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The construction industry in 2024 was defined by strong fundamentals, marked by a 10% increase in nominal value added and a 12% increase in gross output.1 Construction spending crossed US$2 trillion and maintained a balanced trajectory in the first half of 2024.2 Despite facing a pervasive talent shortage, the sector’s employment level reached 8.3 million in July 2024, surpassing its previous peak of 7.7 million from 2006.3 This number has been increasing steadily for more than a year now. The Dodge Momentum Index (DMI), a measure of nonresidential building spending, has been on a steady rise in the second quarter of 2024,4 reflecting growing confidence in market conditions among owners and developers.
Nevertheless, the industry had its fair share of challenges. High interest rates and price inflation continued to affect the residential and commercial segments. The challenging lending market and ongoing weakness in billings of architecture firms are expected to continue through the year.5 However, construction investment, largely driven by government investments, and an expected decrease in interest rates may provide relief to the industry over the next few quarters.6 2025 Energy, Resources, & Industrials OutlooksRead more from the Deloitte Center for Energy & Industrials’ 2025 outlook collection Looking ahead to 2025, there are reasons to be optimistic. According to the Deloitte analysis of the Oxford Economic Model, short-term interest rates are likely to decrease gradually over the next couple of years, following a 50 basis point interest rate cut by the Federal Reserve in September 2024.7 The improving economic conditions are likely to influence construction demand across various segments. Declining mortgage rates could boost demand and residential construction activity. Government investments through the Infrastructure Investment and Jobs Act (IIJA), the Inflation Reduction Act (IRA), and the Creating Helpful Incentives to Produce Semiconductors (CHIPS) and Science Act may continue to drive growth in segments such as manufacturing and energy.8 Moreover, with the increasing uptake of artificial intelligence and advanced computing across industries, data center construction is also likely to gain steam. Overall, the US construction industry is likely to record moderate growth in the medium term with slowing inflation and a supportive monetary policy.9 As engineering and construction (E&C) firms plan for the upcoming year, there are four key areas that may help them capitalize on the projected industry growth and tackle any unforeseen challenges:
Table of contents1. Managing the labor mismatch: E&C firms will likely use a variety of strategies to build an agile workforceThe construction sector continues to grapple with a significant talent shortage. Between August 2023 and July 2024, the industry had an average of 382,000 job openings each month—a third consecutive year with an increased average close to 400,000.10 The growing average job openings may be linked to increased spending in areas like manufacturing and nonresidential construction. This challenge is expected to intensify as the industry anticipates growth in the coming years, raising concerns about how to bridge the persistent—and now growing—labor gap. Labor attraction is a predominant issue for construction firms, affecting both skilled and unskilled positions.11 Securing onsite labor has been particularly challenging, and it is hard to recruit skilled workers.12 The current landscape is further complicated by the construction of data centers, semiconductor manufacturing facilities, and megaprojects that require specialized labor such as welders and electricians.13 Estimates suggest that the construction of a large data center typically creates nearly 1,700 local construction jobs over a period of 18 to 24 months.14 The engineering and construction industry is also witnessing a shift in skill requirements. For instance, 44% of the current skill requirements in infrastructure are expected to evolve over the next five years.15 This is expected to further complicate the talent search as companies strive to fill gaps in both traditional labor skills and those required for a digital, more automated future. Demand is rising for digital skills such as data and analytics, cloud computing, and software development, alongside soft skills like people, business, and supplier management.16 An aging workforce presents another issue, with projections indicating that, by 2030, the average age of craft workers will be 46 years.17 Firms also face a perceived lack of interest among younger generations who possess different expectations when it comes to work and the working environment.18 This creates a unique challenge necessitating a balance between institutional knowledge that experienced employees bring and the new skills and perspectives of younger employees.19 The industry is likely to keep an eye on several important workforce issues in 2025. Talent shortages are likely to remain a key concern for the E&C industry. In particular, the increase of manufacturing construction and the continued build-out of data centers and energy-specific projects could put additional pressure on the industry. For example, skilled labor shortages and increasing construction costs could delay some natural gas projects on the US Gulf Coast. Additionally, industry players are likely to monitor the evolving blend of skills (technical, digital, and managerial) necessary to satisfactorily complete major projects. The engineering and construction industry could consider a multitude of strategies to address these issues in 2025. Such strategies may include:
Companies are leveraging digital tools and AI to increase their capacity and capabilities, aiming to offset labor shortages by using these technologies to help optimize a portion of work hours.
