Electrical contractor Glasgow

Electrical Contractor Glasgow LIKE US ON FACEBOOK T. 0141 8405236 M. 07790144057 Welcome to W.E.S Electrical, We are leaders in the Electrical contracting industry in Glasgow and the west of Scotland. If you're looking for a reliable Professional Glasgow electrician, Electrical Contractor, or a 24 hour call out electrical contractor or an Electrical Testing engineer in Glasgow, Westend glasgow ,Paisley or in Renfrewshire, you've come to the right place. Our small team of Qualified electricians offer a 1 hour turn around time for a call out if required and your located within a 10 mile radius of our Head Office Located In Braehead, Renfrewshire. We offer an 1 hour response 24 hour electrical service for our professional electricians to attend your home or place of business if needed in the Glasgow - Renfrewshire area. If your based outside of the Glasgow or Renfrewshire area and need an Professional Electrician or electrical contractor, we can offer a two hour call out service to give you peace of mind. We have customers who specifically come to us to carry out full electrical rewires because of our reputation to carry out and complete the job on time and on budget. We have carried out projects for councils to shop rewires, to 6 bedroom homes all wiring is tested inspected by our 17th edition fully qualified electricians.If you are in need for a free quotation for an electrical rewire call us to arrange a survey of the work needing done. T.01418405236 It is no hassle for us to come out and see you after working hours or the weekend. We also offer 24 hour emergency electrician call out throughout the night and at weekends. If you do have an emergency electrical situation dont hesitate to call us and in most cases offer a 1 hour response. W.E.S Electrical provides unparalleled Mechanical and Electrical Services in the Commercial, Industrial and domestic sector. From minor lighting, Audio Visual installation, shower installations and power alterations, to the installation of M & E services in industrial / commercial units - we cater for both large and smaller contracts around scotland. All our electricians are fully qualified 17th edition electricians, and our apprentice electricians are hand picked and attend electrical college 20 weeks a year to become qualified Electricians this is so our customers can have peace of mine that they have qualified professionals carrying out installation, Repairs or electrical testing.

We offer fast 24 hour emergency response. Based in Glasgow and operating throughout the region, we offer a friendly and professional service. Operating within the Domestic , retail (Shops,shopping centers,store outlets), commercial, and industrial Sectors,WES Electricals ability to deliver Contracts and projects on time and within costs agreed with the client, As well as unparalleled maintenance services across Scotland has enabled WES electrical to become one of Scotlands leading electrical contractors and is somthing that we pride ourselfs in. Electrical and Maintenance Tips If purchasing an antique light or a metal light fitting always ensure that a fully qualified electrician has tested to confirm the existence of an earth to prevent against shock. Prevent against overheating in lighting transformers for low voltage fittings by ensuring cavity and loft insulation are kept well away from the fitting and from the transformer itself. To avoid flickering on low voltage down lights when dimmed check the overall rating of the lamps against the capacity of the dimmer for example if you have 8 x 50w lamps a 300w dimmer switch would burn out upgrade it to a 400w dimmer switch. If the total slightly exceeds the dimmer's capacity, use 35W lamps instead of 50W. If you have a socket underneath a or neath a washing maching or sink put this circuit on a 20 amp RCBO, to prevent all of your sockets being effected incase of mosture ingress. To prevent electrical showers burning out always pull the pull cord / 45amp switch to the off position. If you feel you do not have enuff sockets in your house, or you house has skirting sockets or are all single sockets in the rooms consult an electrician to test the installation it is more than likley over 25 years old and in todays world it can be hazardous as we consume so much electricity. ITS FOR YOUR OWN SAFTEY. If you feel unsure contact a fully qualified electrician.

Medical Adaptation Electricians

Medical adaptations to your property Who is eligible for a medical adaptation? If you are disabled and living in States rental property, you may require an adaptation or item of equipment to assist you in your daily living. What does the process involve? If you are finding aspects of your daily living difficult due to an illness or medical condition, your doctor may write to the Assisted Living Team with their concerns. Alternatively, your carer, district nurse or healthcare worker may make an application to us on your behalf. Only adaptations appropriate for your specific needs will be considered. An occupational therapist will visit your home to assess your particular needs. They will then send us their report and assessment of adaptations or equipment that may be required in your home. If it is a simple measure that is required, such as a handrail or bathboard installation, this will be carried out by an appointed contractor as soon as possible. However, if it is a more complex adaptation then you may be visited by a maintenance officer from the Housing Department to assess the scope of work involved. Is there a cost? There is always a cost for any adaptation. Some may be very expensive due to the complexity of the equipment required. It may take some time before the full cost is obtained. More expensive work may need to go out to tender. Means test All tenants whose rent is paid either partially or in full by Income Support will not be means tested for any adaptation. Required adaptations will be carried out if the tenant is not in rental arrears. All other tenants are required to pay the full cost of any adaptation within their home. You will be advised, in writing, of the full cost of the adaptation and will need to confirm if you wish to proceed. No adaptation can be carried out until payment has been received and cleared by your bank account. If you feel you are unable to pay the full cost at any time, you are invited to make an appeal to the Assisted Living Manager. When making an appeal you should provide the following details; a letter detailing your reason for the appeal all sole/joint financial documents bank statements details of income details of savings/investments A full reveiw of your personal circumstances will be undertaken and you will be advised of the departments decision. If you are unhappy with the decision a further appeal can be made to the Housing Minister. If would like further information on medical adaptations, contact the Assisted Living Team.

