The 2010 Eastern Oil & Gas Conference and Trade show is just around the corner.  Kessel will be there and we invite you to stop by booth #164 to see us. 

What’s New?

Kessel is supplying compressor buildings with solutions for sound and accessibility options for servicing equipment.

In addition, we offer concrete services for a full range of needs.

Please click on the link below to get the complete schedule.  We hope to see you there! 

2010 Eastern Oil & Gas Conference and Trade Show

Monroeville Convention Center

209 Mall Boulevard

Monroeville, PA 15146

Tuesday August 31, 2010  9 am – 5 pm

Wednesday September 1, 2010  9 am – 12 noon

http://www.pogam.org/show/2010_Eastern_Oil_&_Gas_Conference_and_Show_flyer.pdf

The Associated and Builders Contractors of America has posted their latest construction back log indicator. This is a relatively new key economic indicator for the construction industry. It measures construction dollar spending outside of the other key economic indicator of “new home” construction or residential construction. This measure is key to signaling potential economic recovery and growth as it focuses on Commercial and Industrial projects key to the economy showing recovery.

It should be noted that this is only an indicator… your results may vary.

The good news for those of us in the Northeast USA is that the backlog/ activity appears to be strongest in our marketplace.

Currently, we are seeing a good amount of activity around the Marcellus Shale play and traditional industries in our marketplace such as powder metal and timber seem to be chugging along. However, due to their most recent reduced production levels, capacity does not appear to be a problem.

We look forward to the Marcellus Play opportunities for our area as they bring gas exploration and construction to production and the midstream operations. This should provide opportunities in the midstream for pipeline construction, compressor stations, pump and metering shelters etc.

www.abc.org/ backlog indicator

Carbone of America in St. Marys, PA recently awarded a new building project to Kessel Construction.  This project is for a 31,250 square foot pre-engineered metal building system that will be used for the industrial sector.  We are excited to start this project in the near future and are looking forward to building for Carbone again.

As 2009 comes ro a close there are a lot of industrial and commercial businesses that are breathing a collective sigh of relief as they have survived the worst economic conditions in arguably 30 years.

The interesting times are still ahead. It seems most businesses in the area kept saying lets get through 2009, let's get through Q1 of 2010, it's gotta get better by Q2 2010. Anyone got a crystal ball?

What's going to happen here is anyone's guess. What does seem to be a consensus is that things have gotten as bad as they can and should start getting better.

One bright spot in the Northern Tier of PA and Southern Tier of NY is the Marcellus Shale Gas play. Should this prove to be as big as all the indicators suggest, there will be a lot of activity and peripheral businesses will grow and/ or be developed. One recent development that brought more positive news to the area was the ANF ruling in favor or Minard Run Oil and additional plaintiffs which allows Oil & Gas development in the Allegany National Forest to the holders of land leaes amd mineral rights and other permissions to the subsurface development of the valuable gas and minerals below. Basically, this gave back to the developers the rights they previously held prior to an earlier court ruling preventing them from developing the commodities below the surface.

The first two quarters of 2010 should still hold plenty of opportunity for businesses that want to build with depressed materials pricing. Currently, steel is still flat, concrete suppliers are indicating that while prices jumped from 2008 to 2009, they are holding 2009 pricing going into to 2010. Unfortunately, while the economy chugged along last year at a sluggish pace many suppliers did not replenish inventories due to the poor economic outlook. Due to this fact many commodities are at very low levels and as demand comes back the suppliers are looking to get more for thier products; - steel - lumber - insulation - membrane roofing products etc

Currently, many of the same folks that thought the first quarter of 2010 held so much promise are now wondering what it was that was going to magically change and bring better times. The indicators are still not there just yet.

Kessel Construction recently completed a large precast concrete warehouse addition for Nestle Purina Pet Care Products. This facility features the unsurpassed Butler MR-24 Roof System.

Additionally, the firm has just started another project for the SERTA Mattress Company. The project features a 35,000 square foot addition to the existing 45,000 square foot facility that was built by Kessel in 2000.