Signals and Signposts

The current and future economy, trends in design and construction, political influence – sometimes we have something to say about topics which may be signs of things to come.

We’ve written and talked about the upcoming worker shortages in skilled trades, managers and estimators in the construction industry, but we have not written about the skills that you need to become a construction estimator.  That is, until now.

Aundraya Ruse, Editorial Coordinator over at Software Advice in Austin sent along a post about construction estimators that outlines those skills and how to get them.  The article, written by freelance writer Tom Zind, states:

“With the pressure on contractors to win not just more business but work that’s profitable, it falls to estimators to get the numbers right. But that’s a big challenge in an environment of volatile materials costs, stiff competition, increasingly tighter margins and shorter bidding windows.

“As such, demand for estimators is only likely to grow. And that translates to opportunities for those with not just the right mix of skills, training and experience, but the up-front knowledge of the forces shaping the market, the educational resources available and potential career pathways.”

The article goes on to quote the Bureau of Labor Statistics (BLS) reports about pending shortages and then goes on to outline a road map for becoming a construction estimator. Read more » about Construction Estimators Take Note

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Click this link to view the entire Kiley Fall Briefing content, including video, presentation materials, and more: Kiley Advisors 2012 Fall Briefing

Pat Kiley, respected construction consultant, former head of AGC Houston and Construction Citizen blogger, recently hosted construction industry executives for an update on what's happening in Houston and around the country.  His company, Kiley Advisors, LLC, conducts custom conferences and other services for construction firms and associations.  His 2012 Fall Briefing was well attended and featured speakers Dan Bellow, Joe Synan and representatives from Kiley Advisors: Candace Hernandez and Pat Kiley himself.  It began with a tribute to Dr. Richard Wainerdi, President and CEO of the Texas Medical Center.

For those who were unable to attend, or for those who were there and want to share the experience with others, Construction Citizen is proud to partner with Kiley Advisors to present it in its entirety.  The following link will take you to a page with videos of each presentation and other content related to the half-day conference held at the Houston offices of Marek Brothers Systems, Inc.: Read more » about Kiley Advisors 2012 Fall Briefing

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The Kiley Advisors 2012 Fall Briefing kicked off with a tribute to Texas Medical Center President and CEO Dr. Richard Wainerdi.  Stan Marek, President and CEO of the Marek Family of Companies, introduced Dr. Wainerdi to the construction executives gathered for the conference.  Dr. Wainerdi talked about the importance of awarding construction contracts to Houston firms instead of bringing in companies from elsewhere to do the work.  “It makes me furious when they go to get somebody in New York when we’ve got great contractors and subs here,” he said. Read more » about A Tribute to Dr. Richard Wainerdi

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At the Kiley Advisors 2012 Fall Briefing, Dan Bellow offered up a comprehensive economic outlook for the Houston construction executives in attendance.

“In Houston, we’re getting white hot again,” Bellow said.  He said the reasons Houston has outperformed the rest of the country are straightforward: there was no overbuilding, the city avoided mass layoffs, there was no housing bubble, and there is a real international focus.  Houston also continues to grow at what some might find an unbelievable pace.  He stated: “In the year 2025, we’re going to be another 2 million people bigger.”

Kiley opened the conference with the following introduction, included in the first of the following videos:

“The purpose of this meeting every year is to try to inform your thinking as you start your strategic planning.  The narrow purpose of our firm – and we are about as narrowly niched a company as you could be – we work exclusively in the commercial construction segment, for general and specialty contractors, and also for their trade associations.  Our narrow purpose is to support CEO’s, Senior Executives, with their strategy and leadership portfolio.  Read more » about Houston Real Estate Update with Dan Bellow, with Kiley Preview

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Kiley Advisors 2012 Fall Briefing attendees received a comprehensive update on what's happening in construction from Pat Kiley himself and the co-founder of his firm, Candace Hernandez.  Kiley told the crowd of executives that the economy is getting ready to really take off once again.  “We are pretty much bouncing on the bottom, for the size of an economy that we are,” Kiley said.  He stressed the importance of creating a sustainable workforce.  “By working with vehicles like Construction Citizen and the Construction Career Collaborative (C3), we can reclaim our workforce,” he said.