Apprentice Electricians in Paisley

Youth unemployment leads Renfrewshire to be branded a “hotspot” A DEPRESSING new report has claimed that Renfrewshire is one of the UK’s “hotspots” for youth unemployment. The study identifies Renfrewshire Paisley as one of 152 local authority areas where the proportion of young people claiming Jobseekers Allowance is more than double the national average. More than 12.5 per cent of young people in Paisley are claiming unemployment benefits, and are either out of work or full-time education or training. The findings come only weeks after statistics emerged showing there are eight people chasing any one vacancy in the area. This latest report was compiled by the Commission on Youth Unemployment, part of the Association of Chief Executives of Voluntary Organisations (Acevo). Paisley and Renfrewshire South MP Douglas Alexander said: “Worryingly, this report is further confirmation of what we already know. “Local young people in paisley and renfrewshire want to work, contribute to their community and be part of the local workforce but the opportunities are not available to them.” Last month, the Labour politician called for more government action to get young people back in work and bring more investment and jobs to our local area. He also pointed out the number of local young people in Paisley and renfrewshire aged 18 to 24 who had been unemployed for over six months had risen by 41.7 per cent. Mr Alexander said: “We cannot continue like this – local people deserve better. “I recently visited the local Kibbleworks centre in Paisley to see the work they are doing to provide training and employment opportunities for local young people who are in care or preparing to leave care. “That’s the kind of approach that can make a real difference but the Government doesn’t seem to understand that, without work, it won’t work. “I urge the Government both in Westminster and Holyrood to strongly consider recommendations such as the part-time job guarantee for people who have been on the work programme for more than a year and the provision of localised education-to-career support for the non-university applicants who are fast becoming forgotten. “We need action now to prevent a generation of local young people here in paisley and Renfrewshire being left on the scrapheap.” Youth Employment Minister Angela Constance, however, claimed the Scottish Government are “determined to tackle this national challenge with a national response”. She said: “I have been appointed as the first Youth Employment Minister anywhere in the UK to see that commitment through, backed up with an additional £30million investment which will go towards Opportunities for All, our guarantee of a place in education or training for every 16 to 19-year-old. “As well as guaranteeing 25,000 Modern Apprenticeship opportunities in every year of this Parliament, prioritising young people within colleges and working with local authorities on Activity Agreements for those, we are working closely with the UK government on implementing those elements of their youth contract relevant to Scotland.”

small electrical motor

The butyl methyl sulphide molecule whips round an axis defined by its single sulphur atom (blue) Single molecule's stunning image Nano-propellers sent for a spin Researchers have created the smallest electric motor ever devised. The motor, made from a single molecule just a billionth of a metre across, is reported in Nature Nanotechnology. The minuscule motor could have applications in both nanotechnology and in medicine, where tiny amounts of energy can be put to efficient use. Tiny rotors based on single molecules have been shown before, but this is the first that can be individually driven by an electric current. "People have found before that they can make motors driven by light or by chemical reactions, but the issue there is that you're driving billions of them at a time - every single motor in your beaker," said Charles Sykes, a chemist at Tufts University in Massachusetts, US. "The exciting thing about the electrical one is that we can excite and watch the motion of just one, and we can see how that thing's behaving in real time," he told BBC News. Miniature uses The butyl methyl sulphide molecule was placed on a clean copper surface, where its single sulphur atom acted as a pivot. The tip of a scanning tunnelling microscope - a tiny pyramid with a point just an atom or two across - was used to funnel electrical charge into the motor, as well as to take images of the molecule as it spun. It spins in both directions, at a rate as high as 120 revolutions per second. But averaged over time, there is a net rotation in one direction. By modifying the molecule slightly, it could be used to generate microwave radiation or to couple into what are known as nano-electromechanical systems, Dr Sykes said. "The next thing to do is to get the thing to do work that we can measure - to couple it to other molecules, lining them up next to one another so they're like miniature cog-wheels, and then watch the rotation propagation down the chain," he said. As well as forming a part of the tiniest machines the world has ever seen, such minute mechanics could be useful in medicine - for example, in the controlled delivery of drugs to targeted locations. But for the moment, Dr Sykes and his team are in contact with the Guinness Book of World Records to have their motor certified as the smallest ever.

electrical contractors 2012 olympics

T Clarke counts on Olympics boost The electrical contractor's margins are under pressure amid tough market conditions but the longer-term outlook remains good as it eyes work that will emerge in the build-up to the London Olympics. Print ArticlePermissions/ReprintsCommentHemscott Editor | 18-08-06 | E-mail Article Interim pretax rose 10% to £4m on sales up 9% to £100m. Earnings per share increased 10% to 6.76p and the interim dividend has been hiked 5% to 3.675p from 3.5p. Pat Stanborough, chief executive of T Clarke, says that despite tough market conditions and margins remaining under pressure, the group remains positive about the future. The group is especially upbeat about prospects for its core business in London, which should benefit from the build up to the Olympics in 2012, with many new major infrastructure projects planned to start in 2008. Stanborough says that this, combined with a number of large commercial office schemes in central London that are on the starting blocks, bodes well for the group's longer term future. The group is working hard to ensure it is in the 'right shape' to take advantage of 2012 opportunities as they emerge. On a further disappointing note, the group notes that its regional businesses have found it particularly tough going as they experienced 'mixed fortunes' over the half-year. In the provinces the group suffered unexpected bad debts and unforeseeable increases in material costs - copper prices for instance increased by over 100% between October 2005 and April 2006. In the South East, meanwhile, there has been some recent slippage in the timing of two major projects. Overall however, the group says prospects for the group are improving, with its £175m order book, and likely upswing in construction industry activity in the latter part of this year and beyond, giving it confidence for the future. However, with an eye on the timing of major contract completions, the group cautioned that its current year results will be broadly similar to those achieved in 2005. A decidedly mixed statement from T Clarke, with pressure on margins and the problems in the regions making for disappointing reading and taking the shine off the undoubtedly very good longer term prospects for the group, especially its core London businesses. In early trade, T Clarke plc shares were down 16p or 6.3% to 238.5p.

