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September 20, 2007 Headlines

A Beautiful Tomorrow for Structural Engineering?
Playing the Global Infrastructure Boom
Hotel Chains Grapple With Meaning of Green
Shopping Centers Begin to Feel Ripples of Housing's Ills
Computing and Information Technology Research in Civil Engineering-- Self-Fulfilling or Industry Transforming?
States Moving to Back Green Infrastructure in Stormwater Permits



Industry News

A Beautiful Tomorrow for Structural Engineering?
Seattle Daily Journal of Commerce (09/13/07) Magnusson, Jon

Structural engineering is approaching a new era thanks to new technology, says Jon Magnusson, CEO of Seattle-based civil and structural engineering firm Magnusson Klemencic Associates. Among the changes will be the strengthening of construction materials. Over the past 50 years, the typical strength of structural steel has increased by 40 percent, reinforcing bars by 50 percent, and concrete by up to 100 percent. This trend will continue, with concrete reinforcing bars, typically having a strength of 60 ksi, now reaching strengths of 100 ksi. These stronger bars will be used more frequently in the future, says Magnusson, since in the tonnage of rebar needed for a building tends to decrease in direct proportion to its increase in strength. This stronger rebar will also make it possible to dramatically increase the strength of concrete, an effort that has been hampered by the congestion caused by the amount of rebar needed to reinforce today's advanced concrete. Stronger rebars will reduce this congestion. The typical concrete strengths in columns and shear walls could double, says Magnusson. Structural steel as strong as 100 ksi are already in limited use. Double the strength of typical structural steel, Magnusson expects the use of the strong material to pick up in coming years.

Playing the Global Infrastructure Boom
BusinessWeek (09/11/07) Holloway, James

U.S. physical infrastructure is aging, and as demands on it increase along with the population so does the need to secure funding for necessary repairs and expansion. The issue is not just a national one. "Infrastructure is the backbone of the global economy," says Aaron Visse, co-manager of the Kensington Investment Group's Global Infrastructure Fund. "The great challenge for governments today is discovering methods of financing the maintenance and development of infrastructure networks." Macquarie Bank estimates that global transportation, energy, water, and communications infrastructures will require $30 trillion through 2030. Increasingly, funding for infrastructure demands is coming from public-private partnerships, such as ones engaged in by Kensington and Macquarie. Though a long-used practice in Europe, such partnerships are becoming increasingly popular in the United States, especially in regards to transportation. In 2004, Chicago auctioned off the Skyway Toll Road to Cintra of Spain and Macquarie, who in exchange for $1.83 billion received a 99-year operating lease. These partnerships allow the government to benefit from the expertise of private players. Thus, within three months of closing the Skyway deal, the investment group installed an electronic toll-collection system that helped reduce wait times, increase Skyway use, and generate revenues.

Hotel Chains Grapple With Meaning of Green
Wall Street Journal (09/11/07) P. B1; Audi, Tamara

Big-name hoteliers like Hilton Hotels Corp., Marriott International, and Starwood Hotels & Resorts Worldwide Inc. are striving to become more environmentally friendly. Such companies are taking steps in response to customer demands, but are having mixed results. Kendra Walker, Hilton's vice president of brand communications, reports, "We're currently in what you might call a discovery phase. We're looking at best practices. We're looking at energy-saving light bulbs, water-saving features [and so forth]." One problem these major companies are facing is that there currently is no single standard in the United States for what qualifies a hotel as "green." Green Seal does have an extensive certification program for hotels and motels. However, this evaluation typically takes up to three months and costs between $1,950 and $3,000 per year. Currently, only 43 hotels in the entire country boast this certification. Marriott established its own internal "green council" earlier this year to look at everything from the kind of bathroom products it buys to how far cotton towels travel from field to factory to lodging. Earlier in the decade, Marriott joined the EPA's Energy Star program, which has provided it with public acknowledgement for such achievements as reducing greenhouse-gas emissions.

Shopping Centers Begin to Feel Ripples of Housing's Ills
New York Times (09/12/07) P. C6; Pristin, Terry

Analysts report that the nation's shopping centers have been snared in the same credit crunch that has transformed the capital markets. Before the squeeze, private buyers were able to finance as much as 95 percent or more of the cost of an acquisition. Today, with the absence of such high leverage, those same buyers are being driven out of the market. Blue Ridge Capital, an Atlanta-based property firm that specializes in purchasing troubled strip shopping centers, has had a front-row seat to the upheaval. Owner Fritz McPhail comments, "We are seeing prices change. We are seeing deals blow up. People are calling us back a second time to see if we want to consider another offer." Even the country's biggest mall owners are feeling the pinch of tightening lending standards. Macerich and Simon Property Group agreed earlier in the year to sell three malls they have jointly owned for the past 10 years to a private firm that has been relying on a high degree of leverage. The deal was scuttled when the buyer was unable to land the necessary financing. At the same time, approximately 26.2 million square feet of strip centers will reach completion in the last half of this year, contributing to oversupply problems in some markets. According to Torto Wheaton Research, the vacancy rate in this niche has risen sharply in such metro areas as Dallas and Oakland; while new centers in such markets as Cleveland, Indianapolis, and Nashville are having a tough time leasing space.

