Industry News

Building Industry Recovery Forecasted for 2011

The nation's construction industry, virtually on life support during the economic downturn, will begin a slow recovery next year, according to the closely-watched McGraw-Hill construction forecast.  Next year, the value of new projects is expected to climb to $445.5 billion, an eight percent rise from this year when that figure hit a post-recession low.  New development of single-family houses, apartment buildings, and commercial properties is expected to increase. But, even with an increase next year, construction activity will still be far off the boom-year peak it hit in 2006 when there were $689.3 billion in construction starts. Last year McGraw-Hill initially forecasted a gain of 11% for 2010, but that projection proved to be overly optimistic. Construction starts are estimated to decline 2% from 2009 as a recovery in the housing industry stalled in the middle of the year, credit remained sparse, and municipal budget deficits widened.

McGraw-Hill expects the U.S. economy to grow 2.5% in 2011. Among specific sectors, single-family housing should see the strongest rebound in 2011, with $126.7 billion in construction starts representing a 27% boost. But that projection assumes mortgage rates remain low, job growth improves, and a resolution is found to the foreclosure documentation mess. New construction of multifamily housing is expected to rise 24% to $23.6 billion next year, extending gains from 2010 as a growing number of renters enter the market amid the housing crisis. Meantime, commercial buildings – which includes offices, stores, hotels and warehouses – will improve with a 16% gain to $44.9 billion. McGraw-Hill projects that construction starts of manufacturing buildings will increase nine percent as the drop in value of the U.S. dollar increases demand for U.S. goods. Source: The Wall Street Journal

ACCA Urges Flexibility in State Incentive Programs

The Air Conditioning Contractors of America (ACCA), the nation’s largest association of building environment professionals, contacted state energy offices throughout the country recently encouraging them to be flexible with requirements when reviewing, developing, and updating energy retrofit incentive programs, in order to ensure broad participation to meet efficiency goals. Paul T. Stalknecht, ACCA President and CEO, stressed to state officials that successful incentive programs will maximize homeowner and contractor participation, and be inclusive in their implementation approach. Some state programs have begun to move away from a simple rebate program to a variety of different formats. Many have considered requiring third-party accreditations or verifications for homeowners to be eligible.

If states do choose to require third-party accreditation and/or verification, ACCA asks that they “not restrict such eligibility to one singular certification or accreditation program.” This will help to expand the viable choices that homeowners, or building owners, can have when participating in these incentive programs. Stalknecht’s letter stated, “no single organization’s program has a monopoly on qualified and skilled technicians who can competently and safely deliver retrofit performance and energy savings. Limiting the certification or accreditation program to one entity will limit the number of qualified contractors available to participate, and will likely have the unintended consequence of limiting a homeowner or building owner’s choice.” The letter also recommends that states require contractors to follow the requirements in the ANSI/ACCA 5 QI-2007 (HVAC Quality Installation Specification) in order to ensure that HVAC systems are properly installed and perform as designed. Source: ACCA

Recovery through Retrofit Program could Create Jobs, Save Money

Vice President, Joe Biden, recently unveiled a new federal program designed to make it easier for Americans to make their homes more energy efficient, help people save money, and create new jobs for contractors. The three-step program, called Recovery Through Retrofit, will offer new software for contractors to easily show people how much they can save, offer low-cost financing to help people pay for home improvements, and set new guidelines for contractors to assure the public that the work is done correctly. Mr. Biden said that these guidelines will give families "the tools they need to invest in home energy upgrades. Together, these programs will grow the home retrofit industry and help middle-class families save money and energy." The Obama administration didn't release estimates of either the costs of the program, or how many jobs it could create.

White House aides said the availability of simple, trustworthy information should help more people invest in making their homes more energy efficient. The software will be offered to trained and certified contractors to use during a one-hour walkthrough of people's homes. To help people pay for the work, the administration will unveil the PowerSaver loan program. Presented through the Federal Housing Administration under a two-year pilot program, it will offer low-rate loans that could be repaid over periods as long as 20 years. "PowerSaver will help more homeowners afford common sense, cost-saving improvements to their homes and will create jobs for contractors, installers, and energy auditors across the country," said Housing and Urban Development Secretary, Shaun Donovan. The program will also produce voluntary guidelines to identify the skills and expertise needed for people working in the energy retrofit business. Source: Pittsburgh Post-Gazette.com

Take the Leap, Earn your BEAP

With the growing emphasis on energy consumption reduction and cost savings, there is a recognized need for credible information to help in the assessment and modeling of energy use in buildings. A new certification program from ASHRAE will help fill that need.  Recognizing individuals’ ability to audit and analyze residential, commercial, and industrial buildings, the Building Energy Assessment Professional (BEAP) certification complements ASHRAE’s Building Energy Quotient program as well as its Building Energy Modeling Professional certification. Together, the programs provide a valuable toolkit when it comes to the evaluation and reduction of building energy use. “We all know that we can’t manage what we can’t measure,” Tom Phoenix, chair of the committee that developed the BEAP certification said. “Providing reliable energy analysis means we are holding ourselves more accountable for the energy our buildings use. The results of an analysis can tell us which systems are working efficiently and which systems provide opportunities for improvement,” he added.

The BEAP certification certifies an individuals’ ability to audit and analyze residential, commercial and industrial buildings including determining project scope, collecting data, analyzing building performance, interpreting results, evaluating alternatives, submitting recommendations for energy conservation measures, and assisting with the implementation of these recommendations. The program was developed in collaboration with representatives from ASHRAE’s Building Energy Quotient (bEQ) program, the Illuminating Engineers Society, the National Institute of Building Sciences, the Sheet Metal and Air Conditioning Contractors' National Association, and the Testing, Adjusting, and Balancing Bureau. The program launches next February in conjunction with ASHRAE’s 2011 Winter Conference. Source: ASHRAE