Trade News

Construction Firms Have Mixed 2024 Outlook, Expecting Positive Demand amid Issues

Construction contractors have a decidedly mixed outlook for 2024, as firms predict transitions in demand for projects, the types of challenges they will face and the technologies, including artificial intelligence, they will embrace, according to survey results the Associated General Contractors of America and Sage released Jan. 4. Amid these changes, contractors are struggling to cope with significant labor shortages, the impacts of higher interest rates and input costs, and a supply chain that, while better, is still far from normal, according to A Construction Market in Transition: The 2024 Construction Hiring and Business Outlook.

“2024 offers a mixed bag for construction contractors: on one hand, demand for many types of projects should continue to expand and firms will continue to invest in the tools they need to be more efficient,” said Stephen E. Sandherr, the association’s chief executive officer. “Meanwhile, they face significant challenges when it comes to finding workers, coping with rising costs and weathering the impacts of higher interest rates.”

The net reading—the percentage of respondents who expect the available dollar value of projects to expand compared to the percentage who expect it to shrink—is positive for 14 of the 17 categories of construction included in the survey, as it was in 2023. However, there is a smaller share than previously that expects the markets they compete in to expand in the coming year. The net reading decreased from the 2023 survey for nine project types, increased for six types and remained unchanged for two.

Specific to the wall and ceiling industry are the readings for hospital construction, with a net of 23 percent, and non-hospital health care facilities, such as clinics and medical labs, with a net of 22 percent.

The largest increase in optimism from the previous survey is for data center construction, with a net positive reading of 20 percent. That is up from 12 percent a year ago. Contractors are optimistic, as well, about the education sector. The net reading is 18 percent for kindergarten-to-12th-grade schools and 15 percent for higher education construction. The net reading for both public buildings and manufacturing construction is 15 percent. The net is 10 percent for warehouses.

There are four market segments for which respondents are closely divided between favorable and unfavorable outlooks or have negative expectations on balance. There is a net positive reading of 4 percent for multifamily residential construction. Expectations are bearish for lodging, with a net negative reading of -3 percent; retail construction, with a net negative reading of -15 percent; and private office construction, with a net negative reading of -24 percent.

“On balance, contractors remain upbeat about the available dollar value of projects to bid on in 2024,” said Ken Simonson, the association’s chief economist. “But the optimism regarding opportunities for most project types is less widespread than it was a year ago.”

Simonson noted that more than two-thirds (69 percent) of the respondents expect to add to their headcount, compared to only 10 percent who expect a decrease. While just under half (47 percent) of firms expect to increase their headcount by 10 percent or less, nearly one-quarter anticipate larger increases.

However, 77 percent of respondents report they are having a hard time filling some or all salaried or hourly craft positions. The majority (55 percent) expects hiring to continue to be hard (35 percent) or become harder (20 percent).

Most firms took steps in 2023 to attract and retain workers. Sixty-three percent increased base pay rates more than in 2022. Additionally, 25 percent of firms provided incentives or bonuses and 24 percent of the firms increased their portion of benefit contributions and/or improved employee benefits.

As in the past two surveys, nearly two-thirds of respondents say projects have been postponed or canceled. Almost equal percentages of firms report projects were postponed or canceled in 2023 and not rescheduled (36 percent of respondents) as report projects were postponed but rescheduled (37 percent). Ten percent have already experienced postponement or cancellation of a project that had been scheduled for the first half of 2024.

Only 23 percent of respondents say they have not had any significant supply chain problems. However, 64 percent noted that rising interest rates or financing costs are one of their biggest concerns for 2024, while 63 percent listed insufficient supply of workers or subcontractors and 62 percent are worried about the likelihood of an economic slowdown/recession. In addition, 58 percent listed rising direct labor costs (pay, benefits and employer taxes), while 56 percent picked worker quality and 54 percent listed materials costs as major concerns for the year.

Officials with Sage noted that construction firms have been seeking ways of adapting to the shortage of skilled workers and improving job site safety and productivity. Nearly 40 percent of firms say they will either increase their investment in drones (26 percent) or make an initial investment (14 percent). Thirty percent of firms will make an initial investment in artificial intelligence (19 percent) or increase their investment (11 percent). And almost 30 percent plan to make more use of off-site production (21 percent) or start to use it (9 percent).

For an outlook into the wall and ceiling industry, visit wconline.com and read our State of the Industry feature from January’s 2024 issue.

