Building A Stronger Economy 2005 NACF Meeting Oaxaca
Building A Stronger Economy 2005 NACF Meeting Oaxaca, Oax, Mexico Sam Hunter AGC of America President Building Your Quality of Life
AGC’s Goals and Guiding Principles • Promote construction industry growth • Establish infrastructure investment as a necessary element of economic growth • Ensure that taxation, regulation and mandates are designed to promote economic opportunity for AGC members Building Your Quality of Life
How We Achieve Our Goals • Credibility • Staff - 20 Staffers Who Monitor Legislative and Regulatory Issues • Chapters - 98 Chapters Across the U. S. - At least one chapter in each state • Active Membership - 33, 000 member companies • 7, 000 general contractors • 11, 000 specialty-contracting firms • 13, 000 service providers and suppliers Building Your Quality of Life • Political Connections
What AGC Offers • Evaluate the Political Atmosphere • Identify Viable Agenda Options • Discussion of Strategy • Action items - Communicate Priorities Internally and Externally - Continue to Lead Important Coalitions - Coordinate Targeted Grass Roots Campaigns - Identify Champions - Deliver the Votes Building Your Quality of Life
AGC Overview • AGC has a Broad Agenda • AGC has a Substantial Presence • Elections and Policy Decisions have Consequences for the Industry • Government Regulations Cost the Economy an Estimated $850 Billion Annually • The Industry Needs to Participate in the Process • AGC has Made it Easy Building Your Quality of Life
AGC Legislative and Regulatory Goals • AGC PAC • Infrastructure Investment • Highway Reauthorization • Drinking And Wastewater • Water Resources • Reverse Auctions • Tax Policy • Environment • Tort Reform • Safety & Health • Immigration Reform Building Your Quality of Life
AGC Legislative and Regulatory Goals AGC MAKES A DIFFERENCE ON ELECTION DAY! • AGC PAC will raise and spend $1, 000 during the 2006 election cycle. • In 2004 AGC PAC supported the winning candidate 89% of the time. • AGC’s Legislative Action Center (www. agc. org/lac) keeps members informed. • AGC Grassroots encourages members to register and vote. AGC PAC SPECIFICS • Contributions all personal, not corporate. • AGC PAC & Grassroots actively engages in federal races. • Construction industry needs must be heard! Building Your Quality of Life
AGC Legislative and Regulatory Goals INFRASTRUCTURE INVESTMENT – HIGHWAY REAUTHORIZATION • Congress passed Transportation Equity Act July 29. • $286. 4 billion over six years – A 31% increase • Largest public works bill in U. S. history. • AGC played a central leadership role Building Your Quality of Life
AGC Legislative and Regulatory Goals INFRASTRUCTURE INVESTMENT – HIGHWAY REAUTHORIZATION Key AGC Policy Victories: • Maintain Highway Trust Fund Integrity • AGC worked to ensure all dollars will be used for transportation • Streamline Environmental Review Process • AGC pushed to highway planning and project development streamlined to complete vital transportation projects quickly • Improve Work Zone Safety • AGC sought to protect industry’s workers and the public by increasing awareness and commitment to work zone safety Building Your Quality of Life
AGC Legislative and Regulatory Goals INFRASTRUCTURE INVESTMENT – DRINKING AND WASTEWATER • Over next 20 years: • Drinking water investment needs between $70 billion - $362 billion. • Wastewater investment needs between $132 - $388 billion. Building Your Quality of Life
AGC Legislative and Regulatory Goals INFRASTRUCTURE INVESTMENT – WATER RESOURCES • Water resources projects not keeping pace with economic and social expansion • Waterways programs grow U. S. economy: • Every $1 B expended = 40, 000 jobs. • Flood damage reduction provides a six-toone return. • O&M on locks and dams provides 14 -1 return. • AGC focused to increase federal investment. Building Your Quality of Life
AGC Legislative and Regulatory Goals REVERSE AUCTIONS • AGC working with Congressional Leaders to prohibit procurement of Federal construction projects using Reverse Auctions. • House of Representatives has passed legislation to accomplish this goal. • Senate expected to pass similar measure this fall. Building Your Quality of Life
AGC Legislative and Regulatory Goals TAX POLICY • • Building Your Quality of Life House of Representatives approved full and permanent repeal of “death tax. ” Death tax scheduled for elimination in 2010. • Full repeal expires in 2011. AGC urging Senate to schedule similar vote. The President has repeatedly stated his desire to sign this legislation.