electrical contracting olympics uk 2012

Contractors get bonanza at olympic games Britain will spend about £10 billion on the Olympics, and contractors are getting a bonanza in tenders and assignments--not just in construction, but in every field. We've just gotten some of the details from the procurement plan announced last week by the London based Olympic Development Authority (ODA), which oversees all the other agencies and private groups involved. Role for SMEs There's a lot more up for grabs than one might realise. Olympics minister Tessa Jowell has already admitted spending £60 million on consultants--that includes IT and engineering planners. There will be more, even if the Olympics Ministry tries to play down their role. Okay, so the big consulting firms have their piece of the pie. But the Olympics Development Authority's is committed to giving as much business as possible to SMEs. Specifically, the Authority's procurement policy document states: ''SMEs and social enterprises are particularly important in developing the Olympic Promise, locally, regionally and nationally. The ODA will seek to ensure it does not inadvertently exclude such small companies from accessing ODA contracts, through its procurement strategies and procedures.'' SMEs are particularly important in the Olympics procurement process Olympics Development Authority Procurement Policy Document Most of the procurement is being done through an electronic process so there's no reason that you should be shut out. Just go to the Olympics E-Tendering Web Site. So, for example, you will soon be able to bid on building the communications network for the International Broadcast Centre there. Or on mobile phones services. Or on the electronics for the press centre. Or there are just plain vanilla IT software contracts to be had. The budgets aren't broken down in terms of sector: that is, you don't know how much is slated for a given tender for IT or electrical engineering. Rather the projects are defined in terms of overall goals, and then broken down into phases. While it's probably hard for a small company to bid on a major phase like mobile communications, the subsections of the project are up for grabs by SMEs as well as larger companies. For engineering projects, the ODA intends to use the new engineering contract version 3 (NEC 3) for all major electronics and construction procurement. It is of course the latest in the evolution of NEC contracts, and one that has become most popular with the industry. The range of possible contracts is extraordinary. 'Sebastian Coe, chairman of London 2012 Olympic Games, describes it: ''Business-related opportunities exist in many areas ranging from tourism, manufacturing, retailing, sports, transport, human services, security, environment, administration, hospitality, construction, IT, marketing & communications, logistics, and many other sectors and industries.'' Coe continues: ''We need thousands of computers, phones, televisions, hand held radios and the latest technology to wire the Games to the world. The ODA is developing a ''contract packaging'' approach which breaks down the entire programme to deliver venues and infrastructure into individual procurement elements.'' The ODA is developing a contract packaging approach which breaks down the entire programme to deliver venues and infrastructure into individual procurement elements Sebastian Coe-ODA When the Olympics were held in New South Wales, Australia, small business won the equivalent of £400 million in contracts for the Games,and over £115 million were won by small regional companies.

electricians in uk protest

Thousands of electricians march between London building sites to protest against changes to pay and conditions. Hours before students took to London's streets, electricians and construction workers were arriving from across the UK, to march over a new deal on pay and conditions. Today's demonstration comes after several months of unrest within the construction industry. In May a consortium of seven large construction companies, led by Balfour Beatty, announced it was withdrawing from a long standing pay and conditions deal known as the Joint Industry Board agreement. The replacement deal, the Building and Engineering Services National Agreement (BESNA) is the subject of much controversy with Unite - the union which represents construction workers - claiming skilled electricians will be replaced by lower grade, less skilled workers. BESNA is being developed by the Heating and Ventilating Contractors' Association. Chief Executive Blane Judd says that workers are being fed misinformation about what the deal will mean. He told Channel 4 News: "The industry has changed and we need multi skilled teams. At the moment you have three different operatives travelling in the same van, to the same site on different rates and different conditions. It's unwieldy. We want to level the playing field and 30% will see an increase in pay. Others will see no drop in salary. We need our operatives to compete in the market place so to suggest that we want to de-skill people is nonsense. " There has been rolling industrial action at major construction sites across the UK since the deal was announced. London has seen weekly demonstrations, while workers have also picketed Sellafield, the Lindsey oil refinery and Paper Mill in Carrington, near Manchester. Today coaches from across the country brought workers to London to demonstrate, starting with early marches of several hundred people to the Occupy site at St Pauls, then to two major construction sites, the Shard near London Bridge and then Blackfriars Bridge. Both sites are partly controlled by Balfour Beatty. The workers then moved on to Parliament where a group went in for an arranged meeting with their local MPs. Only around a third of the demonstrators made it to Parliament Square, after police held some back to stop them mixing with the students already in Parliament Square. Read more: Pop up tents in Trafalgar Square as students protest "The firms are trying to brainwash the lads" Speaking from the march, one electrician, who wanted to be known only as Bob, said he had come down from Manchester with 30 others to protect his industry. He told Channel 4 News: "This agreement had been in place for 40 years and then totally out of the blue a gang of the employers got together and said they were making a new agreement, whether we like it or not. There was no negotiation. The firms are trying to brainwash the lads into this and it will cut our rates. The management are telling us that the wage structure won't change but we don't believe them. "It's de-skilling, they will get people who are not in the electrical game to do this work and will put union members out of work. I see my pay going down by a third. I'm surprised, it was completely out of the blue and it's almost been done in a vindictive way. They are making good profits at the moment and they should be bringing the standard up, not knocking it down." But Blane Judd says workers are being fed misinformation by the unions: "I think there are people in the unions who are hell bent on protesting. Some in the union want to negotiate but can't because of the others. What's been lost is the opportunity for the operatives to be able to make a decision without being misinformed." He explains that there is clear evidence that many workers will benefit from higher salaries. "We have even got the employers guaranteeing that workers will transfer from existing grade to a new grade at their current salary or higher - where do you get guarantees like that nowadays? If you are on a particular grade you will be advanced, there will now be London weighting that there wasn't before. We just want to be able to deal with one wage agreement, with everyone on the same terms and conditions." Ballot over strike action Unite are balloting for strike action from November 16th until the 29th. They warned that any action could hit some of the UK's key infrastructure projects, including power stations and London's Crossrail development. Unite's General Secretary Len McCluskey said: "Balfour Beatty will be the first of the rogue firms to feel the anger of its workers. The failure of senior management at Balfour Beatty to withdraw the threats of dismissal has left Unite with no choice but to ballot members for industrial action." Unite's spokesperson Leanne Groves also spoke to Channel 4 News from the march, as protestors gathered. She said: "This is an attack on people's skills. There will be a new semi-skilled grade, with eight semi-skilled workers for every one qualified electrician. This work will be paid a third less. "The employers have looked at the agreement and tried to squeeze every single penny out of it." Leanne Groves, Unite "Before, they would clock on at the entrance to a large site before walking to where they work. That could take 20 minutes, so now the companies are saying they will deduct this time from their pay. People will lose an hour and a half of work a day just because of this. The employers have looked at the agreement and tried to squeeze every single penny out of it." Groves says that workers are fighting for other sectors as well: The agreements electricians have worked under for years were the benchmark for the industry. If these employers take on the sparks, nobody will be safe, there will be a massive push to squeeze all workers. "The companies involved say no workers will lose pay as a result of the deal. But Groves says Unite does not believe this: "Our members are already being offered work by agencies who say they only want semi-skilled people on site. This has massive financial implications for workers." At BESNA, Blane Judd is frustrated that the unions are refusing to discuss changes that the industry believe are necessary: "There is a real risk that we will cease to be competitive in our own markets and that should be a concern to everybody, if British workers cease to be competitive in our own market place." But Bob is not convinced. "I very much hope I don't have to sign it, I don't think I will, but the threat will be, if you don't sign it you are sacked."