Hernandez, a breakout star of the conference, stressed that companies that are successful going forward will be the ones that can maintain consistency and simplicity at their core. Read more » about Construction Market Outlook and Strategic Thinking Tools with Pat Kiley and Candace Hernandez

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Kiley Advisors 2012 Fall Briefing wrapped up with Joe Synan challenging executives on how to keep their companies in balance using “The McKinsey 7”.  The seven S's are Superordinate Goals, Strategy, Structure, Systems, Style, “Staffing”, and Skills.  Synan stated:

“An effective organization is not necessarily the one that has the best strategies or skill set.  The best organization is the one that has the most balance.”

He said companies need to identify why they are in the markets they are in and not take for granted they'll always be in those markets. Read more » about The McKinsey “7”: A Strategic Analytical Framework with Joe Synan

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Pat Kiley’s closing remarks:

“Our purpose this morning was simply to say that I think we are on the cusp of change; that we can break our strategic mindset of “just surviving” to how do we start growing again, thriving again.  Maybe there’s the opportunity in the next 3 to 5 years (maybe sooner) to begin to rebuild back the return on risk that ought to be available to companies in this industry. 

“And there certainly is not only the opportunity, but the obligation, if we’re going to stay around, to return construction craftwork as an honorable career. 

“We’re going to be competing with the energy companies.  If manufacturing picks up – and shale gas will probably permit it to be back in the United States – we’re going to be competing with – we want people “good with their head and hands” just like everybody else.  So, we’ve got big challenges.  I think one of the things pointed out is that “share of market” is meaningless in the grand scheme of things.  It’s “share of margin”, Read more » about Kiley Advisors 2012 Fall Briefing Conclusion

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We're not completely out of the woods, but a survey of Associated General Contractors of America (AGC) members shows they're confident that 2013 will be a better year than 2012.

Tricia Lynn Silva reports in the San Antonio Business Journal that builders in Texas expect to see business pick up in some key areas: “hospitals, higher-education, retail, warehouse, lodging and private-office construction”.  Contractors think things will stay about the same for work like highway projects and manufacturing.

The survey, conducted by the AGC of America and Computer Guidance Corporation, is called “Tentative Signs of a Recovery: The 2013 Construction Hiring and Business Outlook”.  The AGC website breaks down the results of the survey by states, including the numbers for Texas.

The San Antonio Business Journal article quotes AGC of America CEO Stephen Sandherr as saying Read more » about 2013 Looks Promising for Contractors

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The employment figures for December 2012 released last Friday by the Bureau of Labor Statistics (BLS) stated that:

“Nonfarm payroll employment rose by 155,000 in December, and the unemployment rate was unchanged at 7.8 percent.  Employment increased in health care, food services and drinking places, construction, and manufacturing.”

Following a loss of 10,000 construction jobs in November, this is really good news.  According to the press release:

“Construction added 30,000 jobs in December, led by employment increases in construction of buildings (+13,000) and in residential specialty trade contractors (+12,000).”

It will be interesting to see what the impact of the Fiscal Cliff and the general uncertainty will have on hiring plans for the Spring.  With the latest round of construction starts and the loosening of some financing, it could be a strong spring season for our industry. Read more » about Construction Jobs Jump

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Builders around the state will be paying extra close attention to developments in Austin as the 83rd Texas Legislature gavels into session later this month.  One of the industry's top concerns is the growing problem of worker misclassfication, also known as payroll fraud.

In the legislature's last session two years ago, a payroll fraud proposal from State Representative Joe Deshotel, D-Port Arthur, was unsuccessful, and labor leaders have been pushing for a solution for more than a decade only to consistently see their efforts fail.  But, the economic and political landscape has changed dramatically in just the last two years.

The trend we've noticed in our reporting at Construction Citizen is that this is no longer seen as a liberal or progressive cause.  More and more conservative republicans are now pushing to deal with misclassification because they see it as a rule of law issue.   Read more » about Payroll Fraud Crackdown Looms in Texas in 2013

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