Construction Industry Spends $1.6B to Train, Upskill Workers

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By Gigi Wood | Originally posted on forconstructionpros.com

ABC released its 2024 Workforce Development Survey, which found its member contractors invested $1.6 billion to provide craft, leadership and health and safety education to more than 1.3 million course attendees.

Associated Builders and Contractors (ABC) released its 2024 Workforce Development Survey, which found its member contractors invested $1.6 billion to provide craft, leadership and health and safety education to workers in the industry.

The number is up from $1.5 billion in 2022 and on track with $1.6 billion spent in 2021.

The investment amount is important as the construction industry is in need of more than half a million additional construction workers in 2024.

Key takeaways:

  • Safety education accounts for the greatest share of total workforce investment at 59%, which has remained stable since 2022.
  • ABC contractors invested an average of 7.5% of payroll on workforce development in 2023, slightly down from 8% in 2022.
  • Trade and specialty contractors continued to increase their share of the total workforce development investment, which grew to 50% in 2023 from 42% in 2022.
  • 58% of respondents reported a labor shortage that is severe or very severe, citing an exodus of baby boomers as the top contributor.
  • 81% of respondents who utilize virtual or augmented reality used it for safety education.
  • ABC’s approach to upskilling has produced a network of more than 800 apprenticeship, craft, health and safety and management education programs, including more than 450 government-registered apprenticeship programs across 20 different occupations.
  • ABC chapters also have 328 entry-point programs in place nationally to welcome all to begin a career in construction.
  • Members contribute about $500,000 annually to ABC’s Trimmer Construction Education Fund to support the development of a skilled, safe and sustainable workforce through grants awarded to its chapters.
  • Industry consulting firm FMI conducted the 2024 Workforce Development Survey from Jan. 4 to May 20, 2024. Aggregated data was derived by calculating the average amount spent on education by each respondent and multiplying that by the total number of ABC contractor members.

“ABC member contractors not only build and rebuild structures with excellence, but they also help build lifelong, durable, transferable skill sets for their employees by investing billions to cultivate their career progression in commercial and industrial construction,” said Greg Sizemore, ABC’s vice president of health, safety, environment and workforce development.

Construction workers are dying by suicide at an alarming rate

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By Shannon Pettypiece | Originally posted on nbcnews.com

The construction industry has one of the highest suicide rates among professions, with an estimated 6,000 construction workers dying by suicide in 2022.

In a swath of Arizona desert that will soon be home to a multibillion-dollar semiconductor plant, Justin Azbill stood before thousands of construction workers and told the story of the day he almost took his life.

Pressure had been building on Azbill for months at his job as safety director for a large Boston construction firm during the height of the pandemic. Sleep-deprived and overwhelmed, Azbill said he packed a lethal means to harm himself in his lunch sack.

But as he was preparing to leave for work that morning, his daughter asked him to stay home with her that day. He did and the day provided a moment of clarity for Azbill, who then sought out help from a friend.

Azbill, who got his start in construction as an ironworker, has been traveling to construction sites across the country sharing his story as he and others in the industry race to address what they say is an epidemic of suicide among their colleagues — many of whom are under increasing strain amid a nationwide construction boom and a shortage of workers.

“In the construction industry, we’ve generationally been taught that if you talk to someone about a weakness or you’re struggling then you’re weak and you won’t get hired,” said Azbill. “One of the reasons I talk about it so freely is so people know that it’s normal and it’s OK.”

The construction industry has one of the highest suicide rates among professions — with the rate among male construction workers 75% higher than men in the general population, according to the Centers for Disease Control and Prevention. An estimated 6,000 construction workers by suicide in 2022, an increase from 2021, according to the most recent data available. That compares to around 1,000 who died from a construction work-related injury.

“When you’re more likely to be killed by your own hands than to get killed in a jobsite accident, that’s a crisis in our industry,” said Brian Turmail, vice president of public affairs and workforce for the Associated General Contractors of America. “We know pretty much what needs to happen to protect people physically. We’re figuring out how to protect people mentally.”

While construction wages are up and jobs are plentiful, those in the industry fear that the pressures on their workers’ mental health are only getting worse. A recent surge in construction projects, spurred by billions of federal dollars for infrastructure, clean energy and semiconductor projects have put increasing strain on an already stretched workforce.

As a result, workers are putting in more than 10-hour days in harsh weather conditions, facing high-pressure deadlines and having to spend months away from home living in hotels, temporary workforce housing or their vehicles. There is also the risk of workplace injuries and a higher rate of opioid misuse along with the general financial instability of hourly work.

“There’s a lot that goes into how stressful it is, not just physically, but mentally and psychologically,” said Josh Vitale, a superintendent for Hoffman Construction, the general contractor overseeing the Intel Arizona project where Azbill recently spoke. “I think progress is fantastic, but we have to realize that we are legitimately wringing the life out of people.”

One of the biggest building booms is being driven by the semiconductor industry. Companies are planning to spend $450 billion on 80 new semiconductor manufacturing projects in 25 states as part of a nationwide push led by the Biden administration to increase U.S. manufacturing of high-tech chips that go into everything from cars to military equipment, according to the Semiconductor Industry Association.

In Arizona, workers building the $20 billion Intel facility typically work two 60-hour weeks followed by a 50-hour week for months at a time in the hot Arizona weather with no paid vacation time, said Vitale. Because of a shortage of local workers, many are coming in from out of state, leaving behind friends and family and living for months or years in hotels or temporary housing.

For Azbill, a number of factors came together in a matter of months that pushed him to a place where he was close to ending his own life.

Azbill had spent decades working his way up the ranks of the construction industry, and when the pandemic hit, he was thrust into the role of Covid czar, working in an emotionally challenging and negative environment as his company tried to navigate the pandemic on its worksites, he said.

“I was working 19-hour days, and then I couldn’t sleep at night. Try that for six months and see where someone would be,” he said. “You start seeing everything negatively, there is this darkness. I was crying myself to sleep.”

