Construction Jobs Blog

Headlines have continued to decry this historic correction in the first quarter of 2009.  But despite the foreboding coverage, green building has proved sustainable in more than one sense.  Firms and consumers are embracing the trend and proving that the economic downturn will not discourage the practice.

In fact, quite the opposite appears to be happening.  According to Turner Construction’s 2008 Green Building Barometer, 75% of commercial real estate executives said that credit market conditions would not stop them from constructing green buildings.  Citing reduced energy costs, higher building values and lower overall operating costs, the respondents suggest that the current economic doldrums will not take the wind out of green building’s sail. 

Green building is holding up in other ways as well.  According to the 2008 Green Survey:  Existing Buildings, more than 80% of commercial building owners Continue Reading »

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The looming stimulus bill stands ready to pump billions of dollars into construction projects across the nation, posing both opportunities and challenges to architects and builders.  In this video, president and CEO of Design + Construction  Strategies, Barbara Heller, gives her take on President Obama’s choice to have a chief performance officer, the breadth of the stimulus, technology to make the government more efficient and the lessons she’s learned working on projects involving the Pentagon and Reagan National Airport.  Also learn how green building guidelines such as LEED may be good at certifying aspirations, but lacking when it comes to measuring the benefits realized.

Heller’s firm specializes in using technology to improve efficiency in the construction industry.  She was interviewed on E&ETV’s OnPoint.

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I was reading Forbes.com today and stumbled across a column that put a smile on my face.  While researching “the effects on the economy and job market from…greater green industry,” Michael Marks came to the same realization I did a short while ago:  “lo and behold, I found a topic that is nearly universally positive.”

With housing and financial turmoil, the increase in energy costs, and disasters dominating headlines for the past few months, it may be easy to overlook the progress of green industries and the promise they hold for America’s future.  And their promise is starting to be fulfilled:

– 2007 set solar energy records:  314 megawatts of new solar-generating capacity were constructed or installed in the U.S. last year, creating more than 6,000 new jobs and adding over $2 billion to the economy

– the number of jobs in “renewable energy or energy-efficient industries” is skyrocketing, with the American Solar Energy Society estimating it at about 8.5 million, and Marks predicting it could clear 40 million by 2030

The government is stepping in as well: Continue Reading »

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Home of the tallest building in the world, the first 7-star hotel in the world, and the first man-made resort island chains in the world, Dubai will soon to add something else to its impressive resume: the world’s largest arch bridge.

American firm Fxfowle International’s design was selected by Dubai’s Roads and Transport Authority as the winner in an international design competition Continue Reading »

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Earlier this month, two Los Angeles City Council committees passed green building ordinances that could eventually change the face of the city.  The LA Times reports that “under the ordinance, privately built projects over 50,000 square feet…must meet a ’standard of sustainability’ by incorporating a checklist of green practices into their building plans.”

Both commercial and residential developers are affected by the change, and a large number of developers and building trade groups endorse it.  The U.S. Green Building Council’s Leadership in Energy and Environmental Design (LEED) checklist has been put forward as the standard.  But not everyone is on board; Continue Reading »

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Earlier today, I caught this list when I was browsing the Reed’s Market Insights.  Its 20 projects, 10 each in California and Florida, share some common factors.  They are all still in planning, and they are mostly new projects, though some may be additions/alterations. 

Reed Construction Data Project Research released the data on February 20th, and say that, “Shopping centers, hotels, office buildings, medical buildings, educational buildings, libraries and museums, sports and entertainment complexes, industrial projects and government buildings will all be covered on a rotating basis.”

The charts below outline the projects: Continue Reading »

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In 2007, convention center exhibit space increased by only 1 percent.  That is the smallest rate of growth since 1999.  But experts predict that last year’s slow growth was abnormal, and that the building boom in convention center exhibit space will regain its footing in 2008.

Forecasts project new exhibit space growth to hit about 3 percent this year.  According to Tradeshow Week, that is slightly below the 20 year average growth rate of 3.4 percent, but still represents “more than 7 million square feet of new space in the U.S. development pipeline.”

Since at least 2005, convention and exhibition growth has outpaced convention and exhibit space growth by roughly .3 percent annually.  In other words, demand for convention space has been outgrowing the supply of convention space for at least the past three years Continue Reading »

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On Friday, two reports were released showing that nonresidential construction sectors continue to grow, despite the drastic correction in residential construction.  The numbers for 2007 indicate that it was a rather good year for nonresidential building.

The U.S. Census Bureau of the Department of Commerce released the first report on December 2007 Construction Spending.  Nonresidential construction was at a seasonally adjusted annual rate of $380.4 billion in December, 1.3 percent above the revised November estimate of $375.6 billion.  Not only did private nonresidential construction grow in December, but it also grew significantly during the entire year.  The value of private, nonresidential construction in 2007 was $349.8 billion, 18.3 percent above the $295.7 billion in 2006.

As you can see on the graph, private, nonresidential construction grew steadily throughout 2007 Continue Reading »

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In the Fed’s opening Beige Book of 2008, the construction industry received mixed reports from around the nation.

Even though most markets reported continuing softness in housing, there do seem to be areas that are steady.  Dallas home prices did not decline, and a few districts noted mixed home price changes.

Commercial real estate and construction reports varied more drastically.  Continue Reading »

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FMI, the nation’s largest provider of management consulting and investment banking to the worldwide construction industry, recently released their 2008 U.S. Construction Overview.  The report was hopeful of 2008, and commented on some interesting industry trends to keep a tab on this year.

The 2008 overview forecasts a 5.8 percent growth in construction for 2008, representing a reversal of 2007’s 3.7 percent decline.  FMI predicts construction spending will total $1.21 trillion, roughly 9 percent of U.S. GDP.

All segments of residential construction are expected to decline, though at a far more manageable rate than in 2007.  According to the report, non-residential construction will offset this decline:  all commercial segments are anticipated to grow.  FMI and other firms predict educational and healthcare buildings will experience especially strong growth.

The 2008 Overview takes special note of the following trends:

Green Building:  Green, nonresidential construction put in place came in at $13.4 billion in 2006.  FMI projects this will increase to $21.2 billion this year, a 58 percent increase.

Employee Ownership:  According to the report, the industry will experience ownership turnover with family ownership declining to an increase in broad-based employee ownership.

Hispanic Workforce:  Hispanics make up nearly 25 percent of total construction employees.  This group experiences more work construction related injuries and deaths than any other group.  Language barriers persist on the worksite.  Despite residential troubles and a national focus on immigration reform, the number of Hispanics involved in construction is expected to continue rising.

Heather Jones, construction economist for FMI’s Research Services, said, “The 2008 construction forecast is generally positive and many sectors of the construction industry will remain healthy, despite the continuing drag of the housing downturn.  In terms of trends, the aging of the population, immigration and deteriorating infrastructure will drive much of this growth.  The health care, public safety, office and transportation segments will see the strongest growth in 2008.”

FMI has published the overview since 1977, and full copies are available from them.  Click here to read their full press release.

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