February proved to be far busier than what is reflected in postings here. The bid calendar was experiencing so much activity that it was not possible to meet the needs of all the RFP’s. I am hesitant to forecast that a strong first quarter will carry into the second quarter, but I remain cautiously optimistic.
Market indicators remain in an unnerving pattern; one of the more intimidating trends I noted was a triumvirate blend of a strong dollar, positive gold movement, paired with creeping oil – I dare someone to place this scenario into sane context.
While January housing sales posted an increase, numbers also indicated a slight uptick in housing starts yet more bubbles await us. Significant commercial lending is coming due and as a result, many speculate more bank failures. Additionally, consumer spending remains tepid, no significant positive impact coming out of job creation, and European dept reflected in the so called “PIGS” - Portugal, Ireland, Greece and Spain, point to the potential for another significant economic slide.
Amidst the present state of falling in and out of economic consciousness, many have asked, how does this translate into the types of demolition/environmental work that are coming into our office?
Despondently, public bid work continues to outpace private-negotiated opportunities by a significant margin. Only 18% of all work we have bid so far in the first quarter could be characterized as private. To further indurate the situation is that the folks who are facilitating private deals are no longer entertaining one or two trusted companies to bid a job, we are often battling five to seven competitors for a “nice” deal.
Healthy margins are becoming more and more difficult to achieve yet we remain committed to aggressive positioning. Geographically, a national job order contract with a Fortune 500 company is creating environmental abatement opportunities across the United States. Positioning our company on these abatement jobs will allow demolition opportunities occur – operations are poised to meet these new prospects. We continue to aggressively market our “green” approach to demolition and have advanced new contacts visa via references.
Showing posts with label economy. Show all posts
Showing posts with label economy. Show all posts
Monday, March 1, 2010
Tuesday, October 6, 2009
Champion Environmental Services, Inc. Update – Economic Outlook
Despite the continued economic impediment that exists in the real estate and construction related industries, we are still experiencing a high volume of solicitation for proposals involving demolition and environmental services.
Based on comparative metrics in relation to last year at this time, the degree of opportunity is up 18%. While the quantity remains elevated, the magnitude of projects taking place is on a smaller scale. Rather than full building demolition, many projects seem to center on interior renovations and build-outs. One could surmise that this is a reflection of cyclical construction patterns easing workloads as we turn into fall in anticipation of winter. However, the majority of retail, office, hospital, university, and multi-residential projects over the past four months have centered on minor to mid-size interior demolition projects.
Some Broad Conclusions.
Lenders are still reluctant to finance speculative or large projects. Convalescing older structures with minor aesthetic improvements in the $50,000 to $200,000 range of project cost seem to be experiencing little resistance to financing.
Another observation we have noted is that key decision makers are extremely reticent with regard to initiating the start of a project. We have a healthy backlog of verbal commitments sans executed contracts; the developers and owners (in my estimation) are attempting to determine short and long term market outlook.
One guiding principal employed is the American Institute of Architects Architecture Billings Index (ABI). The index serves as an economic indicator of nonresidential construction. The ABI is one factor of influence.
Daily economic reports which cover everything from jobless claims, to commodity price fluctuation, housing starts, manufacturing output, and the general bipolar nature of the Dow and Nasdaq activity rounds another sphere of persuasion.
The anticipation of the Chicago Olympics, in my opinion, induced a collective inhale of possibility and exhaled shared disillusionment. Partisan politics aside, the opportunity that would have been created for contractors had Chicago been awarded the Olympic bid is extraordinary.
I personally know several investors who literally would have digested blocks real estate, everything from vacant lots, to multi-residential parcels, to distressed industrial buildings; the geographic realm not only included Chicago, but Indiana, Wisconsin, and Detroit, Michigan as well. The infusion of capital, which has been sitting on the sidelines, will remain vaulted.
The complexity is truly exhaustive. The author James Joyce wrote, “A man of genius makes no mistakes; his errors are volitional and are the portals of discovery”. Those who operate under such a premise in today’s climate stand to ascertain little.
