Construction Industry

The construction worker shortage

The construction worker shortage is being taken seriously, and there is a real need for more individuals to train to operate heavy machinery and equipment and also perform the different tasks required in the construction industry.

Associated Builders and Contractors, the construction industry will need to add an additional 650,000 workers on top of its normal growth pace just to keep up with the demand during the year.

According to Census Bureau Job-to-Job flow data, an estimated 1.2 million construction workers left their jobs to go to work in other industries in 2022, but that was offset by 1.3 million workers who left other industries to work in construction.

The Centers for Disease Control (CDC) reported that there has been an 8% decline in the number of construction workers ages 25 to 54 during the last decade. They also report the average retirement age of someone who works in construction is currently 61. More than 1 out of every 5 construction workers is age 55 or older, according to reports.

So, to sum it up, if you are looking for a career that offers stability and job security, training for a career in construction would be a smart move right now. Associated Training Services (ATS) offers a variety of training opportunities, and financial aid is available.

Offering everything from CDL training to rigging and signalperson and crane operator certifications, ATS can help you get your career on the right track.

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Rapid growth seen in virtual construction market

According to recent reports, rapid growth is seen in the virtual construction market. The construction industry continues to adopt various new technologies. Many of those technologies involve virtual design and visualization. These include Building Information Modeling (BIM) to Construction Management Software.

One way to describe the growing use of virtual environments to engineer and visualize the construction of buildings before they are constructed is virtual design and construction (VDC). Virtual environments can readily be accessed by mobile devices, desktop computers and virtual reality and augmented hardware programs.

VDC is beneficial because it is estimated that 30% of all construction industry expenses are because of reworking faulty or incorrect builds. By incorporating VDC, one can reduce these faulty or incorrect builds and determine which approach is the best way to go when building in the physical world.

The most popular VDC tool is BIM because it allows various individuals, including architects, engineers and construction crews to see a virtual model of a structure or building before work commences or while work is underway. That way, any needed changes can be done before work continues or advances.

According to reports, the BIM market is worth $8.1 billion as of 2023 with North America leading the market – holding more than 30% of the current market. The market is continued to grow in the future as more construction companies are seeing the benefits of VDC and BIM and how it can help them with projects of all sizes.

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Nonresidential construction increases

National nonresidential construction spending increased by 1.9% during the month of April, according to a report published by the U.S. Census Bureau that was associated with an analysis conducted by the Associated Builders and Contractors. Non-residential spending totaled $1.05 trillion when seasonally adjusted.

Further data released estimated that construction job openings are expected to increase by at least 68,000 by the end of April. Data was based on the U.S. Bureau of Labor Statistics Job Openings and Job Turnover Survey.

A job opening is any unfilled position that an employer is recruiting for. While job openings have increased this year, they are down by 35,000 openings for the same month last year. Looking toward the reset of the year, many experts expect the number of job openings to continue to climb because construction projects are still in demand, and with infrastructure projects slated throughout the country, there will be more openings for construction workers.

Nonresidential Projects

While residential construction is down, there is still a need for workers to handle nonresidential construction projects. The number of manufacturing construction jobs continue to increase as do the number of nonresidential projects as a whole. Infrastructure jobs also require a number of construction workers  to complete the job.

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Using smart pavement

Smart pavement is now being tested and some experts believe it will be used in the real world in the near future. These are often referred to as “smart roads.” These roads are installed by connecting prefabricated blocks together. Each block has sensors and those sensors detect vehicle traffic. Those sensors can also interact with control centers and emergency command centers as well.

The heavy concrete panels contain sensors that also allow for the charging of electric vehicles. They also can produce fiber optics, and provide fast wireless data communications for autonomous vehicles. They have been proven as sturdy and reliable, able to withstand the repeated traffic of vehicles.

Smart Pavement Software

The panels can be upgraded as far as software goes, so they can work with municipalities regarding traffic control and traffic signal operation. EV charging while on roadways will be similar to the wireless charging of cell phones, according to the product developers at Integrated Roadways.

Construction crews may be looking to install smart pavement in the future, so watch the news for updates about smart road projects. The blocks can be installed in downtown areas and can be used in smaller segments or in larger sections depending on the need and the location.

