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Reshaping the Construction Industry

An astounding 83 percent of construction firms around the nation are having trouble finding enough workers and the numbers in Texas are even worse, according to a new survey conducted by the Associated General Contractors of America.AGC surveyed 1,086 companies in late August and early September and said not only were the vast majority of them struggling to find craft workers, but 61% said the same about recruitment for key professional positions.  Drilling down into the Texas numbers, 90 percent of construction companies faced serious challenges in finding enough craft professionals and half of them are quickly losing workers to other industries.  
Scott Braddock's picture
November 11, 2014
Employment rises in October; spending falls in September; Dodge predicts healthy 2015Editor’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.Sign up now for November 20 AGC/AIA/CMD (formerly Reed) webinar.Nonfarm payroll employment rose by 214,000, seasonally adjusted, in October and 2,804,000 (1.9%) over 12 months, the Bureau of Labor Statistics (BLS) reported last Friday. Construction employment increased by 12,000 for the month and 231,000 (3.9%) over the year to 6,095,000, the highest total since May 2009. Residential construction employment (residential building and specialty trade contractors) climbed by 8,000 for the month and 130,600 (6.0%) for the year. Nonresidential employment (building, specialty trades, and heavy and civil engineering construction) increased by 3,600 in October and 99,800 (2.7%) year-over-year.  
Ken Simonson's picture
November 10, 2014
A recent article in Equipment World called Eyes in the Sky: How drones and UAVs are already affecting construction jobsites is very revealing.  For those of us who built and flew model airplanes in our teen years, this new grown-up sophisticated model aircraft can be fun to fly, but more important, it has already proven its value by flying where no man or woman can go with survey crews, inspection teams, flying over toxic sites, pipelines and even nuclear disasters.The article highlights the various models of drones being experimented with by three different companies.First, Richard Evans of SpawGlass called the “Tinkerer” by the author, because he grew up building and flying model airplanes.  Today he uses drones to inspect and fly construction sites At SpawGlass in Houston.  
Jim Kollaer's picture
November 07, 2014
The following article originally appeared in the November 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.Despite a recent dip in oil prices, Houston continues to hum. The Houston branch of the Federal Reserve Bank does not see an effect from the lower oil prices on the Houston economy, as long as we stay above $75 per barrel and there are no unexpected outages, because there is a shortage of space for any surplus capacity that would need to be stowed during an outage.And, additional good news is the Houston unemployment rate is now below 5% with construction jobs driving the number down.  
Candace Hernandez's picture
November 06, 2014
A recent study by the National Women’s Law Center called Women In Construction: Still Breaking Ground examines the current state of women in construction and finds that the industry is sorely lacking in programs to bring women into the industry and that women continue to suffer harassment and bullying on the jobsite. The study, underwritten by the Ford Foundation, Morningstar Foundation, New Morning Foundation and the Irene B. Wolt Lifetime Trust, states that, “The share of women in construction has remained shockingly low – under 3 percent – for decades due in large part to the discrimination that blocks women from entering and staying in the field.”This is interesting in that the study compares construction to other fields and finds that women’s roles in the other professions have grown to levels of 50% – far outstripping the approximately 3% of women in our industry.  Currently, the report states that, “There are about 7,615,000 male construction workers in the U.S. and only about 206,000 women.”The study shares personal stories of women who are in the industry or were in the industry but left due to the conditions that they were subjected to on a daily basis.  
Jim Kollaer's picture
November 05, 2014
Rowdy behavior on construction jobsites is by no means a new phenomenon.  Any employer who’s been through litigation stemming from sexual or racial harassment on a jobsite is keenly aware of that.  Informing your managers of what to be on the lookout for and what’s completely unacceptable are key.Some of the types of harassment now generating litigation against business owners are changing.  Employers need to know that they can’t simply dismiss claims as frivolous just because the harassment takes on a form they might not have expected.During a recent employment law conference hosted by K&S Insurance Agency in the Dallas area, attorney Daniel Ramirez of Monty & Ramirez LLP told a room full of employers from the construction industry and others about the changing face of harassment on jobsites.  
Scott Braddock's picture
November 04, 2014
More metros add jobs in September; architecture billings rise; retail outlook stays bleakEditor’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.Sign up now for Nov. 20 AGC/AIA/CMD (formerly Reed) webinar.From September 2013 to September 2014, construction employment increased in 236 out of 339 metropolitan areas (including divisions of larger metros) for which BLS reports construction data, declined in 53 and was unchanged in 50, according to an analysis that AGC released last Wednesday. (BLS combines mining and logging with construction in most metros to avoid disclosing data for industries with few firms. Because metro data is not seasonally adjusted, comparisons with months other than September are not meaningful.) Houston-Sugar Land-Baytown added the most construction jobs in the past year (13,500 construction jobs, 7%), followed by the Los Angeles-Long Beach-Glendale division (10,100 construction jobs, 9%) and the Dallas-Plano-Irving division (9,900 combined jobs, 9%). The largest percentage gains occurred in Owensboro, Ky. (33%, 900 combined jobs), Crestview-Fort Walton Beach-Destin, Fla. (26%, 1,000 combined jobs) and Lake Charles, La. (25%, 2,700 construction jobs). Phoenix-Mesa-Glendale again lost the most jobs (-6,900 construction jobs, -7%), followed by the Bethesda-Rockville-Frederick, Md. division (-4,100 combined jobs, -12%).  
Ken Simonson's picture
November 03, 2014
There is currently not enough information available about career opportunities in the construction industry.  This means that educating everybody about our industry is critical, especially our education system.  It is more important than ever for contractors to connect with educators at the local level.  Members of industry can do this by providing opportunities for presentations and field trips and by joining advisory boards to offer input about the knowledge and skills the industry expects from new entrants.In February 2011, Harvard’s Graduate School of Education published a landmark report, Pathways to Prosperity (download available below), which outlined the need for multiple career pathways to be incorporated into America’s education system.  
Diane Greene's picture
October 31, 2014
Many contractors and sub contractors don’t pay much attention to the real estate cycle until it impacts their business and then it gets really personal for them, owners and employees.  When we are in the middle of a recovery and our workload consumes our every waking hour and a few of those sleep hours as well, we rarely step back to take a look at the bigger picture and can overlook major opportunities for business.  We thought that it might make a little sense to take a quick look at the overall market and offer an opportunity that you might want to consider.
Jim Kollaer's picture
October 30, 2014
Covering the panoramic view of Paris, models led by global fashion sensation Jessica Minh Anh will catwalk on the brand new glass floor of the Eiffel Tower at 8am this Friday October 31, 2014.  The highly anticipated J Autumn Fashion Show 2014 will be the first ever catwalk produced on the iconic tower and mark Jessica Minh Anh’s 8th history making showcase at the most symbolic venues in the world, following her phenomenal success atop One World Trade Center earlier this year.Catwalking for the second time on a transparent floor, the first being the Grand Canyon Skywalk at 4000 feet above the Colorado river, Jessica Minh Anh said “I am a big fan of great heights, and seeing the distance from catwalk to the ground is definitely a thrill.”With a vision that goes beyond imagination, the innovative show producer will present a two-tiered outdoor catwalk, which spans over 150 meters across the first floor of the Eiffel Tower, 57 meters above ground level.   
Construction Citizen's picture
October 29, 2014