Electrical Marketing's LiveWire

Last week’s 2010 McGraw-Hill Construction Outlook, offered a fascinating status report on the impact on the $130 billion (Yes, that’s billion with a “b”) in funding earmarked for the construction industry by the American Recovery and Reinvestment Act of 2009 (ARRA). Funds have been slow to hit the construction market, but some savvy contractors have been ready with “shovel-ready” projects, particularly in highway construction and road resurfacing.

One of the biggest beneficiaries of ARRA funds will be the federal government’s General Service Services Administration (GSA), which oversees the business of the U.S. federal government, including the construction and maintenance of millions of square feet of office space and other facilities and resources for different departments of the federal government. The GSA is scheduled to get $5.6 billion in ARRA funding, including $4.5 billion for energy-efficient upgrades of government buildings.
Want to see what ARRA is funding in your neighborhood? Visit www.recovery.gov

David Wyss chief economist, Standard & Poors, New York, agreed with other presenters at the 2010 McGraw-Hill Construction Forecast that economic conditions for the overall U.S. economy have pretty much bottom out – but that the construction industry as a whole still has a tough year ahead.

While cautioning attendees that it was going to be a “slow crawl” back to more prosperous economic times, Wyss said in his presentation, “The Economic Outlook: Who’ll Stop the Rain,” “I think bad things have stopped happening, but good things haven’t quite started happening yet.”

Some takeaways from Wyss’ presentation:

Because the stock market leads the overall economy by four-to-six months, real recovery should begin in 2Q 2010.

The U.S. Gross Domestic Product (GDP) will be back in positive territory by 3Q 2009.

The global recession was probably the most “synchronized recession” in world history, with global markets plunging in lock-step. Wyss puckishly called it an “exercise in ‘synchronized sinking.’” “China and India had the best performance because they are not as tied to global markets,” he said.

The real estate market is methodically working its way through hundreds of thousands of units of excess supply. But any unexpected surge in foreclosed properties in the four states that had the biggest housing bubbles – Arizona, California Florida and Nevada, market by the bubble will slow down the recovery.

For the full story on the McGraw-Hill Conference, check out this week’s issue of Electrical Marketing, which will be available to paying subscriber on Oct. 23.

Klein Tools Inc. (Lincolnshire, Ill.): Mark Klein has been promoted to director, North American sales, where he will direct, coordinate and develop sales growth in the company’s electrical, telecom and utilities channels. His new position also entails overseeing the design and execution of strategic sales plans and product promotions for the company’s North American sales force and rep organizations.

He most recently served as manager, strategic channel development, which included all of Canada, HVAC, Telecom, Utilities, and MRO. Klein holds a BA from the University of Iowa, an MBA from Lake Forest Graduate School of Management, and will be attending Northwestern University in the fall, 2010.

Emerson Electric (St. Louis): Craig Ashmore was named as executive vice president. He has been senior vice president for planning and development since 2004. In October 2007,, he was named a member of Emerson’s Office of Chief Executive, the company’s top management team that sets global strategy. Ashmore’s duties, which will remain the same, include managing Emerson’s strategic planning, mergers and acquisitions, and corporate technology functions, as well as leadership of Emerson Network Power’s connectivity solutions business. Ashmore is a member of the board of NEMA, and holds a bachelor’s degree in mechanical and civil engineering at the University of Connecticut and a master’s degree in business administration from Harvard Business School.

W.W. Grainger announced an all-cash deal to buy Imperial Supplies LLC, a distributor that primarily serves the fleet maintenance market. Founded in 1958, Imperial Supplies posted revenues of $67 million in 2008. The business will continue to operate as Imperial Supplies, LLC under Grainger’s Specialty Brands business and will be led by Rob Gilson, Imperial’s CEO.

According to its website, Imperial Supplies sells some vehicle-related electrical supplies — primarily connectors, trailer hookups and the like.

Grainger release

The U.S. Consumer Product Safety Commission, in cooperation with Milbank Manufacturing, announced a voluntary recall of about 1,400 single-meter electrical sockets produced by the Kansas City, Mo.-based. The agency said the single-meter 200 amp, four-terminal sockets are used for underground utility meter installations.

Says the CPSC, “A short may occur while in use due to an incorrect bridge installed in the product, to which the meter clips are attached. If the manufacturing defect exists, all metal parts of the meter could create a shock or burns can occur if the cover is off and the meter socket is energized.”

Three incidents have been reported of the unit shorting out. No injuries were reported.

The meter sockets were sold by distributors in New York, Pennsylvania, Vermont and Massachussetts and at local hardware stores in New York from May 2009 through August 2009.

CPSC Bulletin
Hat tip: Kansas City Business Journal