At home, his relationship with his wife and daughter was fraying because for months he had barely been around, but he worried that if he cut back his hours at work he would let his family down financially, he said.

“At the time, I didn’t think that my wife or my daughter really cared for me because for six months I was angry all the time, they were cautious being around me, they didn’t want to cause more problems for me,” Azbill said.

After about six months, Azbill said he hit a breaking point. There was a Covid outbreak on a jobsite after some workers weren’t following safety protocols. The incident angered him in a way he’d never experienced. He said he blacked out and started having thoughts of suicide. He knew something was wrong so he went home to try to get some sleep.

He woke up at 2:30 a.m. the next morning and decided he was going to take his own life. He wrote three goodbye letters: one to his mother, one to his wife and one to his daughter.

“Before I left, I said, ‘Goodbye. I’m going to work, I love you guys,’” he said.

Then, his 8-year-old daughter, who was doing remote school, came running out of her room.

“She says, ‘Papa, Papa,’ and anytime she calls me Papa she steals my heart. It’s also her way of saying she loves me,” Azbill said. “I think she knew I was struggling bad, and I was her best friend. She said, ‘Papa, I love you, spend time with me, I don’t like my teacher and I don’t like school, can you spend time with me today?’ And so I did.”

Azbill stayed home from work that day and watched his daughter.

In the afternoon, he got on a weekly Zoom call with dozens of other safety professionals in the industry. Near the end of the call, one of the participants began crying, talking about losing one of his best friends to Covid and shared how he was struggling with the loss.

“I call that my clarity moment. It completely changed my mindset,” he said. “I realized I can’t do that. I’m not going to do what I was thinking.”

After the Zoom meeting, Azbill called a friend and shared that he was struggling. His friend told him how important he was to those in his life and that people are grateful for all he does. That phone call, he said, helped save his life.

At the Intel project, the site’s general contractor, Hoffman Construction, has tried to tackle the risk of suicide in a number of ways across its worksites after the company lost two of its supervisors to suicide over the past several years, said Vitale. Intel doesn’t employ any of the construction workers on the site or have direct involvement in the construction process.

The company has created community center-style spaces on its worksites where workers can have some personal space, attend a substance misuse meeting or talk with a peer who can help connect them to mental health resources. It also started including discussions about mental health in its regular staff meetings.

“It would be rare to find someone in the industry who hasn’t known a person that has taken their life within the last year or two,” said Vitale. “As an industry, we just keep putting more and more pressure on the worker to outperform what they’ve done before, and at some point it’s just untenable.”

Vitale has gotten involved in a number of efforts to reduce suicides in the industry after he struggled with his own mental health crisis after the loss of his baby, he said. Several times a week, he said, he is involved in a suicide intervention at the Arizona jobsite and has counseled dozens of colleagues thinking about hurting themselves, like a young carpenter he’s been talking to recently who is struggling with the loss of his mother and grandmother.

But even with those efforts, the worksite hasn’t been immune from loss — an employee for one of the project’s contractors recently died by suicide at home over the weekend.

Alarm bells about the high rate of suicide started going off in the construction industry in 2016 when a CDC report showed construction workers had one of the highest rates of suicide by profession, leading various industry groups to start looking for solutions. For every 100,000 male construction workers, 56 died by suicide in 2022, according to CDC data. That compared to 32 suicide deaths per 100,000 men in the general population. Males have a significantly greater rate of suicide than females.

A key focus for the industry has been trying to tackle the taboo nature of talking about mental health and seeking treatment. Industry organizations have been using everything from PSA-style videos and worksite talks to stickers, poker chips and magnets plastered around job sites informing workers of the 988 Suicide and Crisis Lifeline. Groups have also been creating resources like worksite talks and suicide prevention training courses to help guide employers in how to talk about mental health with their employees.

Construction firm Bechtel said earlier this year that it would spent $7 million toward an effort with the American Foundation for Suicide Prevention to reach 500,000 construction workers with industry-specific mental health programs.

Shannon Niles, safety director for construction firm Paric Corp., said he experienced the mental toll the job can take firsthand after witnessing a co-worker die on a jobsite when a trench collapsed on him. Niles tried to dig the man out but was unable to save him. He said he bottled up the trauma of the incident, becoming angrier and more withdrawn and drinking heavily until his family intervened and urged him to get help.

But Niles said there is an industry culture that discourages many from asking for help and a fear that showing any perceived weakness could jeopardize their job prospects.

“Construction workers think they’re so big and bad, that they don’t ever need any help. But we’ve got to realize we’re all human beings, and we all need help at some point,” Niles said.

Giving added urgency to the issue is an industrywide shortage of workers. At the start of 2024, the construction industry needed an additional 500,000 workers on top of the normal pace of hiring to meet the expected demand, according to Associated Builders and Contractors.

“You spend a couple-hundred-thousand dollars to train a superintendent for 20 years, and you’re going to throw them out the door now because they have a mental health problem or substance abuse?” said Mike Pugh, who oversees safety for DPR Construction. “They’re finding financially it’s not viable, it doesn’t pay any more to ignore and separate these issues because we don’t have anybody to replace them because there’s a worker shortage.”

It’s a stark change from when Pugh was facing his own mental health struggles more than two decades ago. Pugh said he began a downward spiral with drug and alcohol addiction following several traumatic deaths in his family. At the time, he was working in a high-level position for an HVAC company that worked on large-scale commercial construction projects.

“My bosses are watching me circle the drain and nobody’s really saying anything,” Pugh said. “As men, we’re taught to take care of your stuff, take care of your family. When you’re unable to do that you feel even more shame and guilt and it just all piles on until I just kind of snapped and couldn’t do it anymore.”

Ultimately, it was his brother who urged him to get help, and he has been in recovery for 25 years. Like Azbill, he now travels the country talking at worksites about the need for a culture change in the industry.

He thinks the message is starting to get through. Recently, he was at a jobsite in California where he had spoken about a year ago. While talking with the site’s safety manager, a laborer approached him and pulled him aside so no one would see them talking.

