Transcript UNITED WE BUILD A STRONGER AMERICA

Building A Stronger
Economy
2005 NACF Meeting
Oaxaca, Oax, Mexico
Sam Hunter
AGC of America President
Building Your Quality of Life
AGC’s Goals and Guiding
Principles
• Promote construction industry
growth
• Establish infrastructure investment
as a necessary element of economic
growth
• Ensure that taxation, regulation and
mandates are designed to promote
economic opportunity for AGC
members
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How We Achieve Our Goals
•Credibility
•Staff
- 20 Staffers Who Monitor Legislative
and Regulatory Issues
•Chapters
- 98 Chapters Across the U.S.
- At least one chapter in each state
•Active Membership
- 33,000 member companies
•7,000 general contractors
•11,000 specialty-contracting firms
•13,000 service providers and suppliers
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•Political Connections
What AGC Offers
•Evaluate the Political Atmosphere
•Identify Viable Agenda Options
•Discussion of Strategy
•Action items
 Communicate Priorities Internally
and Externally
 Continue to Lead Important
Coalitions
 Coordinate Targeted Grass Roots
Campaigns
 Identify Champions
 Deliver the Votes
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AGC Overview
• AGC has a Broad Agenda
• AGC has a Substantial Presence
• Elections and Policy Decisions
have Consequences for the
Industry
• Government Regulations Cost the
Economy an Estimated $850 Billion
Annually
• The Industry Needs to Participate
in the Process
• AGC has Made it Easy
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AGC Legislative and
Regulatory Goals
•AGC PAC
•Infrastructure Investment
•Highway Reauthorization
•Drinking And Wastewater
•Water Resources
•Reverse Auctions
•Tax Policy
•Environment
•Tort Reform
•Safety & Health
•Immigration Reform
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AGC Legislative and
Regulatory Goals
AGC MAKES A DIFFERENCE ON ELECTION DAY!
•AGC PAC will raise and spend $1,000,000 during the
2006 election cycle.
•In 2004 AGC PAC supported the winning candidate
89% of the time.
•AGC’s Legislative Action Center (www.agc.org/lac)
keeps members informed.
•AGC Grassroots encourages members to register and
vote.
AGC PAC SPECIFICS
•Contributions all personal, not corporate.
•AGC PAC & Grassroots actively engages in federal
races.
•Construction industry needs must be heard!
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AGC Legislative and
Regulatory Goals
INFRASTRUCTURE INVESTMENT –
HIGHWAY REAUTHORIZATION
•Congress passed Transportation Equity Act
July 29.
•$286.4 billion over six years – A 31% increase
•Largest public works bill in U.S. history.
•AGC played a central leadership role
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AGC Legislative and
Regulatory Goals
INFRASTRUCTURE INVESTMENT –
HIGHWAY REAUTHORIZATION
Key AGC Policy Victories:
•Maintain Highway Trust Fund Integrity
•AGC worked to ensure all dollars will be used
for transportation
•Streamline Environmental Review Process
•AGC pushed to highway planning and project
development streamlined to complete vital
transportation projects quickly
•Improve Work Zone Safety
•AGC sought to protect industry’s workers and
the public by increasing awareness and
commitment to work zone safety
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AGC Legislative and
Regulatory Goals
INFRASTRUCTURE INVESTMENT –
DRINKING AND WASTEWATER
•Over next 20 years:
•Drinking water investment needs
between $70 billion - $362 billion.
•Wastewater investment needs between
$132 - $388 billion.
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AGC Legislative and
Regulatory Goals
INFRASTRUCTURE INVESTMENT –
WATER RESOURCES
•Water resources projects not keeping pace
with economic and social expansion
•Waterways programs grow U.S. economy:
•Every $1B expended = 40,000 jobs.
•Flood damage reduction provides a six-toone return.
•O&M on locks and dams provides 14-1
return.
•AGC focused to increase federal
investment.
