Brendan Bechtel, new Chief Executive of Bechtel, one of the largest global construction companies in the world, recently made a speech to the Construction Industry Institute conference in National Harbor, Maryland in which he said, “Our house is on fire.” This was according to an editorial in Engineering News Record. Bechtel continued, “If we don’t address (the various problems), we may cease to exist as an industry…”Sounds dire to me, how about you? What he was talking about was the current state of megaprojects (budgets of US $1billion and above) and the claims that “98% of all of those projects experience cost overruns or delays..the average cost increase is 80% and the average schedule slippage is 20 months.”
Reshaping the Construction Industry
ABC Greater Houston Celebrates Safety Award Winners during Membership BreakfastAssociated Builders and Contractors (ABC) of Greater Houston honored a record of 79 member companies for receiving the Safety Training and Evaluation Process (STEP) Award.“I believe ABC members are an exceptional group. Their commitment to providing excellent service is only enhanced by their commitment to a safe working environment,” Russell Hamley, President of ABC Greater Houston Chapter, said.Established in 1989 by the ABC National Environment, Health & Safety (EH&S) Committee, the Safety Training and Evaluation Process (STEP) program was developed and written by contractors, for contractors.Awards are based on data submitted via STEP applications, essay questions and video interviews with company Presidents/CEOs/Principals about their corporate safety culture.
September 19, 2016
The folks over at the website “BuiltWorlds” point out that well before the Great Recession began – causing various shifts across the construction industry – there was already a lack of craft professionals with various skills.Among others, the authors spoke to Brian Turmail, senior executive director at the Associated General Contractors of America:For years, the nation had been undergoing a cultural shift, he explains, where society had come to discourage children from blue-collar careers. "More and more parents, high schools, even the government, began placing increasing emphasis on high school students to pursue college educations rather than vocational and technical educations in fields like construction,” says Turmail.
September 16, 2016
The MahaNakhon Tower in Bangkok, Thailand looks incomplete, but the eye-catching pixelated look of the 77-story mixed-use building is designed to represent the changing and growing nature of the city below.
September 15, 2016
Job openings rise in July; Dodge sees more projects ahead; surveys vary on cost trendsEditor’s note: Construction Citizen is proud to partner with AGC Americato 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.There were 214,000 construction industryjob openings, seasonally adjusted, at the end of July, BLS reported on Wednesday in its monthly Job Openings and Labor Turnover Survey (JOLTS). Openings amounted to 3.1% of combined employment plus openings. Both figures were the highest for July since 2006. In contrast, the 334,000 hires in July, seasonally adjusted, and the hiring rate (5.0% of monthly employment) were in line with monthly levels over the past eight years. Together, the near-record openings and trendless hiring pattern are consistent with the results of a survey AGC released on August 31 in which 69% of the 1,459 responding contractors reported difficulty filling craft positions. The number and rate of layoffs and discharges in August, seasonally adjusted, are near the lowest levels in the 16-year history of the JOLTS data, suggesting contractors are trying to hold onto workers, a possible indication that they have a backlog of projects to complete.
September 14, 2016
Those who supply equipment for the construction industry are renewing their call for lawmakers on both sides of the aisle in Washington to briefly put down their partisan swords and come together to address the skilled labor shortage in America.In a letter to Republicans and Democrats alike, Associated Equipment Distributors President and CEO Brian McGuire asked the “House and Senate to complete work on both Carl D. Perkins Act re-authorization legislation and the Water Resources Development Act (WRDA) before the end of the year.”The Perkins act is aimed at increasing the quality of technical education in the United States. The Water Resources Development Act would authorize 25 Army Corps of Engineers projects across 17 states.
September 13, 2016
Hi there. The Chamberlin Man here.Hello there. I have a question for all you property managers and facilities managers out there. Do you think you could benefit from a little knowledge in the area of property asset management? If you’re a certified Real Property Administrator (RPA®), Facilities Management Administrator (FMA®) or Systems Maintenance Administrator (SMA®), perhaps you’re looking for continuing education credit to maintain your professional designation’s active status? Then have we got some exciting news!
September 12, 2016
Contractors again report difficulty filling jobs; employment, spending rise less steadilyEditor’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.Filling craft positions and some salaried positions remains a challenge for contractors, according to participants in AGC's 2016 Workforce Survey, though slightly less so than in 2015. More than two-thirds (69%) of the 1,459 respondents stated they were having a hard time filling some hourly craft positions, AGC reported on August 31. In addition, 38% said they were having a hard time filling some salaried field positions; 33%, salaried office positions; and 15%, hourly office positions, while 8% reported no trouble filling any positions and 9% had no openings to fill.
September 09, 2016
The agreement allows federal officials to share their data and knowledge with North Carolina officials, much as they have with 32 other states working to combat misclassification.
September 08, 2016
The following article originally appeared in the September newsletter to clients of Kiley Advisors, LLC for the purpose of providing the latest leading indicators and industry issues to those clients. Reprinted with permission.The latest City of Houston permit data provided the local newspapers with headlines announcing that commercial construction was up 40% while residential construction floundered. However, upon closer inspection, the increase in the value of new permits is a direct result of medical, school and public work construction projects, while nearly all other sectors are relatively flat or slightly down compared to a year ago. Also trending is an increasing amount of renovation work versus the new construction, a trend likely to continue in the months ahead.The drop in residential permits isn’t as bad as suggested either. Builders are finding creative ways to offer homes in a lower price range. Metrostudy is projecting housing starts will end up down about 14% this year when compared to a year ago, but that drops Houston from the largest new home volume market nationally to the second largest, behind Dallas-Ft Worth.
September 07, 2016