“He tells me, ‘Sir, after your talk last year, I went home and told my wife for the first time about my drinking, and I’ve been sober for five months,’” Pugh said. “We both started crying and hugging.”

If you or someone you know is in crisis, call 988 to reach the Suicide and Crisis Lifeline. You can also call the network, previously known as the National Suicide Prevention Lifeline, at 800-273-8255, text HOME to 741741 or visit SpeakingOfSuicide.com/resources for additional resources.

Mayor Tom Henry | Facebook WebsiteMayor Tom Henry | Facebook Website

Fort Wayne Community Schools donates bus for use at city’s Safety Village

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By Ft Wayne Times | Originally posted on ftwaynetimes.com

Fort Wayne Community Schools (FWCS) donated a school bus to the Fort Wayne Fire Department (FWFD) and the Fort Wayne Police Department (FWPD) today. The bus will be used at the Safety Village to educate students on how to evacuate a bus safely during emergencies such as fires or accidents.

The Safety Village, located at 1270 S. Phoenix Parkway, integrates police and fire safety educational curriculums in one location. This 3.7-acre complex is noted as the largest of its kind in the country. Established in 1991, it features 30 miniature buildings and a downtown area with 16 structures.

Programs offered at the Safety Village include both classroom and field activities and are free of charge for all area public and private schools. During the school year, FWPD offers safety programs focusing on pedestrian safety and stranger awareness for kindergarten-aged children. FWFD primarily instructs third-grade students and other special interest groups on how to escape from burning homes.

“The Fort Wayne Fire Department has a long history of partnership with Fort Wayne Community Schools and educating our community’s youth about fire safety,” said Fire Chief Eric Lahey. “We’re excited about this opportunity to expand our programming at Safety Village and about the new ways in which this long-standing partnership will continue to grow. With the donation of this school bus, we can educate the thousands of children who come through Safety Village each year about safely evacuating a school bus during an emergency.”

“The FWPD is grateful to FWCS for donating such a valuable piece of equipment to help us teach safety to kids,” said Police Chief Scott Caudill. “It’s partnerships like these that make our community safer and a great place to live.”

The Survive Alive House, also part of the Safety Village, uses advanced special effects to simulate an actual house fire without any real danger. During summer, programs are available for the general public including families, scouting groups, neighborhood associations, home-school groups, businesses, among others. Tours can be scheduled by contacting the Fort Wayne Fire Department Safety Education Division at 260-427-1483 or 260-427-5179.

More information about the Safety Village and Survive Alive House reveals its origins following a tragic house fire in 1979 that claimed four children’s lives. The local Parent Teacher’s Association (PTA), partnering with FWFD, promoted smoke detectors as essential safety devices leading to no fire deaths in Fort Wayne in subsequent years.

Following successful local campaigns, state-level efforts ensued involving Indiana City Fire Departments from Mishawaka, Hammond, Valparaiso constructing Survive Alive Houses first. In 1988, Officer Don Wismer secured land from Southtown Mall for building a new Safety Village replacing an older version downtown.

Efforts culminated after forming a fundraising committee comprising FWFD, FWPD, local PTA alongside City officials raising nearly $100K—majorly contributed by Associated Builders and Contractors Inc.—for constructing Survive Alive House opening alongside newly built Safety Village after four years without public funds involved.

Heavy Equipment Sticker Shock? What Can Contractors Do?

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By Dennis Howard | Originally posted on forconstructionpros.com

This column offers advice about adjusting to higher sticker prices on most types of equipment.

Whether you’re browsing construction equipment on the lot or food in your local grocery store, there’s a good chance you’ve done a double-take at prices within the last year. Unfortunately, construction equipment has not been immune to the heavy toll of inflation. Overall, equipment prices are up as much as 30% when compared to 2020 according to Associated Builders and Contractors.

With prices across the U.S. increasing, the risk of sticker shock is running rampant. Industry veterans like me have experienced price increases but nothing like this. We are accustomed to the ups and downs of the market, and in times like this, we need to lean on tried-and-true tactics to pad against the sting of higher prices.

Before we go on the defensive against rising prices, keep in mind that there’s a silver lining in all of this. According to the Association of General Contractors, construction demand continues to be strong in infrastructure and power projects. Other private sector construction is rising with more new homes and large commercial buildings like hospitals and data centers being built.

However, more demand and increasing equipment and input costs can still make for a balance sheet full of snarls. Contractors and equipment professionals must remove their rose-colored glasses and return to basic practices to protect profit and keep their business in the black. One of your biggest allies with things getting tricky is always going to be your equipment dealer. This installment of “Dennis in the Dirt” examines a few ways you and they can partner to navigate this season’s higher prices.

Extend Existing Equipment’s Lifespan

It’s simple: a regular service schedule protects investments. Fleet managers need to understand each machine’s average number of production hours daily. This is the simplest reflection of wear and tear on a machine. To make it easy, many managers connect machines to fleet management software (FMS) to sync their fleet’s usage reports, which can include idle time and fuel usage, and better understand the work’s exertion on a particular machine. Understanding your machine’s production hour limit and monitoring its efficiency daily is a must.

When fleet managers see their team’s work in real-time, they can share that information with their trusted service partner to optimize preventive maintenance plans. With preplanned appointments, fleet managers ensure that each machine working on a jobsite is in the best possible condition.

Efficiency is key to equipment longevity, so fleet managers are wise to reduce the likelihood of excessive wear and tear with machine control technology. Machine control can help boost productivity and efficiency even for less experienced operators, meaning it’s not just your veteran employees who can help you get the most out of your fleet. Through automated machine control technology, fleet managers safeguard the machine and the operator from unnecessary work.

Consider Purchasing Alternatives

With prices up, you’ll realize that if you traditionally prefer that shiny, new model straight off the lot, you may need to be open to considering different acquisition options from your dealer. Because suddenly, a machine once priced at $100,000 might now be priced at $130,000 or more. You’ll need to ask yourself if you’re willing to buy the machine at that price or if you have a hard line that you and your accountant will not cross. If it’s the latter, your equipment partner can help you understand other acquisition strategies to consider.

