STRICTLY BUSINESS: CONSTRUCTION PERMITS DOWN STATEWIDE, CAPE

Construction is down in Missouri.

February totals are not yet available, but January construction activity throughout the state was down 13 percent from January 1996.

January construction permit totals were reported at $368,340,000, compared to the $425,187,000 during the same month a year ago, according to the F.W. Dodge Division of McGraw-Hill, an authority on the construction market. Dodge, which issues monthly totals in its Dodge Report, also publishes Sweet's Catalog Files.

Nonresidential construction during January, which includes commercial, manufacturing and other buildings not designed for shelter, was reported at $142,311,000, down more than 18 percent from the $172,872,000 figures of a year ago.

Residential construction for the month was $120,665,000, down 26 percent from the $164,082,000 in January 1996.

Nonbuilding construction, which includes streets, highways, bridges, river and harbor developments, airports and a few other projects, was up, reported at $105,364,000 for January, compared to the $88,233,000 during the same month a year ago.

Down in all categories

January and February construction permits for Cape Girardeau are down in all categories.

For the first time in two years, permit values were under the million-dollar mark for a single month. Some 20 permits were issued in February, with a value of $673,000, lowest since January of 1995, when 27 permits were issued in the amount of $554,000.

Although home building in 1997 is expected to top 1996 totals of 86 new homes at a value of more than $11 million, only five new permits have been issued to date.

"We expect this category to increase," said Rick Murray, city inspection services director.

With all of the new subdivisions, housing could provide some record numbers in 1997, said Murray. "Weather conditions have slowed construction everywhere."

39 permits, $2.5 million

During the first two months, 39 permits have been issued, in the amount of $2,477,473.

This is far off the pace established early in 1996, when 66 permits were issued worth $12,457,839 during the first two months. More than half of this was for one permit, to Lone Star Industries, for construction of a clinker storage building at a cost of $7.5 million.

Construction for 1996 finished with the second-highest total in history, with 505 permits at a value of $47,639,192, only $256,497 below the record year of 1992, which reported $47,996,192.

Construction in Jackson was up in 1996, to $15.1 million, compared to $13.6 million the previous year. Home building accounted for the lion's share of construction, with 115 new homes.

Big business happenings

Some big business happenings are expected for Southeast Missouri.

Three big announcements, concerning an area from New Madrid north to Fruitland, will have major impacts.

Like more than $265 million and more than 500 new jobs.

The latest announcement is that by Associated Electric Cooperative Inc., and PanEnergy Trading and Market Services for a $100 million power generation facility for the Bootheel area.

Two weeks ago, a Dallas-based land development and house building corporation -- Holigan Family Investments Inc. -- announced its intentions for a number of home subdivisions and a modular-home factory, which will result in a $75 million investment shared in four communities -- Cape Girardeau, Jackson, Fruitland and Sikeston.

Subdivision plans are included for the former three areas, along with the purchase of a Cape Girardeau construction company. The manufacturing facility, which will create as many as 300 jobs over the next few months, will be in an existing building at Sikeston.

$35 million, 200 jobs

Another big announcement, by Good Humor-Breyers Ice Cream Co. is that the Green Bay, Wis.-based company will expand its Sikeston operation with a new $35 million facility.

Corporate officials say the new 200,000-square-foot facility will be constructed on a 40-acre site in the new Sikeston Business and Technology Park five miles from the ice cream plant, resulting in an additional 200 employees. Construction is scheduled to start in April.

Good Humor-Breyers telephones have been busy since the announcement, but company officials say it's too early to apply for jobs.

The new plant is a year away, and staffing for the new facility is still in the planning stages.

Dale Grothe, Good Humor-Breyers Human Resources manager, said hiring for the expansion complex will take place later this year.

$56 million improvements

Noranda Aluminum Inc. will spend more than $56 million over the next two years to increase aluminum production at its plant in St. Jude Industrial Park near New Madrid.

The modernization project will modernize the carbon anode production facilities at the existing plant. The project will increase Noranda's aluminum production capacity by about 15 percent, or 73 million pounds a year."

The project will involve a conversion to new single-piece technology and provide more amperage to the plant's three potlines.

The plant employs 1,170 people from Missouri, Illinois, Kentucky, Tennessee and Arkansas and produces about 220,000 tons of aluminum a year.

Another announcement last week, by Procter & Gamble Co., could have a major impact in Cape Girardeau County.

Although nothing is firm, P&G is seeking a site for a sixth towel-and-tissue manufacturing plant. One site under consideration is Cape Girardeau County, which is home to the P&G Paper Products Co., a manufacturer of disposable diapers.

Cost and new jobs were not discussed, but the project could cost millions of dollars and provide hundreds of new jobs. The P&G operations include a 1,304,705-square-foot plant at Highway 177 and Route J. The company, which employs about 1,225 workers, owns about 1,200 acres in that area.

A Bootheel site is also expected to receive some big news this summer.

$100 million price tag

Associated Electric Cooperative Inc., which has a power plant in St. Jude's Industrial Park near New Madrid and is headquartered in Springfield, Mo., and PanEnergy Trading and Market Services are moving ahead with plans to share the cost of 250-megawatt, gas-fired combined cycle power generation plant.

PanEnergy, which operates the Texas Eastern Pipelines in Southeast Missouri, is headquartered at Houston.

The new facility in Southeast Missouri has a price tag of slightly more than $100 million and will employ between 20 and 25 people when completed later this year.

"We have a preferred site and two alternates in mind," said Gary Fulks, director of engineering operations with Associated.

The preferred site is west of Glennonville on the east side of the St. Francis River in Dunklin County. Other possible sites are near Essex between Dexter and Sikeston, and north of the Arkansas line near Fagus.

Environmental analysts are being conducted on each of the sites. A site decision is expected sometimes next summer.

In national publication

After eight years as a project technician at P&G, Jeff Smith walked out of corporate America and into custom installation of audio equipment.

Smith's story was the topic of an article that appeared in Custom Home Electronics, a national electronics trade magazine.

Smith is into his fourth year as owner of Sound Designs in Cape Girardeau.

"It wasn't easy for me to leave my job," recalls Smith. "I was giving up some great benefits and job security to install stereo equipment."

Smith worked a year installing audio equipment, but in 1993 opened his custom installation business.

Smith tested his customer skills on a 7,000-square-foot home then under construction.

The client, said Smith, wanted a media room similar to one he had read about. This included a home theater, complete with drop-down screen, six-zone audio, and a direct-view screen.

Smith's eight-month project is a 15-by-25-foot room, is described in detail in the electronics magazine.

After the media room and audio distribution were finished, Smith's client also opted for video distribution and an intercom-phone system. The video distribution system allows home owners to watch programs anywhere in the house.

Smith said multi-room zones and systems integration are becoming more popular in the Midwest.

The systems are already popular in bigger cities. "And, I'm starting to see more interest in home theater rooms and systems integration in our area," said Smith.

B. Ray Owen is business editor and staff writer for the Southeast Missourian.