bri_lego@nema.org

Source: NEMA.org

Construction's unemployment rate edged downward in August, to 17.3%, from 17% in July, but it was slightly worse than the August 2009 level, reports the U.S. Labor Dept.'s Bureau of Labor Statistics.

BLS's latest monthly look at the nation's employment picture, released on Sept. 3, says that construction added 19,000 jobs in August, but noted that 10,000 of the jobs gained were workers who returned after a strike in July.

Although BLS doesn't say so, it's likely that some or most of those workers were involved in a major Chicago strike earlier this summer.

The August figure represents the second straight monthly improvement in construction's jobless rate and is down significantly from the February peak of 27.1%.

But the industry rates are not adjusted for seasonal swings and construction's employment picture tends to improve in the summer months, when the volume of building rises.

So far, the industry's 2010 jobless rates have been worse than 2009's in every month except July. The August, 2010 level of 17.3% represents an increase from August, 2009's 16.5%.

Construction's rate also remains the highest among industry sectors. It is significantly worse than the mining/quarrying/oil and gas, which was second-highest among industries, posting a 10.9% rate in August and leisure/hospitality, which ranked third, at 10.8%.

More broadly, BLS reported that the overall national jobless rate rose to 9.6% in August, from 9.5% in the previous month as total non-farm employment declined by 54,000.

The government sector lost 121,000 jobs in the month, including 114,000 temporary workers hired for the census. Those losses were partly offset by the private sector, which added 67,000 jobs in August.

July Construction Spending: Down

The U.S. Census Bureau revised the May and June construction spending totals down last week when it released the July 2010 report. Through the year’s first seven months, construction spending was $460.3 billion, down 11.8% from 2009’s first seven. The figures for the major segments:

                Private residential construction: up 2.8%

                Private nonresidential: down 26.0%

                Public construction: down 6.4%

More NEMA Numbers: Lighting

NEMA’s Lighting Systems Index dropped .3% from Q1 to Q2, the organization reported last week. Compared with Q2/2009, however, the index rose 5.3%. See graphic below. More.

Separately, NEMA reported on T5 lamp shipments. This index bounced way up in Q2, up 41% from one year ago. T8 lamp shipments rose 12.7% in Q2, vs. Q2/2009. See graphic below. Release.

Gasoline Prices Hit Summer Low

…just before the Labor Day weekend, according to the Energy Information Administration, which provided the graphics appearing below (words here).

Above: Regular gasoline retail prices around Labor Day. Below: Variation in retail gasoline prices over the summer driving season. Source: EIA.

“Slowing Manufacturing Sector Saps Recovery”

Researchers at Marcus & Millichap, a real estate company, offered the graphic above and this analysis (see the rest of it here):

Strength in the manufacturing sector through the early stages of the recovery was fueled by accelerating exports and business inventory restocking following the severe correction cycle; however, both drivers lost vigor in recent months.

During the second quarter, exports advanced just .4%, a significant slowdown from the first quarter of 2010 and fourth quarter of 2009, when exports grew 4.5% and 6.8%, respectively.

The impact of business inventory growth also declined during the second quarter, accounting for just over 1% of the overall GDP figure, versus contributions of more than 2.6% during the previous two periods.

Data Points Monitor (9.7.2010)

© 2010 The Electrical Distributor. All rights reserved.

Green Makers & Green Takers

Ambient and Echelon—these two companies have separately won contract extensions from Duke Energy, according to the Charlotte Business Journal (Sept. 2) “to connect digital meters, power-line sensors, and automated power-switching equipment for Duke’s proposed smart-grid networks.”

Andalay becomes Westinghouse—a report in the July/Aug issue of SOLAR TODAY noted that Akeena Solar has started a new Westinghouse Solar division and will market “the integrated PV module-with-microinverter system,” formerly known as Andalay, under the name Westinghouse.

Cisco + Itron—Cisco Systems (you knew them) and Itron (makes meters) “have formed a strategic alliance aimed at developing interoperable IP-based communications solutions for advanced metering and electric-distribution applications,” according to RenewGridMag.com.