AGC Legislative and Regulatory Goals ENVIRONMENT • AGC and U. S. Environmental Protection Agency partnering: • Goal: Reduce regulatory burdens and improve compliance. • AGC responded to numerous proposals impacting construction. • AGC offers services promoting our positive contributions to environmental stewardship. Building Your Quality of Life
AGC Legislative and Regulatory Goals TORT REFORM • 67 companies forced into bankruptcy because of asbestos litigation. • 500, 000 employees have lost jobs. • Between $375 and $650 billion in stock value evaporated. • AGC supporting legislation to address litigation challenges. Building Your Quality of Life
AGC Legislative and Regulatory Goals SAFETY & HEALTH • AGC & OSHA working on Trenching Initiative Task Force. • OSHA proposing silica, hexavalent chromium, & confined space standards. • Negotiated Rulemaking for Cranes & Derricks • OSHA preparing final consensus language • OSHA Susan Harwood Training Grant • Fall Protection Training - 1, 500 people trained to date • Every AGC General Contractor sent CD-Rom (10, 000) Building Your Quality of Life
AGC Legislative and Regulatory Goals IMMIGRATION REFORM • Shortage of skilled and unskilled workers in Building Your Quality of Life construction must be addressed. • Streamline legalization process: • Need workable and realistic guest worker program. • Today’s immigrants are highly skilled and provide a valuable service • Congress has introduced legislation to reform the system. • Action expected in the fall of 2005 and will probably continue into 2006. • AGC continues to work with Congressional leaders to develop a reasonable and workable guest worker program.
U. S. Economy and Construction • Construction A Major Part of U. S. Economy: • 7. 3 million workers in 700, 000 companies. • 2 million firms operate without employees. • 12% of all non-employer firms. • Value of construction put in place in 2004 totaled $1 Trillion • 8% of GDP. • Construction machinery shipments exceeded $500 billion in 2004 • 11% of all manufacturing shipments. Building Your Quality of Life
U. S. Economy and Construction • Construction has Done Well in 2005: • Construction employment rose by 277, 000 from August 2004 to August 2005. • A new record • Value of construction put in place rose nearly 9% in the seven months of 2005. • Year-to-date orders for construction materials, supplies, and machinery are all up Building Your Quality of Life
U. S. Economy and Construction • Building Your Quality of Life All Segments Grew in the First Seven Months of 2005: • Private residential construction put in place rose 12% over same period last year. • Private nonresidential construction grew 5%. • Public construction rose 6%. • However, these gains are only partly real. • Steep price increases for steel and many other inputs reflected.
U. S. Economy and Construction Remainder of 2005 and 2006 will be affected by impacts of Hurricane Katrina: • The cost of diesel fuel to operate equipment and trucks and pay for deliveries of materials will eat into profits. • Oil and natural gas price increases and shortages will affect asphalt, plastics, roofing and insulation. Building Your Quality of Life • Cement and labor shortages could become more widespread.
U. S. Economy and Construction • There will be lots of stabilization, repair, and demolition work. • Reconstruction will depend on funding and decisions about whether rebuilding is safe and sensible. • Other regions will grow a bit faster as families and businesses relocate. Building Your Quality of Life • Higher gas and heating costs will force consumer cutbacks, hurting some types of construction.
The Associated General Contractors of America Building Your Quality of Life
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