Heery International Expands into New Markets

Atlanta-based Heery International recently announced the acquisition of HLM Design, a design and engineering firm with offices in Orlando, Philadelphia, Denver and Iowa City, Iowa.

Heery's primary services include design, facilities management, interior design, engineering and program and construction management. The acquisition will add more than 100 employees to Heery's workforce and provide added experience in the healthcare and justice markets. The 42-year-old HLM is a recognized leader in the planning and design of healthcare and criminal justice projects - markets that continue to deliver industry growth.

Australia's Worley Group to Acquire Parsons E&C for $245 Million

In a bid to expand its global presence, Worley Group Ltd., North Sydney, Australia, said Oct. 7 that it has signed an agreement to acquire Parsons E&C Corp., Houston, for $245 million. The new unit, after approval by Worley shareholders at their upcoming meeting, will be known as WorleyParsons.

John Grill, Worley's chief executive officer, said the merger will allow Worley to expand its technical capabilities, noting that consolidation in the oil and gas industry is driving projects of greater scale and creating a similar consolidation amongst service providers. "It firmly positions us in the top five oil and gas service providers in the world and provides an excellent platform to extend our world-class light metals capability," he said.

"This is the logical next step in our relationship with Parsons E&C, with whom we have worked closely as a joint venture partner," Grill added. One of those joint venture projects is for Iraq reconstruction in the oil sector. The Parsons Iraqi Joint Venture, which includes Parsons E&C, Parsons Corp., Pasadena, Calif., and teaming subcontractor Worley Group, earlier this year was awarded a 24-month, cost-plus award-fee contract with three one-year options to oversee restoration of the oil facilities in the North.

Officials also said that the existing operations of Parsons E&C will continue to operate predominately under the leadership of Bill Hall, the firm's current chairman and CEO. Hall has accepted a position on Worley's board of directors. Source: Engineering News-Record. By Sherie Winston.

New Cement Substitute May Stand Up to Hurricane Winds

Damage from future hurricanes may be reduced if two new building products from a Las Vegas-based manufacturer are able to live up to their marketing promises.

"Giga-Crete" and "Stuccomax" are lightweight, resilient concrete products that the maker claims are over 10 times stronger than portland cement. Unlike cement, which absorbs water and then cures, they require only a small amount of liquid as a chemical catalyst for the binding process.

Similar to an epoxy, the materials use no portland cement and 50 percent less water, said Structures USA founder Andrew C. Dennis, an architect and industrial designer.

A 50-lb bag of Stuccomax will cover 10 to 14 sq ft. Although 10 percent more costly than portland-mix stucco at 70¢ per sq ft, it has been tested at up to 10,000 psi, according to reports from three independent labs accredited by the American Society for Testing and Materials. The material is strong enough to withstand a Category 5 hurricane or a shotgun blast, the company claims, compared with stucco's 400- to 700-psi strength. It also requires only a single coat application, drying within four hours.

"We were able to use Stuccomax on a standard lath-and-paper [job] while eliminating two applications, which is a huge time and labor-cost savings," said Eric J. Engheben, general manager of West Branch Builders Inc., Lawndale, Calif., who is using the product on a new three-story home in Beverly Hills. "It sets up like stucco and looks like stucco but there's no shrinkage or cracking, which is unheard of."

Giga-Crete is a precast product, designed for use in 2-ft by 9-ft panels, that requires no reinforcing steel or framing. While it costs about $6.50 per sq ft, Giga-Crete is 25 percent less expensive than wood framing and nearly half the cost of masonry-block construction when labor and material costs are figured in, Dennis said. The 4-in.-thick panels can be used for roofs, walls and floors for buildings up to four stories tall. Giga-Crete is nearly 75 percent lighter than conventional concrete panels, eliminating the need for a crane or other heavy machinery needed for installation. Source: Engineering News-Record. By Tony Illia

Fleet Owners Fire Up Capital Spending

Machines that contractors buy, rent and lease are in demand again as aging fleets are being supplied with younger reinforcements.

Manufacturing is going strong. "Business is better than anyone anticipated," said Craig Paylor, senior vice president of sales, marketing and customer support for JLG Industries Inc., McConnellsburg, Pa. "We are 30 percent to 40 percent ahead of last year." Delivery times for most products are 90 to 120 days, he adds.

The pickup has prices on the rise. The U.S. Dept. of Labor indicates that overall construction equipment prices, which typically creep up 1 percent each year, rose 2.6 percent between January and August. The global economy is a factor in the inflation trend. North American construction equipment exports shot up 19 percent during the first half of 2004 to $4.2 billion, according to the Association of Equipment Manufacturers, Milwaukee.

Domestic contractors also are bulking up, as are consolidated fleet owners such as United Rentals, Greenwich, Conn. With machines averaging 39 months old, United is starting to gobble up new units and charge higher rents, officials say. Between January and June, the firm spent $321.7 million on equipment, up 21 percent over the same time last year. Its second-quarter rental rates increased 7.9 percent.

Steel prices are still higher than last year and equipment manufacturers are catching up. In the spring, JLG imposed a temporary steel surcharge when prices for the material surged. But early this month, it announced a permanent list- price increase of 3 percent, said Paylor.

Moline, Ill.-based Deere & Co. has imposed similar increases to align prices with its leading competitor, Caterpillar Inc., Peoria, Ill. Executives report "a very strong level of business confidence," said David Reinders, Deere's chief market research officer. He estimates that shipments will be 30 percent higher than last year. As for used equipment, Vaughn said the once vast market is in short supply as a result of the new-order crunch.

The long backlogs may prevent some owners from pulling ahead to meet a depreciation tax break set to expire by the end of 2004. Christian Klein, AED's Washington counsel, said dealers are asking Congress to let buyers place orders this year but extend the deadline to place new equipment into service from Dec. 31 to April 1. "We think that is pretty reasonable," said Klein. Source: Engineering News-Record. By Tudor Hampton.

House Panel Approves Two-Year Terrorism Insurance Extension

The House Financial Services Committee has cleared a two-year extension of the federal "backstop" coverage for terrorism-related claims. By voice vote on Sept. 29, the panel approved a measure that would continue the 2002 Terrorism Risk Insurance Act through December 2007.

Under that law, the Treasury covers terrorism-related claims above certain annual thresholds. In 2004, for example, the Treasury would be responsible for 90 percent of such claims after an insurer's exposure exceeds 10 percent of its commercial premiums.

Groups have been lobbying Congress to extend the law sooner than that. They contend that an early extension would provide the insurance market more certainty. The next step for the legislation would be a House floor vote. There has been no action yet in the Senate. Advocates of the legislation are working against the clock.

Congress is expected to recess in early October and seems likely to return after the Nov. 2 elections for a lame duck session. But any bill that doesn't pass before the 108th Congress ends would die. In that event, the insurance legislation would have to be re-introduced and make its way again through committees and floor votes.

Leigh Ann Pusey, American Insurance Association senior vice president for government affairs, said that "there is a sense of urgency to this bill, because commercial insurance policies taking effect in the early months of 2005 are being negotiated right now. As a result, the negative financial fallout of inaction [on the bill] would be felt very soon." Source: Engineering News-Record. By Tom Ichniowski.