Building materials – HC Ingenieria

Shortage of low-cost housing remains one of the Valley’s biggest problems – The Morning Call

Jennifer L. Carter — Thu, 24 Nov 2022 14:02:33 +0000

Without a doubt, the biggest issue that has challenged this community for the longest time is the lack of housing options, especially for low-income people. Here are some misery-inducing data:

The US Department of Housing and Urban Development defines “fair rent” in the area as around $1,200 for two bedrooms. Many apartments cost much more than this, but few cost much less. All the family planners and home economics teachers (that is, our parents) insist that we spend no more than 30% of our net income on housing. Most mortgage lenders would agree with that. Now, if you need a place, you can pay a lot more. Many apartments, like the ones JB Reilly and his City Center Investment Company have produced so impressively, rent for more than $1,600.

Unsurprisingly, at the very bottom of the economic ladder are those who are so poor that they have little chance of getting out of poverty: they may have been so unlucky that they are convinced they are losers. and not being able to function.

Alan Jennings (Rick Kintzel/Morning Call)

They can be cursed with drugs or alcohol; they may be mentally ill. Far too many are veterans. There are those who do couch-surfing, as they call it; like nomads, they roam the desert, their little children having no rhythm in their lives. Their surf includes sofas, floors, cars and a

occasional bed. There are those who have been driven from their homes by frustrated and desperate spouses or other loved ones who have gone mad. They have limited skills, if any, but those skills aren’t worth much in the private market.

All of them and many more are the ones I continue to characterize as those we “leave behind”. As a society, we want to be able to judge them, to look for ways to convince ourselves that their problems are their fault, that it is their fault. Don’t look under those rocks, folks, you might not like what you see. Maybe the free market just doesn’t quite work. Otherwise, we don’t want to concede that the rising tide really doesn’t lift all boats. It can’t be the “system’s” fault, can it?

Keep in mind that housing markets are very, very local. Think ZIP Code 18103. Cumberland Gardens, a federal housing “project,” is located there. Just like Lehigh Parkway. The Allentown market is very different from the Bethlehem market. The south side is very different from the north of Bethlehem. The cost of land will continue to rise because demand increases and supply eventually decreases.

Who expected the supply chain mess? Interest rates are rising as the Federal Reserve tries to zap inflation. The cost of building materials is increasing. New York and New Jersey’s affordable housing programs are referred to as “Pennsylvania”, with demand driving even more cost increases.

One thing is very clear: the housing market is dysfunctional. The private sector cannot make a profit building affordable housing for people with limited market value. By that I mean those whose income is less than about 80% of the median income (about $50,000 in the Lehigh Valley). The

the details would take more writing than most would bother to read, so trust me on this one. Over the past 30 years or so we’ve tried everything: building on cheap (i.e. contested) land, running a design competition for architects, scoring the interest rate for developers and more Again. We pinched the

edges of this problem, hoping that maybe the dragon could be slain with many, many small cuts.

Since the 1980s, the main federal tool to try to reduce the cost of rental housing development, combined with other sweeteners, can reduce the cost of development to make rent affordable

for a person whose income is less than 80% of the median income of the region. But if you earn 50% or less of the area median income (total household income under $35,000), forget it. Thus, a single mother earning $17 an hour would be challenged to find housing. If you’re one of the few hundred families receiving cash assistance, the rent for the apartment we just described should be close to zero, as a family of three would only get $403 per month. Shocking, isn’t it?

I’ve ranted, raved, reasoned, cursed and more over the past 40 years trying to solve this toughest problem of all, engaging all kinds of people and industries. We got, basically, nowhere. Instead, we had more run-down housing, more creepy neighborhoods, more poverty concentrated in our oldest

neighborhoods, no more flight of white people and their money to the suburbs where property values have risen for these people, no more fires uprooting the poorest of the poor, no more homelessness.

It is an extremely complicated problem. When people tell you that there are easy solutions to such complexity, try not to laugh.

So we have a crisis ourselves. Frankly, I prefer to use the term “disaster,” one that affects thousands of homes here in the Lehigh Valley. It’s so bad, it just feels like it can’t be fixed. But every problem has a solution; it is often the will to solve the problem that we lack; the cold shoulder becomes a cold heart. We abandon.

Don’t. If we get everyone together again, maybe we can find a way. We need a steady stream of funding, more useful land use plans (I don’t blame the Lehigh Valley Planning Commission), friendly employers, a review of all regulations to ensure that ‘they are still relevant and, yes, of federal and state involvement. Anything less has no chance of making a difference.

Alan Jennings is the former executive director of the Lehigh Valley Community Action Committee.

CO2 captured in the air can be transformed into “green” plastic

Jennifer L. Carter — Sun, 20 Nov 2022 06:32:30 +0000

Is climate change getting you down? Time to turn those lemons into lemonade.

Or in the case of Israeli startup Carbonade, to take excess carbon dioxide (CO2) from the atmosphere and turn it into usable carbon-based by-products like plastic, building materials and even detergents. .

Carbonade CEO Raanan Shelach explains that Carbonade “replicates what plants have been doing for millions of years – photosynthesis.”

The new technology, developed by Professor Ronny Neumann of the Weizmann Institute of Science in Rehovot, uses an electrochemical cell to mix captured CO2 with low-cost water, electricity and metals.

Pr Ronny Neumann of the Weizmann Institute. Photo courtesy of Carbonade

This produces a chemical reaction that separates the carbon and oxygen molecules. The released carbon molecules then become volatile and seek out other compounds to bond with.

This is how “we will be able to create carbon products that are essentially made from air,” Shelach told ISRAEL21c.

The process is similar to what happens in a battery or fuel cell, “although instead of generating electricity, we absorb electricity,” ideally from renewable sources, Shelach explains. Therefore, the process remains carbon neutral.

How it saves the planet

Carbonade has the potential to save the planet in two areas.

First, by removing from the air some of the 40 gigatonnes of carbon responsible for much of global warming. Two-thirds of this carbon is captured naturally by forests and oceans. The remaining third is the cause of our heated Earth and unpredictable weather patterns.

Second, by transforming captured carbon into products whose creation would otherwise use even After carbon – and not necessarily from a sustainable source.

The Carbonade cell is compact, modular and can be stacked to create more profitability for customers.

Capture it, recycle it

Carbonade will separate CO2 components but will not capture CO2 from the air. This first step can be accomplished with a variety of technologies.

One method, direct aerial capture, is typically used to capture CO2 for burial in the ground. This helps the atmosphere but wastes all the carbon.

Yehuda Borenstein, founder of RepAir and president of Carbonade. Photo courtesy of Carbonade

Yehuda Borenstein, founder of Israeli direct air capture startup RepAir, is president of Carbonade. The synchronization of the two companies ensures that the carbon captured is not lost but is recycled into new products.

RepAir, which aims to have its first commercial installation in Iceland by 2025, uses electricity to separate CO2 from the air through a selective membrane. The clean air returns to the atmosphere while the CO2 flows out to be stored or used by a company such as Carbonade.

RepAir CEO Amir Shiner notes that the problem of climate change “has been caused by technological development, but technological development will also solve it”.

RepAir, he adds, is “on the front line, and it’s a tough front. People tell me we’re trying to dry up the ocean with a teaspoon.

Once the carbon is separated (whether by RepAir or another company), it can be shipped to a Carbonade facility anywhere. To avoid burning fossil fuels to ship it, not to mention the risk of certain gases leaking during transportation, Shelach advocates collocating direct air capture units at a Carbonade facility.

Sowing positive climate change

Carbon, it is important to stress, is not inherently “bad”. Carbon, the sixth most common element on earth, is found naturally in our diets and in our own bodies.

But when we generate carbon-based products from fossil fuels like gasoline, it releases carbon dioxide into the atmosphere. And too much CO2 is very bad.

Raanan Shelach, CEO of Carbonade. Photo by Maya Neeman

Shelach’s experience in the Air Force inspired him to take action on climate change.

“I saw the impact of climate on our way of life,” he says, recalling the arid deserts and dry rivers he observed while flying over the Middle East.

