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The US commercial construction industry is a vital part of the economy, responsible for building and maintaining the infrastructure and buildings that businesses and organizations of all sizes rely on. In 2022, the industry generated over $1.6 trillion in revenue and employed over 7 million people.

However, the commercial construction industry faces a number of challenges, including labor shortages, supply chain disruptions, and rising material costs. Despite these challenges, the industry is expected to grow substantially in the coming years, driven by demand for new and renovated office buildings, shopping malls, healthcare facilities, and other commercial spaces.

Challenges

Labor Shortages

The number one challenge facing the construction industry is a shortage of experienced talent. The industry has been struggling to attract and retain workers for years, and the problem is expected to worsen in the coming years as the workforce ages and more baby boomers retire.

The labor shortage is being driven by a number of factors, including:

A skills gap: The construction industry requires a wide range of skills, from carpentry and plumbing to electrical work and project management. However, many young people are not pursuing careers in the trades, and many existing workers are retiring.

A competitive job market: Construction workers are in high demand across many industries, including manufacturing, energy, and transportation. This makes it difficult for construction companies to attract and retain workers, especially in certain regions.

A negative perception of the industry: The construction industry is often seen as being physically demanding and dangerous, with long hours and low pay. This can make it difficult to attract new workers, especially younger people.

Supply Chain Disruptions

Another major challenge facing the commercial construction industry is supply chain disruptions. The COVID-19 pandemic, the war in Ukraine, and other factors have caused widespread disruptions to the global supply chain, making it difficult and expensive to obtain construction materials.

The supply chain disruptions are impacting the availability and cost of a wide range of materials, including lumber, steel, cement, and glass. This can lead to delays and increased project costs for construction companies.

Rising Material Costs

In addition to supply chain disruptions, the commercial construction industry is also facing rising material costs. This is due to a number of factors, including inflation, increased demand for materials, and higher energy costs.

The rising material costs are putting a strain on construction companies’ margins and making it more challenging to complete projects on time and on budget.

Opportunities

Despite these challenges facing the commercial construction industry, there are also a number of opportunities for growth.

Increasing Demand for Commercial Space

The demand for commercial space is expected to grow in the coming years. This is being driven by a number of factors, including:

The growth of e-commerce: The e-commerce industry continues to grow rapidly, and this drives demand for new warehouse and distribution space.

The aging population: The US population is aging, and this is driving demand for new and renovated healthcare facilities.

The rise of the gig economy: Today, the gig economy is expanding, and this is driving demand for new and renovated coworking spaces and other flexible workspaces.

Growing Trend of Sustainable Construction

There is a growing trend of sustainable construction in the United States. This is being driven by factors such as government incentives, increasing corporate social responsibility initiatives, and consumer demand for sustainable products and services.

The commercial construction industry is well-positioned to capitalize on the growing trend of sustainable construction. By building and renovating commercial buildings that are energy-efficient and environmentally friendly, construction companies can attract and retain customers who are committed to sustainability.

Strategies for Overcoming Challenges and Seizing New Opportunities

To overcome the challenges and seize on the opportunities facing the commercial construction industry, construction companies should focus on the following strategies:

Invest in Technology

Construction companies can use technology to improve efficiency, productivity, and safety. For example, construction companies can use building information modeling (BIM) software to create digital 3D models of their projects. This can help identify and resolve potential problems before construction begins, and it can also help improve communication and coordination between different stakeholders.

Embrace Sustainable Construction

Construction companies should embrace sustainable construction practices to meet the growing demand for sustainable commercial buildings. This includes using sustainable materials, designing energy-efficient buildings, and incorporating renewable energy into projects.

Develop a Strong Workforce

Construction companies need to develop a strong workforce to address the labor shortage. This can be achieved by offering competitive salaries and benefits, providing training and development opportunities, and creating positive work environments.

There is reason to be cautiously optimistic this month. As the economy has slowly started to open up consumer spending has increased. The Wall Street Journal (WSJ) reports today that Americans spending increased by 8.2% in May from a month earlier. “Household spending on long-lasting items like cars, refrigerators, and sofas drove the growth.”