An easy first option is to investigate used equipment in your market. To prepare for that, determine your threshold of machine production hours for a used piece of equipment. The number of acceptable hours for used machinery is subjective based on personal preference, machine type, machine history and more. For example, excavators that have been on an optimized maintenance schedule can last up to 10,000 hours, meaning you can probably still get a great amount of production out of a used one that’s been taken care of. Take into account these factors and the work you’ll need to accomplish in the next six months as you explore used equipment options.

Talk to your dealer about your fleet’s budget. When you can’t budge on the machine type, and you know you prefer the newest model, that partner may be able to offer rental purchase options that allow you to ease into an equipment investment with few strings attached before you know it’s the right fit.

Fill Gaps in Your Fleet with Rental Equipment

Speaking of rental, most equipment inventories have returned to prepandemic health, so machines with low production hours are readily available in most rental fleets. At times, renting equipment is the right decision. If you find yourself needing a machine for just a few months or a specialized machine for a one-off job, you may want to fill the gap by renting from a familiar equipment expert.

Most of a dealer’s rental equipment fleet will also be under warranty, which is beneficial to you because you can rest assured that, should that machine stop working, your rental team will be able to source a backup from the manufacturer.

In addition to the peace of mind that a rental machine under warranty provides, some dealers connect their rental fleet to an FMS where they have a connected support team to monitor and dispatch a field technician if a machine requires parts or services. With this rental partnership, as well as the right machine for the job, a fleet manager acquires the service expertise to keep that machine operating with as little downtime as possible.

Need a Warranty? You Bet

Warranties provide peace of mind for rental fleets, and the same is true if you’re purchasing that machine. At a high level, warranties are an essential business tactic to consider to protect equipment investments, but they come in many different levels and options.

Your equipment partner should be able to help you understand if a warranty makes sense for your business. If so, they can also help you understand the right level of coverage to pursue. Simply put, warranties protect against unforeseen hazards, and that’s important because, even with today’s incredible machine monitoring capabilities, equipment sometimes goes down for one reason or another. Your equipment partner should be able to share warranty options—whether based on production hours, years or both—to cover your back.

Guidance When Managing Pricing

Sticker shock happens. As I work with contractors to update outstanding bids for projects they have been planning for months, we are all taken aback as we realize the way increased prices can drain the budget compared to last year’s bids. When talking with contractors, I encourage revising bids to consider inflation’s effects to protect profitability.

Despite the sometimes sudden and piercing sting of increasing prices, contractors can still win by following established guidelines. With this information and the partnership of an experienced equipment dealer, any contractor can find opportunities to take advantage of high demand through technology, dependable service and expert guidance.

ABC Responds to Biden’s Executive Actions on Immigration

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By Construction Citizen | Originally posted on constructioncitizen.com

WASHINGTON, June 18—Associated Builders and Contractors today released the following statement in response to President Joe Biden’s executive actions on immigration.

“The U.S. construction industry faces a workforce shortage of more than half a million, and bipartisan solutions are imperative to address our legal immigration workforce needs,” said Kristen Swearingen, ABC vice president of legislative & political affairs. “Today’s announcement makes it apparent how much our broken immigration system needs meaningful reform. Without a skilled workforce, contractors cannot build the places where we gather, work, learn and heal. ABC strongly believes that legal immigration reform is equally crucial for strengthening border security, fostering economic prosperity and providing high-demand industries, like construction, with solutions to workforce shortages.

“Commonsense solutions to address the 12 million undocumented immigrants in the United States include expansion of H-2B visas and reforms to the overall program,” said Swearingen. “Currently, the H-2B cap is too low to meaningfully improve the massive shortage of workers in construction and other industries, and that cap should be based on economic need. ABC calls on Congress to seek a permanent solution to raise the 66,000 arbitrary cap and reform the H-2B program that we continue to rely on the annual appropriations process to seek cap relief.”

‘Union Joe’ could be losing ground with another core voting bloc

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By Terresa Monroe-Hamilton | Originally posted on bizpacreview.com

President Biden’s mantra of “union-strong” appears to have lost its steel grip on unions and workers as that voting bloc is reportedly shifting to former President Trump and Democrats are panicking over it.

“Democratic lawmakers in battleground states are worried that their long-running support from union voters may be the latest casualty of a political realignment that’s threatening President Biden’s re-election,” Axios reported.

Trump has been aggressively courting unions in his latest presidential bid, which appears to be paying off. Rather than helping and strengthening the unions, Biden’s green policies and radical regulations have hurt workers and they are fed up with it. While a number of union leaders are still carrying water for Democrats, some of them as well as unionized workers are gravitating to Trump who is vowing to save their jobs. Meanwhile, the Left is making concrete moves that will cost the livelihoods of millions which is becoming more and more evident to union workers.

“In February, the Teamsters made its first major donation to the RNC since 2004 after its president, Sean O’Brien, met with former President Trump the previous month. O’Brien has since requested speaking slots at both the Republican and Democratic conventions,” Axios noted concerning one of the largest unions in the nation.

Adding to the panic on the Left, the United Auto Workers waited until January to endorse Biden. The endorsement was from the union leaders but many members reportedly do not support the president. The hesitation in support was because of Biden’s electric vehicle agenda. It’s a twofer loss for Biden. Not only is the EV craze fading away to a great extent, it was a wake-up call to union workers that although Biden professes to buy “union-first,” his actions say something else entirely.

The Biden administration has enacted policies meant to strengthen unions and buy their votes such as weaponizing the IRS in favor of them, “The Internal Revenue Service (IRS) and the Treasury Department finalized prevailing wage and apprenticeship requirements for certain incentives contained in the Inflation Reduction Act (IRA), a massive climate bill that President Joe Biden signed into law in August 2022. While the administration characterizes the rules as a win for blue-collar workers, they will more likely give a significant advantage to labor unions — typically stalwart supporters of the Democratic Party — and drive up costs of IRA-backed projects that are already increasing, according to infrastructure policy experts and industry stakeholders.”

