performing work that was conventional dimensional stone, rock and brick veneers utilizing a thin bed method. These methods of installation reduce onsite time, reduce required skill level of employee and lastly reduce cost. The technology and performance of the thin wall method has advanced to the point that architects are becoming less concerned with specifying this method which is promoting itself as more environmentally friendly. Lack of adjustment to this threat will continue to reduce our market share.

Safety Issues

Arkansas
No Report

Louisiana
No State Chair

Oklahoma
No Report

Texas
Due to the size of the Texas market and number of man hours worked Texas remains high on the radar for OSHA. 2011 will likely continue to see OSHA under the current administration become more of an enforcement agency than a partner. Contractors are encouraged to provide education and training for their workforce to try and limit exposure to OSHA enforcement.

MCAA Regional Report, Region F

Workforce Development

Economic Conditions/Forecasts

Masonry Marketing Activities

Competitors/Trends

Safety Issues

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