Bozeman Build Report #4

Howdy builders of Bozeman and those from the North, East, South, and West, welcome back, super happy to have ya here.

Today we’re reporting live from Mexico, talking smack on dealerships, smoking reefers, and taking advantage of upcoming bid opportunity.

Please note that i’m not a licensed financial advisor or a PhD researcher. Remember to keep the saw sharp,

Daniel

Did you have a fun Saint Patrick’s day? Probably not as fun as our friends over in Butte. According to the most recent U.S. Census (and a recent article in the Los Angeles Times), Butte is the most Irish city in the union per capita; almost a full quarter of its residents are of Irish descent.

Mexico Prices

I was curious to see how Mexico prices compare to US prices while visiting the Mexico for a climbing expedition last week, here are some findings sourced from gas stations, a hardware store, vendor visits, and other locations. Using the conversion rate of $1/USD equaling $16.72 Mexican Peso. ROUGHLY eating out cost 60-70% less, groceries cost 40% less, while commodities and building materials cost nearly the same with maybe a 10-20% discount on US prices (please take these discount ranges with a grain of salt). You think that builders get squeezed with material cost in the US, think again to folks working in other countries where the value of their materials/fuel FAR FAR exceeds install/contracting wages.

• Cinderblock - $0.48/USD

• Type 1 Portland Cemento 94lb bag - $12.59/USD

• Mid Grade Exterior Paint - $27.57/USD

• 6 pastries in rural Mexico - $2/USD

• 4 tacos in rural Mexico - $3/USD

• 4 tacos in Mexico City - $4/USD

• 1 gallon of 87 octane fuel (3.78 liters in a gallon) - $5.05/USD

• 1 gallon of diesel - $5.37/USD - OUCH!

Anecdotal dealership assumptions

Tesla Cybertrucks are hitting the streets. Driving around the Los Angeles area last Saturday, I noted one on the road and one being transported. Only a matter of time before we see these stainless steel tanks will be seen around Bozeman and Big Sky.

Car dealerships appear that they are struggling with inventory turnover, makes sense given current interest rates coupled with spiked prices since covid. Next time you drive past a dealership, take a look, there aren’t many empty slips, indicating low sales volume.

Speaking of dealerships - does it seem like heavy equipment dealerships are over stalking? There was a $1.2 trillion (trillion with a t) passed in November of 2021 and a recent caterpillar earnings beat indicating heavy equipment demand however does that really justify the actual spend in equipment taking place?

• Pocatello, ID Cat equipment dealership appeared incredibly overpacked (Mid March)

• Cars and trucks at dealership not rotating (especially larger trucks)

• Driving to Missoula a few weeks ago, noticed 12 brand new Western Star trucks being trucked east bound on I-90 (Early March)

• Many overpriced brand new equipment listings on craigslist/marketplace

• Lots of trailers going up for sale, trailer dealerships packed with inventory

Weekly influencer causing reefer madness

Michael Ring originally from Colorado Springs relocated to the Eastern plains of Colorado near the town of Matheson to pursue high tech reefer unit renovations converting retired refrigerator semi trailers into indoor grow platforms. Super cool concept here, i’m considering doing something along these lines purchasing an old reefer unit and converting it into a equipment storage/cabin unit. I have a buddy who converted a reefer shipping container into a mushroom growing operation (SporeAttic), so far it sounds like its been a constant uphill battle significantly exceeding his original budget additionally having issues getting the HVAC/grow environment to consistently perform to spec.

@inventor_michael

A high-speed rail bill just dropped in Congress

A bill introduced in the House this week by Representatives Seth Moulton (D-MA) and Suzan DelBene (D-WA) would invest $41 billion annually in high-speed rail and “higher-speed rail” projects over five years, for a total investment of $205 billion.

For comparison, the federal government’s total infrastructure and transportation spending in 2023 was roughly $126 billion. About $56 billion (44 percent) of that spending went to highways; $29 billion went to air travel; and $28 billion (22 percent) went to railroads (which was roughly a $10 billion increase over spending on railroads in 2019).

High Speed Rail Alliance

A local concrete contractor is piloting a trade marketplace fulfillment platform, give him a try see if the idea works at Bozeman Operations

Local Pulse

Lots of summer projects taking place around the great State of MT, a good handful of bid deadlines are coming up in the next 30 days!

Construction Connect

Weekly production poetry

Long Cool Woman - The Hollies

Thanks again for reading, please tell us what your working on or struggling with!

-Daniel