In a separate article in the WSJ, they reported the Federal Reserve found the 33 largest US banks are currently “strong enough to withstand the crisis” but did take the extraordinary step of restricting the size of the dividends and stock repurchases in order to further strengthen their balance sheets. This is a good sign that the financial system will not break down as it did 12 years ago. “The Fed said limiting shareholder payouts would help keep banks healthy during the recession. Its analysis of the current pandemic found that if the economy takes a long time to recover, banks could experience losses similar to the financial crisis of 2008.”

The concern is still the job market. Initial jobless claims decreased slightly this week but it’s still a staggering 1.5 million new claims while the total receiving benefits are 19.5 million. It will be hard for GDP to recover until new hires outpace layoffs. This will be tough to do when states such as Texas reopened most of the economy have had to announce plans to roll back some openings due to a spike in COVID cases. (More on this can be found in this WSJ article.) The fact is that getting the economy opened is going to be hard until we reach herd immunity either through vaccines or natural infection recoveries (Mayo Clinic).

On the positive side, projects that were stalled or delayed are now breaking ground. A good leading indicator of project starts is the Dodge Momentum Index. While it was flat in May, the good news is that it has stopped falling like a rock.

While these economic indicators are important, I believe the most important economic gauge to track is the AIA Billing Index (ABI). Architect and design team inquiries and billings are the leading indicators for construction starts. The ABI has been down for down significantly for 3 months now. That drop off indicates there will be a future drop off in project starts this fall. There is typically a 5-7 month timing delay between a change in the ABI and construction project starts. Construction starts will most likely be depressed for each month that the ABI is depressed.

“Business conditions at architecture firms remained extremely poor for the third consecutive month in May. While the ABI score of 32.0 for the month was somewhat higher than the April score, it still indicates that the majority of firms saw their billings decrease yet again (any score below 50 indicates declining billings). Indicators of future work remained grim as well, and while a larger share of firms reported an increase in inquiries into new projects in May than in April, most firms still saw a decline. In addition, the value of newly signed design contracts remained at a near record-low level, as firms indicated that clients are still extremely hesitant to sign on the dotted line for new work at this time.”

The entire report is short and I encourage everyone to read it. It will be interesting to see what the potential long-term changes in buildings and their design will be in response to future virus threats.

Construction industry is different from other sectors; construction projects are usually large in terms of budget and resources, built on-site, and time-bound. Below we’ll discuss 7 secrets to become a successful construction projection manager-

1. Prepare a work plan

Effective construction project managers (PMs) take a proactive approach from the moment they’re appointed. They define the goals and scope of the project clearly. This gives the team members a clear picture of the milestones, timeline and the objectives of the project.

2. Use technology to monitor the costs

When it comes to budget, good construction project managers have realistic expectations and keep room for unexpected costs. Good Collaborative Work Management (CWM) tool helps them keep track of the finances while coordinating with each member involved.

3.Manage the work plan

It is essential to review the work plan every day to keep a track of the progress in terms of schedule and budget. A successful construction PM determines the activities and updates his/her work plan regularly.

4. Identify the Risks

Project managers are able to foresee the risks and take prior steps to curb them. Even during the project, they conduct a regular risk assessment to determine any potential risks that are to be mitigated.

5. Manage changes

Changes in construction projects are common; they can occur at any stage of the project and if not resolved through a formalized change management process can lead to contract disputes.

6.Promote Teamwork

Good team management is the core of a successful project. A good construction PM maintains a proper flow of teamwork to avoid problems that might result from resentment among team members.

7. Have a clear vision

Even before construction project managers start work, they consider the wider implications of the project. This can be anything from how a particular design affects the cohesion of the building to how to implement environment-friendly policies. A clear vision regarding the project is a money and time saver in the long run.

Are you looking for construction project manager recruiters in the US? Then we’re just a call away. Call us today at 214- 935-3626.