Registration Opens for ACI Foundation’s 2024 Technology Forum

The ACI Foundation’s Concrete Innovation Council will host its 2024 Technology Forum on May 14 through 16 in Santa Fe, N.M. The forum is an innovation-focused educational and networking event for concrete professionals.

With a continued concentration on technology showcases and networking opportunities, this year’s forum will feature extended presentation times that allow for deeper discussion of data, technology adoption and open Q&A with attendees. With a maximum attendance of 100 people, the Technology Forum allows for meaningful exchange among the participants.

The forum is your opportunity to connect with representatives from material suppliers, architecture and engineering firms, contractors, academics, industry leadership and regulatory agencies to learn about new methods and materials.

CIC welcomes back Creare LLC and its handheld instant air meter that provides instantaneous, in-situ measurement of both void fraction and specific surface in fresh concrete. The initial prototype demonstration took place at the 2020 Technology Forum in Charleston, S.C. Attendees will learn about the development work and trials that have taken place since then to produce the current handheld model, which is simpler and more reliable than its predecessor. Creare will also discuss the pathway for integrating the technology in the field to allow for frequent monitoring between the plant and job site.

Roberto Torrent, international speaker and director of Materials Advanced Services Ltd. will contribute to the forum. His presentation will pose the following questions: Do you know why concrete durability should be assessed on-site? Do you know how one may go about doing so? Join CIC and learn about kT, a test method that Torrent developed to measure the coefficient of air permeability of concrete by a double-chamber vacuum cell. A standardized method in Switzerland, Japan and Argentina, kT has not yet debuted in the United States. His presentation will compare how kT correlates with other durability lab tests and how to apply the technology in commercial projects.

CIC will also host Marc Jolin, the 2024 Jean-Claude Roumain Innovation in Concrete awardee. Jolin’s presentation will introduce new sensor technology for evaluating concrete rheology. Attendees will also learn about the progress of the Massachusetts Institute of Technology program for the use of artificial intelligence in the concrete industry.

Additional presentations will cover new materials, case studies and how builders and contractors are utilizing innovations, as well as updates from the ACI Centers of Excellence. For detailed information about the Technology Forum, including registration and the full agenda, visit acifoundation.org/technology.

Werner Celebrates Award-Winning Year for Company and Product Innovation

Werner announced that 2023 was a historical year for industry awards for the Werner brand. Recently introduced products, including the Werner ProForm harness and Fiberglass Stepladders, were recognized for their innovation and safety. These and other new products contributed to WernerCo being recognized as a Best Workplace for Innovators from the prestigious Fast Company, a business magazine known for featuring pioneering companies that are positively impacting society.

“We strive to create the most progressive work environment that supports innovation and collaboration at its core,” said Brian Kagen, president of safe access at WernerCo. “We’ve been working on many of these product innovations for years and appreciate the recognition of delivering the best and safest solutions for our customers.”

With a heritage of manufacturing and best practices, WernerCo was recognized for its product leadership and company culture and acknowledged as a preferred supplier of the year. WernerCo and the Werner brand received several awards in 2023, including:

Fast Company recognized WernerCo as a Best Workplace for Innovators. WernerCo was selected based on the company’s innovation in product development, job site safety initiatives and workplace culture.
Occupational Health & Safety honored two new products from Werner in 2023. The annual Industrial Hygiene Awards program honors outstanding product development of health and safety manufacturers whose products improve industrial hygiene and selected the Werner ProForm harness as the best in the ergonomics category.
Occupational Health & Safety also recognized the Werner NXT1A Series Fiberglass Stepladders as an outstanding new product of the year that improves workplace safety and a winner in the high visibility products category.
Construction Equipment featured the Werner ProForm harness as a top new 100 product of 2023. The ProForm harness appeared in the December 2023 issue and was selected for its innovative SwitchPoint technology, which provides simple and fast “Chair in the Air” activation in the event of a fall for professionals working at height. The publication recognized Werner as a manufacturer who is investing in research and development to provide greater productivity, efficiency and safety for its users.
The Hardware & Building Supply Dealer selected the Werner NXT1A Fiberglass Step Ladder as a Golden Hammer Award winner. The award honors the best-of-the-best products of home improvement and will be featured in the March 2024 issue.
NSC Safety Congress & Expo, in partnership with Safety+Health Magazine, awarded the Werner R3 Concrete Anchor as a “Best in Show” in this year’s Product Showcase Awards.
Evergreen Supply Network recognized WernerCo as a preferred manufacturing supplier of the year. In addition to the manufacturing distinction, WernerCo’s Chad Lingerfelt, director of training, job site safety and security, was the recipient of the George A. Sheatz Excellence in Education award.