While the technical activity behind Carbonade takes place at the Weizmann Institute, Shelach works nearby from a home office. A work situation that does not involve a polluting vehicle “fits my life philosophy,” he tells ISRAEL21c.

Additionally, the company’s technology has minimal power requirements and operates at room temperature, “so there’s no need for preheating or special tools to stimulate a reaction.”

The components of the electrochemical cell – the anode, the cathode and the membrane – are based on commercial components and do not include precious metals, such as gold and silver.

Each cell can operate “for thousands of hours. All told, the electricity needed, the cost of the cell, and the hours of operation all contribute to making this make business sense,” says Shelach.

Pilots and partners

Carbonade is funding a pre-seed round and has a lab-scale version of the technology. Shelach hopes to have a full prototype in 12 to 18 months.

“From there, we’ll start conducting pilot projects and deepen collaboration with potential partners and customers,” says Shelach.

Carbonade’s customers will be “someone who wants to make a product, not just a utility or a power plant.” This includes players in the energy sector as well as facilities producing chemicals and metal fabrication plants.

Ultimately, Carbonade’s technology could have applications beyond planet Earth: Mars’ atmosphere is 95% CO2. So if humans ever want to settle on the Red Planet (we’re looking at you, Elon Musk), off-world carbon generation could create everything from energy to proteins and building materials.

It may be a pie in the sky, but the impetus to do something positive from the excess CO2 is immediate.

“We can’t wait for government or politicians to take action,” Shelach said. “When it comes to climate change, I want people to know that now is the time to act.”

For more information, click here

Earth, technology, climate change, Carbonade, RepAir Carbon Capture

The Health Risks of Wildfire Smoke

Jennifer L. Carter — Sun, 13 Nov 2022 15:57:00 +0000

Comment

Public health officials and state experts are increasingly concerned about residents’ chronic exposure to toxin-filled smoke.

This year has seen the highest number of wildfires in a decade, with more than 59,000 blazes burning nearly 7 million acres nationwide, according to the National Interagency Fire Center. Although the total area burned was lower than in some recent years, thick smoke still blanketed communities across the country.

Climate change is causing more frequent and severe wildfires, harming the health of Americans, said Lisa Patel, deputy executive director of the Medical Society Consortium on Climate and Health, which raises awareness of the health effects of climate change.

“The data we have is very frightening,” she said. “We are currently living a natural experiment – we have never had fires so frequently.”

As researchers focus on public health effects, public health and environment officials across the country have had to issue more air quality advisories and provide guidance and shelter to struggling residents during periods of heavy forest fire smoke.

And while wildfires generally create more immediate and visible disruptions to the lives of people in the West, researchers worry that the fine particles may actually affect the breathing of more people in the states. most populated east.

Patel sees the effects of wildfires in her work as a pediatrician at Stanford Medicine Children’s Health, treating more women and underweight and premature infants in the neonatal intensive care unit when wildfires rage in northern California.

Studies show that chronic exposure to smoke from wildfires can cause asthma and pneumonia, and increase the risk of lung cancer, stroke, heart failure and sudden death. The very old and the very young are the most vulnerable. According to a 2021 study in the journal Pediatrics, particles in wildfire smoke are 10 times more harmful to children’s respiratory health than other air pollutants.

Why Seattle currently has the worst air quality in the world

What worries experts are particles in the air with a diameter of less than 2.5 microns; there are about 25,000 microns in an inch. People inhale these microscopic pieces, which can then travel deep into their lungs, irritating mucous membranes and inflaming tissues. The particles are small enough to enter the bloodstream, which can lead to other short- and long-term health effects.

Particles in smoke from wildfires are even hampering national progress in reducing air pollution, after decades of improvement.

The Clean Air Act has significantly reduced the level of toxic particles from industrial and automobile pollution across the country since 1970, according to the Environmental Protection Agency. But air pollution is expected to worsen in parts of the West from wildfires, some researchers have found. A United Nations report this year warned of a “global wildfire crisis”, saying the likelihood of catastrophic wildfires could increase by up to 57% by the end of the century.

Researchers are trying to better understand how more frequent wildfires affect human biology.

“That sinking feeling”

Keith Bein, a professional research associate at the University of California, Davis, in 2017 established a rapid response mobile research unit that he deploys to fires across the state. He’s like a storm chaser but for forest fires.

With his mobile unit, Bein can measure particles in the air, bring samples back to his lab, and then determine their toxicology and chemical compositions. Near these fires, he said, the smoke is so bad it seems unavoidable.

“The smoke comes in and you get that sinking feeling again,” he said.

Massive wildfires tearing communities apart are becoming more common. The fires are not only burning trees, but also synthetic materials in homes. And with repeated exposure to different particles, the health risks are more pronounced and can progress to chronic conditions, Bein said.

Researchers are just beginning to understand how more frequent wildfires in residential areas affect human health, he said.

“It happens more frequently every summer,” he said. “The duration of the fires is getting longer. Public exposure to smoke is also increasing. Unique events take place every summer. It’s a different type of exposure.

In 2020, an Environment International study found that winter flu seasons in Montana were four to five times worse after bad wildfire seasons, which typically last from July to September. The findings shocked the study’s lead author, Erin Landguth, an associate professor at the University of Montana.

Smoke from wildfires harms more people in the eastern US than in the west, study finds

“We know that hospitalizations for asthma and other respiratory issues increase within days or weeks after wildfires,” she said. “The thought that it could potentially have effects later on and how it can affect our immune system is really scary.”

Landguth extends his study to all Western states. She expects to find a similar trend in the mountain west and the Pacific Northwest. The monsoon season in Arizona and New Mexico could disrupt the trend there, she said, while air pollution is already so bad in California from smog and other pollutants. that it may be difficult to determine how wildfires affect human health.

But wildfires aren’t just in the West, and their health impact isn’t geographically isolated. Some fires burn so intensely at such high temperatures that smoke rises into the atmosphere, where strong winds can carry smoke long distances.

This was evident in 2021 when the sun shone red and skies turned hazy over New York and across the Northeast as smoke drifted from massive wildfires in California, Oregon and other parts of the world. other western states.

Smoke also harms the health of more people in the eastern United States than in the west, said Katelyn O’Dell, a postdoctoral researcher at George Washington University, who published the finding in a study by GeoHealth. in 2021.

Smoke from wildfires contributed to more asthma-related deaths and hospital visits in eastern communities than those in the west, she and other researchers found, in part to due to higher population density.

The smoke hitting the eastern states is not just coming from the west; there are wildfires and prescribed burns across the United States, O’Dell said.

“It’s sometimes easy to feel distant from the fires and their impacts when you’re away from the flames of these big western wildfires that are making the news,” she said. “But wildfires are impacting the health of the United States”

The next orange sunset people enjoy should be a time to check out an air quality mobile app, she said.

In Minnesota, the state has issued 46 air quality alerts since 2015, according to the state Pollution Control Agency. Of these, 34 were due to smoke from wildfires, and 26 of them were emitted last year.

It took state officials by surprise, said Kathy Norlien, a researcher with the Minnesota Department of Health. The wildfire smoke hazard comes not just from plumes drifting off the west coast and into Canada, but also from wildfires in boundary waters — a lake-filled region in the upstate. Norlien said she expects the problem to get worse in the coming years.

“At this point, we are anticipating the worst-case scenario,” she said. “We haven’t had the scale that Western states have had. But with climate change and concerns over drought and dry conditions, planning is of the utmost importance.

Norlien regularly meets with members of the Minnesota Pollution Control Agency and other state officials about how to get the message out to state residents about the growing wildfire risk to the public health, encouraging residents to sign up for air quality alerts. State officials also established larger community centers and buildings as safe air shelters.

The public plays a huge role in both preventing (nearly 90% of wildfires are human-caused, according to US government data) and adapting to wildfires, many experts have said. .

For people living in fire-prone areas, there are non-flammable building materials for new homes and indoor air cleaners and improved HVAC systems. But those solutions may be too expensive for some families, Patel said.

She advises families on how to stay safe affordably during the wildfire season, encouraging the use of N95 and KN95 masks, which have played a vital role in combating the spread of the coronavirus. She also shares do-it-yourself air filtration system designs.