3. Financial considerations: E&C firms strive to drive growth from strategic divestitures, capital allocation strategies, and the growing role of private equityAgainst the backdrop of cost overruns due to elevated inflation and interest rates, E&C companies are expected to focus on creating value and sustaining growth through strategic divestitures, refined capital allocation, cash flow optimization, and increased private equity (PE) investments in 2025. Large construction firms31 may optimize their portfolios by divesting noncore assets, cleaning up balance sheets, and reinvesting in core business areas to enhance overall performance. Companies may limit financing for or completely exit noncore business units or product lines.32 They may also look to optimize their geographic expansion. These strategies aim to enhance margins and drive targeted growth. Many large firms may consider shifting from lump-sum contracts to reimbursable projects to improve earnings predictability and cash flow. Companies may also implement strategic cost reduction programs from shared service delivery to strategic sourcing and category management for materials and services to optimize cash flow. Owners are increasingly prioritizing projects in industries that promise higher returns on investment while minimizing short-term risks.33 Somewhat conversely, smaller firms will likely seek market share and revenue growth, attracting interest from large firms as well as PE investors, presenting new opportunities for expansion. Mergers and acquisitions activity will likely be an important growth strategy for both large and small firms. Between August 2023 and July 2024, there were 528 completed M&A deals in the construction industry, totaling more than US$38 billion, which is more than three times the deal value from the previous year.34 Deloitte’s analysis of major deals revealed that construction firms are integrating vertically as well as horizontally. Vertical integration deals include acquiring companies within the supply chain (such as building products manufacturers and their suppliers) to enhance control over production and distribution. Horizontal integration deals include acquiring competitors or companies at the same stage of the value chain. These deals may also help companies consolidate market presence or diversify offerings by target product lines such as building products, cement and aggregates, steel, solutions for heating, ventilation and air conditioning, clean room solutions, and homebuilding services. With increased governmental spending in sectors such as transportation, broadband, and clean energy, PE firms may pursue more buying opportunities in the construction sector.35 Between August 2023 and July 2024, there were 112 completed M&A deals in the construction industry from PE investors, totaling more than US$14 billion, almost double the deal value in the previous year.36 Deloitte’s analysis of major deals by PE firms in the construction industry indicates that they are primarily focused on strategic expansion and operational and technological enhancements. In the coming year, PE firms may seek to expand their portfolios and industry footprint by investing in construction technologies and automation. Solar technology, renewable energy, and clean energy construction projects also are expected to be prime prospects for PE investors. As prices of construction materials have moderated in the last few months, E&C firms may find it easier to manage costs if this trend continues through 2025.37 Effective resource allocation will be important as firms emphasize strategic investments to achieve sustainable results. 4. Industrial policies: E&C firms are likely to remain agile in the face of the evolving policy landscapeThe engineering and construction sector continues to benefit from government investment. For example, since the IIJA was signed into law in 2021, total manufacturing construction spending has more than doubled.38 Industry players are likely to continue to closely follow the macroeconomic situation and any policy shifts that could have an impact on the E&C sector, including federal investments. In 2023, there were 1,326 new unique recipients with US$2.15 billion of IIJA obligations, compared with only 542 new unique recipients with US$325 million of IIJA obligations from January 2024 to August 2024.39 Actual spending has been increasing at a more moderate rate than the subsidies offered under these pieces of legislation.40 Finally, E&C firms will continue to follow trade policy developments, such as the recent increase in tariff rates on various strategic materials like steel and aluminum,41 which can have significant impacts on cost and delivery times. E&C firms will likely continue to align their operations to capitalize on any government incentives and policies in the coming years.42 Embracing changes to capitalize on growth opportunities in 2025The E&C sector is not new to disruption and volatility, and evolving economic and regulatory factors are expected to play a pivotal role in shaping the upcoming year. Nonetheless, 2025 could present opportunities for continued growth. To capitalize on these opportunities, E&C leaders should keep a close eye on the following factors in their considerations for key decision-making:
De Soto, Kan. - Panasonic Energy Co., Ltd., a Panasonic Group company, began construction on a new lithium-ion battery manufacturing facility in De Soto, KS, following the approval by Panasonic Holdings Corporation Board of Directors. The project will drive significant economic activity and opportunities for the local Kansas economy making the state a key player in the domestic electric vehicle (EV) industry.