Based on comparative metrics in relation to last year at this time, the degree of opportunity is up 18%. While the quantity remains elevated, the magnitude of projects taking place is on a smaller scale. Rather than full building demolition, many projects seem to center on interior renovations and build-outs. One could surmise that this is a reflection of cyclical construction patterns easing workloads as we turn into fall in anticipation of winter. However, the majority of retail, office, hospital, university, and multi-residential projects over the past four months have centered on minor to mid-size interior demolition projects.
Some Broad Conclusions.
Lenders are still reluctant to finance speculative or large projects. Convalescing older structures with minor aesthetic improvements in the $50,000 to $200,000 range of project cost seem to be experiencing little resistance to financing.
Another observation we have noted is that key decision makers are extremely reticent with regard to initiating the start of a project. We have a healthy backlog of verbal commitments sans executed contracts; the developers and owners (in my estimation) are attempting to determine short and long term market outlook.
One guiding principal employed is the American Institute of Architects Architecture Billings Index (ABI). The index serves as an economic indicator of nonresidential construction. The ABI is one factor of influence.
Daily economic reports which cover everything from jobless claims, to commodity price fluctuation, housing starts, manufacturing output, and the general bipolar nature of the Dow and Nasdaq activity rounds another sphere of persuasion.
The anticipation of the Chicago Olympics, in my opinion, induced a collective inhale of possibility and exhaled shared disillusionment. Partisan politics aside, the opportunity that would have been created for contractors had Chicago been awarded the Olympic bid is extraordinary.
I personally know several investors who literally would have digested blocks real estate, everything from vacant lots, to multi-residential parcels, to distressed industrial buildings; the geographic realm not only included Chicago, but Indiana, Wisconsin, and Detroit, Michigan as well. The infusion of capital, which has been sitting on the sidelines, will remain vaulted.
The complexity is truly exhaustive. The author James Joyce wrote, “A man of genius makes no mistakes; his errors are volitional and are the portals of discovery”. Those who operate under such a premise in today’s climate stand to ascertain little.
Tuesday, September 29, 2009
The Misconception of What Demolition Wrought
All too often, opposition surrounds impending demolition projects. Resistance will manifest itself in many forms. There are those who argue against demolition projects citing environmental factors. Others contend the historical significance of a building outweighs the “wanton destruction”. The spectrum of contention is rather exhaustive.
A polemical position against demolition practices has only three avenues of appeal: logical, ethical, and emotional. The emotional outlet (by far, the most employed) makes for great newsworthy headlines, spirited municipal meetings, and can help marshal quick support – often, a thoughtless process with regard to the totality of the project at hand.
When logic is applied to such scenarios, people begin to realize that demolition marks a new horizon of opportunity and economic growth. Such is the case at the Shoppes at Fox River in Waukesha, Wisconsin.
In partnership with Opus North, Champion Environmental Services, Inc. was retained to abatement and demolish a 561,000 square foot distribution center at 1200 W. Sunset Drive. This morning on GlobeSt.com, an article was published highlighting the new development of the 58 acre suburban infill location.
The Shoppes at Fox River is the embodiment of what demolition creates, progress.
The article from GlobeSt.com appears below with link: http://www.globest.com/news/1505_1505/chicago/181278-1.html
___________________________________________________
Opus North Opens $62M Shoppes at Fox River
By Cari Brokamp
WAUKESHA, WI-Opus North Corp., of Chicago, has opened the first phase of its $62 million The Shoppes at Fox River retail development at 1200 W. Sunset Dr. The first phase of 250,000 square feet opened at about 90% leased, with a second phase of construction planned to begin in spring and deliver another 250,000 square feet of space by summer 2011. Two of the development's anchor tenants, a 132,000-square-foot Target and a 60,000-square-foot Pick 'n Save grocery store, have already opened, and another eight stores are scheduled to open later this fall.