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AGC Legislative and
Regulatory Goals
REVERSE AUCTIONS
•AGC working with Congressional Leaders to
prohibit procurement of Federal construction
projects using Reverse Auctions.
•House of Representatives has passed legislation
to accomplish this goal.
•Senate expected to pass similar measure this fall.
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AGC Legislative and
Regulatory Goals
TAX POLICY
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House of Representatives approved full
and permanent repeal of “death tax.”
Death tax scheduled for elimination in
2010.
• Full repeal expires in 2011.
AGC urging Senate to schedule similar
vote.
The President has repeatedly stated his
desire to sign this legislation.
AGC Legislative and
Regulatory Goals
ENVIRONMENT
•AGC and U.S. Environmental Protection
Agency partnering:
•Goal: Reduce regulatory burdens and
improve compliance.
•AGC responded to numerous proposals
impacting construction.
•AGC offers services promoting our positive
contributions to environmental stewardship.
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AGC Legislative and
Regulatory Goals
TORT REFORM
•67 companies forced into bankruptcy because
of asbestos litigation.
•500,000 employees have lost jobs.
•Between $375 and $650 billion in stock value
evaporated.
•AGC supporting legislation to address litigation
challenges.
Building Your Quality of Life
AGC Legislative and
Regulatory Goals
SAFETY & HEALTH
•AGC & OSHA working on Trenching Initiative
Task Force.
•OSHA proposing silica, hexavalent chromium,
& confined space standards.
•Negotiated Rulemaking for Cranes & Derricks
•OSHA preparing final consensus language
•OSHA Susan Harwood Training Grant
•Fall Protection Training - 1,500 people
trained to date
•Every AGC General Contractor sent CD-Rom
(10,000)
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AGC Legislative and
Regulatory Goals
IMMIGRATION REFORM
•Shortage of skilled and unskilled workers in
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construction must be addressed.
•Streamline legalization process:
•Need workable and realistic guest worker
program.
•Today’s immigrants are highly skilled and
provide a valuable service
•Congress has introduced legislation to reform
the system.
•Action expected in the fall of 2005 and will
probably continue into 2006.
•AGC continues to work with Congressional
leaders to develop a reasonable and workable
guest worker program.
U.S. Economy and
Construction
•Construction A Major Part of U.S. Economy:
•7.3 million workers in 700,000 companies.
•2 million firms operate without employees.
•12% of all non-employer firms.
•Value of construction put in place in 2004
totaled $1 Trillion
•8% of GDP.
•Construction machinery shipments
exceeded $500 billion in 2004
•11% of all manufacturing shipments.
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U.S. Economy and
Construction
•Construction has Done Well in 2005:
•Construction employment rose by 277,000
from August 2004 to August 2005.
•A new record
•Value of construction put in place rose nearly
9% in the seven months of 2005.
•Year-to-date orders for construction
materials, supplies, and machinery are all up
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U.S. Economy and
Construction
•
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All Segments Grew in the First Seven
Months of 2005:
• Private residential construction put in
place rose 12% over same period last
year.
• Private nonresidential construction
grew 5%.
• Public construction rose 6%.
• However, these gains are only partly
real.
• Steep price increases for steel and
many other inputs reflected.
U.S. Economy and
Construction
Remainder of 2005 and 2006 will be
affected by impacts of Hurricane
Katrina:
•The cost of diesel fuel to operate
equipment and trucks and pay for
deliveries of materials will eat into
profits.
•Oil and natural gas price increases
and shortages will affect asphalt,
plastics, roofing and insulation.
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•Cement and labor shortages could
become more widespread.
U.S. Economy and
Construction
•There will be lots of stabilization,
repair, and demolition work.
•Reconstruction will depend on funding
and decisions about whether rebuilding
is safe and sensible.
•Other regions will grow a bit faster as
families and businesses relocate.
•Higher gas and heating costs will force
consumer cutbacks, hurting some
types of construction.
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The Associated General Contractors of America
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