Comverge—reported on Aug. 12 that it delivered 100MW of “peak demand load reduction to Rocky Mountain Power through a first-of-its kind Virtual Peaking Capacity intelligent energy management program.” It’s said to be “one of the largest outsourced demand response projects in North America.”

Coulomb Technologies—on Sept. 2 celebrated the installation of the first-ever ChargePoint networked EV charging station in Michigan. Release here. See also the Aug. 26 TedMag Special Report, which includes info on ChargePoint America and The EV Project.

Eaton + EPRI + TVA—Eaton, the Electric Power Research Institute, and the Tennessee Valley Authority are working together to produce “a prototype integrated solar-assisted EV charging station.” It will be installed in Knoxville, Tenn., with additional stations planned for another Knoxville site, one in Chattanooga, and another in Nashville.

Eaton + Mitsubishi—according to Electrical Business (the Canadian magazine), Eaton “is supporting Mitsubishi Motor Sales of Canada ‘Clean Across Canada’ tour with a quick-charging station and other critical EV supply equipment (EVSE) product support.”

Exelon buys wind from Deere—well, you can’t buy wind, but you can buy 735 MW of wind power capacity. That’s what Exelon (the utility that operates more nuclear power output than any other in the United States) has purchased from Deere. Deere’s projects “are spread over 36 projects across eight states,” according to Industry Week (Aug. 31). Price: $900 million.

FuelCell Energy—said it sold two 300KW fuel cell power plants to the Eastern Municipal Water District in southern California. They’ll be “fueled by renewable biogas.” Separately, a report in The Stamford Advocate (Aug. 19), of Stamford, Conn., noted that FCE “has devised a way to extract megawatts from chicken droppings.” The first such unit is being installed in French Camp, Calif. (at the Olivera Egg Ranch).

Hendrix Wire & Cable—this Milford, New Hampshire-based maker of overhead and underground power distribution products has started a Cradle-to-Cradle program for its HPI polyethylene insulator products, according to RecyclingToday.com.

LDK Solar vs. Canadian Solar—a Sept. 1 release form LKD Solar said that it had filed “an objection for an Arbitration before the China International Economic and Trade Arbitration Commission)…against Canadian Solar.” LDK signed a 10-year supply agreement in 2008 with Canadian Solar; it asserts that the other company breached the take-or-pay supply deal.

People Power—this start-up, “an energy efficiency company providing monitoring and control systems for homes and businesses,” won a $1 million grant from the DOE. From Gene Wang, founder/CEO: “We are on the road to developing smart, energy-saving products and winning this grant brings us one step closer to our goal of making energy reduction easy for everyone.”

                What will it do? People Power “offers a way for people to monitor and control energy consumption at the appliance level, ultimately driving down energy costs while reducing carbon emissions.”

Power-One—the company said on July 16 that it had created two separate strategic business units within itself. One is the Renewable Energy Solutions SBU, which will concern itself with inverters (and more) for the solar/wind markets; the other is the Power Solutions SBU (will focus on the company’s traditional AC/DC and DC/DC power conversion products).

                Separately, a company release quoting data from IMS Research noted that Power-One “now claims 11% market share of the global PV market . . .in less than two years, Power-One has jumped from ninth place in 2008 to second place at the end of [Q2/2010].”

Primus Power—this battery-making start-up “is moving into its first real home with millions of dollars in government and venture capital funding and a plan to double its workforce by the end of 2011,” the San Francisco Business Times reported (Aug. 27). Primus makes “utility-scale batteries.”

Rioglass Solar—this company, based in Spain, will build a 130,000-square-foot facility to make glass for commercial solar plants in the Phoenix suburb of Surprise, Ariz., according to the Associated Press.

Strategic Services International—it will use $1.2 million in stimulus money “to open a manufacturing plant in Maryland, where it will make mobile wind and solar-power generators,” according to the Aug. 6 Baltimore Business Journal. Based in Catonsville, Md., the two-and-a-half-year-old company “plans to hire as many as 14 people to build the systems, which sell for $170,000 apiece.”

