New construction increased 4 percent in May to a seasonally adjusted annual rate of $496.6 billion, according to the Dodge Division of McGraw-Hill. Greater activity was reported across a wide range of project types, resulting in moderate growth for the industry's main sectors.

The Dodge Index for U.S. construction started at a brisk pace, dropped in March, then came back. "The improved activity in April and May shows the construction industry climbing back to last year's pace," said Robert A. Murray, vice president of economic affairs for McGraw-Hill Construction earlier this month. "However, this year is seeing a different mix by project type - more single-family housing and public works, while commercial building remains well below the levels reported in the early months of 2001."

During the first five months of 2002, total construction maintained a 1 percent lead over the same period of 2001. The Midwest region was up 7 percent.

Wage hikes average $1.51
Wage and benefit settlements in the U.S. construction industry in 2002 have resulted in average first-year increases of $1.51 per hour or 4.5 percent, reports the Construction Labor Research Council. This is little changed from the $1.54 increase reported for the first six months of 2001.

The CLRC reports that settlements of $2 per hour or more have become more prevalent - but those increases have been offset by some contracts "covering large numbers of workers that were below average."

Contract durations continue to lengthen. More than 40 percent of all agreements have been for four years or more. And, during each of those years, settlements of 3-5 percent were most common in each year. 

It pays to be nice
Employers get re-paid in more ways than one when they maintain a safe, healthy workplace.

A report issued June 25 by the American Society of Safety Engineers said employers who are good to their workers in those areas get a return benefit through reduced workers' compensation costs, and hard-to-measure savings brought by improved morale, and better community and customer relations.

The ASSE urged OSHA and other federal agencies to promote safety and health programs and improve efforts of companies to integrate that kind of thinking into their core business strategies.

As reported in the Construction Labor Report, the safety group said more than $40 billion is paid out each year by employers and insurers in workers' comp costs, amounting to about $500 per employee. "The days are over," the group said, when companies can view safety and health violations and the subsequent fines by OSHA as a cost of doing business.

Gas tax hike unlikely
Even with a looming federal budget deficit, don't look for the federal government to raise the gasoline tax.

Transportation Secretary Norman Mineta told a group of road builders on June 25 that such a tax hike isn't "an alternative that would be considered." The last federal gas tax hike was in 1981. The federal gas tax is currently 18.3 cents.

Ergo regulations cover construction
Construction workers are finally getting some recognition when it comes to ergonomics regulations - but the regulations probably won't become law anytime soon.

A U.S. Senate committee has approved a bill that would direct the Secretary of Labor to create a workplace ergonomics rule within two years. Unlike a sweeping general industry ergonomics rule that nearly took effect two years ago under the Clinton Administration, this bill includes provisions for the construction industry.

One of President Bush's first actions was to repeal that ergonomics rule for U.S. businesses, citing the expense of its implementation and lack of scientific evidence. It is unlikely that this bill, which was approved along political party lines, would see a better fate.