But she stressed that wildfires will continue to rage across the country and will have adverse health effects unless climate change is brought under control through serious public policy. Until then, climate change will continue to be the biggest threat to public health, she said.

“Before, summer was a time I looked forward to,” she said, “but now I look at it in dread with the heat and the forest fires.”

This article was produced by Stateline, an initiative of the Pew Charitable Trusts.

Shorewood Proposes Changes to Village Commercial Zoning Code

Jennifer L. Carter — Wed, 09 Nov 2022 17:18:38 +0000

Shorewood officials want to update their commercial code so that developers wishing to submit proposals have clearer guidelines for their projects along the Commercial Corridor at Capitol Dr. and Oakland Ave.

The initiative was created in response to some recent redevelopments in Shorewood, including the Metro Market and Mosaic projects, said village planning and development director Bart Griepentrog. The biggest change in the code is that it will provide regulations for design-related issues, such as permitted building materials along the hallway.

The proposed code would also allow buildings to be set back further to allow for open spaces, and would require setbacks for upper floors or larger yards or buildings. A complete copy of the code can be found on the village website at www.villageofshorewood.org.

The updated code does not change the building’s height limit — four stories remain along Capitol Dr. and Oakland Ave. There is an organized effort to try to lower the height limit along the trade corridor, Griepentrog said. The Village has received several comments from residents who would like to see the height limits on the east side of E. Capitol Dr. reduced from four stories to three.

The village received at least one comment supporting keeping the height limit at four storeys, with a suggestion to increase it to allow for additional housing, Griepentrog said.

To get more feedback, the village is hosting an open house to answer any questions about the draft review on Nov. 16 starting at 4 p.m. at 7 p.m. at the Village Hall, located at 3930 N Murray Ave. in Shorewood.

To update the code, the village hired Illinois-based Codametrics and Duncan Associates to work with Shorewood’s Planning and Development Department and the Planning Commission. On October 25, a Codametrics representative presented an outline of the public review project to the Planning Commission. An overview of the papers presented at this meeting can be found on the village website at bit.ly/shorewoodpresentation.

Shorewood’s commercial code update was one of the main actions of the overall Shorewood 2040 plan. The village wanted to focus on hybrid form code elements, which emphasize the physicality of the development. This plan emphasizes how the development relates to the context of the surrounding area, according to the village.

Those with questions about the project can contact Griepentrog at bgriepentrog@shorewoodwi.gov. or call 414-847-2640.

RELATED:‘He’s going to have this whole story:’ Home catering business moves to former Hayek’s Pharmacy in Shorewood

New Colt Gateway apartments in Hartford boost rental conversions. Here’s why and what it would cost to live there. – Hartford Courant

Jennifer L. Carter — Mon, 07 Nov 2022 11:00:16 +0000

HARTFORD – Two apartment conversions in the Coltsville area of Hartford will add to the hundreds of new rentals created in the neighborhood over the past decade, but the redevelopment also underscores the need for new alternatives for an abundance of office space following the pandemic.

The developer of the former Colt weapons manufacturing complex near the city center – Colt Gateway – is creating apartments in former commercial space which will be located under the existing offices. One is a lower floor of the East Armory, the complex’s most recognizable structure, topped with a blue onion-shaped dome.

The conversion disrupts the traditional approach to housing occupying upper floors above storefronts or offices. The $6.7 million projects at Colt also come as Hartford employers reduce their office leases with a dramatic shift to working from home, full-time or part-time.

Demolition work has already begun on the ground floor of the “L-Shape” building on the Colt Gateway campus in Hartford. Plans include converting the former commercial space into 16 apartments. (Douglas hook)

In downtown alone, major employers plan to cut hundreds of thousands of square feet of office space, a trend growing in cities across the country, including major metros like New York and Boston.

“With what’s happening with the commercial space, flexibility is going to be the name of the game,” said Larry Dooley, owner of CG Management Co. and co-developer of the former manufacturing complex. “When you start to think about it, the lines have really started to blur here between residential and commercial with working from home.”

Dooley said more residential conversions at Colt may be on the way. The complex is split roughly 50-50 between residential and office space, but this could change if current low commercial lease trends persist.

“I used to get people in all the time, sometimes looking for a bigger space, a smaller space, it really boiled down to next to nothing,” Dooley said.

A view of Van Dyke Avenue in Hartford and further east from a second-floor space in the East Armory that will be converted into one of 29 apartments. (Douglas hook)

Colt is also closely monitoring the leases of its current commercial tenants. One of the largest and oldest, Insurity, a software company, now leases 75,000 square feet “and they basically haven’t been there since March 20, so that’s concerning.”

“I think they’re going to take up less space, so we have to be creative at Colt here to make sure we can keep paying all the bills,” Dooley said.

The new Colt projects are a modest start to that creativity, adding 45 rentals at two locations in the resort near downtown. The first of the new apartments should be available by late spring, Dooley said.

Hartford Mayor Luke Bronin said there was no doubt there had been structural and likely long-term change in the commercial real estate market.

[ Large employers in downtown Hartford slash office space as hybrid work schedules take hold: ‘There will be more’ ]

“That means we have to be creative and aggressive to use our space as efficiently as possible,” Bronin said. “And where residential conversions can be done efficiently and economically, they make a lot of sense.”

Bronin said it can be difficult to convert commercial space into housing, however.

“Floor plans, mechanics can make these conversions difficult,” Bronin said. “But where it makes sense, it’s an opportunity to advance one of our key strategic priorities, which is to create more housing opportunity and more residential density while mitigating the downturn in the commercial real estate market. .”

The loss of workers who come to town five days a week is a concern for restaurants and local businesses that depend on these workers for their livelihoods. However, not all downtown employers are downsizing. Hartford HealthCare is investing $14 million in its new headquarters at 100 Pearl St., where it plans to recruit up to 700 employees.

At Colt, where construction is already underway, plans for the East Armory’s second floor call for all but one of the rentals to be one-bedroom units. The average size is said to be 638 square feet, with estimated monthly rents ranging from $1,350 to $1,606.

The onion-shaped blue dome atop the East Armory in the Colt complex recently received a fresh coat of white paint on its columns. The iconic monument is a familiar site to motorists passing through Hartford on I-91. (Douglas hook)

Commercial tenants on the upper floors include JCJ Architecture and the local offices of US Senator Chris Murphy.

The ground floor of a second building, on the corner of Huyshope Avenue and Sequassen Street, is being converted for live work apartments larger than those in the East Armory.

Named after its shape, the second location on Colt’s campus – the 2-story “L”-shaped building will feature 11 studios, 3 one-bedroom apartments and 2 two-bedroom apartments. Additionally, there will be a collaboration room, breakout rooms, and smaller offices for Zoom calls.

“People are always asking for small spaces,” Dooley said. “You could be a small law firm, any type of office that would be applicable inside an apartment, something quiet. So I think the idea of having a first floor apartment , that could be very cool.

The average unit size is expected to be 909 square feet, with estimated monthly rents ranging from $1,350 to $2,160.

A collaboration space, shown here, is planned for the “live-work” apartments in Colt Gateway’s “L-Shape” building. (Douglas hook)

Commercial tenants on the top floor include Tecton Architects and Maier Design Group.

Funding for the two conversions includes $2 million from a line of credit from Liberty Bank and an expected $1.5 million in low-cost taxpayer-backed loans from the quasi-state Capital Region Development Authority. The rest will come from an equity investment by CG Management and its partner, the tax credit investment arm of oil giant Chevron.

The loan was approved by a CRDA committee on Friday and is expected to be approved by the full board later this month. The Government Bonds Commission is still expected to approve.

Rental demand in other conversions of the former manufacturing complex – the South Armory, the North Armory and the “U” shaped building remains strong.

On Tuesday, Dooley said five apartments had been posted and within an hour, 7 applications had been received.

“It’s always very competitive,” Dooley said. “Our [apartments] are always in high demand.