Facility construction is focused on rapidly ramping up manufacture of "2170" cylindrical Li-ion batteries to meet surging domestic EV battery demand. Panasonic Energy plans to begin mass production in Kansas by March 2025. Upon completion of the facility, it will maintain annual total production capacity of approximately 30 GWh to supply EV manufacturers across the United States. “This groundbreaking in Kansas is an important step towards expanding our production capacity in North America to meet the rapidly growing demand for lithium-ion batteries,” said Kazuo Tadanobu, President, CEO of Panasonic Energy Co., Ltd. “With our leading technology, proven expertise, and the state of Kansas as a critical partner, we will continue driving the industry forward while pursuing a more prosperous and sustainable future for our society.” The facility will be located at the Astra Enterprise Park site and will once again make the location a key economic driver for the region. Two contractors from the local Kansas City area, Emery Sapp & Sons Inc., and Kissick Construction Co. Inc., have been awarded contracts for site preparation, with Panasonic Energy expecting to onboard additional firms in the coming months. “The Kansas City region, just as it has over the past century, is cementing its rightful place as a leader where transit innovation is occurring," said Tim Cowden, president and CEO, Kansas City Area Development Council. "We are incredibly proud to stand shoulder-to-shoulder with Panasonic as they revolutionize the global transportation industry from the center of the most dynamic economy in the world." Kansas’s skilled manufacturing workforce, reliable infrastructure, and central location in North America makes it an ideal location for this facility. The facility is expected to create up to 4,000 jobs. Recruitment for the first positions is expected to begin mid-2023 and individuals interested in applying can visit https://na.panasonic.com/us/panasonic-energy. “Panasonic deeply values the strong relationships we build with the local communities where we live and work,” said Megan Myungwon Lee, Chairwoman and CEO, Panasonic Corporation of North America. “This factory will open new career opportunities for De Soto residents in one of the most exciting industries in our modern economy. We hope it will also serve as a source of inspiration for the community’s young people, who will become the innovators creating a more vibrant and sustainable future, and we are committed to helping them achieve their goals.” Panasonic has a long track record of supporting the communities where it operates, including investing in local education, talent development, mentorship, volunteerism and environmental initiatives. As a first step in the company’s new commitment to Kansas and the De Soto community, Panasonic is making a $25,000 donation to Unified School District No. 232 to support educational opportunities for students. "The City of De Soto is thrilled to work with Panasonic and welcome them to our amazing community," said Mayor Rick Walker. "De Soto has a rich history of supporting critical manufacturing facilities and we have been planning for this growth and the return of advanced manufacturing jobs to this area for years. We're especially excited for the opportunity to invest in the renewable energy industry and provide strong jobs for generations to come." Panasonic Energy is a global leader in lithium-ion batteries, with a nearly 100-year history of innovation in batteries spanning both battery cell technology and battery business operations. The company continues to strengthen its lineup of automotive lithium-ion batteries and expand its production capacity, currently developing the new “4680” high-capacity lithium-ion battery in Japan. Panasonic Energy’s facility in Sparks, Nevada, is now one of the world’s largest lithium-ion battery factories, surpassing six billion EV battery cells shipped. The expansion in Kansas builds on its proven success as the North American market leader in EV lithium-ion batteries and long-term commitment to advancing the EV industry in the United States. “Expanding production capacity in Kansas will enable us to continue delivering the highest quality batteries for our automotive partners as demand grows,” said Kris Takamoto, Executive Vice President of Panasonic Energy Co., Ltd., Head of EV Battery Business. “We are already producing more than five million battery cells a day in North America, and the new facility in Kansas will further grow our capacity, efficiency and economies of scale which are critical to a net-zero emissions future.” The new battery manufacturing facility will also support the company’s commitment to contribute to society by reducing global carbon emissions. The factory is a demonstration of Panasonic’s Green IMPACT initiative, which is aimed at reducing the company’s own CO2 emission to virtually net-zero by 2030 and contributing to 300 million tons in avoided emissions by 2050. About Panasonic Energy Co., Ltd. Panasonic Energy Co., Ltd., established in April 2022 as part of the Panasonic Group's switch to an operating company system, provides innovative battery technology-based products and solutions globally. Through its automotive lithium-ion batteries, storage battery systems and dry batteries, the company brings safe, reliable, and convenient power to a broad range of business areas, from mobility and social infrastructure to medical and consumer products. Panasonic Energy is committed to contributing to a society that realizes happiness and environmental sustainability, and through its business activities the Company aims to address societal issues while taking the lead on environmental initiatives. For more details, please visit https://www.panasonic.com/global/energy/ About the Panasonic Group A global leader in developing innovative technologies and solutions for wide-ranging applications in the consumer electronics, housing, automotive, industry, communications, and energy sectors worldwide, the Panasonic Group switched to an operating company system on April 1, 2022 with Panasonic Holdings Corporation serving as a holding company and eight companies positioned under its umbrella. Founded in 1918, the Group is committed to enhancing the well-being of people and society and conducts its businesses based on founding principles applied to generate new value and offer sustainable solutions for today’s world. The Group reported consolidated net sales of 7,388.8 billion yen for the year ended March 31, 2022. Devoted to improving the well-being of people, the Panasonic Group is united in providing superior products and services to help you Live Your Best. To learn more about the Panasonic Group, please visit: https://holdings.panasonic/global/ When home owners take on a remodeling project, they’re often far more focused on choosing glistening fixtures for a new bathroom or debating the type of granite to use on a kitchen counter top than, say, navigating the intricacies of the building permit process. That could be a huge mistake, however, and it may not even come to light until the house is put up for sale. Ignoring local approval requirements not only poses safety and legal problems but also can potentially derail an otherwise smooth sale.