some friends honoured

Electrical Safety Council Board Member Honoured Roy Jones – a member of the Electrical Safety Council’s (ESC) Board and governing body - has been awarded an MBE in the New Year’s Honours List, for Services to Young People in Wales. Roy has over 40 years of service within the utility market and is currently a Community Liaison Manager for ScottishPower. Following the launch of ScottishPower Learning in 1995, he oversaw the delivery of the Prince’s Trust team programme across North Wales and Merseyside and, as New Deal Manager, helped establish schemes to bring young people into employment. Originally from Bethesda, North Wales, Roy – who is married with two children - has also managed the ‘Your Champions Award’ for ScottishPower and Trinity Mirror North Wales, which gives recognition to unsung community heroes in the region. Roy, who left school at 16, holds postgraduate qualifications in Marketing and an MBA in Business Administration. He is also a school governor. In both his personal and professional life he has been committed to assisting young people make the transition from education to employment.“I am honoured to receive this award but it has really been a team effort”, explains Roy. “The community projects I have worked on could not have been delivered without the help and support of my colleagues. Their generosity with their time and expertise has been fundamental to the success of our community projects, as it is this sharing of skills which has proved key to getting young people into work”. electricians in glasgow

This couple should have gave W.E.S Electrical a call.....

Paisley couple forced to eat microwave Christmas dinner A FED-UP couple last night accused “bungling workmen” of wrecking their Christmas ...after being left with no cooker to prepare their festive meal. George and Sandra Cowan have told how their cooker has gone on the blink at the worst possible time – and they insist electricians who were sent in by council chiefs to rewire their home are to blame for Christmas being cancelled. The Paisley couple’s cooker has been out of action since workmen installed a new circuit board. It means turkey is off the menu this festive season...with George and Sandra having to make do with a microwave meal instead. Renfrewshire Council and contractors Waites Living Space both insist the problem lies with the cooker and have told the couple to get it fixed or buy a new one. But George said the cooker is only one year old and maintains it’s the electrics that are to blame. He told the Paisley Daily Express: “The council sent people in to rewire the house and the cooker had been working fine until they put in a new circuit board. Now it keeps tripping and cutting out. “How are we supposed to enjoy Christmas without a cooker? We’re going to have to sit here on Christmas Day with microwave dinners. “We can’t afford to get a new cooker or get this one fixed. We haven’t got a penny to our name.” George, 50, is a carer who looks after disabled Sandra, also 50, at their bungalow in Gallowhill and the couple claim the cooker calamity has left them stressed out. “Nobody is interested in our problem,” said George. “The people at Waites said it was nothing to do with them and the council insist my cooker is faulty. “It’s a nightmare for us. No-one is willing to take responsibility.” The renovation work at the couple’s home was carried out as part of Renfrewshire Council’s five-year push to bring all council housing stock up to the Scottish Housing Quality Standard. The £138million programme began in August last year and will see thousands of council tenants getting new kitchens, bathrooms and heating systems, as well as having their homes rewired and major upgrades carried out to roofs, gutters and downpipes. A Renfrewshire Council spokesperson said: “We have sent an electrician to Mr and Mrs Cowan’s home to test all their circuits and the cooker itself and have found that the fault lies with the cooker – not the circuits. “When homes are rewired, the circuits can become more sensitive and this means that, if an item such as a cooker is faulty, the new box will pick up on that. “We have explained this position to Mr and Mrs Cowan.” ........................................