Larry Dooley, co-developer of the Colt Gateway complex near downtown Hartford, said the “live-work” apartments on the ground floor of the “L-Shape” building could appeal to tenants with small practices. professionals. Dooley is shown here outside the building on the corner of Huyshope Avenue and Sequassen Street. (Douglas hook)

The apartment conversions in Colt are part of a much larger housing push in the city that has added more than 3,000 rentals in and around the city center over the past decade. Almost all have obtained financing—either a loan or an equity investment—through the CRDA.

As of Thursday, there were only two apartments available at Colt out of a total of 205, according to Colt’s rental office.

Rents are about 9% higher than a year ago, Dooley said. Increases for renewing leases increase by approximately 2% to 3%.

A space on the ground floor of the East Armory at the Colt Gateway complex in Hartford is set to be converted into a fitness center. (Douglas hook)

Dooley said he applied for the CRDA loan in part because construction costs had risen 18% in the past year alone, compared to what it cost to convert the building into a U rented barely a year ago.

The increase was linked to inflation, rising building material costs, supply chain disruptions and steadily rising interest rates, Dooley said.

Here’s an overview of the three existing apartment buildings in the historic Colt factory complex, the odds of finding an apartment there, and what you might pay:

The southern armory of the Colt Gateway complex in Hartford. (Brad Horrigan/Hartford Courant)

Address: 140 Huyshope Avenue

Built: 1916 to manufacture machine guns; Apartments opened in 2015.

Number of apartments: 129

Current occupancy: 99%

Rents: Studios: $1,195 to $1,795; One bedroom: $1,645 to $1,985; Two bedrooms: $1,975 to $3,250

Hartford, CT. – 02/04/2020 – Aerial view of the North Armory of the Colt Building where forty-eight apartments were in the final stages of renovation in 2020. Photograph by Mark Mirko | mmirko@courant.com (Mark Mirko / Hartford Courant)

Address: 100 Huyshope Avenue

Built: 1916 to manufacture gun barrels; apartments open in 2020.

Number of apartments: 48

Occupation: 98%

Rents: Studio: $1,325; One bedroom: $1,700 to $1,975; Two bedrooms: $2,200 to $2,350

The “U-Shape” building became the third building in the Colt Gateway complex to be converted into apartments. (Kenneth R. Gosselin / Hartford Courant)

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Address: 17 Van Dyke Ave.

Built: 1942 for the offices of the Colt company; Open as apartments in 2021.

Number of apartments: 28

Occupation: 100%

Rents: Studio: $1,372; One bedroom: $1,405 to $1,895; Two bedrooms: $2,095

THE SOURCE: CGManagement

Kenneth R. Gosselin can be reached at kgosselin@courant.com.

BCPAC INDUSTRIES INC. Management’s Report on Financial Condition and Results of Operations (Form 10-Q)

Jennifer L. Carter — Fri, 04 Nov 2022 20:11:22 +0000

Forward-looking statements


Statements in this Report on Form 10-Q ("Report") include "forward-looking
statements," within the meaning of Section 27A of the Securities Act of 1933,
Section 21E of the Securities Exchange Act of 1934 (the "Exchange Act"), and the
Private Securities Litigation Reform Act of 1995. Forward-looking statements are
often characterized by the use of words such as "believes," "estimates,"
"expects," "projects," "may," "will," "intends," "plans," or "anticipates," or
by discussions of strategy, plans or intentions. Forward-looking statements
include, for example, discussions regarding the manufactured housing and
site-built housing industries; our financial performance and operating results;
our liquidity and financial resources; our outlook with respect to Cavco
Industries, Inc. and its subsidiaries' (collectively, "we," "us," "our," the
"Company" or "Cavco") and the manufactured housing business in general; the
expected effect of certain risks and uncertainties on our business, financial
condition and results of operations; economic conditions and consumer
confidence; trends in interest rates and inflation; potential acquisitions,
strategic investments and other expansions; the sufficiency of our liquidity;
operational and legal risks; how we may be affected by the COVID-19 pandemic
("COVID-19") or any other pandemic or outbreak; the cost and availability of
labor and raw materials; governmental regulations and legal proceedings; the
availability of favorable consumer and wholesale manufactured home financing;
and the ultimate outcome of our commitments and contingencies. Forward-looking
statements contained in this Report speak only as of the date of this report or,
in the case of any document incorporated by reference, the date of that
document. We do not intend to publicly update or revise any forward-looking
statement contained in this Report or in any document incorporated herein by
reference to reflect changed assumptions, the occurrence of unanticipated events
or changes to future operating results over time, except as required by law.

Forward-looking statements involve risks, uncertainties and other factors that
may cause our actual results, performance or achievements to be materially
different from those expressed or implied by such forward-looking statements,
many of which are beyond our control. To the extent that our assumptions and
expectations differ from actual results, our ability to meet such
forward-looking statements, including the ability to generate positive cash flow
from operations, may be significantly hindered. Factors that could affect our
results and cause them to materially differ from those contained in the
forward-looking statements include, without limitation, those discussed under
Risk Factors in Part I, Item 1A of our 2022 Annual Report on Form 10-K filed
with the Securities and Exchange Commission (the "Form 10-K").

Introduction


The following should be read in conjunction with the Company's Consolidated
Financial Statements and the related Notes that appear in Part I, Item 1 of this
Report. References to "Note" or "Notes" pertain to the Notes to our Consolidated
Financial Statements.

Company Overview

Headquartered in Phoenix, Arizona, we design and produce factory-built housing
products primarily distributed through a network of independent and
Company-owned retailers, planned community operators and residential developers.
We are one of the largest producers of manufactured homes in the United States,
based on reported wholesale shipments. Our products are marketed under a variety
of brand names including Cavco, Fleetwood, Palm Harbor, Nationwide, Fairmont,
Friendship, Chariot Eagle, Destiny, Commodore, Colony, Pennwest, R-Anell,
Manorwood and MidCountry. We are also a leading producer of park model RVs,
vacation cabins and factory-built commercial structures. Our finance subsidiary,
CountryPlace Acceptance Corp. ("CountryPlace"), is an approved Federal National
Mortgage Association ("Fannie Mae") and Federal Home Loan Mortgage Corporation
("Freddie Mac") seller/servicer and a Government National Mortgage Association
("Ginnie Mae") mortgage-backed securities issuer that offers conforming
mortgages, non-conforming mortgages and home-only loans to purchasers of
factory-built homes. Our insurance subsidiary, Standard Casualty Company
("Standard Casualty"), provides property and casualty insurance to owners of
manufactured homes.
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We operate 26 homebuilding production lines in Millersburg and Woodburn, Oregon;
Riverside, California; Nampa, Idaho; Phoenix, Goodyear, Arizona; Austin, Fort
Worth, Seguin and Waco, Texas; Montevideo, Minnesota; Dorchester, Wisconsin;
Nappanee and Goshen, Indiana; Lafayette, Tennessee; Douglas and Moultrie,
Georgia; Shippenville and Emlenton, Pennsylvania; Martinsville and Rocky Mount,
Virginia; Cherryville, North Carolina; and Ocala and Plant City, Florida. We
also recently opened two new production lines in Glendale, Arizona and Hamlet,
North Carolina. The majority of the homes produced are sold to, and distributed
by, independently owned retail operations located throughout the United States
and Canada. In addition, our homes are sold through 42 Company-owned U.S. retail
locations.

During fiscal 2022, we acquired an additional 20% ownership in Craftsman Homes,
LLC and Craftsman Homes Development, LLC (collectively known as "Craftsman"),
which gave us a controlling interest. Craftsman is a manufactured home retailer
with four locations in Nevada selling Company and other manufacturer branded
homes. We also purchased certain manufactured housing assets and assumed certain
liabilities of The Commodore Corporation ("Commodore"). Commodore added six
manufacturing facilities and two wholly-owned retail locations, and also
participates in commercial lending operations with its dealers.

On October 26, 2022, subsequent to the end of the second fiscal quarter of 2023,
we signed a binding offer to acquire the business of Solitaire Homes, Inc. and
other related entities (collectively "Solitaire Homes"), including its four
manufacturing facilities, twenty-two retail locations and its dedicated
transportation operations. The transaction is expected to close early in our
fourth fiscal quarter of 2023, subject to applicable regulatory approvals and
the satisfaction of certain customary conditions. The addition of Solitaire
Homes to our existing manufacturing and retail system strengthens our position
in the Southwest and expands our manufacturing capabilities into Mexico.