These awards showcase an outstanding year of results as WernerCo continues the company’s commitment to create, design and launch groundbreaking products that protect the lives and livelihoods of construction and trade professionals.

Great Day Improvements Acquires Home Performance Alliance

Great Day Improvements LLC, a residential home remodeling company, announced that it has acquired Florida-based Home Performance Alliance, a remodeler.

Great Day said its latest acquisition “further diversifies the company’s offerings for consumers and contributes to the company’s continued organic expansion of its current portfolio of brands.”

The company said that it added more than 40 locations during 2023, and its expansion reflects its commitment to providing exceptional home improvement solutions that are suitable for all environments.

For more information, visit greatdayimprovements.com.

OSHA Releases Data Showing Construction Had One of the Highest 2022 Fatality Rates

On Dec. 19, the Occupational Safety and Health Administration released its 2022 data on occupational fatalities, which showed an overall increase of 5.7 percent and that the construction and transportation industries had the highest fatality rates.

OSHA noted with concern that in 2022, the fatality rate among Black workers rose 12.4 percent and the rate for Hispanic workers rose 10.4 percent. OSHA also found that “work-related overdoses and suicides continue to be causes of great concern.”

AISI Updates Standard for the Design of Profiled Steel Diaphragm Panels

The American Iron and Steel Institute has updated AISI S310 (North American Standard for the Design of Profiled Steel Diaphragm Panels). The standard, first published in 2013, provides design provisions for diaphragms consisting of profiled steel panels, which include fluted profiles and cellular panel profiles. The diaphragm may be installed with or without insulation between the panels and supports, and may be supported by materials made of steel, wood or concrete. AISI also published a commentary to accompany the standard.

AISI S310-23 has been reorganized to improve its ease of use. Additional changes include:

The section on standing seam panels has been removed. Information on standing seam panel design is now covered under the section on test-based design.
The sections for double skin panels and the appendix for combined shear and axial loading case have been moved to design examples, which are not included.
The connection strength of panels to steel supports is in accordance with AISI S100 (North American Standard for the Design of Cold-Formed Steel Structural Members).
Test-based design follows the provisions of AISI S100.
Information on the flexibility of connections and connection strength that are not included in AISI S100 have been moved to Appendix 1.
Wood screw connection strength is in accordance with ANSI/NDS (National Design Standard for Wood Construction).

AISI S310-23 is intended for adoption and use in the United States, Canada and Mexico. The standard and its commentary are available to download free of charge at www.aisistandards.org.

The AISI S310 analytical method is based on the Steel Deck Institute’s Diaphragm Design Manual, which is commonly used to determine the strength and stiffness of diaphragms. The standard determines the in-plane strength and stiffness of steel panels with or without concrete fills, and the strength and stiffness of connections in a diaphragm.

ASSA ABLOY Joins Mindful Materials Manufacturers Forum to Expand Building Industry

Mindful Materials announced the launch of three building industry groups, known as The Forums, and ASSA ABLOY is excited to participate. The Forums represent owners and over 80 individuals from more than 40 leading companies across the manufacturing, architecture, design, engineering and construction industries.

The three groups that were formed are the Owners Forum, the AEC Forum and the Manufacturers Forum.

“The Forums are uniquely exciting as an industry initiative because they are designed for cross-collaboration,” said Amy Musanti, director of sustainable building solutions at ASSA ABLOY Opening Solutions, a catalyst member of the Manufacturers Forum. “Each forum will produce individual accomplishments and resources for their sector, but together we’ll be able to solve larger challenges as part of the materials decision flow. It’s about breaking out of our silos to support collective action as an ecosystem.”

Other Manufacturers Forum members include Armstrong World Industries, CertainTeed, Construction Specialties, GAF, Humanscale, Kingspan, Legrand, MAPEI, Mecho, nCompass, Patcraft, Saint-Gobain, Shaw Contract and Superior Essex. These groups offer participants a neutral, precompetitive space to navigate mutual challenges and help accelerate meaningful action by others in the industry.

“These forums are the building industry’s collective opportunity to leverage holistic materials leadership and learnings for the benefit of all,” said Steve Kooy, mM Board Chair. “It’s time to stop redoing work and start aligning to have more impact. Together.”

To learn more about the Forums, visit mindfulmaterials.com/the-forums.