electricians in ayrshire

South Ayrshire Council News Glowing report for Southcraig campus Southcraig Campus, which provides specialist support for pupils with additional support needs in Ayr from 3 to 18, has received a glowing report from school inspectors. Southcraig Campus was evaluated on learners' experiences, improvements in performance, children's experiences and meeting learning needs. In every single category, it was rated as 'very good'. The report comments: "Children and young people are enthusiastic and happy in school. They are developing confidence and work well with others across the school. They are successfully developing the skills of cooperation and working with a wide range of adults. "The school has a clear vision for the curriculum which it is developing effectively. Staff are working well together, developing comprehensive programmes for English and literacy, and mathematics and numeracy. "They provide a balance of topics which help children and young people make links across different aspects of learning and have developed very effective procedures to help all young people move on from school successfully." The inspector also pointed to how well pupils were being supported and encouraged and put this down to the outstanding leadership of the head of campus with the support of the wider senior management team. The results have delighted Councillor Hywel Davies, South Ayrshire Council's Portfolio Holder for Lifelong Learning who commented: "We are justifiably proud of this excellent report for Southcraig Campus. "It is especially pleasing that the inspector noted how our children and young people, with a wide range of different needs, are encouraged to achieve at the highest level and this reflects positively on how well they, school staff and parents have worked together to make real progress in all areas of the school curriculum." Southcraig Campus Head Teacher Lorraine Stobie added: "I'm over the moon with this positive and very encouraging school inspection report. "Our team encourages children and young people to be independent from an early age and we try to give them appropriate responsibility, such as individual duties in classes, tending the garden and supporting other children to help them achieve this. "This helps foster confidence and achievement from nursery years through to leaving school and we're seeing children and young people make good progress in developing their personal and social skills, taking account of their stage of development and their barriers to learning." "The inspector has given us some pointers to help make further improvement in the school, such as further development systems to track, monitor and assess pupils' progress against the curriculum and how we can work even more closely with children, young people, parents and partner agencies to help every pupil achieve their full potential. "We'll be taking these on board and look forward to further improving the way we work with and develop our young people." Councillor Davies concluded: "Southcraig staff, the Senior Management Team and parents deserve hearty congratulations on this report. "It is a direct reflection on how far the school has come on its improvement journey and speaks volumes for the way they have worked together to deliver an excellent and supportive learning environment, in which pupils from both schools are clearly flourishing".