Company and industry outlook


According to data reported by the Manufactured Housing Institute, industry home
shipments increased 14.2% for the first 8 months of calendar year 2022 compared
to the same period last year.

The industry offers solutions to the affordable housing crisis and these
shipment numbers reflect the industry's ability to produce in the current
environment. The average price per square foot for a manufactured home is
usually lower than a site-built home. Also, based on the comparatively low cost
associated with manufactured home ownership, our products have traditionally
competed with rental housing's monthly payment affordability.

The two largest manufactured housing consumer demographics, young adults and
those who are age 55 and older, are both growing. "First-time" and "move-up"
buyers of affordable homes are historically among the largest segments of new
manufactured home purchasers. Included in this group are lower-income households
that are particularly affected by periods of low employment rates and
underemployment. Consumer confidence is especially important among manufactured
home buyers interested in our products for seasonal or retirement living.

We employ a concerted effort to identify niche market opportunities where our
diverse product lines and custom building capabilities provide us with a
competitive advantage. We are focused on building quality, energy efficient
homes for the modern home buyer. Our green building initiatives involve the
creation of an energy efficient envelope resulting in lower utility costs, as
well as the higher utilization of renewable materials in our manufacturing
process. We also build homes designed to use alternative energy sources, such as
solar.

We maintain a conservative cost structure in an effort to build added value into
our homes and we work diligently to maintain a solid financial position. Our
balance sheet strength, including the position in cash and cash equivalents,
helps avoid liquidity problems and enables us to act effectively as market
opportunities or challenges present themselves.
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We continue to make certain commercial loan programs available to members of our
wholesale distribution chain. Under direct commercial loan arrangements, we
provide funds for financed home purchases by distributors, community operators
and residential developers (see Note 7 to the Consolidated Financial
Statements). Our involvement in commercial lending helps to increase the
availability of manufactured home financing to distributors, community operators
and residential developers and provides additional opportunities for product
exposure to potential home buyers. While these initiatives support our ongoing
efforts to expand product distribution, they also expose us to risks associated
with the creditworthiness of this customer base and our inventory financing
partners.

The lack of an efficient secondary market for manufactured home-only loans and
the limited number of institutions providing such loans results in higher
borrowing costs for home-only loans and continues to constrain industry growth.
We work independently and with other industry participants to develop secondary
market opportunities for manufactured home-only loan and non-conforming mortgage
portfolios and expand lending availability in the industry. Additionally, we
continue to invest in community-based lending initiatives that provide home-only
financing to residents of certain manufactured home communities. We also develop
and invest in home-only lending programs to grow sales of homes through
traditional distribution points. We believe that growing our investment and
participation in home-only lending may provide additional sales growth
opportunities for our factory-built housing operations and reduce our exposure
to the actions of independent lenders.

Key housing building materials include wood, wood products, steel, gypsum
wallboard, windows, doors fiberglass insulation, carpet, vinyl, fasteners,
plumbing materials, aluminum, appliances and electrical items. Fluctuations in
the cost of materials and labor may affect gross margins from home sales to the
extent that costs cannot be efficiently matched to the home sales price. Pricing
and availability of certain raw materials have recently been volatile due to a
number of factors in the current environment. We continue to monitor and react
to inflation in these materials by maintaining a focus on our product pricing in
response to higher materials costs, but such product pricing increases may lag
behind the escalation of such costs. From time to time and to varying degrees,
we may experience shortages in the availability of materials and/or labor in the
markets served. Availability of these inputs has not caused significant
production halts in the current period, but we have experienced periodic
shutdowns in other periods and shortages of primary building materials have
caused production inefficiencies as we have needed to change processes in
response to the delay in materials. These shortages may also result in extended
order backlogs, delays in the delivery of homes and reduced gross margins from
home sales.

Our backlog at October 1, 2022 was $651 million compared to $1.0 billion last
quarter, a decrease of $347 million or 34.8%, and down $456 million, or 41.2%,
compared to $1.1 billion at October 2, 2021. Home order rates, net of
cancellations, are down from the extreme highs we saw during the summer of 2020
to the summer of 2021. Additionally, our efforts in product simplification and
production staffing improvement have increased our total average plant capacity
utilization.

While it is difficult to predict the future of housing demand, employee
availability, supply chain and Company performance and operations, maintaining
an appropriately sized and well-trained workforce is key to increasing
production to meet increased demand, and we face challenges in overcoming
labor-related difficulties in the current environment to increase home
production. We continually review the wage rates of our production employees and
have established other monetary incentive and benefit programs, with a goal of
providing competitive compensation. We are also working to more extensively use
web-based recruiting tools, update our recruitment brochures and improve the
appearance and appeal of our manufacturing facilities to improve the recruitment
and retention of qualified production employees and reduce annualized turnover
rates. We believe our ability to recruit the workforce we need to help meet the
overall need for affordable housing continues to improve.
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In the financial services segment, we continue to assist customers in need by
servicing existing loans and insurance policies and complying with state and
federal regulations regarding loan forbearance, home foreclosures and policy
cancellations. Certain loans serviced for investors expose us to cash flow
deficits if customers do not make contractual monthly payments of principal and
interest in a timely manner. For certain loans serviced for Ginnie Mae and
Freddie Mac, and home-only loans serviced for certain other investors, we must
remit scheduled monthly principal and/or interest payments and principal
curtailments regardless of whether monthly mortgage payments are collected from
borrowers. Ginnie Mae permits cash obligations on loans in forbearance from
COVID-19 to be offset by other incoming cash flows from loans such as loan
pre-payments. Monthly collections of principal and interest from borrowers have
exceeded scheduled principal and interest payments owed to investors; however,
mandatory extended forbearance under the Coronavirus Aid, Relief and Economic
Security Act and certain other regulations related to COVID-19 could negatively
impact cash obligations in the future.

Results of Operations

Net Revenue

                                                   Three Months Ended
($ in thousands, except revenue per home     October 1,           October

sold)                                           2022                 2021                         Change
Factory-built housing                      $   559,602          $   342,094          $ 217,508                 63.6  %
Financial services                              17,790               17,449                341                  2.0  %
                                           $   577,392          $   359,543          $ 217,849                 60.6  %
Factory-built homes sold
by Company-owned retail sales centers              860                  710                   150              21.1  %
to independent retailers, builders,
communities and developers                       4,251                2,887              1,364                 47.2  %
                                                 5,111                3,597              1,514                 42.1  %
Net factory-built housing revenue per home
sold                                       $   109,490          $    95,105          $  14,385                 15.1  %

                                                    Six Months Ended
 ($ in thousands, except revenue per home    October 1,           October

sold)                                           2022                 2021                         Change
Factory-built housing                      $ 1,132,199          $   654,377          $ 477,822                 73.0  %
Financial services                              33,531               35,588             (2,057)                (5.8) %
                                           $ 1,165,730          $   689,965          $ 475,765                 69.0  %
Factory-built homes sold
by Company-owned retail sales centers            1,733                1,433                   300              20.9  %
to independent retailers, builders,
communities and developers                       8,724                5,864              2,860                 48.8  %
                                                10,457                7,297              3,160                 43.3  %
Net factory-built housing revenue per home
sold                                       $   108,272          $    89,678          $  18,594                 20.7  %