"It's a great first-tier suburban infill location," John Meyers, VP of retail development for Opus, tells GlobeSt.com. "Waukesha is a great suburban community, and this is a portion of town that didn't have a retail shopping area and we're able to take advantage of that. For retailers, from a strategic standpoint with where their other stores were located, this was a great infill location for them without a lot of retail immediately around it, so there was a market void and they were available to take advantage of it."
Other retailers scheduled to open within phase one this fall include a 14,000-square-foot CVS Pharamacy on a 1.9-acre outlot, a 5,000-square-foot Chili's restaurant on a 1.3-acre outlot, Buffalo Wild Wings, Subway, GNC, Verizon, GameStop and Noodles & Company. Openings scheduled for spring include a 13,500-square-foot PETCO, as well as a Maurice's and Famous Footwear. Asking lease rates at the development range from $13 to $35 per square foot net, depending on location.
There's very few uncommitted spaces at this point and in today's marketplace, that's phenomenal," Meyers says. "The site itself was well-positioned and had some momentum going in, so we focused on the first phase of the development, which was still feasible to do. Even in a difficult time, we continued to get national tenants and hang onto that momentum as long as we held onto the boundaries of what the market could support."
Work on the 54-acre property began in summer 2008, after Opus acquired it for more than $11 million, demolished the 561,000-square-foot distribution center once located there and changed the land's zoning. About 18 acres remain available remain available for development and Meyers said Opus is considered build-to-suit opportunities or selling pad sites for retailers interested in locating within the development. Michael Fitzgerald and Dan Rosenfeld of Mid-America Real Estate-Wisconsin are marketing space within the development.
When completed, Opus says the retail development will be the largest in Waukesha and the sixth largest in the Milwaukee area. Designed by Minneapolis-based KKE Architects, the project is located in the southwest suburban Milwaukee submarket. "The Waukesha marketplace has remained very viable and held up very well there," Meyers says.
A polemical position against demolition practices has only three avenues of appeal: logical, ethical, and emotional. The emotional outlet (by far, the most employed) makes for great newsworthy headlines, spirited municipal meetings, and can help marshal quick support – often, a thoughtless process with regard to the totality of the project at hand.
When logic is applied to such scenarios, people begin to realize that demolition marks a new horizon of opportunity and economic growth. Such is the case at the Shoppes at Fox River in Waukesha, Wisconsin.
In partnership with Opus North, Champion Environmental Services, Inc. was retained to abatement and demolish a 561,000 square foot distribution center at 1200 W. Sunset Drive. This morning on GlobeSt.com, an article was published highlighting the new development of the 58 acre suburban infill location.
The Shoppes at Fox River is the embodiment of what demolition creates, progress.
The article from GlobeSt.com appears below with link: http://www.globest.com/news/1505_1505/chicago/181278-1.html
___________________________________________________
Opus North Opens $62M Shoppes at Fox River
By Cari Brokamp
WAUKESHA, WI-Opus North Corp., of Chicago, has opened the first phase of its $62 million The Shoppes at Fox River retail development at 1200 W. Sunset Dr. The first phase of 250,000 square feet opened at about 90% leased, with a second phase of construction planned to begin in spring and deliver another 250,000 square feet of space by summer 2011. Two of the development's anchor tenants, a 132,000-square-foot Target and a 60,000-square-foot Pick 'n Save grocery store, have already opened, and another eight stores are scheduled to open later this fall.
"It's a great first-tier suburban infill location," John Meyers, VP of retail development for Opus, tells GlobeSt.com. "Waukesha is a great suburban community, and this is a portion of town that didn't have a retail shopping area and we're able to take advantage of that. For retailers, from a strategic standpoint with where their other stores were located, this was a great infill location for them without a lot of retail immediately around it, so there was a market void and they were available to take advantage of it."
Other retailers scheduled to open within phase one this fall include a 14,000-square-foot CVS Pharamacy on a 1.9-acre outlot, a 5,000-square-foot Chili's restaurant on a 1.3-acre outlot, Buffalo Wild Wings, Subway, GNC, Verizon, GameStop and Noodles & Company. Openings scheduled for spring include a 13,500-square-foot PETCO, as well as a Maurice's and Famous Footwear. Asking lease rates at the development range from $13 to $35 per square foot net, depending on location.