Sunovia vs. EPIR—an Aug. 20 release from Sunovia Energy Technologies (which says it specializes in “solar technology and LED lighting”) reports that the company filed a response to a legal complaint from EPIR Technologies. Among other things, Sunovia said it “asserted…fraud, misappropriation of funds, and non-performance.”

SunPower—the company said (Aug. 30) that its technology “has been selected for installation at several U.S. government properties,” including a DOE facility (NREL), the GSA, the Navy, and the Air Force.

TSMC—Taiwan Semiconductor Manufacturing (Hsinchu) “will spend more than $100 million on a LED manufacturing line and $218 million on a thin-film PV construction facility,” according to Spectrum.IEEE.org.

Viridian, REV, + Coulomb—an item (Aug. 16) from Green.Autoblog.com noted that Viridian Power and Rapid Electric Vehicles (REV) will install EV charging stations across Canada (and that they have “enlisted the help of Coulomb Technologies and will utilize its ChargePoint stations”). From CEO Jay Giraud of REV: “Our 2012 objective is to connect every major city across the country with a networking of charging stations coast-to-coast.”

Xtreme Power—this company provides “utility-scale power management and energy storage systems,” according to RenewableEnergyWorld.com. This past summer it closed a financing round bringing it $29.5 million.

ManuFacts

ELECTROCRAFT + SN TECH—ElecroCraft (Searcy, Ark.) and SN Tech (of Korea) have joined forces to “begin creating a new ‘greener’ motor that costs less to produce, last longer, and is more energy-efficient than those used previously.” ElectroCraft—which makes electric motors for heaters, AC units, refrigerators, and military vehicles—now employs 70 people in Searcy, and will hire 55 more.

                How do we know all this? It comes from a release from the office of Mike Beebe, governor of Arkansas.

MERAMEC ELECTRIC PRODUCTS—this company makes “a broad range of instrument current transformers for the power transformer and HV circuit-breaker markets,” according to a release from Gov. Jay Nixon of Missouri. Thanks to a $5 million capital investment—allegedly enabled by “enhanced enterprise zone” credits from the state—Meramec will expand its operations and create 37 new manufacturing jobs. The EEZ incentives totaled $197,000; Meramec is located in Cuba, Mo.

PURESPECTRUM—as reported last week on TedMag, PureSpectrum’s board removed its chairman and CEO, making some very unfortunate (and very specific) allegations. Another release, put on the wires on Aug. 27 at 4:37 pm, noted a “company-wide layoff of the entire staff effective immediately,” with the board working “to seek funding that would allow the company to continue operations.” Release here.

THOMAS & BETTS—the company’s board approved a new share-repurchase effort by management. The company can buy up to 3 million of its outstanding shares on the open market; the board authorization runs to Dec. 31, 2012.

© 2010 The Electrical Distributor. All rights reserved.

Scabby the Rat has guarded picket lines across the country from Seattle to Times Square -- and even traveled to New Jersey once to star in an episode of "The Sopranos."

But the ugly gray vinyl-balloon rat with beady red eyes and a vicious snarl likes to call Chicago home.

Mike O'Connor, co-owner of Big Sky Balloons and Searchlights in Plainfield, takes credit for creating the first inflatable rodent, which has become a union symbol used during job actions to condemn the "dirty" behavior of the disputed business, as well as the "scabs" who cross the picket line.

The story of Scabby began 20 years ago when a Chicago union tradesman contacted O'Connor and asked him to design a giant rat balloon.

"I drew up one that was a little too cutesy for his liking," O'Connor recalled.

So he made a few adjustments. The next sketch "had fangs and festering nipples and claws and a pink tail."

After that, he said, "they multiplied, just like real rats."

Big Sky Balloons, at 17320 S. Delia, sells 5 to 10 rats a year in the Chicago area and about 100 nationwide, mostly on the East Coast. They range from 6 to 25 feet tall and cost from $2,250 to $8,350.

