In today’s construction news, learn about how on June 17, 2024, the Denver, Colorado, USA-based aerospace corporation Boom Supersonic held a ribbon-cutting event to commemorate the end of construction at their Overture Superfactory. On the other hand, in May, the number of new homes constructed in the United States fell short of forecasts as builders withdrew from residential projects primarily due to elevated loan rates, escalating worries about persistently high housing costs. Finally, a federal judge on Monday temporarily halted a Biden administration rule that expands the circumstances in which building contractors must pay workers prevailing rates for $200 billion in federally sponsored infrastructure projects.
Boom Supersonic Finishes Overture Superfactory’s Construction
Original Source: Boom Supersonic completes construction of Overture superfactory
Construction of Boom Supersonic’s Overture Superfactory is complete.
Boom Supersonic, based in Denver, Colorado, USA, cut the ribbon on its Overture Superfactory on June 17, 2024. The first US supersonic airliner manufacturing is the Overture Superfactory in Greensboro, North Carolina, at Piedmont Triad International Airport. The assembly line will produce Boom’s supersonic airliner Overture.
“Construction of the Overture Superfactory represents a major milestone toward ensuring the US’ continued leadership in aerospace manufacturing,” Boom Supersonic founder and CEO Blake Scholl remarked. “Supersonic flight will transform air travel, and Overture gives airlines worldwide a much-needed innovative alternative.”
Overture Superfactory aircraft will carry hundreds of millions of people supersonic. Our first assembly plant can manufacture 33 Overture aircraft every year, worth over $6 billion. Boom will create an assembly line to produce 66 supersonic airliners annually. Supersonic aircraft will be delivered to United, American, and Japan Airlines at the Overture Superfactory facility.
Overture, Boom’s supersonic airliner, featured in United Airlines livery (Courtesy Boom Supersonic). The Superfactory is projected to contribute over $32B to North Carolina’s economy and create 2,400 jobs over the next 20 years, ensuring America’s aerospace manufacturing leadership.
“As the state that was first in flight, North Carolina is excited to see Boom’s progress toward delivering the world’s first sustainable supersonic airliner,” said Governor Roy Cooper. “Our state has the skilled workforce, infrastructure, and perfect location to help Boom revolutionize air travel.”
“The Piedmont Triad is an economic powerhouse, helping North Carolina remain the top business state. North Carolina Senate President Pro Tempore Phil Berger said Boom’s Overture Superfactory, which will build a revolutionary airplane, is an example of innovative ventures that are creating jobs and investment.
The LEED-certified Overture Superfactory, designed by BRPH and built by BE&K, will be 40% more energy efficient than comparable industrial facilities. The facility will use sustainable products, urban heat mitigation materials, high-efficiency LED lighting, and water conservation devices to save energy and water.
Boom will now develop and implement assembly stations and finalize materials movement and drilling operations on the manufacturing floor after the building is finished. Boom will purchase and install Superfactory tooling with Advanced Integration Technology (AIT), starting with an advanced test cell unit. As the first important piece of equipment deployed, the test cell will improve manufacturing methods, optimize assembly line throughput, and train staff for Overture production.
“We look forward to Boom’s success in its mission to bring back commercial supersonic flight and help the US maintain its leadership in aviation innovation,” said Piedmont Triad Airport Authority Chair Paul Mengert. We’re grateful for our work with the Economic Development work of North Carolina, elected officials, and the local community, who will continue to welcome Boom to the Triad.”
North Carolina is known for being ‘First in Flight’, and Boom’s Overture Superfactory puts us first in supersonic flight, said NC Commerce Secretary Machelle Baker Sanders. This is another key step toward Boom’s vision for sustainable supersonic flight and North Carolina’s ‘First in Talent’ goal of a clean energy future that creates jobs, decreases harmful emissions, and protects the environment.
Congresswoman Kathy Manning (NC-06) stated Boom Supersonic helps the Triad lead in the new phase of American manufacturing. Boom Supersonic’s Overture Superfactory will create high-paying jobs in the Sixth District, enhance the state economy by billions, and boost American global competitiveness with cutting-edge technology. I’m glad North Carolina’s first supersonic airliner manufacturing will honor its aviation heritage.”
The building completion event follows the initial flight of Overture’s supersonic experimental aircraft, XB-1, a crucial step toward supersonic air travel. The FAA granted XB-1 a first-ever Special Flight Authorization (SFA) to Exceed Mach 1. The XB-1 flight test program in Mojave, California, will verify the aircraft’s performance and handling at supersonic speeds.
Heavy Mortgage Rates Slow New Home Construction
Original Source: New Home Construction Slows as Mortgage Rates Remain High
Homebuilding in May fell to its lowest level in four years despite a supply constraint. That tendency may pressure buyers more.
