Articles of Interest

The average construction worker is well into his 40s, and unless something changes to make the fresh-from-prom set take a sudden interest in framing and drywall, that work force is just going to keep getting older.

In an industry where retirement tends to come early and knowledge is passed down on the job, that trend presents a potentially paralyzing problem — especially as demand for workers continues to rise.

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The price of construction materials will rise by 6 percent to 8 percent nationwide in 2008, according to a recent report by Ken Simonson, an economist with the trade association Associated General Contractors, of Arlington, Va.

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A general slowdown in commercial construction, predicted to continue through 2009, already has resulted in lower pricing from subcontractors and a willingness to work second and even third shifts, contractors say.

While building owners always want construction completed faster, those in the industry say, when demand is high, contractors could charge premiums for after-hours work.

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Nonresidential construction faces a wide variance in demand, materials cost and labor availability, according to the Construction Inflation Alert released by the Associated General Contractors of America.

AGC Chief Economist Ken Simonson said some growth is expected in segments such as power and energy, but other segments, such as lodging, “will slow or decline.”

“Diesel, copper and steel are among materials costs likely to accelerate, while others remain benign,” Simonson said.

In addition, the increase in diesel fuel prices –

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Home construction is way down, but plenty else is going up.

The housing slump has whacked construction employment by about 20 percent in the past year. So you would expect construction worker pay to nosedive.

You would be wrong.

In one of the many oddities in this tumultuous economy, construction of hotels, hospitals, power plants and offices is picking up much of the slack from declining home sales, said Ken Simonson, chief economist of the Associated General Contractors of America.

Source:  St Petersburg Times

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Bruised by the downturn, builders turn to the fundamentals of the construction game. … “For builders, the current market conditions are no game and the stakes are nothing less than survival. You can’t afford to drop the ball because there just aren’t that many opportunities right now to put points on the board. That’s why it’s critical to master the fundamentals of the business: hiring and hanging on to good employees, holding a customer’s hand through the sales process, controlling your jobsite, and building customer satisfaction through warranty service. These are the basics that builders keep saying they have to get back to. They’re critical processes that have to be practiced…”

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Source: BUILDER Magazine
Publication date: August 1, 2007
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