We're also finding that energy companies are requiring more and more levels of insurance to work on site. This seems to be good news for anyone who works for a company that can actually afford it.

This past year my company has found this to be true with nearly every energy related project....and it can be quite expensive.

So far, we have not seen much of a slump in work. In fact this fall we got slammed with projects.

If the economic downturn continues, I think it will show up in CRM around the early spring period as there is somewhat of a delayed "cause-and-effect" in this biz when it comes to this sort of thing.

I think energy development projects will continue to be a driving force into the next year ( in some parts of the country). If an economic stimulus package that centers on infrastructure projects (roads, bridges, etc.) gets passed by Congress in early 2009, that would be a bit of a bump in CRM business.

CRM work related to commercial/residential development will be flat through the end of the year and possibly well into 2009 and may even extend into 2010.

That's just my opinion.

Scott

Ya, arch seems to lag construction trends by 6 to 18 months. It all depends on how much of a back log there is as many things will have been funded, but just not yet implemented.

I havent seen it yet in my area and we were near the apex of the building trend. I also suspect next spring will tell the tale for us here. If, however, governments approve capital spending on infrastructure, then there may not be much of a downturn. We'll all have to wait and see.

Business is slow in Maryland.

The company I work for has lost our two field techs and the company where my husband works had laid off all their techs. I hear another firm in the state has also had substantial layoffs.

Much CRM work is tied to general environmental compliance work.
A report today states for third quarter 08 environmental phase 1 studies were down 11% from 07. Infer from this that CRM is slowing down significantly.

http://www.housingwire.com/2008/11/18/study-real-estate-woes-move-into-cre/ (this story has a typo in it saying the decline was 17%)

http://www.edrnet.com/index.php?option=com_content&task=view&id=262&Itemid=443

Business has grinded to a near halt in the UK... I've been given a week more on my contract, and I'm out along with the rest of the field techs in my office. May have to move back to the states if I can't find a new job quick to hold me over till the slump is over... Bad news

It is quite likely that government spending on lots of things that require Section 106 compliance will get cut, some of it radically. In addition, non-energy private development is likely to be hard hit over the next 1 to 2 years. The only bright side is that it will probably take about 6 months for things to really wind down, so you have time to plan ahead.

I would suggest that energy related 106 compliance will continue to boom, particularly in the Rocky Mtn. west. Along with the hundreds of thousands of acres that have been leased for oil and gas exploration, but for which applications to drill have yet to be filed, wind, geothermal, oil shale and tar sands are starting to gather speed (particularly wind). Not to mention the transmission infrastructure in pipelines and powerlines that are going to be needed to move those resources.

The number of projects currently proposed, and being constructed, is truly staggering

[quote:="SHPO Grunt"]I would suggest that energy related 106 compliance will continue to boom, particularly in the Rocky Mtn. west. Along with the hundreds of thousands of acres that have been leased for oil and gas exploration, but for which applications to drill have yet to be filed, wind, geothermal, oil shale and tar sands are starting to gather speed (particularly wind). Not to mention the transmission infrastructure in pipelines and powerlines that are going to be needed to move those resources.

The number of projects currently proposed, and being constructed, is truly staggering

Unfortunately, the federal agencies have sometimes circumvented NEPA/106 req's by issuing cat-ex tags on these projects, or have internal review issue "no historic property affected," or the like, without actually doing NEPA or 106 review, and the project proponents go on their merry way....

Ugh.

The energy boom has busted. With oil back down to $53 and natural gas at $6.70 (both half the price they were three months ago) the drill baby drill urgency is over. Expect those drill rigs to become idle soon.

Deflation is here; welcome to the worst economic crisis since the Great Depression.

In three months it maybe we may be in the Greater Depression. Sorry, but there just isn't any good news out there.

http://www.rgemonitor.com/roubini-monitor/254478/roubini_says_us_recession_to_be_worst_in_50_years_video

He's been down on the market for years, and probably for the right reasons, but he, and all the others, especially congress, have not addressed as the core reason for the lack of credit is the vast leveraged debt call being made by the holders of credit default swaps - and their ilk. These extremely corrosive bets on the chance that someone will default on the loan have unlimited pay offs to the holder if someone defaults. The amount of this is absolutely staggering.