Scabby is most popular among the building and construction trade unions, but he has also made appearances at the Congress Hotel strike in downtown Chicago and at a Glenview hotel on Easter Sunday. A few years ago, the balloon rat stood alongside the Chicago Federation of Musicians in a protest at the Royal George Theatre. The show at the time was "Rat Pack."

Though Scabby is still relatively new to the labor movement, the message he brings to the picket line is no different than earlier traditions, says Leon Fink, a labor historian and professor at the University of Illinois at Chicago.

"It's a carnivalesque tactic," he said. "It does attract attention, and it inevitably casts a negative image over the employer that touched off the protest."

Source: Chicago Sun-Times

Commercial/industrial sector reports growth for third consecutive month

Summary: Although billings at architecture firms declined for the 30^th consecutive month in July, the ABI score increased by nearly two points from the previous month, inching closer to 50. In addition, business conditions continue to improve at firms with a commercial/industrial specialization, despite persistent weakness in the general economy. Survey panelists report that the design phase for nearly half of their projects lasts for less than six months, and that the complexity of the project is the most important influence on the length of that design phase.

----------------

The AIA’s Architecture Billings Index (ABI) score for July inched closer to the 50-point threshold again (a score higher than 50 is an indication of growth), climbing nearly two full points from June to 47.9. While there is growing optimism that billings may grow in the near future, business conditions at many architecture firms remain tenuous, with relief still a long way off.

Inquiries into new work have grown for 16 of the last 17 months, but this month’s score of 53.1 is the lowest since the beginning of the year. However, this may represent a leveling out of the glut of RFPs that firms have been receiving in recent months that have not translated into actual billable work.

Business conditions remain weak at architecture firms in all regions of the country. Firms in the Northeast continue to report the highest scores, but they have been weakening every month since very minimal growth was reported in April. The score increased in the South for the fifth month in a row in July, and is approaching 50 for the first time in more than two years.

Firms with a commercial/industrial specialization reported growth for the third month in a row in July, and while it remained minimal, it is still a positive sign. The highest score in nearly two years for that sector was reported at firms with an institutional specialization, amid reports that building projects funded under the stimulus program are beginning to wrap up.

The most recent issue of the Federal Reserve’s Beige Book reports that, for the most part, the commercial and industrial real estate market remains weak in all regions of the country. However, while vacancy rates in many areas are flat or increasing, office/retail leasing actually has been increasing in New York City. Construction activity continues to weaken in the Atlanta, Minneapolis, Dallas, and Cleveland, but public infrastructure construction is on the rise in Chicago, and most Federal Reserve Board districts anticipate slow growth in commercial/industrial real estate in the near future. And, employment data continues to paint a mixed picture. While overall nonfarm payroll employment declined by 131,000 positions in July, the private sector continued to add jobs, with an additional 71,000 positions. Construction employment remains relatively flat, shedding just 11,000 jobs in July.

This month’s special questions followed up on last month’s questions about the timing of project design phases. Survey respondents reported that the largest share of their projects (42%) have a design phase (defined as lasting from the awarding of the design contract to the completion of the construction documents) that lasts less than six months, while an additional 24% of projects have a design phase typically lasting between six and nine months. Small firms are much more likely to have shorter design phases than large firms, with 59% of projects at firms with less than $250,000 in annual billings having design phases of less than six months, compared to just 23% of projects at firms with annual billings of $5 million or more. Projects at firms with an institutional specialization also tend to have a slightly longer design phase, with nearly half (47%) of projects at those firms having a design phase lasting between six and 12 months.

Our panelists indicated that the complexity of a project is the most important influence on the length of the design phase, followed by project size (construction value), type of client, and scope of design services offered. The project delivery method (e.g., design-build, design-bid-build, integrated project delivery) was not considered to be a very important factor.

Source: AIA.org

NEMA Emits Data Mass

Recent notes from NEMA’s economics team:

August EBCI—the Electroindustry Business Confidence Index for North American current conditions fell by nearly 18 points (from July). Combined with the July decline of nearly seven points, the drop from June—over two months—is more than 24 points.

