Our client CPK Construction got its picture in The Plain Dealer on April 22. The photo showed its workers installing structural insulated panels on the Museum of Natural History's PNC SmartHome Cleveland project.  When complete, the home will function without a furnace and use 90% less energy for heating purposes than a typical home.  CPK is performing rough and finish carpentry work and donating a portion of its services. Review Steven Litt's article here, and check out video and other project details on the Museum's web site here. The display opens July 23, and afterward the home will be moved from the Museum's front yard to a nearby lot, where it will be listed for sale. To learn more about the Passive House movement and its advances in the United States, review this article in Architectural Record.

Here are links to primary sources of industry and economic data so you can form your own opinions about market trends.

Growth in Solar Energy

The Solar Energy Industries Association ("SEIA") publishes a quarterly update, with a free Executive Summary available here. Key findings from the last report include an indication that the market grew to $6 billion in 2010.  Compared to GDP growth of 2.8%, that industry's 67% growth during recessionary conditions is astounding. 

Residential Construction and Sales 

Data from the Census Bureau on housing permits, starts, and completions is available here. The NAHB's web site provides a wealth of other data from its research here. The monthly S&P/Case Shiller Housing Price Indices are available here.  And, the National Association of Realtor's Pending Home Sales Index is here.

Industry-wide Construction Data

Data from the Census Bureau on construction spending is available here. It will cost you a few bucks, but McGraw Hill's forward-looking market research is available here. It will not cost you a penny to review the Associated Builders & Contractors' forward-looking Construction Backlog Indicator, here, which measures non-residential work under contract but not yet under construction.

The American Institute of Architects' Leading Indicator

Ask architects if their non-residential construction billings are improving, and you get a pretty good idea of where non-residential construction spending will go in nine to twelve months.  The AIA publishes frequent press releases summarizing its subscriber-based Architecture Billings Index here. February 2011 showed modest growth.

On April 27, I viewed via webinar the National Association of Home Builders' Spring Construction Forecast. Much of it focussed on the national market, which is fun for economists and policymakers, but not much help for homebuilders and homeowners in Northeast Ohio. From the national data, the panel confirmed that home price recovery is based upon working through the foreclosure backlog, which built up during the recent pause while banks got their paperwork in order. On the other side of the backlog are solid mortgages (i.e. "normal" 30- and 60-day delinquincy rates). Ohio's price increase was the nation's second-best from Q3 to Q4 2010. We are thus ahead of others in getting through the foreclosure crisis. Nationwide, residential project starts should improve from now forward, though 2011 will not see great gains. The greatest demand will be for housing for those over age 65.  Starts in Ohio improved to 40% of normal with the tax credit, and have receded, though they are still above the bottom of 27% from Q1 2009. Forward-looking data suggests that Ohio will take longer than most other states to recover to a normal level of starts. In a nutshell, Ohio's price gains show that selling a home should be closer to the old "normal," though the slow starts for new projects show that builders will have longer to wait to see "normal."  One economist did predict a long-term shift toward renting over buying. If you are interested in viewing the slides from the presentation, please send me an e-mail.

In addition to speaking at the following events, my colleagues and I will be presenting in-house lectures on a variety of legal topics for our clients, trade associations, and other groups.  If you would like to schedule a seminar at your firm or for your group, please let me know.  

May 23, 2011  Labor & Employment Seminar (Cleveland, OH)

Our Labor & Employment Group will host its annual seminar for our clients in May.  If you are interested, e-mail me and I will provide additional information.