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Construction gains momentum in 2023

The number of construction starts for 2022 stayed strong at the end of the year, and the new year kicked off strong as well. December rebounded from November to show a 27 percent gain, which is the first monthly to year-end jump shown since 2017. The seasonally adjusted annual rate ended at $1.185 trillion.

Throughout 2022, the construction totals held 15 percent higher than they did during the previous year. While residential starts dropped by 3 percent for the year, non-residential projects saw a 38 percent increase over the previous year.

Manufacturing and infrastructure remain the strengths of the new starts in the construction industry, and as the economy softens and as interest rates continue to rise, manufacturing and infrastructure will remain the strengths and help keep construction booming. The demand for construction workers is expected to continue as well.

Heavy equipment operators, crane operators, and truck drivers are a necessity for these kinds of projects. If you are looking for a career opportunity, now is the ideal time to get the proper training so you can meet the criteria to join a construction crew. Offering job stability, good pay, and good benefits, construction jobs are a great opportunity for those who want a career that will help them attain their personal and career goals.

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Infrastructure Is Booming

According to experts, infrastructure construction and engineering are booming. The Infrastructure and Investment Jobs Act (IIJA) is providing $1 trillion-plus in revenue opportunities for engineering and contractors to take on infrastructure projects.

Experts anticipate infrastructure construction to surpass residential construction as the mainstream of revenue for construction companies with large public investments being made readily available. In the past, there has been an underfunding of infrastructure projects, so there is much catching up to do and this provides states, counties, and towns with the opportunity to develop their infrastructure in a way to benefit their communities and businesses.

The American Society of Civil Engineers has released statistics showing that there is a $2.59 trillion gap in investing in infrastructure during the last decade. That means the current state of infrastructure is lacking and the current funding gives government bodies the opportunity to correct problems and improve infrastructure systems.

Where to get training?

With the increase in infrastructure construction and the IIJA funds, there will be an increased need for qualified construction workers. That means that well-trained construction workers are definitely in demand. Workers who can operate different kinds of heavy equipment as well as those who can handle hand tools are a necessity.

If you have not undergone the proper training, you should consider enrolling in a school that offers extensive training in the construction trade. You need to be trained in all aspects of the trade, including safe operation and OSHA guidelines. Contact us for details about our different construction training programs.

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Trends In Hotel Construction

There have been major changes in the hotel construction process. These changes are because of changing demands of both hotel owners and operators as well as hotel guests. Regardless of whether the construction project is a new construction, a gut renovation, or an expansion, these changes are here to stay. Here are a few of the current popular trends in hotel construction.

  • The 2030 challenge – Which is the American Institute of Architects 2030 Challenge has the aim of limiting or minimizing damage caused when there is a construction project.
  • Sustainability – Build sustainability, so it will last longer and minimize waste and use.
  • Seco-Friendly – Share your sustainability story by constructing around eco-friendly experiences and environmental initiatives while using eco-friendly products when possible.
  • Modular Developments – Modular developments are not as limited anymore, and now, they help push the boundaries further and are used in top-end developments.
  • Planning For Longer Construction Times – Delays are happening. There are supply chain shortages and it is taking longer to get what you need to do the job, so figure in that extra time when giving an estimate for project completion.
  • Use Local Sourcing – Try to get as many materials and things as you can locally, so you limit the travel time and limit the carbon footprint as well.
  • Know Where Materials Come From – Know where the materials are coming from, so you can figure out how long it will take to get them. Also, know if they are in stock or on backorder.

These trends have become part of the norm in the construction industry. What was once predictable is no longer as predictable, and you never know what challenges may be thrown your way, so plan ahead.

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Hawaii’s Clean Energy Efforts

Construction Problems and Increasing Costs Affect

Hawaii has consistently ranked near the top of the list for higher living costs, but the rising costs of living in the state indicate how residents of the state are often subject to the whim of foreign markets, in support of the state’s push toward sustainability.

The only coal-fired energy plant in the state has shut down leading clean air efforts in the state. But the plant closure coincided with higher energy costs. The coal-fired plant had supplied about a fifth of Oahu’s electricity since 1992 but was also the island’s leading source of greenhouse gases.