electrical contracting in glasgow 2012

2012 Construction Outlook Pervasive Uncertainty, Fear and Unemployment Leading construction experts and economists are certain about one thing in construction right now: The future is mostly uncertain because consumers are scared, and too many Americans are unemployed. Economists see 2012 as a big question mark because of the risk of a double-dip recession. The projections from previous years are out the window, as unemployment continues to hover around 9 percent and the economy has “been bouncing along the bottom in 2011,” said Keith Fox, president of McGraw-Hill Construction during his opening remarks at the Outlook 2012 Executive Conference, held in Washington, D.C., on Oct. 19, 2011. This article analyzes the construction data and economic forecasts from industry leaders to help ELECTRICAL CONTRACTOR readers better understand why most construction markets are mired in a slump and what hope, if any, lies ahead. Perhaps the heavy bleeding is over, but the economy is still limping along a path of uncertainty and volatility. Right now, there isn’t a lot of confidence to go around. Current economic data showcases the not-so-enjoyable trends. Economy still in crisis First, let’s examine the macroeconomic trends that steer what happens on America’s job sites. According to Beth Ann Bovino, deputy chief economist at Standard & Poor’s, the recession has been over since 2009, but recovery is at “half speed.” During her presentation at McGraw-Hill Construction’s Outlook 2012 Executive Conference, Bovino said the U.S. economy grew by a modest 3 percent in 2010, by 1.7 percent in 2011 (estimated), and is projected to grow by a mere 1.5 percent in 2012. One of the main detractors from growth is that 9 percent unemployment rate. In addition, Bovino said government bickering and debt issues, coupled with fear and uncertainty among consumers, put the economy at about a 40 percent risk of another recession. The Federal Reserve’s lowering of interest rates to near zero didn’t do much to boost the economy's growth. “Investors saw that risk was a four-letter word and ran for the door,” she said. Robert Murray, vice president, eco-nomic affairs at McGraw-Hill Construction and electrical , agreed, saying during the Outlook 2012 conference that the chances of a double-dip recession were at about 20 percent in January 2011, but have since risen to more than 40 percent. In other words, the economy is teetering on the edge of another recession, and the slightest nudge can send it off that cliff again. With 25 million Americans unemployed or underemployed, “people are scared,” Bovino said, adding that wealth is down, home prices are down, spending is down, and savings are up. In its most simplistic terms, “a weak jobs market means less construction,” Bovino said. Consumer spending is another obstacle for construction markets. Consumers are focusing on debt reduction. Household debt, as a percentage of after-tax income, was 140 percent in 2007. In 2011, it was 120 percent. Much of that debt reduction has to do with foreclosures, as well. “If you turn in the keys, you don’t have the debt,” Bovino said. The latest Federal Deposit Insurance Corp. (FDIC) data supports that assertion. Total deposits in FDIC-insured banks eclipsed $10 trillion on Sept. 30, 2011. Total deposits increased by $235 billion in the third quarter of 2011, marking a $577 billion increase since the beginning of the year. The FDIC data also shows that about $8.5 trillion of total deposits is sitting in domestic branches of insured banks while the remaining $1.5 trillion is in overseas branches of U.S. banks. “People are putting a little more in the bank and spending a little less at the mall,” said Standard & Poor’s Bovino, simplifying the trend. What is more interesting about the consumer saving is that they are putting their assets in “liquid” accounts, such as savings, checking and money market accounts. Perhaps fears from stock market volatility and the questionable situation in Europe pushed them to find safer, more conservative places for their assets. According to the FDIC report, checking, savings and money market accounts increased $316 billion in the third quarter and $762 billion since the beginning of the year. Conversely, certificates of deposit—which require a time commitment and penalties for early withdrawal—decreased by $36 billion in the third quarter and $130 billion since the beginning of the year. Consumers and small business owners remain conservative with investments. The housing market is included. Most economists agree that, until the housing situation changes for the better, the economy will be mired in this economic crisis, with only slight, incremental growth. The housing bubble that burst a few years ago precipitated this mess. Recovering from it will take much more time. Let’s take a closer look at the construction markets, paying particularly close attention to the residential market—a leading indicator for overall construction. Construction overview According to McGraw-Hill’s Murray, the $412 billion construction market breaks down to $133 billion in residential construction, $152 billion in nonresidential construction and $127 billion in nonbuilding construction. Right now, residential and nonresidential are hurting, while nonbuilding could emerge as a nice opportunity for electrical contractors—at least in the short term. “It continues to be a turbulent time,” Murray said during his annual presentation at the Outlook 2012 Conference. “There is a sense of uncertainty.” In 2010, Murray predicted a leveling off that suggested growth for 2011. Murray, one of the industry’s leading and most respected economists, was among the masses in missing the mark on that call. Most experts and economists were in the same boat, as they expected the jobs picture to improve in 2011. When that did not happen, in addition to many other variables, the market remained flat or declined. And while government stimulus funding appeared to boost the economy, it was an artificial jolt, Murray said. Residential: trouble at home The housing bubble collapse continues to ripple through the entire construction arena. Things are turning around, but economists are erring on the side of caution with expectations—an evident theme throughout the forecasts. “We believe the turnaround is in progress, but it’s so slow and so painful we can’t get too excited about it,” said Bernard Markstein, chief economist at Reed Construction Data (RCD) during the Oct. 13, 2011, “Economic Forecast Webcast: Flat, Down or Up? Where is Construction Heading?” Markstein also cautioned that large percentage increases in various construction sectors in 2011 look nice on paper but are easy to reach when coming from such a low point. Again, tame your excitement until we see sustained growth over a longer time frame. “We’re not really getting back to where we were [prerecession],” he said during the RCD webcast. Single-family According to Standard & Poor’s Bovino, housing was affordable, interest rates were at record lows and demand increased sharply in 2005. Consumers bought bigger houses, rates went up and some signed up for adjustable-rate mortgages. When those monthly payments increased on the adjustable-rate mortgages, affordability went down, housing dried up and demand fell, thus leaving a huge overstock of available housing in the single-family market. Bovino said there is an eight-and-a-half month excess supply of available homes, which has led builders to pull back on new construction plans. Housing starts, which peaked at 2 million in 2005, dipped below 500,000 in 2011. When you add in the “shadow inventory” of distressed homes—those in foreclosure or on the verge—you can add a couple more months to the inventory-depletion timeline. Other leading economists agree. According to Kermit Baker, the American Institute of Architects’ chief economist, the 2 million units built in 2005 slumped dramatically to 500,000 in 2009 and rose to about 510,000 in 2010. Housing starts were projected to reach 600,000 units for 2011 and should reach 800,000 units in 2012. The number of housing starts is not expected to reach more than 1 million units until sometime in 2013, he