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January 24, 2013: Volume 5, Issue 2

 

In This Issue
ABC Urges Federal Appeals Court to Uphold Michigan Fair and Open Competition Law
14 Companies to Invest $1.1 Billion, Add 4,590 Jobs in State
Construction Confidence Dips In Second Half Of 2012
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ABC Urges Federal Appeals Court to Uphold Michigan Fair and Open Competition Law

 

Associated Builders and Contractors (ABC) of Michigan this week submitted an amicus brief with the U.S. Court of Appeals for the 6th Circuit defending Michigan's Fair and Open Competition Act against a challenge filed by construction unions. The act ensures the nondiscriminatory procurement of state services in the award of public construction contracts.

 

"ABC of Michigan has long stood for maximum fairness and efficiency in the government procurement process, so that taxpayers are guaranteed the fiscal accountability they deserve on public construction," said Chris Fisher, president of ABC of Michigan. "We prepared our brief in order to support Gov. Rick Snyder's strong defense of the Fair and Open Competition Act, which was amended by P.A. 238 last year. 

 

"The federal district judge's injunction against the amended law at the behest of the Building and Construction Trades unions is in an unprecedented expansion of federal labor law preemption of state contracting rules," added Fisher. "ABC submitted its brief in support of the governor's appeal from the decision because the federal district court's decision is fundamentally flawed."

 

"Just as 13 other states have done, Michigan has every right to choose to be 'labor neutral' and protect taxpayers from a union-only bias in the award of its construction contracts by neither requiring nor prohibiting any government contractor to sign a project labor agreement (PLA). The district court misapplied well established rules governing federal labor law preemption by effectively forcing the state to impose PLAs on its projects, even if the result would increase the costs of taxpayer-funded construction."

 

ABC of Michigan was joined in its amicus filing by ABC National, as well as the National Right to Work Legal Defense Foundation and the National Federation of Independent Business. A decision is expected from the Court of Appeals sometime this spring.

 

 

14 Companies to Invest $1.1 Billion, Add 4,590 Jobs in State

 

 

Governor Rick Snyder announced the Michigan Strategic Fund's approval of state incentives to support 14 business expansions that are expected to generate more than $1.1  billion in investments and add 4,590 jobs in Michigan.

 

"Our reinvention of Michigan is all about more and better jobs for families and bright futures for our children," Snyder said. "At the end of the day, that's what this announcement really means. The fact that these companies are choosing to stay and grow in Michigan reinforces our well-earned reputation as America's comeback state. The commitment and innovation of these job creators, coupled with the high quality of Michigan's talent, will keep our state moving forward. I applaud this tremendous investment in Michigan's future."

 

Click here to read more about it!

 

Construction Confidence Dips In Second Half Of 2012

 

WASHINGTON, D.C. - Associated Builders and Contractors (ABC) released its Construction Confidence Index (CCI) for the second half of 2012. The CCI reflects three aspects of the U.S. nonresidential construction industry: sales prospects, staffing levels and profit margins.

"Last year, the biggest issue was the fiscal cliff," said ABC Chief Economist Anirban Basu. "This year, worries likely will stem from a combination of unresolved fiscal cliff issues and another potentially intense debt ceiling debate.

"A strong construction market requires capital, confidence and conditions consistent with demand for construction," Basu said. "While capital and conditions have been improving steadily in conjunction with the broader economy, confidence continues to lag.

"The ongoing lack of confidence, including among those who would otherwise purchase construction services, continues to produce small and halting gains in nonresidential construction spending," said Basu. "Though index values for sales, profit margins and staffing levels remained above 50 during the second half of 2012-indicating industry growth-confidence was lower overall."
 

 

  • Sales expectations fell from 66.3 to 62.3
  • Profit margins dropped from 56.3 to 55.9
  • Staffing levels declined from 62.2 to 59.6

  
 

 To read the full CCI report, click here.

 
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Associated Builders and Contractors of Michigan is a statewide trade association, working in partnership with three local chapters, dedicated to providing Michigan with high-quality, affordable, safe and on-time construction.  ABC of Michigan is an equal opportunity organization that opposes all discrimination in the construction industry including discrimination based on union affiliation. A leading construction industry voice with state government, ABC provides many member services including legislative advocacy, networking opportunities, member benefits, legal updates, business development and educational opportunities.