Reshaping the Construction Industry

A recent post by Joe Paduda, principal of Health Strategies Associates, in his blog, Managed Care Matters, titled “Construction Labor Fraud is Screwing Everyone” was the second in his series on labor fraud and the damage it is doing to the insurance industry. In this issue, he interviewed Matt Capece, representative of the General President at the United Brotherhood of Carpenters and Joiners of America, about how bad the worker’s comp problem has become in some key states like Florida, Georgia, Colorado, Oklahoma and Tennessee.Capece said, “When we go onto jobsites in Florida, on 8-9 out of 10 sites we hear from carpenters that they are getting paid in cash.” He indicated that subs and labor brokers in Florida are paying in cash with no overtime or any other benefits like vacation, worker’s comp or training. Usually they are also misclassified as independent contractors as well.   

Contractors are upbeat about 2017 markets; job growth slows as openings soarEditor’s note:  Construction Citizen is proud to partner with AGC America to bring you AGC Chief Economist Ken Simonson's Data DIGest. Check back each week to get Ken's expert analysis of what's happening in our industry.Contractors are optimistic, on balance, about the 2017 outlook for nonresidential and multifamily construction, based on the 1,281 responses to a survey that AGC released on Tuesday. About 46% expect the available dollar volume of projects they compete for in 2017 to be higher than in 2016, while 9% expect the volume to be lower, for a net positive reading of 36%. The net reading was positive for all 13 market segments included in the survey, the net was highest for hospital and retail, warehouse and lodging construction, at 23% each; followed by private office, 20%; manufacturing, 18%; highway and public building, 15% each; higher education, K-12 school and water/sewer, 14% each; multifamily and other transportation, 11% each; power, 10%; and federal construction, 7%.   

On December 20, KBR and the Fort Polk Soldier for Life - Transition Assistance Program (SFL-TAP) celebrated the accomplishments of eight active duty Army soldiers who completed a rigorous, 120-day pipefitting training program. The program was delivered in an industry-education partnership with Central Louisiana Technical Community College (CLTCC) in Leesville, Louisiana. The graduates were awarded National Center for Construction Education and Research (NCCER) Pipefitting course completion certificates and credentials, and every graduating soldier will be offered top helper positions on KBR project sites.On August 16, 2016 KBR launched the training program to train active duty soldiers under the Army’s Career Skills Program (CSP).  Soldiers who are within 180 days of separation have the opportunity to apply and be selected to participate in these competitive, Army-approved, civilian training courses in preparation for their separation from the United States Army. KBR partnered with CLTCC Lamar Salter Campus to host the training location and provide the soldiers with 28 college credit hours.  

Emily Peiffer, the editor over at Construction Dive, recently posted a feature article titled 10 Construction Trends to Watch in 2017. Since hers is one of the first of 2017, I thought that we would share the list and give you the link so that you can take a deeper dive into the list at your leisure. Here is Emily’s provocative list.Collaborative project delivery methods will become more popular.The labor shortage will continue to plague the industry.The feeling of uncertainty will linger under the new administration.Offsite/modular construction will gain a stronger foothold in the market.Construction firms are cautiously optimistic for a future infrastructure-spending boost.