suggested, but even that is considered subpar. The 2011–2013 projects are consensus projects, according to Baker. During his presentation at the Outlook 2012 Conference, Baker said there is a dramatic scaling back of new home construction because, “potential homebuyers are nervous about getting back in.” He added that, “we are still sitting on a huge amount of vacant units.” Despite a few years of growth, the industry is not back to normal yet in terms of household formations. “What started out as a problem of oversupply has become a problem of low demand,” Baker said. He added that the under-30 population is doubling up, tripling up or living with their parents, instead of jumping into the housing market. The focus in recent years has been on inventory reduction. That has now shifted toward household formations. According to CoreLogic, Baker said during the McGraw-Hill conference, 20 percent of homeowners with mortgages are “under water.” He said during his webcast presentation that there are a lot of homeowners sitting on the sidelines who want to move but can’t until the housing market improves. If they are sitting on the sidelines and cannot sell or upgrade, what are they doing? Are they improving their existing properties? Remodeling and alterations Despite home-improvement spending dropping by 20 percent during the economic downturn, the remodeling market still accounted for $300 billion in construction, Baker said. The remodeling market peaked in 2007, as growth came from homeowner improvement projects. It hit its trough in mid-2010 with a 15 to 20 percent drop from that 2007 peak. That slump, he said, pales in comparison to the one endured in the home-building arena. Traditionally, remodeling and alterations account for about 40 to 45 percent of the residential construction market. However, remodeling is now growing to more than 70 percent of the residential market—clearly a sign of the times. In the last five years, Baker said, there has been an uptick in discretionary spending on additions, kitchens and bathrooms due to a lack of mobility. Instead of moving to larger residences, homeowners are improving the ones in which they reside, waiting for market prices to improve. Distressed properties also are contributing to the remodeling and alterations category, Baker said. About a third of remodeling construction, he said, is done on distressed properties—those in foreclosure or on the verge of it. These projects account for 20 percent of the remodeling revenue, which is a very significant amount, compared to previous years. This distressed property market will fuel remodeling work for years to come, Baker said. It is perhaps sad that one of the few bright spots in the residential construction market is that distressed properties are contributing to the overall construction market because banks and homeowners are getting properties ready for foreclosure sales or short sales. In addition to distressed properties, energy-efficiency upgrades have also emerged as a leading sector for the residential remodeling market—one that electrical contractors, in particular, can take advantage of. In the third quarter of 2009, green projects made up 25.5 percent of the remodeling market share; a year later, during the height of the stimulus program, that percentage grew to 29 percent. In the third quarter of 2011, in a post-stimulus environment, the percentage fell back to 24.9 percent. Multifamily According to the AIA’s Baker, the single-family home market directly impacts the multifamily market. “Renters went up 1.5 million per year, and home ownership went down as a result,” he said. “One affects the other.” McGraw-Hill’s Murray said multifamily housing is one of the few bright spots in construction that could deliver growth in the near future. “Perhaps the best bet right now is multifamily,” he said. The sector enjoyed 15 percent growth in 2011 and is projected to grow by another 17 percent in 2012. As foreclosures and distressed properties increase, the opportunities for multifamily housing increase. People forced to leave their homes—whether due to affordability issues or unemployment—tend to roll into apartments as a result. In his presentation, Harvey M. Bernstein, McGraw-Hill vice president, Industry Insights & Alliances, said there would be a greater demand for apartments due to downsizing, foreclosures, job switches and unemployment. According to the Engineering News-Record’s Construction Industry Confidence Index (CICI), multiunit residential was the only category that showed increased confidence in recent quarters. Healthcare, higher education, K–12 and office (commercial), showed declines over the same time period. Again, these figures show a growing multifamily sector at the expense of the single-family market. In this tumultuous housing market, home ownership is risky for many Americans. Renting has become the necessary fall-back plan that many of the unemployed or underemployed have embraced—at least until they get above water again. It will be a long, slow process, just like this economic recovery. In his final analysis of the residential market, Baker said the industry would see slightly more demand for housing, as we “climb back on this ladder, gradually.” He added that there is still too much housing inventory that needs to be sold off before we can start a recovery with new home construction. Standard & Poor’s Bovino is in complete agreement on that point. The distressed home market has been, and will continue to be, the wild card in that equation. Now that we have examined the residential market, let’s take a closer look at nonresidential construction. For many electrical contractors, the commercial/industrial/institutional (CII) market is the bulk of their business, and it is vital to keep abreast of the growth opportunities. Nonresidential (CII): flat or down? According to McGraw-Hill’s Murray, the U.S. nonresidential building market, which free-fell in 2009 by more than 30 percent, was down a mere 6 percent in 2011 and is projected for a modest 2 percent increase in 2012. The total nonresidential market includes the $92 billion institutional market, the $47 billion commercial market and $13 billion in manufacturing. Let’s dissect each market to uncover obstacles and opportunities. Commercial Construction in the U.S. commercial buildings sector (stores and shopping centers) peaked in 2007 with 314 million square feet. Over the next four years, the amount of square footage plummeted by an alarming 75 percent to 81 million square feet in both 2010 and 2011. McGraw-Hill projects a slight 2 percent up-tick for 2012. When you consider the 75 percent drop, a 2 percent increase seems insignificant, but at least it is not falling further. McGraw-Hill’s Murray said the commercial market suffered from slow retail sales that led to reduced store openings and more store closings. He cited the Borders book chain as a major example. The only retailers expanding right now are “extreme discounters,” such as Family Dollar and Dollar General. A look at who is building stores in this economic downturn shows that Walmart outpaces every other competitor. All other major retailers paled in comparison to the number of projects Walmart started between January 2009 and January 2011. In terms of warehouses, construction fell sharply from 2008 to 2010 but is now experiencing some modest growth. Some of that growth is coming from Amazon.com, which is constructing several large distribution facilities. Warehouse construction fell from 254 million square feet at its peak in 2007 to 48 million at the trough in 2010. Since then, there has been an 18 percent increase in 2011 and a projected 17 percent increase on top of that in 2012. However, reaching 67 million square feet in 2012, while growing, is still far away from that 2007 peak. Growth will be slow and steady, experts concede. A sluggish economy, reduced business travel and hotel/casino overbuilding led to substantial losses in the hospitality sector in 2009 and 2010, according to Murray. Just as in other commercial areas, hotel construction endured a major collapse during the recession and is now creeping back up again. Murray projected 34 percent growth in 2011 and another 17 