Computing and Information Technology Research in Civil Engineering-- Self-Fulfilling or Industry Transforming?
Journal of Computing in Civil Engineering (10/01/07) Vol. 21, No. 5, P. 301; Issa, Raja R.A.; Anumba, Chimay

Although a number of research projects on various aspects of computing and information technology in civil engineering have been conducted in the last 20 years, many of these projects have resulted in proof-of-concept prototype IT systems that often have little or no use after the project has been completed. As a result, there are a number of questions regarding the quality of the research undertaken and the publications associated with them that must be asked. For example, researchers should find out how many of these computing and IT research projects have served as stepping stones for other researchers in the domain, as well as how many of the resulting prototype systems have evolved into successful commercial systems. In addition, researchers need to find out how many of the outcomes of these projects have been adopted by the civil engineering industry, particularly at the field/jobsite level. Although some may argue that research prototypes do not need to answer all of these questions, it could also be argued that those that fail to answer any of them are of questionable value. In addition to answering these questions, researchers also need to think about the short, medium, and long-term impact of their work on the industry and on future research. Research that is geared towards making a short-term impact should be done in collaboration with the architecture, engineering, and construction industry, along with the computing industry, and, if of sound quality, should be expected to lead to adoptable commercial IT systems and/or models. Longer-term research, meanwhile, should have an impact on future research and should serve as a basis for new research strides.

States Moving to Back Green Infrastructure in Stormwater Permits
Water Policy Report (09/13/07) Vol. 16, No. 18,

State permitting authorities are beginning to push "green infrastructure" techniques as a part of stormwater management permits but have run into problems from both local governments and environmental activists. In April, the Environmental Protection Agency expressed its dedication to "green infrastructure," also called low impact development (LID), the use of soil and vegetation to filter stormwater. LID is most effective when combined with other tactics such as permeable pavement or rain barrels. While many states have begun to allow LID when approving Clean Water Act stormwater management permits, they have run into criticism. In Washington, almost every stormwater permit issued is being appealed, half from municipalities who believe that the regulations are too strict and half from environmentalists who claim that they are not strict enough. Local governments have slowed the growth of LID because they encourage developers to stay within local zoning regulations. However, other states, such as Maryland, have begun requiring LID for anyone seeking a stormwater permit. The EPA is also working on its Stormwater and Clean Watersheds Needs Survey, a report to Congress that is delivered once every four years.

Construction Economists Are Hopeful About Commercial Building Climate
Minneapolis Finance & Commerce (09/11/07) Johnson, Brian

Economists in the construction sector remain optimistic about the U.S. non-residential building market. Associated Builders and Contractors chief economist Jeff Taylor says that consumer spending, corporate profits, and a healthy global economy are fueling non-residential construction. "Businesses are optimistic. They are saying, 'We need to build more buildings or expand our facilities,'" says Taylor. "Lodging, office, commercial, health care, education, streets-- all these are growth areas. It's really broad-based." American Institute of Architects chief economist Kermit Baker says he is not surprised that non-residential construction is strong at a time when housing has hit a slump. "We had strong numbers in residential construction through the first five years of this decade and extremely weak numbers on the non-residential side," says Baker. "There was a lot of pent-up demand being created over that time when those sectors were moving in different directions." Baker says that while school, health-care, government, and cultural construction will remain strong, office, hotel, and manufacturing projects may have "run their course." Associated General Contractors chief economist Ken Simonson noted a U.S. Commerce Department report on employment in the United States in August that showed 1,700 jobs being added in three non-residential construction sectors -- specialty trades, building, and heavy/civil -- despite 4,000 jobs being lost overall.

Challenges Increase Risks for Providing Timely Infrastructure Support for Army Installations Expecting Substantial Personnel Growth
GAO Reports (09/07)

The U.S. Army plans to accommodate the addition of about 154,000 personnel at 18 domestic bases through 2011 due to base realignments and closures, the rebasing of overseas forces, and force modularity actions. Military construction costs of over $17 billion are expected to meet realignment and closure mandates, not to mention the costs to be incurred by communities that will have to grow alongside the bases they host. Yet a failure to determine the exact amount of personnel that will be added at each base has made it difficult to determine infrastructure construction requirements. Furthermore, funding is being hampered by the redirection of allocations to the war efforts in Afghanistan and Iraq. Leading the construction effort is the U.S. Army Corps of Engineers, which will have to implement new construction strategies to complete the needed infrastructure while minimizing costs and schedules.
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Despite Labor and Pricing Pressures, Turner Forecasts Continued Increase in Construction Costs
Turner Construction Company (09/17/07)

Turner Construction's quarterly Building Cost Index forecasts a 1.89 percent increase in construction costs in the third quarter compared to the previous quarter. The figure represents a 7.74 percent increase over the third quarter of last year. "The construction industry continues to face a shortage of skilled labor and trade contractor availability," says Turner vice president Karl F. Almstead. "The strength of the developing economies of the world has added to the demand for raw materials and equipment, adding to the pressure on material prices in the United States" Despite the rising costs, Almstead says that the construction market will remain strong. "According to McGraw-Hill Construction, the non-residential building market activity grew five percent over the past twelve months," he notes. "Confirmation of the continued strength in the construction industry is supported by the AIA’s June Architectural Billing Index."
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California Greening
Building Design & Construction (09/07) Kirk, Patricia L.

