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Our colleagues at Construction Dive recently reported on the 10 Construction industry trends to watch in 2016. They reference a Dodge Analytics 2016 report that “predicted 6% growth, with the value of construction starts reaching an estimated $712 billion.” That is great news for the industry for 2016.The Construction Industry usually gets a late start in the economic recovery and fortunately it has a “long tail” since it is hard to stop construction once the building has begun. We have a hunch that we are entering the long tail in commercial construction as many of the indicators show a slow down in the front or design end of the business.Construction Dive offers up the major trends to watch for 2016. Top on the list is a continued labor shortage of skilled workers. This has been widely reported and is the result of workers leaving the industry in the 2009 recession, retirements and a high demand in the industrial sector.
Reshaping the Construction Industry
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The following article originally appeared in the January newsletter to clients of Kiley Advisors, LLC. Reprinted with permission.The phrase “company culture” appears regularly in business literature. Senior leaders regularly use it too, and acknowledge the importance of having a strong company culture. But it is worthwhile, as this new and more challenging year begins, to examine the meaning of these words and the actions they mandate.Google the phrase and you will find many helpful definitions. Synthesizing, they all contain statements that company cultures flow from the beliefs, values and attitudes of the owners and leaders that result in consistent behaviors toward each other and all company team members toward customers, toward businesses partners and toward their industry and community.
January 25, 2016
Success.What do you define as success? Is it getting that title of management? That promotion that makes you feel like you have reached the top of the mountain? Or is it making enough money to have your family live comfortably? Not having to worry about the necessities in life such as utilities being paid or having a roof over your head? Whatever your definition of success is, the question arises, “Are you set up for success?” Have you put yourself in a position to reach your goals? Some people will tell you that you are lucky, but, in reality, one has to put in the work to be successful.So, how does this tie in to your career? Whether you are in a steady job, or in between jobs, or just trying to get your foot in the door, success is not an accident.
January 22, 2016
The News and Observer in Raleigh offers an in-depth look at two problems: lack of workers' compensation and worker misclassification.
January 21, 2016
Click on image to view more information.Input PPIs plunge in 2015; completed structure and subcontractor indexes rise diverselyEditor’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.The producer price index (PPI) for final demand in December decreased 0.4% from November on a not-seasonally-adjusted basis (-0.2%, seasonally adjusted) and 1.0% from December 2014, the Bureau of Labor Statistics (BLS) reported Friday. AGC posted tables and an explanation focusing on construction prices and costs. Final demand includes goods, services and five types of nonresidential buildings that BLS says make up 34% of total construction. The PPI for final demand construction, not seasonally adjusted, decreased 0.1% for the month and increased 1.8% for the year, following increases of 2.2% in 2014 and 3.2% in 2013.
January 20, 2016
In light of the projected sale of upwards of one million drones over the 2015 Christmas sales season, the Federal Aviation Administration (FAA) has issued its registration and labeling rules. These rules went into effect on December 21, 2015 for all drones that weigh over .55 lbs. and less than 55 lbs. This includes those classified as toys, model drones, etc. The registration can be accomplished online, and the registrant must be 13 years of age.There are separate rules for drones that exceed the weight restrictions or are to be used for commercial purposes.
January 19, 2016
WASHINGTON, D.C. - The U.S. construction industry showed robust growth at the end of 2015, adding 45,000 net new jobs in December and 128,000 during the fourth quarter according to analysis of last week's employment release from the U.S. Bureau of Labor Statistics by Associated Builders and Contractors (ABC). The construction industry's nonresidential component added 16,400 net new jobs in December while the residential sector accounted for 23,100 and the heavy and civil engineering sector contributed 4,800."Many contractors continue to report strong backlog, indicating that nonresidential construction spending will remain a key economic driver in 2016," said ABC Chief Economist Anirban Basu.
January 18, 2016
The US has lifted its 40-year ban on oil and gas exports. Read more about what this means for the construction industry in the Gulf Coast.
January 15, 2016
AIG may be considering having those they cover for workers’ compensation wear devices that record movement in order to reduce on-the-job injuries.
January 14, 2016
Click on image to view more information.Construction ends 2015 with job gains; two market trackers say projects are delayedEditor’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.Nonfarm payroll employment increased by 292,000 in December, seasonally adjusted, and by 2,650,000 (1.9%) for the year, while the unemployment rate held steady at a 7-1/2 year low of 5.0%, the Bureau of Labor Statistics (BLS) reported Monday. Construction employment rose by 45,000 for the month (to 6,538,000) and by 263,000 (4.2%) over 12 months.
January 13, 2016