In factory-built housing, Net revenue for both the three and six months ended
October 1, 2022 increased compared to the respective periods in the prior year
due to higher home sales volume and higher home selling prices. Home sales
volume increased from the Commodore acquisition, completed in the second quarter
of fiscal year 2022, which provided $107 million and $208 million in Net revenue
for the three and six months ended October 1, 2022, respectively. The three and
six months also benefited from higher factory capacity utilization which enabled
higher sales volume.
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Net factory-built housing revenue per home sold is a volatile metric dependent
upon several factors. A primary factor is the price disparity between sales of
homes to independent distributors, builders, communities and developers and
sales of homes to consumers by Company-owned retail stores. Wholesale sales
prices are primarily comprised of the home and the cost to ship the home from a
homebuilding facility to the home-site. Retail home prices include these items
and retail markup, as well as items that are largely subject to home buyer
discretion, including, but not limited to, installation, utility connections,
site improvements, landscaping and additional services. Our homes are
constructed in one or more floor sections ("modules") which are then installed
on the customer's site. Changes in the number of modules per home, the selection
of different home types/models and optional home upgrades create changes in
product mix, also causing fluctuations in this metric. The table below presents
the mix of modules and homes sold for the three and six months ended October 1,
2022 and October 2, 2021:

                                                                 Three Months Ended
                                               October 1,                                October 2,
                                                  2022                                      2021                                      Change
                                       Modules              Homes              Modules                 Homes               Modules               Homes
U.S. Housing and Urban Development
("HUD") code homes                       8,099              4,639                5,548                  3,154                  46.0  %              47.1  %
Modular homes                              444                226                  519                    254                 (14.5) %             (11.0) %
Park model RVs                             246                246                  189                    189                  30.2  %              30.2  %
                                         8,789              5,111                6,256                  3,597                  40.5  %              42.1  %

                                                                  Six Months Ended
                                               October 1,                                October 2,
                                                  2022                                      2021                                      Change
                                       Modules              Homes              Modules                 Homes               Modules               Homes
HUD code homes                          16,614              9,493               11,200                  6,430                  48.3  %              47.6  %
Modular homes                              930                477                  987                    480                  (5.8) %              (0.6) %
Park model RVs                             487                487                  387                    387                  25.8  %              25.8  %
                                        18,031             10,457               12,574                  7,297                  43.4  %              43.3  %


For the three months ended October 1, 2022, Financial services segment Net
revenue increased 2.0% primarily due to higher volume in home loan sales in the
period. For the six months ended October 1, 2022, Net revenue decreased 5.8%
primarily due to realized and unrealized losses on marketable equity securities
in the insurance subsidiary's portfolio during such period, lower interest
income earned on the acquired consumer loan portfolios, and lower volume in home
loan sales. These items were partially offset by more insurance policies in
force in the current year compared to the prior year.
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Gross Profit

                                              Three Months Ended
                                          October 1,      October 2,
     ($ in thousands)                        2022            2021                 Change
     Factory-built housing               $ 149,665       $  82,299       $  67,366        81.9  %
     Financial services                      7,934           7,629             305         4.0  %
                                         $ 157,599       $  89,928       $  67,671        75.3  %

     Gross profit as % of Net revenue
     Consolidated                             27.3  %         25.0  %            N/A       2.3  %
     Factory-built housing                    26.7  %         24.1  %            N/A       2.6  %
     Financial services                       44.6  %         43.7  %            N/A       0.9  %

                                               Six Months Ended
                                          October 1,      October 2,
     ($ in thousands)                        2022            2021                 Change
     Factory-built housing               $ 289,251       $ 148,572       $ 140,679        94.7  %
     Financial services                     13,072          15,369          (2,297)      (14.9) %
                                         $ 302,323       $ 163,941       $ 138,382        84.4  %

     Gross profit as % of Net revenue
     Consolidated                             25.9  %         23.8  %            N/A       2.1  %
     Factory-built housing                    25.5  %         22.7  %            N/A       2.8  %
     Financial services                       39.0  %         43.2  %            N/A      (4.2) %


Factory-built housing Gross profit and the Gross profit percentage increased for
the three and six months ended October 1, 2022 primarily due to higher average
sales prices.

In Financial services, Gross profit increased for the three months ended
October 1, 2022 primarily due to the higher volume of home loan sales. For the
six months ended October 1, 2022, Financial services gross profit decreased
primarily due to higher insurance claims from New Mexico and Arizona weather
related events, and greater unrealized losses on marketable equity securities
compared to the same period last year.
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Selling, general and administrative expenses

                                                   Three Months Ended
                                            October 1,           October 2,
($ in thousands)                               2022                 2021                         Change
Factory-built housing                      $   61,640          $    40,347          $  21,293                 52.8  %
Financial services                              5,254                5,025                229                  4.6  %
                                           $   66,894          $    45,372          $  21,522                 47.4  %
Selling, general and administrative
expenses as % of Net revenue                     11.6  %              12.6  %                N/A              (1.0) %

                                                    Six Months Ended
                                            October 1,           October 2,
($ in thousands)                               2022                 2021                         Change
Factory-built housing                      $  122,563          $    75,844          $  46,719                 61.6  %
Financial services                             10,467               10,360                107                  1.0  %
                                           $  133,030          $    86,204          $  46,826                 54.3  %
Selling, general and administrative
expenses as % of Net revenue                     11.4  %              12.5  %                N/A              (1.1) %

For the three and six months ended October 1, 2022Selling, general and administrative expenses for Manufactured Homes increased between periods, primarily due to the addition of Commodore, as well as higher salaries and incentive compensation expenses on improved earnings and expenses higher legal and professional.


As a percentage of Net revenue, Selling, general and administrative expenses
improved by 100 and 110 basis points for the three and six months ended October
1, 2022, respectively, from better utilization of fixed costs on higher sales.
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Other components of net income

                                         Three Months Ended
                                  October 1,            October 2,
($ in thousands)                     2022                  2021                Change
Interest expense                 $    233              $     203       $     30        14.8  %
Other income, net                   2,339                  4,668         (2,329)      (49.9) %
Income tax (benefit) expense       18,613                 11,338          7,275        64.2  %
Effective tax rate                   20.1   %               23.1  %           N/A      (3.0) %

                                          Six Months Ended
                                  October 1,            October 2,
($ in thousands)                     2022                  2021                Change
Interest expense                 $    394              $     367       $     27         7.4  %
Other income, net                   3,222                  7,129         (3,907)      (54.8) %
Income tax expense                 38,229                 19,770         18,459        93.4  %
Effective tax rate                   22.2   %               23.4  %           N/A      (1.2) %

Interest expense primarily includes interest related to finance leases.


Other income, net primarily consists of realized and unrealized gains and losses
on corporate investments, interest income related to commercial loan receivable
balances, interest income earned on cash balances and gains and losses from the
sale of property, plant and equipment. The decrease in Other income, net is
primarily due to a $3.3 million gain recognized in the second quarter of last
year on the remeasurement of the assets and liabilities of Craftsman upon
acquisition of a controlling interest. Additionally, for the six months ended
October 1, 2022, we recognized a $1.1 million unrealized loss on corporate
marketable investments compared to a $1.7 million unrealized gain in the prior
year. These items were partially offset by higher interest income earned on a
larger cash balance held in high yield money market funds.

The effective tax rate for the current year periods benefited from $2.7 million
of estimated non-recurring net tax credits related to the sale of energy
efficient homes, available under the Internal Revenue Code §45L. This program
expired on December 31, 2021 and was recently renewed as part of the Inflation
Reduction Act legislation through December 31, 2022.

Cash and capital resources


We believe that cash and cash equivalents at October 1, 2022, together with cash
flow from operations, will be sufficient to fund our operations, cover our
obligations and provide for growth for the next 12 months and into the
foreseeable future. We maintain cash in U.S. Treasury and other money market
funds, some of which are in excess of federally insured limits. We expect to
continue to evaluate potential acquisitions of, or strategic investments in,
businesses that are complementary to the Company, as well as other expansion
opportunities. Such transactions may require the use of cash and have other
impacts on our liquidity and capital resources. Because of our sufficient liquid
resources, we have not historically sought external sources of liquidity, with
the exception of certain credit facilities for our home-only lending programs.
Regardless, depending on our operating results and strategic opportunities, we
may choose to seek additional or alternative sources of financing in the future.
There can be no assurance that such financing would be available on satisfactory
terms, if at all. If this financing were not available, it could be necessary
for us to reevaluate our long-term operating plans to make more efficient use of
our existing capital resources at such time. The exact nature of any changes to
our plans that would be considered depends on various factors, such as
conditions in the factory-built housing industry and general economic conditions
outside of our control.
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State insurance regulations restrict the amount of dividends that can be paid to
stockholders of insurance companies. As a result, the assets owned by our
insurance subsidiary are generally not available to satisfy the claims of Cavco
or its legal subsidiaries. We believe that stockholders' equity at the insurance
subsidiary remains sufficient and do not believe that the ability to pay
ordinary dividends to Cavco at anticipated levels will be restricted per state
regulations.