A bill passed in the state in 2020 aimed at seeing coal energy production banned in the state by 2023 and ensuring the plant did not stay open past its 30-year contract. However, Hawaii remains reliant on other fossil fuels for its energy needs. While closing the coal plant reduced the emissions, the main utility in Oahu relies primarily on imported petroleum.

The U.S. Energy Information Administration reports that Hawaii is more dependent on petroleum than any other state in the U.S. Hawaii had received a portion of its foreign oil from Russia, and the ongoing dispute between Russia and Ukraine, which led to the embargo on oil from Russia has led to sourcing petroleum from other countries and contributed to higher costs.

The need to construct solar-powered farms became evident in Hawaii, but supply chain issues have affected the construction efforts in the state. Permitting and contracting issues have also led to extreme delays that have limited the construction. However, the Mililani Solar Farm did come online during the same time the coal plant was closing.

Without the construction of new solar plants and facilities offering alternate energy sources, Hawaii will remain limited in energy use and will see higher prices. When permits are issued and the materials are available, the need for qualified construction workers will increase.

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Will Higher Interest Rates Affect Building?

The increasing interest rates will have an effect on all purchases. By increasing interest rates, the Fed hopes to slow consumer activity, which has grown faster than the supply chain. That means that prices will increase across the board. The general thinking is that the higher interest rates will make it more expensive to finance everything from credit cards to houses, and businesses.

The increase in home prices and the cost of building supplies, along with the higher interest rates, can increase a monthly mortgage payment by $200 to $300 per month. The demand for housing is much greater than the supply available. That means that there will be a continued need for construction in the housing market.

In some areas of the country, some homebuilders are lowering prices as interest rates increase. Mortgage rates are increasing, with the average interest rate on a 30-year fixed mortgage climbing to 5.5%, Freddie Mac reported. The housing industry has always been sensitive to interest rates, and when borrowing costs increase, demand usually goes down.

In this situation, there is already a shortage of homes, so there is not expected to a major reduction in residential construction projects. Because of this demand, construction companies are expected to continue hiring construction workers for their residential projects.

Associated Training Services (ATS) offers a variety of training programs, including programs beneficial to those in the construction industry, such as heavy equipment operator training and CDL training. To learn more about the training programs available at ATS, call (800) 383-7364.

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On-Site Workflow To Your Construction Site

No construction manager would even attempt to start building the upper floors of a building before its foundation was set. While you may have a lot of flexibility in terms of which areas of the job you want to tackle and when there are certain tasks that must be done before anything else can happen.

How To Improve Your Construction Site

Unfortunately, many job sites become bogged down in delays because the workflows haven’t been properly established and managed. In basic terms, workflow describes the sequence of activities that are needed to get the job done. Without the right processes in place, work can grind to a halt, as crews performing one task must wait for another team to finish a different task.

With that in mind, here are some tips you can use to improve the flow of activity on your site:

  1. Use checklists: It sounds simple, but starting with a standardized list of the tasks you need to get done can make certain jobs — such as equipment maintenance and planning — much easier. A list ensures that nothing will be overlooked and there should be fewer surprises once you get started.
  • Implement automation: Construction software can handle many of the most tedious and menial parts of the planning and scheduling process, often with greater accuracy than humans with pen and paper. These systems are even capable of generating flowcharts, so you can be certain you’ll have an optimized workflow for your team.
  • Find a 3PL partner: Coordinating the delivery of equipment and materials to and from the site is one of the most important and challenging aspects of any project. Working with an experienced third-party logistics provider to handle these steps could not only reduce your workload, but also ensure that you’ll have experts on your side.
  • Improve communications: Perhaps the simplest way to improve your workflow is to make sure the lines of communication stay open within your enterprise. In construction, one of the biggest obstacles to success is when teams don’t keep each other in the loop. Building a solid company culture that values teamwork and transparency could help prevent bottlenecks and redundancies from impacting your work in the field.

It takes more than a blueprint to ensure a successful build. Coordinating and streamlining all the activities on your Jobsite requires a bit of foresight and strong internal practices, but the rewards are often well worth the effort. Paying attention to your workflow and taking some steps to enhance it can make you a stronger organization and lead to better overall results.

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