“If the Biden administration’s goal is to undermine taxpayer investments in the construction of critical clean energy infrastructure funded by the Inflation Reduction Act, this final rule is a wild success,” Ben Brubeck, who is the vice president of regulatory, labor, and state affairs for the Associated Builders and Contractors (ABC), said in a statement. “This bold weaponization of the IRS and end-run around Congress in an attempt to steer clean energy construction contracts to unionized labor and contractors — key election-year donors — by incentivizing private developers to require inflationary and exclusionary project labor agreements should be extremely concerning for taxpayers and clean energy advocates.”

Biden, who claims he’s the “most pro-union president in history,” has also made a show of taking part in a UAW picket line last September. But it would seem his overtures are more and more not fooling the unions or their members. He definitely has a union problem.

“We need to be concerned,” Rep. Dan Kildee (D-MI) contended. “We can’t just assume people are going to figure it out for themselves. We’ve got to tell the story.”

Even more panic-inducing for Democrats is the sentiment from one House Democrat who spoke with Axios, saying union voters are swinging to Trump, “Every Democrat knows that this is going to happen.”

“Biden did significantly better with union voters in 2020 than Hillary Clinton in 2016 — but NBC polling in February found him ahead by nine percentage points with voters in union households, compared to a 16-point lead in NBC’s 2020 exit polling,” the media outlet wrote.

“A March Quinnipiac poll of Michigan voters also showed Biden with a 9-point edge over Trump with voters in union households — down from a 25-point lead in ABC News’ 2020 exit polling,” Axios added.

Aging Infrastructure of US Transportation Systems Could Cause a Construction Boom

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By Wayne Nunziata | Originally posted on constructionbusinessowner.com

By leveraging emerging technologies, contractors can position themselves to outperform competitors

The construction industry has faced many hurdles, including an ongoing labor shortage, rising cost of materials, supply chain disruptions and evolving technology that has made it difficult for contractors to keep up. Meanwhile nonresidential construction is feeling promising tailwinds — according to Insulation Outlook’s 2023 survey, respondents were most optimistic about infrastructure, power and federal construction projects. A 2023 report from Deloitte noted that “transportation infrastructure construction spending increased 9.4% year-over-year in August 2023.” These types of projects include crumbling bridges and highways riddled with potholes, which need immediate updates and renovations.

The renovation of the aging infrastructure in the U.S. has been a long time coming, and the federal government has made it a top priority, throwing considerable resources into the construction industry with the Inflation Reduction Act. Approximately 80 projects are slated to enhance infrastructure resilience, including $60 million in funding for South Dakota to improve two sections of BIA Route 33, $14 million for Philadelphia to rehabilitate two deteriorating bridges and $56.4 million to Iowa for the replacement of the 86-year-old Arc of Justice Bridge. Moreover, unplanned disasters like March’s Francis Scott Key Bridge accident in Baltimore suggests that contractors must act fast on bidding and bonding and have a plan in place to jumpstart work as soon as possible.

As competition for public works projects heats up, contractors need to be adequately prepared to take on this influx of projects and ultimately win these bids. By leveraging emerging technologies, they can position themselves to outperform competitors, secure project bids and propel their businesses forward.

Understanding the Always-Evolving Construction Industry

The rising costs of materials and increased interest rates forced many contractors to postpone projects last year. In fact, according to that same Insulation Outlook report, 37% of respondents reported having to postpone and reschedule their projects in 2023. As these projects continue to get rescheduled, the need for workers is slated to increase in the back half of 2024. From the same survey, 69% of respondents expect to add to their head count to accommodate the growing number of projects that are expected in 2024. However, economic conditions are putting a strain on the industry; 64% of contractors surveyed noted that rising interest rates and financing costs were a big concern in the coming years. With ongoing market volatility, financing for these contractors could prove to be a major burden and prevent them from taking on lucrative projects. Further, the onslaught of extreme weather, from hurricanes to floods and droughts, has impacted the construction industry.

Since the onset of the COVID-19 pandemic, supply chain disruptions have plagued the industry, presenting another significant challenge. While some improvement has been seen, supply chain issues persist and are far from returning to pre-pandemic levels. The complexity inherent in today’s construction industry demands that contractors rethink their strategies. Embracing digital solutions represents a pivotal shift in alleviating these burdens and equipping contractors with a competitive edge.

Integrating Technology Into Businesses

Small and medium nonresidential construction companies need to achieve more with fewer resources, with little room for error and under tremendous pressure to stretch small profit margins. The introduction of technology has already been imperative in unearthing operational efficiencies across construction business functions. With the industry still slow to adopt digital technology, the companies that make even small moves away from manual processes stand to gain a competitive edge. They will be able to do things faster, use fewer manual resources, and make more strategic and educative decisions. One of the first decisions contractors make on any project is the bid.

Speeding to Win the Bid

The traditional process to obtain bids and performance bonds is known to be a lengthy and time-consuming process. As more public infrastructures in the U.S. are deemed safety hazards and earmarked for immediate repair, contractors need the agility to swiftly win bids and issue bonds instantaneously. Readily available technology solutions have helped to ease the burden of obtaining bid bonds by putting constructors in the driver’s seat, providing them control to adjust bids, update works in progress, obtain additional credit, and order performance and payment bonds. Some technology platforms empower contractors to directly obtain power of attorney from insurance providers, eliminating intermediaries. This grants contractors full control over their bids and other bonds throughout the entire process.

As supply chain disruptions continue, material costs and pricing will fluctuate as certain materials may be in higher demand, thus making it harder to access. Digital tools enable contractors to rapidly update their bids to accommodate these fluctuating costs, wherever and whenever they need.

AI Tools to Satisfy Demand & Mitigate Risks

The introduction of new technologies, such as generative AI and traditional AI analytics, could prove essential as these renovation projects continue to emerge. AI can assist in streamlining project scope, especially in helping to navigate exceptionally large and complex projects. It also gives contractors the power to vet these projects for potential bids, assess the feasibility of different project plans, and monitor supply timelines to help ensure that projects stay on track and ease the burden of scheduling issues and cost overruns.