Though developers had argued in the past that green building certification is a practical impossibility for retail developments, several have managed to receive LEED certification since 2005, such as Issaquah Highlands in Washington state, Northfield Stapleton in Denver, Atlantic Station in Atlanta, and two experimental Wal-Mart big-box stores in Texas and Colorado. Now, new state and local laws in California are positioning that state to take the lead in green development, including voluntary or mandatory rules in San Diego, San Francisco, Los Angeles, and Calabasas that are now in place or soon to come. In Riverside, the city is planning incentives to encourage people to use photovoltaic solar panels, while the Inland Empire cities are looking at code changes mandating sustainable building. According to KTGY Group architect Mike Flynn, local governments are becoming more comfortable with requiring sustainable building practices as part of their building codes, and he estimates that green building now only costs 2 percent more than conventional building practices. Increasing demand and increasing availability of supplies for green building, such as building materials low in volatile organic compounds, has driven prices down while conventional building has become more expensive. Randy Jackson of The Planning Center says that code changes have many developers already adopting green practices even if they had not planned to, and he predicts that someday they will instinctively use green building practices because of becoming accustomed to them. Even landscaping can be done in a green fashion, using methods that cut water consumption, restore sensitive habitat, provide shade, and make use of recycled materials, all of which were used by NUVIS Landscape Architecture at Bakersfield's Crossings at Corona shopping center. In addition, the U.S. Green Building Council is working on two new programs aimed at retail development, with the intent of making it easier to put in place at multitenant projects by giving control over buildout to the developer.
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Reaching for A Smarter Factory
Industry Week.com (09/01/07) Teresko, John

Some research initiatives currently underway promise to make factories smarter by implementing machine tools that have computer intelligence and the ability to communicate with one another. "While individual characteristics of the smart machine tool of the future are here now, the goal is to put the pieces together into equipment that can think," says John Kohls of TechSolve and the Smart Machine Platform Initiative (SMPI). According to the National Institute of Standards and Technology (NIST), the definition of a smart machine is one that is aware of its capabilities and condition and can be queried about them; knows how to optimally machine a part; makes every part right; monitors, diagnoses, and optimizes itself; is aware of the quality of its work; and is able to learn and improve itself as time passes. SMPI evolved from workshops held by NIST and the National Science Foundation in 2000 and 2002, and it has now been receiving government funding for two years. NIST believes that the United States will be able to make itself competitive in mass customization by getting rid of trial and error in prototype development and making time to market faster. Smart machines "will react to abnormal process sound as experienced human operators would," says Kohls, adding, "The machine would communicate a warning and suggest ways of correcting the problem." Different manufacturers have different visions of what exactly the smart factory will entail--for example, machine-tool maker Haas Automation sees SAP-based network integration as being the chief route to a smarter factory--and there is also an effort to create a communications standard called MTConnect that will allow interoperability between different manufacturers' products. Maintenance may be the area that is the most advanced in terms of smart-factory practices, with the help of the research initiative Center for Intelligent Maintenance Systems, and there is a goal to make smart maintenance more preventive rather than relying on the current method that simply uses sensors to detect when a failure has already occurred.
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Going With the (Variable) Flow
Engineered Systems (09/07) Vol. 24, No. 9, P. 43; Inman, Jon A.

Although variable refrigerant flow systems (VRFs) have been around for some time now, it has only been recently that engineers in North America have begun to look at VRF as a viable HVAC option. More and more engineers are considering VRF as an option because of the significant energy savings that the technology can provide. VRF systems are efficient because they use variable-speed compressors that load and unload to deliver only the necessary amount of refrigerant to the system's indoor units. VRF systems also have a recovery option for designs requiring simultaneous heating and cooling. In VRF systems with the heat recovery option, heat is rejected from the indoor units in cooling mode, recovered, and then used as the heat absorption source for the indoor units in heating mode. When the heat recovery option is available, compressor loading is greatly reduced, which improves overall performance and reduces energy bills. VRF systems can also be less expensive than what is traditionally thought of as the least expensive option, the single-zone heat pump. Although VRF systems are more costly on a tonnage basis, they only require one electrical connection, unlike the heat pump solution, which requires an electrical connection for each heat pump, one roof support location, and one location for pipe penetrations.
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