MCAA Regional Report, Region G

Words: Michael SutterArizona - Glenn Hottmann
Colorado - No State Chair
New Mexico - Randy Saponaro
Utah - Alan Johnson
Wyoming - Jim Thompson

Arizona

Workforce Development
The Apprenticeship Program is currently in full force. We are training 60 apprentices which are first through third year students. In addition to our Apprenticeship Program, there has been a breakthrough in presenting the masonry program to several high schools throughout the valley. These hands on classes are supported and promoted by two outstanding members of our association, Sutter Masonry and Quality Block, as well as with great support from our Associate Members (Suppliers). We are continuing to expand our education efforts. We are happy to report we have started an Apprenticeship Program in the Tucson area.

General Conditions
Arizona Masonry Contractors Association Safety Program promotes safety with continuing safety articles and by holding safety seminars for its members. We are receiving great support from SCF (State Compensation Fund) for continuing to provide a safer work place. Due to the downturn in the housing market, the masonry sectors both commercial and residential have been affected making building very competitive on both sides. Immigration is still the hot issue within our state of Arizona. It requires all businesses to follow the new state laws on hiring of illegal immigrants or risk losing their business licenses. The law took effect on January 1, 2008 and continues to be in effect. There are appeals being done, but the long-term affect at this point is unknown.

Economic Conditions
The housing market within our state has fallen drastically. It has taken its toll in the retail, new housing sales, and commercial markets resulting in a record number of foreclosures and bankruptcies throughout the state. The economic situation in Arizona continues to be poor and is projected to last another year.

Market Expansion and Initiatives
We are continuing to promote masonry within our markets through our Certification Programs. These programs ensure that a quality product is being provided to our customers. The Arizona Masonry Guild has formed a committee to meet with architects in the commercial and residential areas to resolve any issues they may have in order to promote masonry structures. Due to the downturn in our industry, products now are readily available and priced very competitively compared to a year ago.

Colorado

No state chair.

New Mexico

No report as of this writing.

Utah

Utah, like other states is in a recession, but still doing better than most areas of the country. Utah still has one of the lowest unemployment rates in the country; however, the continued hysteria of the mass media regarding the reality of the US economy is having its effect here also. Contractors who do not have solid relationships and bid in “the lowest price wins the bid” mode, are suffering with low or no profit margins, and further driving contractors to chase spiraling bids to compete. This is creating a slow loss or deterioration for these types of contractors.

Utah’s energy belt is slowing down due to the low price of oil. Consequently, construction in those areas, which has remained very high for the past few years, is starting to slow significantly. Utah has a lot of mineral and ore mining. Significant drops in demand for those types of commodities is causing a lot of job loss and halting a lot of planned expansion of those types of facilities. That being said, Utah is very much a diversified state and that is assisting in keeping a reasonably healthy economy in other sectors of our economy.

Our legislative lawmakers are now in session and one of the biggest things on their agenda besides significant budget cuts that will affect contractors is the probable passage of a very strong immigration package modeled after Oklahoma’s immigration laws. For the past three years, Utah has faced severe labor shortages in the construction industry. The short-sightedness of most Utahans causes them to believe the solution is to get illegal immigrants out of Utah. They say that they only want them here legally, but there is little or no way to come here legally. The proposed method to assist in their eviction is to fine the business owners who hire them and put the burden on them to be the police enforcement for the state. With the current business climate, this isn’t a serious issue, but when the tide turns positive with an upswing in an economic recovery, there will be severe labor shortages.

Wyoming