The following is a summary of the Company’s cash flows for the six months ended
October 1, 2022 and October 2, 2021respectively:

                                                           Six Months Ended
                                                    October 1,           October 2,
(in thousands)                                         2022                 2021              $ Change
Cash, cash equivalents and restricted cash at
beginning of the fiscal year                      $   259,334          $   339,307          $  (79,973)
Net cash provided by operating activities             162,942               80,087              82,855
Net cash used in investing activities                 (34,933)            (156,045)            121,112
Net cash used in financing activities                 (39,224)             (18,873)            (20,351)
Cash, cash equivalents and restricted cash at end
of the period                                     $   348,119          $

244,476 $103,643



Net cash provided by operating activities increased primarily from higher net
income adjusted for non-cash items. This increase was partially offset by
increased lending in our Financial Services segment, as well as under our
commercial loan programs. Consumer loan originations increased $11.8 million to
$97.2 million for the six months ended October 1, 2022 from $85.4 million for
the six months ended October 2, 2021.

Net cash used in investing activities consists of buying and selling debt and
marketable equity securities in our Financial Services segment, purchases of
property, plant and equipment and funding strategic growth acquisitions. Cash
used in the current period reflects the purchase of plant facilities in Hamlet,
North Carolina. Cash used in the prior period reflects the purchase of Commodore
and Craftsman.

Net cash used in financing activities for the current period was primarily used for the repurchase of common shares during the first quarter of fiscal 2023.

See Note 14 to the consolidated financial statements for a discussion of our off-balance sheet commitments, which discussion is incorporated herein by reference.

Duties and Commitments. No material changes have been made to the obligations and covenants set forth in the Form 10-K.

Critical accounting estimates


There have been no significant changes to our critical accounting estimates
during the six months ended October 1, 2022, as compared to those disclosed in
Part II, Item 7 of the Form 10-K, under the heading "Critical Accounting
Estimates," which provides a discussion of the critical accounting estimates
that management believes affect its more significant judgments and estimates
used in the preparation of the Company's Consolidated Financial Statements.

Boral, Reece and CSR among hardest hit by 2023 downturn

Jennifer L. Carter — Mon, 31 Oct 2022 21:25:00 +0000

But then a “traditional steep drop in demand” should follow beyond that point.

Morgan Stanley expects concrete, asphalt and quarrying supplies group Boral and bathroom and fittings group Reece to be the hardest hit by the contraction.

But it lowered its share price targets for all major ASX construction stocks in anticipation of tougher times.

Historically, the start of an interest rate tightening cycle has been a “strong leading indicator” of an inflection point in construction activity, Scott said.

The lag effect

The HomeBuilder package, announced by the Morrison government in June 2020 in response to the COVID-19 pandemic, has generated a lot of requests. But as construction of HomeBuilder-financed homes begins to kick off, there is a risk of a gap in demand.

This was also reinforced by a lag in the effect of no migration during the pandemic, where the number of new migrants arriving in Australia effectively fell to zero in 2020 and 2021.

While migration was gradually returning, it takes 18 to 24 months for a new migrant to become a homeowner.

Morgan Stanley also pointed to sharp increases in raw materials and labor costs for homebuilders that had put “significant pressure on builder profitability” and resulted in a series of insolvencies.

This has prompted greater caution from potential customers in the area who may be considering signing up for a new home.

Mr Scott said a typical sharp downturn in the cycle now appeared to be on the way and a “soft landing” was unlikely.

Morgan Stanley cut its 12-month price target for Boral, 72.6% owned by the billionaire Stokes family, from $2.50 to $2.20. Reece was reduced to $11 from $12.20.

Cement group Adbri, whose board forced the departure of chief executive Nick Miller two weeks ago after a sharp drop in profits, has a 12-month price target of $1.60 from $1.70 . Shares of Adbri were at $3.03 in early May.

Fletcher Building, which operates brands in Australia including Tradelink plumbing and bathroom supplies, Stramit roofing and structural steel, Iplex pipes and Tasman Sinkware, was cut to a 12-month price target $5.90. It is listed on both the ASX and the New Zealand Stock Exchange.

Reduced price targets

CSR, which is due to report its half-year results on November 4, was reduced to $4.80 from $6.20. CSR’s stable of building products includes Gyprock plasterboard, PGH bricks, Monier roofing, Hebel lightweight building blocks and Bradford insulation.

James Hardie Industries, where a new chief executive, Aaron Erter, has just taken the helm, was given a 12-month target of $43, down from $46 previously.

Morgan Stanley said while it expected tough conditions for all domestic exposures to building materials stocks, it still rated James Hardie, plumbing supplies group Reliance Worldwide and Fletcher Building “overweight.” due to their greater exposure to the renovation market.

Boral and Reece had the highest valuations and had “underweight” recommendations.

Morgan Stanley said the HomeBuilder program was initially expected to take about 27,500 applications and cost $688 million. But it was not capped and in February 2022 the total number of grants awarded was 138,000, made up of 113,000 new construction and 25,000 renovation projects. The total dollar value of the grants was $2.1 billion.

Find out where PCBs appear in school buildings and why it’s a problem

Jennifer L. Carter — Thu, 27 Oct 2022 21:23:58 +0000

PCBs were manufactured locally for building materials in the United States from around 1930 until 1979, a period that coincided with a boom in building schools to meet the demands of the growing birth rate of ‘after war. This increases the vulnerability of any school built or renovated before 1979.

Although the United States Environmental Protection Agency banned the manufacture of PCBs more than 40 years ago, PCBs are still a concern for school buildings because:

Application durability means that schools that were built or renovated before 1979 may still have PCBs used in a variety of applications like caulking, sealants, coatings, and electrical components.
PCBs migrate, vaporize and absorb into other materials and can be stored in our body for a long time, so prolonged and sustained exposure has a cumulative effect.
Studies show that high-dose exposures can impair learning, growth, immunity, and pose other health risks.

Main sources of PCB emissions in former school buildings

The factors that have made PCBs attractive in construction applications also make them a persistent and ubiquitous contaminant in a school building. Several primary sources of emissions, shown in the diagram below, are possible in any building, impacting the air quality in a facility.

PCBs move and transfer, creating secondary sources of harmful emissions

Heat and weather create conditions in which PCBs transfer, move, evaporate and absorb into the surrounding environment, creating secondary sources of PCB emissions. Secondary sources include classroom furniture, carpets, paper, paint, dust, and any classroom materials that can absorb and then emit PCBs. These secondary sources can result in continued exposures even after the primary sources are removed or remediated.

Prolonged and routine exposure is problematic for building occupants

The durability of PCBs is affected by natural weathering, heat, and they can even be released when schools attempt to dismantle and remove the sources. Exposure can occur by inhalation, direct skin contact and ingestion.

As we know that humans store PCBs in their bodies, prolonged and routine high exposure is problematic.

PCB exposure is associated with a range of toxic responses rashes to the cardiovascular, gastrointestinal, immune, musculoskeletal or neurological systems. But what’s particularly troubling for schools is that high exposure to PCBs can have long-lasting effects on development and learning.

Studies show that high levels of exposure can lead to:

Cancer, including non-Hodgkin’s lymphoma
Skin lesions or rashes
The Depression
Nausea
Vomiting
Abdominal pain
Headache
Dizziness
Reproductive disorders
Greater susceptibility to pneumonia and viral infections
Memory, vision and attention span disorders
High blood pressure
Diabetes
Neurological and developmental delays in young children and children exposed in utero
Weight gain or loss in children born to exposed women

Spotlight on Three Common Sources of PCBs

Below, see the behavior of three common emission sources typical of a school building.