Home owners using licensed contractors for remodeling work typically don’t have to get involved with permitting. Most licensed contractors will handle the cumbersome process for them—filling out the paperwork with the municipality, collecting fees, and being present for the required inspections, says Michael Hydeck, president of the National Association of the Remodeling Industry. But when home owners tackle do-it-yourself projects or use unlicensed contractors, they risk problems later. The permit process varies widely from city to city and state to state). But the purpose of the document is the same everywhere: It offers assurance by a municipal building department that the work being done meets all safety codes. Ask Sellers Before You List Home owners may be asked about permits in the process of selling a home. At closing, they may have to disclose any remodeling work they did and verify permits. A home inspector evaluating a property for a buyer may want to know whether a permit was obtained. Furthermore, the buyer’s appraiser may want to see permit records to check the legality of any home renovations. “If no permits are found and it’s obvious the home has been renovated, the bank will likely refuse to make the loan,” according to the American Bar Association’s book Legal Guide to Home Renovation(Random House Reference, 2006). If the permitless work isn’t discovered until after closing, the home’s value could even be subject to a lawsuit, such as in cases when an addition added extra square footage to the home’s value but the construction wasn’t done legally with a permit. That’s why contractors and legal experts say real estate practitioners are well advised to ask sellers before they take on a listing for a renovated home: “Did you get a permit for that?” Remodeling contractor John Price in Merced, Calif., has been called in to help home owners after permit problems have been uncovered. He once worked with a home owner who installed siding by himself, but added it too far down along the wall of the house, so it rubbed up against dirt and picked up moisture. Eventually the poor installation led to mold growing in the drywall throughout the inside of the house. Some home owners, however, are tempted to sidestep the permit process not wanting to pay the fees (municipalities generally charge a minimum issuing fee—such as $25—as well as an additional fee—sometimes 1 percent—of total construction costs), or they might not want to risk delaying a project or a sale by waiting for city inspections (obtaining permits can take anywhere from a day to six weeks or more). “People have strong incentives to cheat, and some of that lays squarely on the feet of policymakers who have sometimes created a system that is time-consuming and frustrating,” Price says. But caught without a permit during resale, home owners may face big consequences. They may have to pay fines (possibly up to quadruple the original permit cost) or may have to tear the project down and redo it. Virtually No Job Is Too Small Home owners making any changes to the structures of a home will likely need a permit—and you may need more than one, Price says. While kitchen and bathroom remodels and housing additions are obvious permit candidates, people may not realize they might also need one for such projects as installing a window, adding a new light switch, or replacing a shower. “There are not too many jobs you don’t need a permit for,” Hydeck adds. “It’s better to be safe than sorry.” SCS offers custom home remodeling, kitchen remodeling, bath remodeling, basement finishing, room additions and total home remodeling services with unprecedented reliability and a conscientious desire to help our customers achieve their dreams in the Lawrence, Olathe, Leawood, Lenexa, Overland Park, Kansas City and Topeka, KS areas. On the commercial side we provide services for light commercial construction, tenant finish and general contracting services also in the Lawrence, Olathe, Leawood, Lenexa, Overland Park, Kansas City and Topeka, KS areas. Our services and areas are: Home Remodelers Lawrence KS, Kitchen Remodeling, Bath Remodeling, Basement finishing Lawrence KS, Basement finishing Kansas City, Room additions, Remodelers in KC, Remodelers in Kansas City, Lawrence home remodelers, Tenant finish Lawrence KS, Tenant finish Kansas City, Kansas City remodelers, Lawrence remodelers, Home Remodeling Contractors Lawrence KS, Home Remodeling in Kansas City, Home Remodeling Contractors Kansas City, and all of Douglas and Johnson county Contact us today and find out why our customers are completely satisfied with their remodeling and home building projects. Adding a room, renovating a basement, or doing some much-needed repairs? Finding a good contractor is important — a home improvement project gone wrong can cost you. A good ad isn’t proof a contractor does quality work. Find out for yourself. Check with friends, neighbors, or co-workers who’ve had improvement work done, and check out a contractor’s reputation on online ratings sites you trust. Get written estimates from several firms, keeping in mind the lowest bidder may not be the best choice. Also important: know the signs of a scam.
Do Your ResearchCheck with friends, neighbors, or co-workers who’ve used a contractorIf you can, take a look at the work done and ask about their experience. Look at sites you trust that post ratings and reviewsDo people seem to have similar experiences, good or bad? You also can check out a contractor’s online reputation by searching for the company’s name with words like “scam,” “rip-off,” or “complaint.” Find out how long they’ve been in businessLook for an established company whose record and reputation you can check out. SCS Stultz Contracting Services offers custom home remodeling, kitchen remodeling, bath remodeling, basement finishing, room additions and total home remodeling services with unprecedented reliability and a conscientious desire to help our customers achieve their dreams in the Lawrence, Lenexa, Kansas City and Topeka, KS areas. On the commercial side we provide services for light commercial construction, tenant finish and general contracting services also in the Lawrence, Olathe, Leawood, Lenexa, Overland Park, Kansas City and Topeka, KS areas. Contact us today and find out why our customers are completely satisfied with their remodeling and home building projects. Check for qualifications, like licensing Many states, but not all, require contractors to be licensed and/or bonded. Check with your local building department or consumer protection agency to find out about licensing requirements in your area. Licensing can range from simple registration to a detailed qualification process. If your state or locality has licensing laws, make sure the contractor’s license is current. Before You Hire a ContractorGet EstimatesOnce you’ve narrowed your