Integrating AI solutions can also help contractors mitigate certain risks, by identifying potential hazards, uncertainties and solidifying project timelines. Strong risk management is crucial for contractors to avoid safety hazards, damage to property or materials, and misplaced or lost materials. AI tools can help prevent costly mistakes, ultimately resulting in better cash flow management.

Technology to Alleviate the Worker Shortage

Contractors are continually facing obstacles in effectively hiring labor to help keep pace with the growing demand for these renovations. According to an outlook report from Associated Builders and Contractors (ABC), this year the construction industry will need to attract “an estimated 546,000 additional workers on top of the normal pace of hiring to meet the demand for labor.” The outlook also reported that nearly 1 in 4 construction workers are older than 55. The industry could potentially lose 25% of their current workforce due to retirement, which makes attracting and retaining talent all the more pressing. Integrating tech, such as AI, can help ease this burden and allow contractors to quickly and easily screen potential employees, so contractors can focus on their growing projects list.

What’s Next?

According to Dodge Construction Network’s 2024 Outlook, public works construction, will grow by 17% in 2024. With this onslaught of new infrastructure renovations, contractors should be embracing technology to help prepare and win bids. The industry is primed for technological adoption, and those who adopt it early stand to gain a significant competitive advantage, paving the way for long-term success.

Plan Ahead: 2025 Construction Trade Shows and Conferences Set

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By Jordanne Waldschmidt | Originally posted on equipmentworld.com

Today’s construction business owners are up against numerous headwinds, from inflation to stubbornly high interest rates to skilled worker shortages. But navigating a challenging business climate is a little easier when you take time to invest in yourself and your business. One of the best ways to do that is by attending construction expos and education conferences.

 

While taking a few days away from the office and jobsites might seem expensive at face value, it can pay back tenfold. These events offer opportunities to get hands-on with the latest heavy equipment and technology, talk candidly with technical experts, gain insights from fellow contractors, identify potential partners, and catch up with existing contacts. Plus, who doesn’t love an excuse to go to Las Vegas or Munich?

If you’re ready to start planning, check out our list of the top construction trade shows, events, trainings and conferences taking place in the U.S. and internationally in 2025 below.

These events are ideal for contractors, dealers, distributors, and public-sector employees who work in the asphalt, concrete, demolition, recycling, excavation, heavy civil, commercial, industrial, and site preparation sectors.

(Looking for an event to attend yet this year? View our list of 2024 construction trade shows and conferences.)

2025 Construction Trade Shows, Events, Trainings and Conferences

National Pavement Expo

National Pavement Expo focuses on vendors and contractors who make their living from residential and commercial asphalt and/or concrete paving, pavement repair and maintenance, sealcoating, striping, sweeping, crack repair, and snow removal. The trade show features hundreds of top manufacturers and over 50 education sessions.

Dates: January 15 – 17, 2025
Location: Tampa, FL

World of Concrete

World of Concrete is the annual international tradeshow dedicated to the commercial concrete and masonry construction industries. Manufacturers and suppliers show their latest products, masonry masters compete for championship titles and industry experts cover the latest technology, applications and business strategies for success.

Dates: January 20 – 23, 2025
Location: Las Vegas, NV

The ARA Show

The American Rental Association’s annual trade show is dedicated to professionals in the equipment and event rental industries. The trade show includes networking events, education, and a trade show featuring hundreds of exhibitors.

Dates: January 29 – February 1, 2025
Location: Las Vegas, NV

ABC Convention 2025

With more than 22,000 members, Associated Builders and Contractors represents all specialties within the U.S. construction industry and is comprised primarily of firms that perform work in the industrial and commercial sectors. This year’s event features National Craft Championships, the Construction Management Competition, the National Excellence in Construction® Awards and the Construction Workforce Awards, plus inspiring keynote speakers, industry insight sessions and more.

Dates: February 25 – 27, 2025
Location: Las Vegas, NV

NAHB International Builders Show

The National Association of Home Builders (NAHB) International Builders’ Show (IBS) is an annual event for professionals in the residential construction industry. More than 70,000 attendees come to experience new product launches, construction demos, industry thought leader sessions, workshops, panel discussions and more.

Dates: February 25 – 27, 2025
Location: Las Vegas, NV

Underground Construction Technology International Conference & Exhibition

Industry professionals involved in maintaining underground utility pipe infrastructure gather at the annual Underground Construction Technology International Conference & Exhibition.

Attendees include a mix of professionals in the sewer, water, wastewater, gas, electric, telecommunications, corrosion, and protective coating industries. Conference sessions explore the latest techniques in trenchless, open cut, new construction and pipe rehabilitation. Nearly 200 exhibitors showcase equipment and technologies used to maintain utility piping systems.

Dates: March 4 – 6, 2025
Location: Houston, TX

National Ready Mixed Concrete Association (NRMCA) Annual Convention

The National Ready Mixed Concrete Association and its state associations represent all segments of the ready mixed concrete industry.

Dates: March 4 – 7, 2025
Location: Tucson, AZ

Association of Equipment Management Professionals (AEMP) Connect Conference

The Association of Equipment Management Professionals is an organization for professionals that manage and maintain heavy, off-road fleets. At AEMP Connect, equipment managers learn holistic approaches to unite their people, machines and profits.

Dates: March 5 – 7, 2025
Location: Arlington, TX

National Demolition Association (NDA) Annual Convention & Expo

The National Demolition Association represents over 1,000 companies engaged in various demolition services. The event includes the Live DEMOlition event and NDA awards banquet.

Dates: March 5 – 8, 2025
Location: New Orleans, LA

National Utility Contractors Association Annual Convention

The National Utility Contractors Association represents the utility construction and excavation industry in the United States. Members are comprised of utility contractors, excavators, suppliers, manufacturers, and other providers in the water, sewer, gas, electric, treatment plant, telecommunications, and excavation industries.