There's very few uncommitted spaces at this point and in today's marketplace, that's phenomenal," Meyers says. "The site itself was well-positioned and had some momentum going in, so we focused on the first phase of the development, which was still feasible to do. Even in a difficult time, we continued to get national tenants and hang onto that momentum as long as we held onto the boundaries of what the market could support."
Work on the 54-acre property began in summer 2008, after Opus acquired it for more than $11 million, demolished the 561,000-square-foot distribution center once located there and changed the land's zoning. About 18 acres remain available remain available for development and Meyers said Opus is considered build-to-suit opportunities or selling pad sites for retailers interested in locating within the development. Michael Fitzgerald and Dan Rosenfeld of Mid-America Real Estate-Wisconsin are marketing space within the development.
When completed, Opus says the retail development will be the largest in Waukesha and the sixth largest in the Milwaukee area. Designed by Minneapolis-based KKE Architects, the project is located in the southwest suburban Milwaukee submarket. "The Waukesha marketplace has remained very viable and held up very well there," Meyers says.
Tuesday, February 3, 2009
Recession – How to Survive In Today’s Business Environment
The economic climate of today has the American workforce on edge. Each critical facet is interdependent; such relationships embed difficulty that spreads throughout industries. Real estate has received a fair share of negative industry outlook. Home sales at historic lows, construction starts nonexistent, commercial leasing/sales edging lower, inherent land and building values in steep decline, credit markets frozen – the list is exhaustive.
Champion Environmental Services, Inc., success is dependent on a vibrant real estate market. To date, CESI has managed to stay ahead of the economic woes that have plagued nearly every trade and industry. Luck?
We attribute our continued success in a challenging market through forward thinking and sound strategic planning. CESI is guided by sound business practices enabling our continued growth. Our direction is centered on core principles that are client-centered.
Keys to our success:
Continual fostering of existing client relations centered on the quality of our services.
Expanding new geographic market presence.
Aggressive marketing that is people orientated.
Applied focus metrics.
Sales forecasting.
Aggressive assessment of balance overhead.
Networking.
A challenging economy requires that every business “face the facts” and embrace innovative processes that create opportunity. Having a value based product or service will not necessarily warrant a market need.
Take command of your situation through strategic planning and cull the varied talents of your personnel.
About Champion Environmental Services, Inc.
Champion Environmental Services, Inc., is an innovative demolition and environmental remediation firm that operates throughout the United States. Services include: building demolition, asbestos abatement, salvage reclamation, lead abatement, industrial dismantling, site/soil remediation, underground storage tank removal, and deconstruction.
For more information, visit CEIS on the web at http://www.champenv.com/ or call Terrence O'Rourke at 847-844-1695.
Champion Environmental Services, Inc., success is dependent on a vibrant real estate market. To date, CESI has managed to stay ahead of the economic woes that have plagued nearly every trade and industry. Luck?
We attribute our continued success in a challenging market through forward thinking and sound strategic planning. CESI is guided by sound business practices enabling our continued growth. Our direction is centered on core principles that are client-centered.
Keys to our success:
Continual fostering of existing client relations centered on the quality of our services.
Expanding new geographic market presence.
Aggressive marketing that is people orientated.
Applied focus metrics.
Sales forecasting.
Aggressive assessment of balance overhead.
Networking.
A challenging economy requires that every business “face the facts” and embrace innovative processes that create opportunity. Having a value based product or service will not necessarily warrant a market need.
Take command of your situation through strategic planning and cull the varied talents of your personnel.
About Champion Environmental Services, Inc.
Champion Environmental Services, Inc., is an innovative demolition and environmental remediation firm that operates throughout the United States. Services include: building demolition, asbestos abatement, salvage reclamation, lead abatement, industrial dismantling, site/soil remediation, underground storage tank removal, and deconstruction.
For more information, visit CEIS on the web at http://www.champenv.com/ or call Terrence O'Rourke at 847-844-1695.
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