Engineers impact society in a multitude of ways. From roads and bridges to aircraft and software – they build solutions to complex problems. In the words of the UK Institution of Engineers, written in 1828 engineers were to “[direct] the great sources of power in nature for the use and convenience of man”.

“Scientists study the world as it is; engineers create the world that has never been.” – Theodore Von Kármán

Engineers, have, in many ways, developed the modern world with their ability to find answers to the toughest problems, willingness to innovate and make a difference and handle the unexpected.

Over here we discuss 7 traits of successful engineers.

1. Inquisitive

Successful engineers are inquisitive by nature; they ask a lot of questions. They analyze and examine things around them and find ways to make them function better.

2. Detail oriented

An infinitesimally small error can have huge impact on design and construction of a product, which is why great engineers pay attention to details.

3. Good communication skills

Successful engineers are also great communicators. They explain complex details of the project in simpler ways so that there is no room for confusion.

4. Stay abreast of the latest technological developments

From new tools to the latest research findings – successful engineers know what’s happening in their industry.

5. They are highly creative

Creativity is the key to innovation. Successful engineers think outside the box to solve problems that range from simple to most complex.

6. They are Logical

To take an abstract idea or a dream and create something real and usable out of it needs logic. And engineers live by logic.

7. Great Problem Solving skills

Problems can arise at any stage of a project. A seasoned engineer is quick in identifying where the problem stems from and provides a solution to fix it. They’re problem solvers at heart and focus on creating solutions to problems of varying degrees.

Are looking for engineering staffing agencies in Texas or New York? We can help you find the top talent for your company. We focus exclusively on finding management and executive-level candidates for clients in the construction, architecture, engineering, and real estate industries. Call us at 214-935-3626.

The skills that an efficient construction executive must possess are many and varied, covering the whole gamut of human personality. Here we discuss 5 key skills that help construction executives in keeping their projects on track and on budget:

1. They regularly communicate

They communicate regularly with their employees. He/she holds regular meetings and discusses the ongoing processes with the team members. This is essential to keep the team members motivated and informed about the various stages of the project.A survey conducted by Gallup named State of the American Manager
http://www.gallup.com/services/182138/state-american-manager.aspx?utm_source=gbj&utm_medium=copy&utm_campaign=20150408-gbj
found that employee engagement is highest when the managers regularly communicated with the team members. A good construction executive communicates clearly and effectively.

They ensure that each and every team member has a clear understanding of the message. They know how to deliver both good and bad news or any changes in the project. Also, they know what message needs to be delivered to whom and how.

2. Positive Attitude

Construction executives work under high pressure. Unanticipated problems and delays are common in any construction work. However, a construction executive can successfully combat these with a positive attitude. A positive attitude keeps their spirit high, boosts confidence and helps them think clearly.

3. Good Problem Solving skills

Challenges and obstructions are inevitable in any construction project. Anything can go wrong at any point of time. Great construction executives have good problem solving skills that help them adapt to various situations. For instance, construction projects might face problems such as delay in delivery of equipment and materials. Such incidents can delay the work. Superior problem solving skills based on proper re-evaluation of the situation can save the situation.

4. Assessment skills

Good assessment skills help the construction executive gain deeper insights into the nature of work and take care of the technical details. For instance, a construction project has to comply with the building regulations, safety code and other legal requirements. An efficient construction executive has to assess these requirements properly before the work starts so that the project doesn’t face any hurdles later.

5. Team player

A construction project is a team game and a good construction executive understands this. He/she fosters an environment where each member can work together and achieve the goals. Simple words of appreciation to the workers or spending time with them at the construction site can lift up their spirit and motivate them to work hard.

If you are looking for construction executive jobs, we can help. We’re a premier construction executive search and recruiting firm serving the construction, architecture, engineering, and real estate industries. To know how we can help you, call us at 214- 935-3626.

If the Chinese zodiac calendar was flexible, 2015 could well be the Year of the Skyscraper, with ten new buildings over 1,100 feet in height set to open before the end of the year. But innovative designs are being carried out closer to the ground as well. Here’s our handy guide to some of the most interesting buildings slated for completion next year.

Read more here.