MCAA Regional Report, Region H

Words: Dennis WithsoskyCalifornia - Todd Williams
Hawaii - No State Chair
Nevada - No State Chair

Workforce Development

California

  • 120 CA total bricklayer apprentices
    • 87 bricklayer union apprentices (from 95 in 2017)
      • 48 apprentices So Cal. 63 inclusive of all related trades (bricklayer, marble, refractory, pointer/cleaners/caulkers)
      • 39 apprentices Nor Cal. 148 inclusive of all related trades (bricklayer, terrazzo, marble, pointer/cleaners/caulkers)
    • 33 bricklayer open shop apprentices (from 34 in 2017)
  • 8 other industry supported high school and adult apprentice programs
    • 6 high school training programs
    • 2 adult apprentice programs run by Masonry Industry Training Association (MITA)
Northern CA BAC #3, Southern CA BAC #4, and the Masonry Industry Training Association (MITA) apprentice programs continue. All programs experienced a downturn in bricklayer apprentices from 2017 resulting in an 7% decrease statewide.

Low unemployment rates have made it difficult for contractors to add workers despite strong project demand.

Hawaii

No report

Nevada

No report

Economic Conditions/Forecasts

California

California ranked third, behind Texas and Florida, for adding the most construction jobs in the country (29,600 jobs, 3.6 percent) between November 2017 and November 2018, according to American General Contractors of America (AGC) 12/21/18 construction employment report. California 2018 average construction wages were up 4.0% over 2017 according to the California Department of Finance which also forecasts construction wages to continue increasing in the state an average of 3.4% over the next three years with the lowest increase anticipated in 2021.

The Allen Matkins/UCLA Anderson Summer/Fall 2018 Forecast reports that industrial and multi-family construction are where the action is at while office has reached its peak and retail is declining and represents the weakest position in commercial real estate. Tax cuts and incentives, tariffs, higher interest rates, higher cap rates, and slowing employment growth are expected to be factors as developers consider new commercial projects. The combination of these factors means higher construction costs and manpower shortages which make it more and more expensive to get development from start to finish.

The congressional tax overhaul and stimulus package designed to bolster economic growth, in part through investment in commercial real estate, has not had the intended effect in California with predictions remaining largely unchanged for the near term.

Hawaii

No report

Nevada

No report

Masonry Marketing Activities

California

The Concrete Masonry Association of California and Nevada (CMACN) continues to reward exceptional masonry projects every odd-numbered year (2019, 2017, 2015, etc.) at their Concrete Masonry Design Awards held in September.
  • CMACN also has a multi-platform marketing campaign, “WHY MASONRY”, promoting the use of CMU via website, publication ads, and brochures.
  • CMACN distributes 15,000 copies quarterly of “Profiles in Masonry” featuring award winning projects to architects and other design professionals in CA and NV.
  • CMACN distributes over 5,900 copies of “Masonry Chronicles” featuring technical notes and building code updates to engineers statewide.
The Masonry Institute of America (MIA) contacts about 15,000 design professionals making available promotional flyers showing a vast assortment of outstanding masonry projects to architects statewide on a regular basis as well continuing to update and upgrade its publications used by designers, contractors and educators across the US.

In 2018, the International Masonry Institute (IMI) formed the Western States Structural Coalition which is an alliance of masonry organizations working together to encourage the use of masonry by providing resources and design support to the architectural, engineering & construction (AEC) community in the Western States.

Hawaii

No report

Nevada

No report

Competitors/Trends

California

Wood Seeks Advancement in California Construction
  • Governor's Executive Order B-52-18: Signed 5/10/18. 1) Encourages adoption of a Tall Wood Building Proposal into the California Building Standards Code. 2) Requires, at least, three California building projects be selected to use both structural and aesthetic wood components. 3) Tied to ICC vote for 18-story wood buildings. 2 hearings are part of committee cycle: 1st ICC hearing April 2018. 2nd ICC hearing October 2018. As of December 21, 2018, ICC voting results indicate some tall wood code changes are likely to be incorporated into the 2021 International Building Code.
  • California, Washington, and British Columbia ‘Unite To Take Forest Health And Climate Change Work Beyond State Borders’. The three jurisdictions signed a Memorandum of Understanding (MOU) December 18, 2018 building on initial steps taken by California and Washington to collaborate on “…forest resilience and carbon sequestration opportunities across the western seaboard…” as announced in September at the 2018 Global Climate Action Summit in San Francisco, CA.
1,217 bills reached the Governor’s desk in 2018. He vetoed about 16.5% of them. A highlight of new laws going into effect January 1, 2019 and some lingering initiatives is as follows:
  • AB 2518 requires that 2 schools and 2 fire stations in designated communities be built with mass timber and that the State come up with funding mechanisms to help with that construction.
  • AB 3018 affirms the 30% Skilled and Trained Workforce graduation percentage cap for state projects, passed by SB 418 in 2017, for a number of occupations including bricklayer, marble mason, stone mason, terrazzo worker or finisher. These bills require a certain percentage of workers are either “skilled journeypersons” with enough on-the-job experience to qualify or are graduates of a state-approved apprenticeship program.
  • SB 1077 sought full and timely (at bid time) disclosure of OCIP/CCIP terms on non-residential projects. MCAC strongly supported this measure but it, ultimately, failed passage. This is an issue we expect to re-emerge.
Ready-Mix hauler prevailing wage on public works projects is deemed constitutional according to a September 2018 circuit court decision on this contentious issue which has been on-again off-again since 2016 through a series of legal actions in which the Ready-Mix Haulers took on the California Department of Industrial Relations (DIR).

Contractors surveyed throughout the state reported mixed bidding results with some reporting no significant change in parts of northern California while others reported bid prices up and bidding volume down slightly in the Bay Area. San Diego came in with bid prices down and increased bidders.

Hawaii

No report

Nevada

No report
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