That’s not good news. It took the EBCI down from a sparkling 70.4 in June to 46 in August. As “50” is the dividing line between economic gain and contraction, the EBCI is now signaling some sort of dip.

How about the future? The six-months-from-now portion of the EBCI has fallen from 77.1 in May (top reading in 5-plus years) down to 57.7 in July and 54 in August.

According to NEMA: “The sub-50 point value—only the second recorded since July 2009—indicates, across the electroindustry, more businesses than not saw conditions deteriorate during [August].”

Q2 industrial controls—there are two indices here.

The Primary Industrial Controls index rose 6.4% in Q2 (from Q1) and has now increased for four straight quarters. It’s now 24.6% above the Q2/2009 level, “representing the largest year-over-year percentage gain since 1992,” NEMA said.

How about the other, the Primary Industrial Controls and Adjustable Speed Drives Index? It rose by 1.7% vs. Q1/2009, and is now up nearly 24% vs. Q2/2010.

Q2 motors index—NEMA’s Motors Shipment Index rose 7.8% in Q2 (over Q1/2010) and rose 15.1% (vs. Q2/2009)—“but still remains approximately 15% below its peak,” NEMA said.

NEMA added: “Demand for integral horsepower motors remains surprisingly lackluster, particularly given the solid growth occurring in the broader manufacturing sector.”

HID lamps—shipments of sodium-vapor HID lamps rose 3.9% in Q2/2010, hitting a reading of 92.6, NEMA said. That’s 17.1% above the reading one year ago, and the highest reading in two years. Also from the report: Mercury vapor lamps lost share, slipping from 4.8% in Q1/2010 to 4.1%.

Data Points Monitor (8.31.2010)

© 2010 The Electrical Distributor. All rights reserved.

Financial Snapshots

AETI—American Electrical Technologies sales in the year’s first half were down 36.5%, to $17.9 million. The company blamed weakness in traditional markets, but claimed to be seeing “signs of improvement” in those same markets.

COMMUNICATIONS SYSTEMS—sales rose 2% in the first six months, to $56.5 million. The company also declared $.29 in dividends in the year’s first half, vs. $.24 to each share one year earlier.

ENERGY FOCUS—the company has remade itself—doing more energy-efficiency work, thanks in part to an acquisition. That showed in the year’s first half, with net sales of $17.3 million, up from $5.8 million one year earlier.

NEXXUS LIGHTING—sales rose 22% in the first half to nearly $6.9 million. Said Nexxus: Sales of our new Array LED lamps offset the decline in sales of our legacy commercial and Lumificient products, which primarily resulted from significant decreases in commercial construction and much lower new signage activity across the United States.

POWERSECURE—first-half revenue of almost $59 million soared 31.5% compared with the same period last year. Q2 “interactive distributed generation” revenues rose 55%, the company said, dwarfing an 11% same-comparison growth in LED lighting product sales.

USI—the loss of a single large home center customer, which accounted for 50% of sales at Universal Security Instruments, drove sales in its fiscal Q1 (ended June 30) down by almost 38%, to $3.68 million. From CEO Harvey Grossblatt: “We believe the current quarter represents the nadir of our transition from the company’s existing technology to new technology.”

ManuFacts

ACTIVE POWER—when the stock of Active fell below $1.00, it was in danger of losing its NASDAQ listing. On Aug. 9, it issued a reliance to say it was back in compliance. The Aug. 27 close was $1.09.

ALCAN CABLE—has been declared qualified by CTC Cable (subsidiary, Composite Technology) to manufacturer ACC conductor, meaning, according to a release, that Alcan “can now supply product to its existing utility customers as well as to CTC Cable.”

BELDEN GETS CREDIT—Belden now has a credit agreement that “allows for revolving loans, swingline loans, and letters-of-credit” of up to $165 million.”

BEST PLANTS FINALISTS—Industry Week magazine named the 20 finalists in its 2010 Best Plants competition (Aug. 18). Among the nominees: General Cable (two plants).

CARLO GAVAZZI—all the company’s manufacturing facilities are now certified to ISO 14001:2004 (which is about environmental management).