percent growth in 2012 in hotel construction. In 2011, business travel improved, industry financials strengthened and occupancy rates improved. In addition, a look at major hotel/casino projects indicates that casino construction is still a good bet for contractors. Of the largest 12 hospitality projects underway, four of them involve casinos. Incidentally, among the largest amusement and recreation projects in the institutional sector, six of them involve casinos. Following all the other sectors of the U.S. commercial market, office construction endured the same precipitous drop following a 2007 peak, from 218 million square feet to a 2011 low of 55 million square feet. Murray predicts a modest 4 percent increase in office construction in 2012. Tight credit conditions, he said, contributed to project deferrals in 2008 and 2009. Those deferrals are now easing. Industrial/manufacturing After peaking at 91 million square feet in 2007, manufacturing buildings slumped to 37 million square feet in 2009 before beginning to climb again. Increases in 2010 (25 percent), 2011 (5 percent) and a projected increase in 2012 (6 percent) should get this sector back to about 51 million square feet—still far short of the 2007 peak. In terms of dollars, the industrial/-manufacturing market fell from $31 billion in 2008 to $9.2 billion in 2010. It is now creeping up to between $12 billion and $13 billion (projected for 2012). The sharp decline in recent years was caused mostly by closings of automotive plants across the country, particularly in Detroit. The modest growth coming now is a result of large-scale projects in both the automotive and energy sectors—ethanol, biofuel and solar manufacturing plants. Institutional The institutional market comprises education buildings, healthcare facilities, public buildings, amusement and recreation projects and airports. Let’s examine each area briefly. School construction continues to lose momentum, down from 224 million square feet at its 2008 peak to 127 million square feet in 2011. That number is expected to drop further in 2012 to 115 million square feet, a 9 percent decline. Leading this trend is a tightening of state budgets, a scaling back on capital expenditures by universities and colleges and shrinking endowments. In 2010, K–12 construction was 3.6 times the size of colleges, universities and community colleges in terms of square footage; however, in dollar terms, K–12 school construction was 2.3 times the size of higher education construction. Despite an ongoing need to replace aging facilities and a growing elderly population, healthcare facilities construction has been flat since 2009. After a 2008 peak at 109 million square feet, the sector dropped to 67 million square feet in 2009 and grew only to 71 million square feet in 2011. McGraw-Hill projects a 1 percent decline in 2012. There is a long-term need for healthcare construction because of an aging population and Veterans Administration future needs, but time will tell how that plays out. Public buildings (detention centers, armories/military, courthouses, police and fire stations and post offices) have also fallen on hard times, particularly post offices. Overall, public building construction fell by about 50 percent from 51 million square feet in 2007 to 24 million in 2011. Murray expects a further decline in 2012 by 9 percent. Wearing off of Stimulus Act support and diminished federal spending will continue to erode public building construction. Post office construction—one of the hardest hit areas—was up by 76 percent in 2010 but collapsed by almost 100 percent in 2011. According to McGraw-Hill’s data, airport terminal work jumped in 2009 by 49 percent to 4.4 million square feet, only to retreat by 45 percent in 2010 to 2.4 million square feet. The 2012 projection is another 5 percent decline to 1.8 million square feet. Nonbuilding: stimulus dried up Nonbuilding construction accounts for $127 billion of the $412 billion construction industry, or about 30 percent. With the impact of stimulus funding now waning, though, many of the federal public works projects that stimulus funds assisted in 2009 and 2010 are no longer feeling the lift. What peaked in 2010 with $58.8 billion in highway and bridge construction, slipped in 2011 to $54 billion. McGraw-Hill predicts another 7 percent decline in highways and bridges in 2012. Likewise, budget cuts affected rail and mass transit projects. From a $7.1 billion peak in 2010, the sector plummeted by 55 percent to $3.2 billion in 2011 and is expected to dip further in 2012. There was a 48 percent surge in electric utility construction in 2011, which followed a 34 percent jump in 2010. After peaking at $42 billion in construction, experts predict a 24 percent decline for 2012 to $32 billion simply because the amount of growth couldn’t be sustained much longer. Either way, this utility work is great news for electrical contractors. Let’s dissect this category a bit more for the electrical industry. Energy bills provided tax incentives for electric utility and transmission line construction. The stimulus act delivered another boost for alternative sources of electricity generation. Alternative-energy power plants now appear to be very strong, according to Murray. In 2010, alternative-energy power plant construction jumped by 111 percent and was up 85 percent (as of October 2011, year to date). Power line construction also remains strong with a 52 percent increase in 2010 and a 100 percent increase (as of October 2011, year to date). Of the top 12 large projects in the electric utilities category, five are major solar plants, one is a new wind farm, and nuclear and gas plants round out the top group. Other trends: opportunities and concerns LEED specification rate It is interesting to note that the nonresidential LEED specification rate has increased steadily since 2004. Since then, when the LEED spec rate was about 17 percent, it has grown to about 58 percent in terms of dollars in 2010. In terms of the percentage of projects, the LEED spec rate grew from about 7 percent in 2004 to about 28 percent in 2010. This trend is expected to continue to grow. Institutional construction, particularly in the education construction sector, is driving this trend. Labor concerns still loom In 2010, retirees made up 25 percent of the labor force, said Standard & Poor’s Bovino. By the year 2030, retirees will make up 50 percent (half) of the entire labor force. This indicates a serious labor issue for the next couple decades, as aging baby boomers head into retirement. In addition, as construction jobs dried up and employees were laid off, a sizable chunk left the industry altogether out of necessity. They might not return when the economy turns again. A shortage of younger, trained electrical workers and an aging baby boomer population spell problems for the labor force in the future. This issue will only get bigger in time. Conclusion Now that we have examined the construction markets and looked at economic and other trends, what’s the bottom line? The housing demand, Baker said, will follow the jobs. RCD’s Markstein summed up what has to come first for construction to creep out of this valley: “Jobs. Jobs. Jobs.” McGraw-Hill’s Murray concurs as well, saying, “The key is what is going to happen with jobs.” Between February 2008 and February 2010, 8.8 million Americans lost their jobs. Some of those unemployed Americans are back to work, but far too many are still on the shelf. Until the unemployment rate drops, don’t expect strong construction activity. Standard & Poor’s Bovino predicts that the unemployment rate won’t dip to 8 percent until 2013. That’s bad news when you consider that most economists point to jobs as the catalyst for just about everything in construction. With continued volatility in the labor force and unprecedented levels of unemployment, 2012 is not only uncertain, but growth will be modest if it exists at all. “It’s a long process, and I don’t think anyone is calling for a lot of improvement in 2012,” said the AIA’s Baker during his RCD webcast presentation. “And I think it will be touch-and-go in 2013.” --------------------------------------------------------------------------------