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Industry News - July 2004

Flagler Construction Equipment Takes Over L.B. Smith's Florida Territory

As part of its stated intention to divest the distribution territories and assets which Volvo Construction Equipment acquired from its former dealer, L.B. Smith, Volvo CE has sold its Florida construction equipment distribution marketing area, with the exception of Tallahassee, to Flagler Construction Equipment Co. LLC of Maitland, Fla.

The appointment of Flagler Construction Equipment as an authorized Volvo CE dealer was effective April 30. The company will serve the market from branch facilities in Orlando, Fort Myers, Jacksonville, Fort Lauderdale and Tampa. Flagler Construction Equipment's purchase of the Florida territory is the first divestment by Volvo CE of its L.B. Smith North America territories.

Volvo CE purchased the assets associated with L. B. Smith, its distributor for a majority of the East Coast, in May 2003. Since that acquisition, Volvo CE has continued the operations of the former dealer at the existing 31 locations operating under the L.B. Smith name.

Thomas Holmes is chairman and chief executive officer of Flagler Construction Equipment Co., and Chris Wilmot, formerly vice president and general manager for L.B. Smith in Florida, is president. Mark McDonnell has been named executive vice president of finance and administration and Howard McNeal has been appointed vice president, product support and customer service.

Former L.B. Smith employees who will remain with the new company include branch managers Scott Rott, Orlando; Dean Bengford, Fort Myers; Don Baumgardner, Fort Lauderdale; Don Letterle, Jacksonville; and Bob Minichbauer, Tampa.

Cement Shortages Pressure Prices

Cement prices have been among the most stable in the construction industry for nearly a decade but that appears to be changing. Cement shortages that first developed in the Southeast are spreading into the Midwest and West, with higher prices and rationing already affecting some regions.

"We had price increases this year and we have customers in the Southeast on allocation," said Tom Chizmadia, vice president of Holcim (U.S.) Inc., Waltham, Mass. The Southeast is particularly affected, but shortages have already developed in other areas, he said. Holcim's prices are up an average of 7 to 10 percent, varying by region.

"Ready-mix producers are concerned about big shortages in the near future, even in areas where there is no shortage today," said Hardy Johnson, the Miami-based president of Titan America's Florida business, and president of the National Ready-mix Concrete Association. He said Titan is also seeing shortages in Virginia, Maryland, Texas and California.

Shortages were triggered by a strong economy and good weather in the last three months of 2003 that raised demand 15 percent at a time producers usually stockpile product for the spring construction season, said Johnson.

Demand in all of 2003 was 107 million tons, 24 million tons beyond the average U.S. production, said Ed Sullivan, chief economist for the Portland Cement Association, Skokie, Ill. Imports normally make up the difference, but most of the dry bulk ships that bring cement into the U.S. are being used to take products to Asia. "Fewer available ships, coupled with the requirement to import nearly one-quarter of U.S. need, has caused a tightening in all U.S. markets," said Sullivan.

Industry officials are not sure how long shortages will endure, but those venturing a guess say it could last a year. Source: Engineering News-Record

Tampa Courthouse Wins Regional BOMA Award

The Southern Region of the Building Owners and Managers Association recognized the Sam M. Gibbons U.S. Courthouse in Tampa as the "Office Building of the Year" in the government building category.

The courthouse was recognized with a local award in November and advanced to the international competition, held in Toronto in June. HOK's Tampa office was the architect for the project.

Coral Gables Architectural Firm Changes Name

Brito Cohan & Associates of Coral Gables, an architecture and planning firm specializing in high-rise condominiums and luxury resorts, has changed its name to BC Architects AIA. The firm also named a new partner, Vanessa Jimenez. Jimenez specializes in hospitality and condominium architecture, and has been with the firm for nine years.

Florida, New York Contractors Form Joint Venture

Coral Gables-based KM Construction Co. has entered into a joint venture relationship with Plaza Construction Corp., a wholly owned subsidiary of Fisher Brothers, a real estate company based in New York. The relationship enables KM Construction to have the capacity to bond and insure a large scope of projects.

The two firms are working on two projects: Cardinal Development's 10-story, loft-style Bayloft condominium project in Miami, and Valencia Grande, a Mediterranean-style condo project in Coral Gables.

CEFGA Named a Top Training Organization

For the third consecutive year, the National Center for Construction Education and Research has recognized the Construction Education Foundation of Georgia (CEFGA) as one of the top training organizations in the country.

NCCER specifically recognized CEFGA for its work in Georgia's high-school construction programs.

Brasfield & Gorrie Named #1 Healthcare Contractor

Birmingham, Ala.-based Brasfield & Gorrie, with offices in Florida, Georgia and North Carolina, has been named the number one healthcare general contractor in the nation by Modern Healthcare Magazine. This ranking was based on healthcare construction dollar volume for 2003. Brasfield & Gorrie's healthcare volume for the year was $487.13 million.

Syska Hennessy Opens Atlanta Office

Syska Hennessy Group, a consulting, engineering, technology and construction firm, has opened a new regional office in Atlanta. Through this office, the company will offer integrated building systems consulting and engineering services. Syska Hennessy is currently designing the life-support systems for the Georgia Aquarium, a $200 million facility under construction in Atlanta.

Hughes Supply Raises $125,000 for Needy Families

The Hughes Supply Foundation, a charitable affiliate of Orlando-based Hughes Supply Inc., recently hosted its 4th Annual Golf Tournament. This year's event raised more than $125,000. More than 280 people participated in the tournament, held at ChampionsGate Golf Resort in Orlando.

The Foundation uses its funds to support families in need and organizations like Ronald McDonald House, Coalition for the Homeless, Boys and Girls Club of Central Florida, Habitat for Humanity and Nap Ford Community School. Formed in October 1999, the Hughes Supply Foundation supports organizations and individuals in areas where Hughes Supply, Inc. does business.

ONM&J Structural Engineers Expands in Orlando

O'Donnell, Naccarato, Mignogna & Jackson announced the expansion of its Orlando division on North Orange Avenue.

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