options, get written estimates from several firms. Don’t automatically choose the lowest bidder. Ask for an explanation to see if there’s a reason for the difference in price. Ask QuestionsHow many projects like mine have you completed in the last year?Ask for a list so you can see how familiar the contractor is with your type of project. Will my project require a permit?Most states and localities require permits for building projects, even for simple jobs like decks. A competent contractor will get all the necessary permits before starting work on your project. You may want to choose a contractor familiar with the permitting process in your county, city, or town. May I have a list of references?A contractor should be able to give you names, addresses, and phone numbers of at least three clients with projects like yours. Ask each client how long ago the project was and whether it was completed on time. Was the client satisfied? Were there any unexpected costs? Did workers show up on time and clean up after finishing the job? You also could tell the contractor that you’d like to visit jobs in progress. What types of insurance do you carry?Contractors should have:
Will you be using subcontractors on this project?If so, make sure the subcontractors have current insurance coverage and licenses, too, if required. To find builders, remodelers, and related providers in your area that are members of the National Association of Home Builders, visit nahb.org. To find detailed information about a builder, service provider, or remodeler in your area, contact your local home builders association. Understand Your Payment OptionsDon’t pay cashFor smaller projects, you can pay by check or credit card. Many people arrange financing for larger projects. Try to limit your down paymentSome state laws limit the amount of money a contractor can request as a down payment. Contact your state or local consumer agency to find out the law in your area. Try to make payments during the project contingent upon completion of defined amounts of workThis way, if the work isn’t going according to schedule, the payments to your contractor also are delayed. Get a Written ContractContract requirements vary by state. Even if your state doesn’t require a written agreement, ask for one. It should be clear and concise and include the who, what, where, when, and cost of your project. Before you sign a contract, make sure it includes:
Pay WiselyDon’t make the final payment or sign an affidavit of final release until you’re satisfiedBesides being satisfied with the work, you also need to know that subcontractors and suppliers have been paid. Laws in your state might allow them to file a mechanic’s lien against your home to satisfy their unpaid bills, forcing you to sell your home to pay them. Protect yourself by asking the contractor, and every subcontractor and supplier, for a lien release or lien waiver. Know the limit for the final billSome state or local laws limit the amount by which the final bill can exceed the estimate, unless you have approved the increase. Know when you can withhold paymentIf you have a problem with merchandise or services charged to a credit card, and you’ve made a good faith effort to work out the problem with the seller, you have the right to contact your credit card company and withhold payment from the card issuer for the merchandise or services. You can withhold payment up to the amount of credit outstanding for the purchase, plus any finance or related charges. Use a Sign-Off ChecklistBefore you sign off and make the final payment, check that:
The Home Improvement Loan ScamHere’s how it works: a contractor calls or comes to your door and offers a deal to install a new roof or remodel your kitchen. He says he can arrange financing through a lender he knows. After he starts, he asks you to sign papers; they may be blank — or he might hustle you along and not give you time to read through them. Later you find out you’ve agreed to a home equity loan with a high interest rate, points, and fees. What’s worse, the work on your home isn’t done right or isn’t completed, and the contractor — who may already have been paid by the lender — has lost interest. To avoid a loan scam, don’t:
SCS offers custom home remodeling, kitchen remodeling, bath remodeling, basement finishing, room additions and total home remodeling services with unprecedented reliability and a conscientious desire to help our customers achieve their dreams in the Lawrence, Lenexa, Kansas City and Topeka, KS areas. On the commercial side we provide services for light commercial construction, tenant finish and general contracting services also in the Lawrence, Olathe, Leawood, Lenexa, Overland Park, Kansas City and Topeka, KS areas. Contact us today and find out why our customers are completely satisfied with their remodeling and home building projects. Builders and contractors want to keep up with the latest construction industry trends so that they can stay ahead of the competition. Here are nine trends that could affect how you conduct business in 2019.
Better Construction Management Software Construction management software has steadily improved over the last few years, and many affordable packages are now available that bundle together software for bidding and estimating, project management, change orders, scheduling, human resources, billing, accounting and more. 2019 will see more large and small companies making use of affordable integrated software solutions. Use of Drones Continuing into 2019 will be one of the hottest trends of recent years: the use of drones. Drones, unmanned aerial vehicles, are here to stay. Drones equipped wih cameras and other electronics can access remote locations, collect data, complete safety inspections, capture project progress and so much more. Surveyors use them to create 3d mapping or images that later can be used to depict an area. You can expect rules on usage of drones to begin clarifying as the FFA begins to refine regulations. With costs of quality drones falling, usage will expand in 2019. Green Design and Construction Technology Also continuing into 2019 is the trend toward green design and technology in construction. Every construction project is expected to increase their participation through green design aiming towards the LEED certification. This trend, which started some years ago, will continue to rise in 2019. The essence of green design and construction is the effort to create resource-efficient and environmentally responsible construction projects. It includes every aspect of construction, including planning and design, demolition, and cleanup. With 20 percent of global emissions directly attributable to the construction industry, green building practices can go a long way toward supporting, rather than harming, the environment—especially at a time when aging buildings make new construction so critical. As was true in 2018, 2019 will also see more local aimed at fostering the green building trend. Sustainability Closely related to green technology, sustainability can be defined as a broader policy of using methods and business models that make the world a better place. While "green" building practices are really focused mostly on reducing the carbon footprint of a particular construction project, sustainability has broader goals. Among the elements of sustainable construction practice:
For example, a sustainable construction project may feature building designs aimed at bringing natural light into the center of a building, thereby reducing electrical costs. Or, a building can be designed to reuse drain water from sinks to flush toilets. Some sustainable projects look to integrate existing structures into a new project, or to make use of recycled or repurposed building materials. SCS offers custom home remodeling, kitchen remodeling, bath remodeling, basement finishing, room additions and total home remodeling services with unprecedented reliability and a conscientious desire to help our customers achieve their dreams in the Lawrence, Lenexa, Kansas City and Topeka, KS areas. On the commercial side we provide services for light commercial construction, tenant finish and general contracting services also in the Lawrence, Olathe, Leawood, Lenexa, Overland Park, Kansas City and Topeka, KS areas. Contact us today and find out why our customers are completely satisfied with their remodeling and home building projects. Increasing interest in sustainability by millennial consumers and clients will require forward-thinking construction companies to accommodate this trend in 2019. Growing Material Costs Costs of building materials will continue to increase into 2019, a trend that began in December 2017, leading to a 9 percent increase over the course of 2018. Largest cost increases will be seen in iron, steel, manufactured steel products, and softwood construction lumber. The impact of newly initiated import tariffs will increasingly be felt in 2019 through increased costs of materials. Reduced Labor Force With U.S. unemployment rates low and construction activity remaining relatively high, a shortage of skilled construction labor will continue to be a problem in 2019. The problem will only get worse with expected reductions in immigrant labor. Builders will find it necessary to invest in training to equip existing workers with the skills necessary, and they will need to invest in the tools and higher wages necessary to keep those workers satisfied and productive. Training and development will need to be an integral part of every construction company's policy in 2019. The labor shortage is so severe in all segments of the building trades that you can expect to see work slow-downs and scheduling delays become routine in 2019. Better Safety Equipment 2019 will see a push toward better safety equipment to counter the higher number of construction-related accidents and fatalities seen in recent years. For example, there are now "smart" work boots available with GPS transmitters that will allow supervisors to spot workers who have fallen or have slowed down due to fatigue. This technology will become increasingly common in 2019. The quality of moisture-wicking fabrics and cooling vests is also improving. Drones and other robotic surveying equipment will make it easier to spot problems on a job site. You may also see increased regulatory enforcement aimed at reducing the increased incidence of job site accidents. Building Information Modeling (BIM) SCS offers custom home remodeling, kitchen remodeling, bath remodeling, basement finishing, room additions and total home remodeling services with unprecedented reliability and a conscientious desire to help our customers achieve their dreams in the Lawrence, Lenexa, Kansas City and Topeka, KS areas. On the commercial side we provide services for light commercial construction, tenant finish and general contracting services also in the Lawrence, Olathe, Leawood, Lenexa, Overland Park, Kansas City and Topeka, KS areas. Contact us today and find out why our customers are completely satisfied with their remodeling and home building projects. Is there anyone who does not love to remodel their house every year? Probably not. Yes, we understand that people are bound with a number of factors that refrain us from upgrading the house or following the latest trends. One of the major problems that hold back majority from renovation or remodeling, is the budget. Unfortunately, remodeling is expensive. However, the next year 2019 is expected to be a little different for remodeling says the home remodeling contractors Campbell CA. The new year is coming with decorating patterns, stylish and timeless pieces that uplift the house like nothing else. And you know the best part? They are not as expensive as remodeling anything in your house. Read the post below to know the fantastic home design trends for the upcoming year. Artisan FixturesMany home decorators, remodelers and renovators have highlighted the trend of artisan fixture in the home. These lighting fixtures are unique and personalize the home like a natural element. To get a very nice blend of both, a tech world and a natural world. Adding natural elementsPeople seem bored with the tech-obsessed world and they are looking for something unique and natural. These elements will help bring an organic and serene ambiance to any space while reflecting the world around your home. Velvet furnishingsUntil the mid of 2018, velvet was considered as old fashion and stuffy. But the views have now changed. They are not becoming more in trend and are considered as luxurious yet funky. This fabric is becoming the highlight for the furniture trends in the coming year, especially for sofas and chairs. PatternsLately, it was common to paint the accent wall with a bright color but now the trend has shifted to the floral patterns for the walls. Decorators expect to find exaggerated proportions and contrasting colors used for this timeless decor pattern. The downfall of rose gold2018 was the year of rose gold. From wrist-watch to decoration pieces and everything was painted in rose gold. However, the next year is expected to be the downfall of rose gold. Expect everything to be in the copper shade along with the tones of red, oranges or overall earthy hue, suggested by the best home remodeling companies in Campbell CA . Muted Colors are OverThe coming year is the year for bright and bolder colors. However, no doubt muted color keeps the space away from being overwhelming, yet the trend will leave us in 2018. The trends of bolder color will convince you using dramatic reds, statement pinks, yellows, and organic greens. Blend of black and whiteA truly timeless trend will again be on the top of the list while decorating a house. The