The credit industry really needs to "restructure" and delete these so-called obligations off their books, then they will have the money necessary to back real loans, not the bets on the loans.



Nevertheless, look for infrastructural projects in every governmental sector to ramp up quickly. The feds can easily issue block grants for local projects - god knows how many miles of sewer and water pipe needs to be replaced, along with transmission corridor upgrades, alt energy, and yes gas and oil. While crude is 1/2 the high right now, we all know that once the world economy is running again it will be right up to $90+ (the highs were as much the product of real demand and it was speculation, so real valuation is tentative). Additionally, efficiencies in cracking crude makes anything over $40/bbl profitable to the oiligarchies.

The company I've been working with for almost two years was looking to be the second busiest in Utah for 2008 (in terms of shear project numbers), but most of us have been laid off effective December 1. A couple guys working in the southern branch of the company might be able to work for another month or so, but things dried up quickly. I'm off to do some tech work on the other side of the country, then will see what happens.

Some of the larger firms are feeling as if they can keep their regular staff busy through the winter, even spring, but it's summer they are worried about. I can see where a smaller firm like the one I've been working with has a shorter rotation on smaller projects, and may not be too diversified, but it's really all the market sectors that are slowing down here all at once.

UDOT has frozen all spending and suspended all projects indefinitely, including new highway construction. Some bridge tear-downs ceased midway, even.

The state is cutting spending on all fronts, just gutting everything. Federal offices are in a bit better situation, but most are just finishing up old projects. Not much new for them to work on, and they are watching their finances pretty close.

Wyoming and Montana seem to be holding fairly steady, and energy production in the Uinta Basin seems to be progressing allright. Exploration on the Cretaceus Belt of UT/NV seems to be slowing down a bit, but new wells are going in here in Sanpete County.

Water development projects seem to be spared, and some military development is happening. Firms that are locked into GSA-Advantage, especially if they have disabled vet preference, have a very strong advantage in these areas. With the slowdown, lots of contract quotas are going unfulfilled. As noted above, however, it takes a bit to cover the liability for such work. It also takes a bit of overhead to even apply for GSA status.

[quote:="FireArch"]Nevertheless, look for infrastructural projects in every governmental sector to ramp up quickly. The feds can easily issue block grants for local projects - god knows how many miles of sewer and water pipe needs to be replaced, along with transmission corridor upgrades, alt energy, and yes gas and oil. While crude is 1/2 the high right now, we all know that once the world economy is running again it will be right up to $90+ (the highs were as much the product of real demand and it was speculation, so real valuation is tentative). Additionally, efficiencies in cracking crude makes anything over $40/bbl profitable to the oiligarchies.

I agree with you here. Infrastructure is going to boom, primarily in the bridge and road sectors of infrastructure, but also in the other areas.

As far as the company I work for, and here in Texas, everybody seems to be slowing down. I haven't heard any bad news from companies about layoffs yet, but I imagine everyone is tightening their belts. We have been able to diversify a lot and, of course, have some big projects just waiting to start, but lately it feels like we are just staying afloat with a little breeze every now and then.

http://cbs13.com/politics/state.recovery.money.2.1404284.html

Jan 4, 2010 3:43 pm US/Pacific

Governor: 'Unsatisfied' With Recovery Efforts

Dozens of construction projects funded with federal stimulus money are being delayed in California because the office that oversees historic preservation is overwhelmed with applications, the state's stimulus watchdog said Monday.

In a letter to Gov. Arnold Schwarzenegger, Inspector General Laura Chick asked that more staff be made available to accelerate the review process. She said the backlog will grow because the bulk of stimulus money for public works projects is just beginning to flow to states.

"This is trying to get the problem from getting worse," Chick said in an interview.

At stake are desperately needed jobs for Californians that would be created through new construction and retrofits, she said in her letter.

The state Office of Historic Preservation, part of the state Department of Parks and Recreation, is just one of many agencies that must sign off on construction projects before they can begin.

For example, if an alternative energy company is proposing a solar project, the office must make sure the land does not include Native-American artifacts. Similarly, modifying a building that is a registered historic landmark cannot undermine its architecturally significant features.

Chick said many of the projects in question are small, such as installing a new heating and air conditioning unit. Nevertheless, the preservation office has been overwhelmed by the volume of project applications.