Dates: March 18 – 21, 2025

Location: Orlando, FL

Equipment World’s Contractor of the Year Awards

Equipment World’s Contractor of the Year program recognizes contractors who display the highest standards of business acumen, equipment management expertise, attention to safety and community involvement.

Each year, 12 finalists receive an expense-paid trip to Las Vegas to participate in networking events, roundtable discussions and an awards ceremony. Caterpillar has sponsored the program since its inception in 2000.

Dates: March 20 – 22, 2025
Location: Las Vegas, NV

AGG1 Aggregates Academy & Expo

AGG1 Aggregates Academy & Expo is an aggregates industry trade show and education conference owned by the National Stone, Sand and Gravel Association. More than 400 exhibitors showcase aggregates-related equipment, products and services. AGG1 Academy features learning opportunities related to operations and production, safety and health, business and people management, and environment and sustainability.

AGG1 is co-located with World of Asphalt.

Dates: March 25 – 27, 2025
Location: St. Louis, MO

World of Asphalt

World of Asphalt is an asphalt trade show and education conference that is owned by the National Asphalt Pavement Association (NAPA), the Association of Equipment Manufacturers (AEM), and the National Stone, Sand & Gravel Association (NSSGA).

More than 11,000 asphalt, highway/street, pavement maintenance and traffic safety industry professionals attend. Exhibitors include manufacturers and service providers in the aggregate, asphalt, pavement maintenance, and traffic safety industry sectors.

The show’s ‘People, Plants and Paving’ conference features 120 asphalt industry education sessions.

World of Asphalt is co-located with AGG1 Aggregates Academy & Expo. (World of Asphalt and AGG1 are held yearly except for years when the triennial ConExpo-Con/Agg falls. There is no Conexpo 2025. The next edition of Conexpo is March 3 -7, 2026, in Las Vegas.)

Dates: March 25 – 27, 2025
Location: St. Louis, MO

North American Society for Trenchless Technology (NASTT) 2025 No-Dig Show 

With over 2,000 attendees and 200 exhibiting companies, the NASTT No-Dig Show is the largest trenchless technology conference in the world. Underground infrastructure professionals attend to learn new techniques that will save money and improve infrastructure. The Annual Education Fund Auction held at the event helps support trenchless training, technical course manuals, university student attendance and more.

Dates: March 30 – April 3, 2025
Location: Denver, CO

Bauma

Bauma is the world’s largest trade fair for the building and construction industries. Held every three years in Germany, it covers construction and mining equipment and the state-of-the-art technologies that accompany it.

Dates: April 7 – 13, 2025
Location: Munich, Germany

Common Ground Alliance (CGA) Conference & Expo

The CGA Conference & Expo is the damage prevention industry’s premier event, bringing together stakeholders in underground construction for education sessions, networking events and exhibits.

Dates: April 7 – 10, 2025
Location: Orlando, FL

Waste Expo

With more than 14,000 attendees and 600 exhibitors, WasteExpo is North America’s largest solid waste, recycling, organics and sustainability tradeshow, serving both the private and public sectors. More than 13,500 attendees come to preview the latest vehicles, tune in to the latest technology and learn the latest curriculum to improve the environment.

Dates: May 5 – 8, 2025
Location: Las Vegas, NV

Construction Financial Management Association Annual Conference

The Construction Financial Management Association (CFMA) serves construction financial managers (CFPs) and their service providers. The CFMA Annual Conference offers education sessions, an expo hall full of service providers and various networking opportunities.

Dates: May 17 – 21, 2025
Location: Kissimmee, FL

Public Works Expo (PWX)

Public Works Expo (PWX) is the annual gathering of public works officials. The event includes education sessions, an equipment exposition and networking opportunities.

Dates: August 17 – 20, 2025
Location: Chicago, IL

The Utility Expo

The Utility Expo offers 32 acres of indoor and outdoor product demonstrations and exhibits for professionals in the electric transmission, electric distribution, natural gas distribution, natural gas transmission, telecommunications, drinking water, wastewater, and stormwater services sectors as well as the contractors who provide utilities with infrastructure engineering and construction services.

The Utility Expo’s education program features opportunities to learn from industry experts on the latest safety, regulatory, operational, and technological issues affecting the utility and construction industry.

Dates: October 7 – 9, 2025
Location: Louisville, KY

National Ready Mixed Concrete Association’s (NRMCA) ConcreteWorks

ConcreteWorks is an educational conference and trade show for the ready mixed concrete industry. NRMCA represents ready mixed concrete producers, manufacturers of plant equipment, vehicles and supporting products, cement and admixture material suppliers, and concrete contractors.

Dates: October 10 – 14, 2025
Location: Orlando, FL

Equip Exposition

Equip Exposition (formerly GIE + Expo) connects landscape contractors, outdoor power equipment dealers, distributors and manufacturers. The exposition features indoor exhibits and an outdoor demonstration area.

Dates: October 22 – 24, 2025
Location: Louisville, Kentucky

 

DOL overtime expansion ‘unlawful,’ business groups argue

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By Caroline Colvin | Originally posted on highereddive.com

Brief:

  • The U.S. Department of Labor’s overtime rule update is unlawful, several groups business groups told a federal court on May 22, asking a judge to block the regulation just weeks before its effective date.
  • The plaintiffs claim in a lawsuit the rule expansion violates the Fair Labor Standards Act as well as the Administrative Procedure Act.
  • The updated overtime rule requires that workers who make less than $58,656 annually receive overtime pay and allows for automatic increases.

The plaintiffs in this case — including the American Hotel and Lodging Association, the Associated Builders and Contractors, the National Association of Convenience Stores, the National Association of Home Builders, the National Retail Federation, the Plano Chamber of Commerce and the Restaurant Law Center — maintain that the changes proposed by DOL ignore legal precedent and the needs of corporate America.

Per the filing, DOL’s “new salary threshold is so high that it is no longer a plausible proxy for delimiting which jobs” count as executive, administrative or professional jobs.