reason behind the trend of black and white provides a sense of balance and boldness in your home. So, if you are planning to uplift your house internal look, follow the latest trends mentioned above. You will fall in love with your house again. SCS offers custom home remodeling, kitchen remodeling, bath remodeling, basement finishing, room additions and total home remodeling services with unprecedented reliability and a conscientious desire to help our customers achieve their dreams in the Lawrence, Lenexa, Kansas City and Topeka, KS areas. On the commercial side we provide services for light commercial construction, tenant finish and general contracting services also in the Lawrence, Olathe, Leawood, Lenexa, Overland Park, Kansas City and Topeka, KS areas. Contact us today and find out why our customers are completely satisfied with their remodeling and home building projects. Get Started! When it comes to the changes you can make to your home, the options are endless. If you plan on selling your home in the next few years and are looking to make a few home improvements, knowing the latest remodeling trends are a great place to start. These trends indicate what potential buyers are looking for and can help you prioritize your remodeling projects. With a new year approaching, there are some new remodeling trends emerging. To help, here’s what remodeling trends will be hot in 2018. Are you planning a new remodeling project in your home? contact SCS today, 785-840-4040 What’s Hot In 2018 Remodeling If you’re planning to sell your home this year, or just want to make some needed upgrades, 2018 is the year to do so. While kitchen and bathroom remodeling will always top the list of projects homeowners want to do first, it’s a good idea to keep an eye on what else is trending. These projects can really make your home stand out from the rest. Here are a few hot home remodeling trends in 2018:
1. Accessibility AccommodationsIn the last few years, homeowners have had an increased focus on aging in place. Now more than ever, those looking to buy are looking for a universal design with accessibility accommodations. Specifically, these remodeling projects include widening hallways and doorways. Accessibility remodeling is not a cheap project, but can certainly benefit you and your family. The average cost of accessibility accommodation remodeling is $5,233, with most homeowners spending between $2,488 and $5,587. 2. The Master SuiteLuxury could also be a common theme to this year’s trends. Remodeling trends are pointing to the bedroom, with a luxury bathroom and closet attached to make a suite. No longer is a small master bath attached to the bedroom, but rather the best accommodations are reserved for this space. Increased storage will be hot in this area. This luxury upgrade is worth it, but it may also mean you have to remodel multiple rooms. The average cost of home remodeling is $34,477, with most homeowners spending $19,891 and $37,319. 3. Mudroom AdditionSome homeowners could use just a little more space and are finding value in a mudroom addition. This small room will allow for children to store their coats and dirty shoes before entering the home. It might also serve as additional storage space for outdoor wear and necessities. While the average cost of an addition, such as a mudroom, or enclosed patio is $14,180, this price could change depending on the extra needs you have for your space. A mudroom that needs additional electrical or plumbing work could end up costing more. 4. Eco-Friendly RemodelingAs a trend that’s here to stay, eco-friendly remodeling is what homeowners and homebuyers are looking for. This means upgrading insulation, installing smart home automation features and choosing earth-friendly remodeling materials as you build. To see what you can do in your home, read Eco-Friendly Home Remodeling Ideas. 5. Luxury BasementsWhile everyone desires a finished basement, current trends are pointing to really going the extra mile with your basement remodel. This means more than just waterproofing and laying down some flooring, but also building out your basement to include all the amenities the rest of your home has. A small kitchenette in the basement is a hot item to have as well as a full bathroom. Not to mention, a basement is a perfect place for a home theater. You’ll be the talk of the town with this style of finished basement. Industry groups like the AGC and the Associated Builders and Contractors (ABC) have for years lobbied lawmakers for increased federal, state and local funding for trade school, high school and middle school trade education programs as a way to help create a construction industry labor pipeline, and those efforts could pay off and help ease the problem.
Meanwhile, the industry is turning to alternative construction methods to make up for the short supply of workers. Offsite construction and prefabrication, for example, are helping contractors sidestep some labor issues. Gaston Electrical principal Bill Weber told Construction Dive in June that prefabricating MEP racks — 20- to 30-foot panels that are pre-fitted with ductwork, piping and raceways — allow MEP contractors to make their final connections more quickly on the jobsite and require up to 50% less labor. Along those same lines, increased use of modular construction in 2018 and beyond could also reduce the need for additional workers. Its use has taken off in the hotel and multifamily sectors, and, according to Lad Dawson, founder and former CEO of Guerdon Modular Buildings, in Boise, ID, offsite construction can absorb up to 60% of a project's labor requirements. Offsite construction on the riseFor much of 2017, offsite construction and investment in the delivery method was a key trend. Offsite startups like Katerra and FullStack snagged millions in funding, while a growing number of U.S. contractors partnered with prefab companies to fold the method into their operations. "With companies like Google, Marriott, Starbucks and other high-tech firms like Autodesk embracing offsite, there is a ton of investment money looking to revolutionize the construction industry," Tom Hardiman, executive director of the Modular Building Institute, told Construction Dive in October. "It's going to change so fast in the next year." Increased pressure from supply-side challenges and a growing need to jumpstart productivity will continue to drive offsite into the mainstream. Traditional contractors’ desire to increase project efficiency with offsite components is opening the door to greater collaboration between general contractors and offsite fabricators. Less than a decade ago, many projects were modular or conventional, Hardiman said. Today, many are a hybrid of the two. And with larger companies like Turner Construction and Gilbane adding project manager roles for offsite to their payrolls, the delivery method