Inhalation is responsible for the majority of exposure that could occur in schools

PCBs evaporate slowly at room temperature, but vaporize rapidly with increasing temperatures due to weather, heating, or use of equipment or lights. The vaping process creates an inhalation hazard which can be amplified by poor ventilation and dusty environments. Improving air quality is a key first step in reducing PCB concentrations.

Sources: United States Environmental Protection Agency, Centers for Disease Control and Prevention, National Library of Medicine and Education Week reports

All visual animations by Laura Baker/Education Week via Canva

Mold and your home – what you need to know

Jennifer L. Carter — Fri, 21 Oct 2022 04:53:39 +0000

The Florida Department of Health in Lee County (DOH-Lee) has answered some of the most common questions about indoor mold.

How do I know if there is mold in my house?

· Look for areas where you notice mold odors, and if you smell earthy or musty, you may have a mold problem.

· Indoor mold growth can usually be seen or smelled.

· Look for visible mold, as it may appear cottony, velvety, rough or leathery and have different colors such as white, gray, brown, black, yellow or green.

· Mold often appears as a discoloration or a fuzzy growth on furniture or building materials, such as walls, ceilings, or anything made of wood or paper.

· Look for signs of dampness or water damage, such as water leaks, standing water, water spots, and condensation. Check around air handlers, such as air conditioners and furnaces, for standing water.

Who is most affected by mould?

Infants, young children, older adults, people with chronic respiratory conditions, and people with weakened immune systems can be affected earlier and more severely by mold in the home. You should see a health care provider if you think your health has been affected by indoor mold.

What health problems can be caused by mold?

Four types of health problems arise from exposure to mould: allergic diseases, irritant effects, infections and toxic effects. For those sensitive to mold, symptoms may occur, such as nasal and sinus irritation or congestion, dry cough, wheezing, rash or burning, or watery, red eyes.

People with severe mold allergies may have more severe reactions, such as hay fever-like symptoms. People with weakened immune systems may be more susceptible to infections caused by certain molds, viruses and bacteria. Molds can also trigger asthma attacks or cause asthma to develop.

Headaches, memory problems, mood swings, nosebleeds, and body aches are sometimes reported in mold complaints. The long-term presence of indoor mold can eventually become a problem. Please note that allergic reactions to mold are common and may be immediate or delayed.

How to clean mold?

Mold must be cleaned as soon as it appears. People who clean up mold should not belong to one of the risk groups mentioned above. Do not use ozone generators. Protective gloves and safety glasses should be worn during cleanup. Small areas of mold should be cleaned using detergent/soapy water or commercial mold or mildew cleaner.

The cleaned area should be completely dried. Throw away any sponges or rags used to clean up mold. If the mold comes back quickly or spreads, it may mean you have an underlying problem, such as a water leak.

If there is a lot of mold growth, check the U.S. Environmental Protection Agency’s (EPA) booklet, “Mold Remediation in Schools and Commercial Buildings.” Although written about schools and commercial buildings, this document deals with mold in other types of buildings. If moldy material is not easy to clean, such as drywall, carpet padding, and insulation, it may need to be removed and replaced.

Who should do the cleaning?

One consideration is the size of the mold problem. If the moldy area is less than 10 square feet, or less than a 3 foot by 3 foot patch, the cleaning can be done yourself. However, if there has been significant water damage and/or mold growth covering more than 10 square feet, consult the EPA booklet mentioned above.

If you choose to hire a contractor, consider someone licensed by the state of Florida. The license of a mold appraiser or mold remediator can be verified using the “VERIFY A LICENSE” link on the Florida Department of Business and Professional webpage. Check references and instruct the contractor to follow current EPA recommendations and guidelines from the American Conference of Governmental Industrial Hygienists (ACGIH) or other professional or governmental organizations.

If you suspect the air conditioning or heating system has been affected, see the EPA’s guidance documents under “Should You Have Your Home’s Air Ducts Cleaned?” “. Consult a licensed air conditioning or mechanical contractor for more information.

Who can I call if I want more information on mold?

For more information, call the DOH-Lee Office of Environmental Health at 239-690-2100 or the Florida Department of Health (DOH) Radon and Indoor Air Program at 800-543-8279. They can provide guidance and advice on prevention, mold problem identification, investigation techniques, clean-up methods, disaster planning and messaging, health effects, including potential risks of mold exposure, and they can direct affected individuals to appropriate local resources.

Where can I get additional information?

For more information on mold, see the U.S. Department of Health and Human Services, Centers for Disease Control and Prevention (CDC), University of Central Florida, Florida Solar Energy Center, or Florida web pages Department of Health Indoor Air.

Slight growth despite ongoing challenges

Jennifer L. Carter — Tue, 18 Oct 2022 14:26:06 +0000

Posted on October 18, 2022 at 10:26 a.m. by

The Maritime Executive

[By: Port of Antwerp-Bruges]

After nine months, the total throughput of the port of Antwerp-Bruges was 217.4 million tonnes, a slight increase of 0.8% compared to the same period last year. Despite the negative impact of the geopolitical and macroeconomic context, all freight flows recorded growth, with the exception of the container segment, which remains under pressure. Combined with a series of announcements of new investments in the port platforms of Antwerp and Zeebrugge, this confirms the attractiveness and resilience of the unified port.

After 9 months, container throughput is down 8.8% in tonnes and 5% in TEU compared to the same period last year. This decline is the result of the continued disruption to container logistics and the effects of the conflict in Ukraine. Containers are still not turning enough due to congestion, resulting in a drop in throughput of full containers, while that of empty containers increases. Although operational challenges are slowly easing, container shipping, still heavily disrupted, is not expected to return to normal until the first quarter of 2023.

The conventional breakbulk grew by 9.7%. While steel outflows are holding up well, steel supply volumes are trending lower due to high inventories and falling demand. Despite a downward trend in the flow of wood and building materials, these product groups, such as fruit, continue to show growth.

Roll-on/roll-off traffic increased by 8.1%. New car throughput increased by 8.5%, mainly due to strong arrivals from China. In contrast, the number of used vehicles and trucks is down 7.3% and 17%, respectively. Unaccompanied freight (excluding containers) increased by 13%.

The growth of the dry bulk segment (+21.5%) is mainly driven by the growth of coal transport. The increased demand for coal for power generation resulted in a throughput of 2.43 million tonnes compared to 364,000 tonnes in the same period last year. Iron ore throughput shows growth, while scrap metal, sand and gravel show a decline and other building materials remain unchanged. Although fertilizer inputs and outputs have increased compared to the second quarter, there is still a decline compared to the record year of 2021 (-11.8%).

The liquid bulk segment recorded an increase of 13.3%. LNG in particular is growing strongly (+66.5%). So far this year, 215 LNG carriers have called at Zeebrugge compared to 121 during the same period last year. Growth was also noted for LPG (+30%), due to high natural gas prices, and for gasoline (+12.2%), diesel/fuel oil (+9.7%) and naphtha (+14.6%). Chemical throughput also continued to grow by 6.3%, but a sharp decrease is particularly noticeable in throughput due to reduced production due to rising energy costs.

After nine months, Zeebrugge welcomed 102 cruise ships with 325,406 passenger movements, up from last year when cruise shipping was largely at a standstill due to Covid-19.

The unified port attracts investment
Since the official launch of the merged port Port of Antwerp-Bruges six months ago, several investors and new projects have already found their way to the port hubs of Antwerp and Zeebrugge. Conti Seafrigo Antwerp, for example, will build a new frozen goods warehouse, Antwerp Euroterminal (AET) will commission Belgium’s largest single car park and Fluxys will build an ammonia terminal in partnership with Advario. Meanwhile, Covestro has started construction of an aniline plant, ITC Rubis is expanding with an additional storage pit and Lanxess is installing a new climate protection system. Ineos has also chosen to set up a Carbon Capture and Storage (CCS) pilot from Antwerp. In Zeebrugge, Ziegler Group is opening a subsidiary for unaccompanied ro-ro freight to Ireland and the United Kingdom, and the real estate group Intervest officially inaugurated this week the logistics complex acquired in April from the Chinese developer Lingang.

The products and services described in this press release are not endorsed by The Maritime Executive.