The group filed the lawsuit in the U.S. District Court for the Eastern District of Texas — the same court that blocked a previous overtime rule from the Obama administration in 2017.  “Plaintiffs are back before this Court because the Department has done it again,” they said.

The challenge is just the latest the Biden administration is facing as it works to promulgate a number of employment regulations and guidances during an election year. DOL is already defending a recently updated independent contractor rule.

The U.S. Equal Employment Opportunity Commission is likewise facing legal challenges. Alongside 17 other states, Tennessee earlier this month challenged EEOC guidance on gender identity. In that instance, plaintiffs argued that the EEOC misinterpreted the Supreme Court’s Bostock v. Clayton County decision. Likewise, Tennessee is also leading the charge on challenging the EEOC’s pregnancy accommodation guidance

Tech-savvy Workers Needed to Solve Construction Workforce Shortage

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By Adam Stark | Originally posted on forconstructionpros.com

The construction sector has a severe staffing issue.

According to the Associated Builders and Contractors (ABC), the construction industry will need to attract 546,000 new workers to keep pace with the demand for labor. This is much more than just a potential problem for tomorrow. It’s an urgent concern right now. Nearly one-quarter of construction workers are older than 55, making an imminent retirement wave a threat to several priorities, including expanding access to affordable housing and community development.

Finding qualified professionals to take their places won’t be easy. Even with 2.1 million people expected to leave other industries to work in the construction sector–more than offsetting the 1.9 million who will leave the construction sector in 2024; just to keep up with demand, ABC estimates that the U.S. construction sector will need to attract 500,000 new workers this year.

What’s more, with construction jobs increasingly requiring advanced technological skills, companies will need to upskill and retool a significant portion of their existing workforce to keep pace with changing building strategies and best practices.

In other words, the construction sector’s talent shortage is more than just a hiring issue. It’s a holistic rethinking of their workforce, requiring more and more skilled employees to meet demand.

While no single solution will address this challenge completely, technology advancements can play a critical role in empowering and rejuvenating the construction sector workforce. Simply put, technology addresses immediate workforce gaps and plays a crucial role in long-term industry productivity improvements. Here’s how the industry can use it even more fully to its advantage this year and beyond.

A Younger, Tech-Centric Talent Pool

Today’s students and college graduates are technology-natives. They’ve never known a world that wasn’t dominated by ubiquitous internet access, highly capable and accessible hardware, and app-driven experiences. Increasingly, this means that GenZ employees and prospects aren’t just tech-natives. They are AI natives as well.

According to Axios, “College students are piling into generative AI (GAI) courses — the better to give them an advantage in the growing number of jobs requiring such skills.” The construction sector can’t afford to be left behind, requiring it to combat the perception that construction is exclusively a manual-labor-saturated field without access to or the need for high-tech solutions. In fact, the industry is actively implementing digital technologies at every project stage, from ideation and planning to real-world implications and tactical execution.

To engage a younger, tech-centric talent pool, the construction sector and local companies should consider developing internship programs and other partnerships with universities that offer courses related to the construction industry, such as construction management, real estate development, architecture, and engineering.

Collaborating with universities and community-based educational initiatives allows construction entities to take advantage of the school’s efforts to attract students and promote internships and career opportunities in the construction industry. This approach helps companies engage students who are already interested in related fields and might be looking for real-world applications for their studies.

When interacting with students, whether through internships or speaking engagements at universities, showcase the use of modern technology in projects and operations. By demonstrating the use of advanced tech stacks and digital solutions, rather than outdated software or manual processes, construction companies are actively engaging their future talent, proving that it is appealing and compelling to the next generation of construction professionals.

Leverage Tech to Operate More Efficiently 

Integrating the latest technologies into modern construction workflows, including administrative automation, streamlined workflows, enhanced communication protocols, and data-driven decision-making, elevates efficiency and effectiveness.

This process should not be daunting for construction companies. After all, legacy technology hinders innovation and improvement, increases costs, and limits opportunities for growth and expansion. For instance, legacy systems can limit a company’s ability to adopt additional, niche technological solutions due to budget constraints and operational inefficiencies. In contrast, modern technology stacks offer a more cost-effective and efficient solution, enabling construction companies to leverage a wider array of tools and applications that enhance project management, safety, and other critical aspects of construction work.

Once a modern tech stack is adopted, there are immediate efficiency and automation opportunities. This includes automated project reminders, the streamlined creation of workflows that connect all stakeholders, and enhanced document management, creating substantial time savings by consolidating information from numerous stakeholders into a single, accessible location.

It also creates a proper data index that, especially when paired with burgeoning capabilities from AI and ML technologies, creates searchable, analytical data sets that unlock even more potential as specific details within project plans, drawings, or documents become accessible. Unlike the traditional methods of sifting through PDFs, emails, Excel files, or even physical notes and drawings, modern systems enable quick keyword searches, saving measurable time and effort.

Streamline the Knowledge Gap and Process Training

The use of technology allows for better collaboration and communication, creating a “text-like” environment for specific operational functions of the project. This is particularly useful for managing Requests for Information (RFIs) or submittals, where traditional email chains can become cumbersome and inefficient. With software solutions that can centralize thousands of pieces of information, including attachments and markups, facilitating the transfer of information across dozens of different stakeholders has never been easier.

As a result, tech-enabled teams can maintain their flow of communication and ensure that all team members have access to the latest data and project updates. In this way, construction tech solves for proper workflow visualization. It enables seamless communication, akin to a group chat environment, but specifically tailored for construction project management tasks such as scheduling, RFIs, and submittals.

Ultimately, when teams work better together, they maximize available resources, ensuring every team member can accomplish as much as possible. It doesn’t eliminate the consequences of a staffing shortage but allows every construction team to make the most out of their personnel in every circumstance.

The construction industry faces a significant staffing challenge, exacerbated by an aging workforce and the increasing demand for technologically skilled employees. However, technology presents a viable solution to bridge this gap and revitalize the sector. By engaging a younger, tech-centric talent pool and leveraging technology to enhance operational efficiency and effectiveness, the construction industry can bridge the staffing gap and thrive for years to come.