In May, US homebuilding fell below expectations as builders halted new projects due to high borrowing rates, bolstering concerns about rising house costs.
On Thursday, the government reported that new-home building plummeted 5.5 percent last month to 1.28 million, indicating additional fissures in the already unstable housing market. Slower single-family and multifamily house construction contributed to the reduction. Building permits fell 3.8%, indicating fewer construction.
Freddie Mac stated on Thursday that the average rate for 30-year mortgages, the nation’s most popular home loan, dropped to 6.87 percent this week from decades-high levels.
The drop in building last month shows that high interest rates are reducing house demand and rising builders’ expenses, which is causing them to hesitate to start projects. In a statement, Nationwide economist Daniel Vielhaber said home builder sentiment fell to its lowest level this year in May and even further this month, indicating lackluster home construction statistics in the coming months.
Weakening construction puts further pressure on homebuyers.
“If you’re a consumer, if you’re looking to buy a home, what you ultimately want is a lot more supply,” said Redfin housing economics leader Chen Zhao. We need to create more to increase housing supply. Any decrease in building is terrible news.”
Ms. Zhao said the newest housing construction statistics from the U.S. Census Bureau and HUD suggests home prices won’t decline significantly in the coming years. She noted that the data point indicates a restricted housing supply in the next year or two, “one more factor that would keep home price growth high”.
At their meeting this week, Federal Reserve officials held interest rates constant and forecast one rate drop before 2024. Ms. Zhao said builders may be reacting to uncertainties about the Fed’s interest rate decisions and how lower rates would effect housing demand.
“What the Fed will do is looming large for a lot of different actors in the economy, including builders,” said University of Illinois at Urbana-Champaign assistant professor of finance Julia Fonseca.
In June 2021, mortgage rates were roughly 3%, half the present level. They rose in 2022 when the Fed raised its base rate to fight inflation.
Ms. Fonseca said first-time homebuyers are “squeezed from all sides” by high prices, loan rates, and poor availability. Many homeowners with far lower mortgage rates feel locked down, limiting their mobility and housing supply.
Lower development rates may exacerbate home inventory shortages and raise consumer prices.
If new building doesn’t happen, prices could rise more, Ms. Fonseca warned.
US Judge Rejects Biden Construction Wage Rule
Original Source: US judge blocks Biden wage rule for construction projects
On Monday, a federal judge temporarily barred a Biden administration rule extending construction contractors’ prevailing wage requirements for $200 billion in federally supported infrastructure projects.
U.S. District Judge Sam Cummings in Lubbock, Texas, ruled that the Department of Labor cannot demand prevailing wages for construction site truck drivers when government entities do not explicitly specify them in contracts.
“Presidents and their agencies… do violence to the Constitution when they attempt to unilaterally amend Acts of Congress to suit their policy choices,” stated Reagan appointee Cummings.
In anticipation of a lawsuit from the industry trade group Associated General Contractors of America, Cummings stopped the rule from going into effect nationwide.
Labor Department and Associated General Contractors did not reply to calls for comment.
New Deal-era Davis-Bacon Act requires the Labor Department to set wage floors for federally supported construction projects based on prevailing wages for specified jobs in specific geographic areas.
On $200 billion projects, over 1 million construction workers earn prevailing wages.
In the 1980s, the Reagan administration abandoned a method for calculating salaries that excluded many lower-paid workers and raised wage floors. The Biden administration reinstated it. Separate trade groups are suing over those moves.
The rule also gave prevailing wage standards the “operation of law,” meaning agencies no longer have to explicitly include them in contracts, and expanded the definition of “mechanics and laborers” to include truck drivers who deliver to work sites.
In November, Associated General Contractors sued, claiming those two measures exceeded the Labor Department’s prevailing wage authority.
On Monday, Cummings claimed the rule would affect construction companies irreparably, including pricing them out of federal contracts.
The Labor Department adopted the rule to update prevailing wage regulations to reflect legal and economic changes.
Unions and other backers said the law will guarantee fair pay and combat wage fraud, especially on renewable energy construction projects.
Summary of today’s construction news
To sum it up, the completion of construction coincides with the first flight of XB-1, Overture’s supersonic demonstrator aircraft, marking a significant step toward the restoration of supersonic flight.
On the other hand, decreased building rates are expected to exacerbate the current shortage of available housing and put further pressure on consumer prices.
Finally, the Labor Department justified the rule’s adoption by stating that it was required to update existing wage laws to take into account changes in the economy and legal landscape.
Unions and other proponents of the law repeated this, claiming that it would ensure workers received fair compensation and discourage wage theft, especially on the increasing number of clean energy building projects.
