MCAA Regional Report, Region G

ECONOMIC CLIMATE AND MARKET EXPANSION

Arizona
Arizona's economic climate has been great throughout the state. The housing market has been on a record pace and only showing a slight slow down in the last quarter of this year. Commercial and Public Work has been on a record pace also. Due to the great demand in housing, commercial and public works areas, a shortage in materials and labor has been created. Overall, the market continues to be outstanding.

Colorado
In the Rocky Mountain region, the industry is experiencing a pent-up demand for institutional construction, fueled by the recent economic recovery and voter approval of Referendum C. The traditional masonry market - schools, police, fire, and jails - is expecting an increase in activity. School construction in particular is in high demand, with enrollment increases expected annually through a 2009 peak, which is then anticipated to decline through 2014. However, due to the latent demand for school facilities, construction is anticipated to be in high demand past the 2009 peak enrollment year. Projections for increased masonry construction demand include the continuing market for Big Box retail facilities. Healthcare facility construction is also continuing at a high rate, particularly fueled by development of the medical campus at the Fitzsimons redevelopment. Overall demand for masonry construction continues to be 60% commercial and institutional, followed by 40% residential and multi-family. Transit-oriented Development, which falls into both categories, is anticipated to increase throughout the next decade with the construction of the Regional Transportation District's FasTracks commuter rail system throughout the Denver Metro region.

Utah
Utah's job creation is red-hot, it is reported to be the best in ten years. Construction growth was up 12.7%, from the previous year and it is reported to be the second-highest among all states according to Mark Knold, chief economist for Utah Workforce Services.

Consequently there is a shortage of virtually all trade labor. Mason Contractors are Struggling to find sufficient help to take on all the opportunity that is available. This is resulting in pricing pressures to raise wages to attract and or retain valuable employees.

WORKFORCE DEVELOPMENT

Arizona
The Arizona Masonry Contractors Association has 40 apprentices between the first, second, and third year classes. We started out the year with 48; however, several have either moved out-of-state or have changed contractors. We are happy to report, though, that one of our apprentices moved to Ohio and his training hours have easily transferred into the union program there.

The AMCA continues to be very active in local career fairs. At the smaller high school career days, our booth is always one of the most popular due to our hands-on demonstration that allows each studknt to lay a brick. We also participated in the Arizona Construction Career Days again this year, which had over 1,000 students in attendance. In addition, we have continued to support masonry programs in local schools both by sending our apprenticeship instructors to their classes, inviting high school students to attend our Saturday apprenticeship classes, and organize the masonry contest for Arizona SkillsUSA.

Colorado
The RMMI apprentice program is in flux at this time, with the education committee in negotiation with several education institutions to house the masonry apprentice program to begin in 2007 which will result in both a trained and educated workforce. At the secondary school level, the masonry apprentice program continues in the Jefferson County R-1 school district. In the spring, 12 high school students will graduate from the apprentice program at Warren Tech.

The region's apprentice training program will be highlighted in the upcoming cable network season with a feature on the Do-It-Yourself Network's production "Trade Show." Masonry apprentice Jason Brooks of Q M Company in Loveland, Colo., Jason and his mentorlteacher Chris Olgeirson, project manager for A.P. Eberlein, were selected for the feature. The producers filmed Jason and Chris building an intricate brick fireplace designed by RMMI Technical Director Diane Travis. It is based on a fireplace designed by Frank Lloyd Wright for the May house in Grand Rapids, Mich., which utilized strips of iridescent glass infused with 18-karat gold. Summit Brick and Tile, of Pueblo, Colo., created custom-glazed thin brick to emulate the glass in the design. The fireplace includes concrete block (donated by Basalite), brick veneer (donated by Acme Brick and Robinson Brick), stone pieces (donated by Pine Stone), glass block (donated by Rio Grande Co) and glazed brick inlay (donated by Summit Brick and Tile). With a "ventless" electric fireplace insert (supplied by Rio Grande CO) the fireplace provides an aesthetic boost to the RMMI conference room. The show will be accompanied by a web feature on www.DIYnetwork.com. The web pages will focus on the details of the fireplace project. "Trade School" is broadcast at 9 p.m. Eastern Time on Sundays. Each half-hour show follows a trade school student as their skills progress and they position themselves at the beginning of their career.

Utah
The Utah Masonry Council has recently teamed up with the Salt Lake Community College to implement a preapprenticeship program to encourage, educate and train individuals who are showing interest in the masonry trades. Several students have signed up.

OSHA & SAFETY

Arizona
Our Arizona Masonry Contractors Association Safety Committee continues to meet quarterly, print safety articles in our newsletter and host safety seminars. The AMCA has also recently joined the Arizona Alliance for Safety and Health and is nearing a Partnership with ADOSH.

A recent struggle for local contractors has been their dealings with SCF of Arizona, our state's largest workers' compensation insurer. SCF of Arizona recently changed their computer system and the change has not gone as planned. Contractors and the association are unable to get their normal reports, invoices and checks are not going out on time and there are problems with claims being paid. Many contractors are choosing to go elsewhere for their insurance, at higher premiums.

We continue to monitor legislation that will reinstate the statute regarding drug and alcohol programs. Last summer, the Arizona Supreme Court ruled that denying workers' compensation benefits to a worker simply because they tested positive for alcohol or illegal drugs at the time of the accident is unconstitutional. The AMCA is working with other state associations on a constitutional amendment.

Colorado
Linda Riney, a licensed insurance agent, was hired as the new Member Services Director. She is working to increase the number of insurance agents available to participating companies in the RMMI Worker's Compensation program. The RMMI Work Safe Program is continuing its focus on improving orkplace safety in the industry. WorkSafe Newsletters are sent to members at least twice a month, with pointers on work place safety, tips from OSHA reminders about events such as Safety Fest and the 1-hour OSHA safety course.

Members who participate in the Workers Compensation Group Insurance Plan are required to attend a minimum of one safety class per quarter. These regularly scheduled classes are focused on the needs of managers, administrators, CFOs and CEOs. The next course will be an all day Occupational Safety management course presented on Wednesday, April 19. Taught by Paul H. Miller of HRH Insurance, the course is an in-depth, practical workshop on developing, implementing, enforcing and measuring the effectiveness of a comprehensive company/jobsite safety program.

Utah
No report given.

MEMBERSHIP DEVELOPMENT

Arizona
The AMCA chapter has 10 MCAA Members and 1 MCAA Member at large. We are continuing to promote MCAA involvement and membership enrollment at all our functions and meetings, and recently included MCAA's Foreman Development Course in our certification curriculum. In addition, we are hosting a reception at the 2006 Masonry Showcase and have invited all masonry contractors in Arizona to attend, promoting both the AMCA and Masonry Showcase.

Colorado
Currently there are more than 103 companies that are active members of RMMI. The membership committee has set a retention goal of between 93% and 95%, to be achieved by increased member networking, increased member services, and personalized visits by the membership committee and Member Services Director. In addition. the committee set a recruitment goal for a net growth of lo%, reflecting both the growth of the organization and the anticipated growth in the industry in the coming year.

Monthly Member Networking Evenings have been implemented to achieve a higher level of communication between the producers, suppliers, and contractors. The events alternate between restaurant outings with entertaining speakers and in-house social hours. To date, two events have been held and registration is taking place for an April 12 evening at Maggiano's Restaurant featuring a Travelogue on Machu Picchu for Masonry Professionals.

Utah
The Utah Masonry Council, consisting of brick & block manufacturers and suppliers, mason contractors and associated suppliers and friends of masonry, joined forces to promote masonry in Utah. They are very active in providing continuing education to architects and engineers.