ENERGY CONVERSION DEVICES—the company is realigning its solar manufacturing capacity. Lost: 140 jobs.

HUBBELL INC.—the company has moved its HQ to Shelton, Conn., according to the Fairfield County Business Journal, “taking 100 employees across the county border from Orange to New Haven County, and is consolidating another 200 employees in Shelton from locations in Bridgeport, Milford, and Stonington.”

IEWC—that’s now the official name for Industrial Electric Wire & Cable. From Paul Bryant, chief commercial officer: “The company’s growth necessitates this change.”

LUMENERGI—the San Francisco Business Times report Aug. 25 that Lumenergi, “which makes networked lighting systems,” raised $12.7 million from venture capitalists and will use the cash “to expand into large-scale commercial and industrial buildings in regions with high energy use.” The actual funds will go to hiring sales, marketing, and customer-service employees.

TYCO ELECTRONICS—this is a different company from the one below. On Aug. 24, it said it had extended the expiration of its tender offer for all shares of ADC to Sept. 20. As of Aug. 23, holders of 86.6% of ADC shares had tendered.

TYCO INTERNATIONAL—this company (symbol TYC) has been added to the S&P 500 index, effective Aug. 26.

Acquisitions & Aftermath

CommScope invests in Hydrogenics—CommScope will buy up to $8.5 million of the shares of Hydrogenics (trades in Canada under the symbol HYG.TO). The company makes fuel cell products. An Aug. 12 release noted that CommScope purchased 879,383 shares for $3.2 million (a price of $3.68 per share).

All figures in this item are in U.S. dollars.

Why make such an investment? The companies are to work together to “jointly develop modules for telecom-related backup power applications,” according to a Reuters item.

Honeywell—on its acquisition of E-Mon LLC

Millstein letter—from the Aug. 20 Philadelphia Business Journal, this quote from a letter from Donald Millstein, E-Mon’s president: “E-Mon is still E-Mon, the management team is still in place, the regional sales managers and employees you count on will continue to support you.” The newspaper noted that E-Mon’s “fewer than 50 employees” will be kept on by the acquirer.

New owner—The Philadelphia Inquirer noted that this is the third time E-Mon has been sold in 10 years. In 2001, Millstein sold it to Hunt Power, only to buy it back in 2007 (with backing from a private equity firm). While the newspaper could not discover what was paid this time, Millstein told a reporter “it was more than last time.”

Rise of the green giants—the Honeywell acquisition of E-Mon was positioned (by Greentech Media) as “another step along the way in one of the big trends of 2009 and 2010, the rise of the green giants.” The article noted that E-Mon “works with 1,500 distributors.”

Other Honeywell news:

Acquisition of Sperian—the company continues to move forward in its acquisition of Sperian Protection, acquiring 27.53% of Sperian’s share capital from big stockholders (as of Aug. 10) and obtaining regulatory approval for the buy.

Boosts forecasts—Honeywell now expects a better economic environment, the Financial Times reported July 23, moving its expectations for earnings-per-share to $2.50 on the high side, from an earlier $2.45. Revenues for 2010 will still be $4 billion below what Honeywell produced in 2008.

IDEAL adds SK Hand Tools—IDEAL INDUSTRIES said that it had acquired SK Hand Tools, “one of America’s leading manufacturers of tools for the professional mechanic.”

Nidec buys Emerson’s motor unit—from the Emerson release:  Included in the sale are two Emerson Motor Company businesses—Emerson’s Commercial and Industrial Motors (CIM) and Emerson Appliance Motors and Controls (EAMC). Combined, these businesses accounted for more than $800 million in sales in fiscal 2009.

Who is Nidec? An $8 billion Japanese company.

Philips buys Burton—Royal Philips Electronics has acquired Burton Medical Products, which provides “specialized lighting solutions for healthcare facilities.” The seller: Glamox ASA of Norway. Neither the sales price nor Burton’s annual sales volume was included in a release.

© 2010 The Electrical Distributor. All rights reserved.