In her letter to Schwarzenegger, Chick said the governor could extend the work weeks of historians, archaeologists and other key personnel by modifying his furlough order, transferring workers from other government agencies or temporarily hiring retired state workers.

Schwarzenegger created Chick's position last spring to make sure federal stimulus money headed to California was spent efficiently and as it was intended. Chick said she brought the backlog to the attention of the governor's Recovery Task Force, the entity that tracks the stimulus money, last fall.

Asked what response she received from the task force, Chick responded, "I can only say the problem still exists today. So whatever the response has been needs to become more vigorous."

The state parks department referred inquiries to the governor's office. Camille Anderson, a spokeswoman for the Recovery Task Force, said the governor's office will ensure that adequate staff is available to handle the applications.

"Like the inspector general, we are completely unsatisfied with ... efforts to address this and, accordingly, last week we ordered the backlog to be cleared within 30 days," she said in a statement.

Qualified workers will be transferred from other state agencies while additional workers will be trained to handle the historic review process, Anderson said.


READ THE INSPECTOR GENERAL'S LETTER BELOW:


January 4, 2010

The Honorable Arnold Schwarzenegger
Office of the Governor
State Capitol
Sacramento, California 95814

Dear Governor Schwarzenegger:

When the American Recovery Act was passed last February, both President Obama and you made it eminently clear that these precious dollars were to be spent faster and better than ever before.

The Recovery Act is both a call and an opportunity for government to do things differently and smarter by finding ways to streamline, eliminate needless hurdles, slash bureaucratic red tape and implement efficiencies.

It is a challenge for government, however, to bring any construction project to fruition. There are numerous hoops to jump through including permits, competitive bids, wage requirements, environmental regulations and historic preservation rules.

By law, the State's Office of Historic Preservation is required to sign-off before construction projects begin. Due to the Recovery Act there has been a marked increase in the number and type of projects and this has resulted in a two month backlog which is growing exponentially as more projects advance forward.

In addition, some state departments which are receiving Recovery funds have never had to deal with the National Protection of Historical Properties Law. These departments require additional attention with training and consultation.

Many projects are for weatherization which may be extremely small in scope like installing a heating and air conditioning unit. The sheer quantity of these projects has been problematic for the Office of Historic Preservation.

Although the Office has already begun taking measures to address the backlog, it is clear that a very focused and high level effort must be undertaken to solve this problem. Expert minds in state government must come together to find creative answers and explore various possible solutions. Those potentially include modifying furloughs for key personnel, finding ways to transfer staff from other departments (such as analysts who could perform some of the required preliminary work), streamline the hiring process, rehire on a short-term basis retired state employees and conduct an open-call for experienced volunteers. State Departments should also be instructed to prioritize their ARRA project submissions to Historic Preservation.

Every day that a project is stalled is a delay in creating desperately needed jobs for Californians. Department heads should scrutinize their ARRA projects to determine what, if any, other impediments are in the way of expeditious completion, find appropriate ways to move these projects forward and streamline clogged bureaucratic processes.

Sincerely,

LAURA N. CHICK
Inspector General

Of course, it would help if IG Chick understood the process, or even the law under which the process proceeds. I'm pretty certain there is no "National Protection of Historical Properties Law." There is the NHPA, among others, but they're not protection laws really.

My letter to the IG:

Laura N. Chick
Office of the Inspector General
1400 Tenth Street, Suite 100
Sacramento, CA 95814
Phone: (916) 322-3003

Dear Ms. Chick,

With respect to your recommendations to the Governor (4 January 2010) regarding means by which to improve efficiencies in compliance with the National Historic Preservation Act, the National Environmental Policy Act, the Archaeological Resources Preservation Act, etc (not, as you mentioned the "National Protection of Historical Properties Law" - there is no such thing) I kindly request that any and all additional personnel tasked with oversight with respect to legislative compliance with the above mentioned laws be actually qualified for that task. Simply shuffling excess staff from one department to another, hiring retired employees, or seeking willing but untrained volunteers can, and will likely, have a detrimental effect on our collective, and nonrenewable cultural heritage. To be sure putting people to work and stimulating our economy with worthwhile projects is a laudable and important goal, but it should not come at the loss of our past through haphazard or rushed oversight by the people and mechanisms put in place to protect that heritage.