Economists have been announcing their predictions and forecasts for the new year, and some of the news isn’t as good as we’d like—but it’s not all bad.
Hotel construction plans are, on paper, on track to be the highest growth trend since 2007. The hotel industry has reported year-over-year increases in growth in occupancy, average daily rates, and revenue per available room, according to STR, a group which monitors trends in the hospitality sector. In October there were 1500 hotel projects under construction in the United States.
International consulting group HKA, in its report “CRUX Insight: A Global Sector Market Analysis”, the group found changes to the scope of a project was the most common cause of construction disputes. This looked at many sectors, including commercial, defense, aerospace and military, industrial, infrastructure, oil and gas, and power and utilities.
While there is the ever-present labor shortage in construction and skilled labor, the industry still lags in attracting women to the workforce. In an industry that has been dominated by men, female representation in construction has only increased 3% since 2007, according for the Bureau of Labor Statistics.
At the upcoming CONEXPO in Las Vegas in 2020, Larry Kokklenberg, PhD, will be presenting on the top ten reasons that construction businesses fail. Two thirds of these businesses fail within the first five year, and he says that most of the owners blame external sources, like insurance, taxes, or politics. But he’s identified ten things that businesses do to hamstring themselves. You can read the whole article at Daily Commercial News, but here are five of them.
Two things seem to be on the lips of construction managers everywhere: there is certainly a labor shortage, and there’s talk of a recession. But construction has typically been a bell weather for economic ups and downs—construction sees the slowdowns before anyone else, and it sees the pickup before other industries—and there’s no sign of a recession right now.
Encouraged to pursue construction after winning a contest for the This Old House magazine, due to her expert kitchen remodel, Angela Cacace joined a local building program. Although the 32-year-old former barber was nervous, she was pleased to find that of the twelve people in the program, half were women. She posted happily about it on social media, using the hashtag #MoveOverBob, in reference to the children’s Bob the Builder show.
North America’s construction and real-estate industry saw a drop in overall deal activity during the second quarter of 2019, according to GlobalData.
Stunning buildings made from raw, imperfect materials
With the slowing of both commercial and residential construction, and rumors of an impending recession grow, two mainstay companies in the construction industry are seeing their values dipping—particularly because of the lack of demand for backhoes, cranes, and dump trucks.
The current trade war with China—which just increased tariffs on $300 billion in Chinese goods—is having an impact on nearly every product that comes from China, leading many companies to have to adjust pricing, reevaluate new policies, and even seek new sources for their supply chains.
Developers in the Brooklyn neighborhood of Bushwick do not like to be called “developers”. The word is loaded with a lot of negative public connotations, not the least of which is the dreaded term of “gentrification.” Instead, the real estate developer Venn prefers the term “impact developer”, a developer that is concerned about the quality of life in the communities and towns in which they operate. Gentrification has been associated with higher rents and hipster classifications, and Venn wants to avoid that. It doesn’t even refer to its residents as residents, but as Venners, or members.
In a recent meeting of the American Concrete Institute, Brian Moore of the FMI Institute stated that the future is changing and that there are three factors that will either make or break a construction company in the next ten years.
Teresa Mast, president of Sarasota-Manatee Professional Women in Building (PWB), was surprised when fifty women showed up at the first meeting of the organization last year. Mast, who is also president of her company, the custom building and remodeling Davin Group, has been in the business for twenty-six years, and sees it as her goal to encourage women and girls to pursue work in the construction industry.
While the Habitat for Humanity has long been working to provide good housing at affordable rates, and owners are given a chance to put sweat equity and volunteerism into their work, one worksite in Pittsfield, Massachusetts, has changed their model to not only providing housing, but providing job training.
While budgets are developed with cushions for unexpected pitfalls, there are areas where budgets routinely are overrun. Knowing about these areas ahead of time will help to make better budgetary decisions in the future.
Blockchain, the technology that powers things like bitcoin, is set to revolutionize the way that construction companies, engineering firms, architects, and customers interact. Blockchain is defined as a growing list of records, or blocks, that are connected using cryptography. Each block contains a link to the previous block, a timestamp, and transaction data. It’s a little like communicating on the cloud, but with intense security, and on some serious steroids.
While builders have always sold some of their homes for rental purposes, new reports show that this has increased dramatically—and some homebuilders are becoming the landlords themselves.
From a peak in 2003, golfing across the United States has declined by a whopping 20%. Two hundred courses closed last year alone, and it’s leaving many people to wonder what to do with the empty green space in their neighborhoods—land that was once well-maintained and paid for, but land which has gone out of use.
It is a fact that much of the United States infrastructure is deteriorating rapidly, but the commonly held belief that our spending on such infrastructure has dramatically decreased does not appear to be upheld by the evidence, according to a new report from the Brookings Institute.
Investors are pouring money into construction technology start-ups at a rapidly increasing rate, and it’s making many in the industry stop and take notice.
The National Craft Championship, an organization that gathers competitors from around the country to compete in trades and crafts, recently recognized Clemon Prevost, a senior talent development specialist for Fluor’s U.S. Gulf Coast Craft Training Center in Pasadena, Texas, the 2019 Craft Instructor of the Year. Prevost was honored during the Careers in Construction Awards at ABC Convention 2019 in Long Beach, California.
If you’re contemplating a career in construction, now is a perfect time to explore the industry. The construction industry’s employment outlook is looking promising as the number of jobs within the sector continues...
You may be familiar with agile software methodologies and how they effectively help development teams collaborate and work together to reach a common goal. However, could this methodology work for the...
When is the last time you said thank you to your employees? Studies show it pays off! A recent study conducted by the University of Warwick shows that employees who feel recognized are happier in the workplace...
Employee productivity is a vital metric that workplaces measure to ensure important tasks are getting accomplished. These tasks vary greatly depending on the type of work you are in. In construction, these tasks...
The unemployment rate for construction is down to 4.5%, a rate that sociologists consider to be a healthy rate for any economy, the 4.5% representing the regular shuffling of workers from one job to another. Even at that...
We’ve reported here that productivity in the construction sector is lagging dramatically behind other industries: a recent report wrote that only an average of 1% increased in productivity since the 1960s...
I have found through my personal experience that becoming a professional in life requires special attention to detail. It’s the small things that produce big results. Being a professional and...
I got the itch to write this post after reading a piece in Construction Business Owner called “State of the Industry: Trends and Changing Barriers Your Business Will Face This Year,” by Hank M. Harris. The article...
Only 9% of workers in construction are women, a statistic that is lower than in almost any other industry (for comparison, mining is at 13%, transportation at 23%). And in senior positions, women are even more...