only stands to build momentum. Suppliers, too, are building up their operations with the segment in mind. Until recently, many had not created product lines specifically for offsite. Now, suppliers like Tremco are developing lines for the market to help streamline operations. But perhaps one of the biggest disruptors in offsite’s expansion will be Marriott International’s use of the method. The hotel chain plans to add seven offsite manufacturers to its existing lineup this year, and will do so while developing a set of goals to compare offsite projects against their site-built equivalents. Investment up for public transportation Former transportation secretary under President Barack Obama, Anthony R. Foxx, talked at Autodesk University in November about the state of infrastructure in the U.S. He said that focus now is on integrating existing infrastructure because end-to-end systems already are in place. “We can’t look at modes of transportation as separate an distinct anymore,” he said. “It’s all one whole.” Nashville, TN’s, ambitious $5.2 billion infrastructure and transit plan, which citizens will vote on in May, is just one example of cities making big investments in transportation. The plan would not only link parts of the city to each other, but better connect it with surrounding Davidson County communities. Although Nashville’s proposed plan is among the largest, it isn’t the only notable project underway. Minneapolis’s $1.9 billion Southwest light-rail has encountered a slew of obstacles, largely relating to financing. Nevertheless, the Metropolitan Council expects to award the contract in the first quarter of this year, with construction commencing in the spring. Boston’s Green Line light rail is undergoing a $2.2 billion reboot, which will add 4.7 miles and seven stations to the system between Cambridge and Medford, MA. Beyond traditional rail and bus systems, the country is exploring higher tech options, such as high-speed maglev trains and hyperloop systems, several tunnels of that have been okayed in Maryland and California. Technology and automation tackling jobsAt Autodesk University in November, Autodesk CEO Andrew Anagnost grabbed the automation bull by the horns, saying, “Instead of worrying about automation taking our jobs, let’s have a conversation about where automation can take us.” Look at 3-D printing. In the final quarter of 2017 alone, the industry boasted several innovative projects, such as Europe’s first 3-D printed building built in Denmark, a 3-D printed concrete bridge in the Netherlands and the issuing of a grant to 3-D print concrete turbine towers in California. Machines also are tackling jobs that are traditionally dangerous for humans, such as the tele-operated humanoid robot RoboMiner going into pit mines. A Pittsburgh-area robot ties rebar to form bridge decks, which halves labor hours compared human labor, as well as reduces injuries workers sustain while straddling rebar frames. Construction tech earned the distinction as Trend of the Year in the 2017 Construction Dive Awards. The industry saw $433 million of funding in the first nine months of 2017 alone. Out of the 56 total deals, two of them were valued at more than $50 million. One of those large deals was Innovator of the Year, Katerra, which uses factory-based construction to automate and standardize design and construction to create a continuum of services to replace the typical chain of handoffs. New policy regulation impacting businessesThe House and Senate approving President Donald Trump’s tax overhaul capped 2017. Although not construction-specific, it certainly will have a significant impact on businesses. The public construction sector will benefit from private-activity bond (PAB) financing and contractors structured as C-corporations and pass-through entities will benefit from tax relief. PAB use, however, may limit and lock out design professionals from taking advantage of the new lower pass-through tax rate. Beyond federal policy shaping the industry, some cities, states and agencies are passing regulation as well. New York City Mayor Bill de Blasio in October signed Intro 1447, a controversial law that requires construction workers to undergo at least 40 hours of safety training. California Governor Jerry Brown signed a law in October requiring contractors acting as direct contractors on private construction projects to be financially responsible for any wages, fringe benefits and union contributions left unpaid by subcontractors and their sub-tiers. Los Angeles also kicked off its seismic retrofit program by sending notices to owners of an estimated 1,200 older concrete buildings that fall under the new ordinance. Many also will be keeping an eye on the infrastructure bill, which may be revealed later this month, and has the potential to put up to $1 trillion into the pipeline. Several companies have engaged in large acquisitions, such as Jacobs Engineering Group acquiring CH2M Hill and AECOM’s acquisition of Shimmick Construction, in preparation to take full advantage of the anticipated work. Giant companies expanding spaces While last year saw the addition of new high-tech campus facilities from the likes of Google and Apple, 2017’s hype around a second new North American Amazon headquarters will likely fuel increased momentum for similar expansions in 2018. Software giant Microsoft is slated to begin a multi-billion-dollar redevelopment of its existing Redmond, WA, campus later this year, joining Apple, Google and other tech giants that are expanding their capacities “at home.” Meanwhile, companies like Marriott and General Electric are expected to break ground on new headquarters developments. As more firms continue to build out their facilities, many are also likely to add infrastructure needed to support their operations. Data center construction, especially, is taking off as companies increasingly amass unprecedented amounts of information in their servers. By the first half of 2017, data center investments had already doubled those made in 2016, coming in at $18.2 billion. And if the market maintains that pace, investments in the category this year could exceed the combined total of the past three years. “Driving the market will be companies you’ve never heard of doing things we can hardly imagine,” Todd Smith, chief technology officer of data center solutions at national commercial real estate firm Transwestern, told Construction Dive in November. AR/VR, wearables and drones transforming jobsitesIn the face of mixed-reality headsets, such as Microsoft’s HoloLens, and wearable devices, such as Triax’s Internet of Things-enabled sensors, it’s a safe bet that high-tech wearables and augmented and virtual reality will continue to infiltrate jobsites. Two of the greatest benefits these technologies offer are safety and efficiency — both areas where the construction industry tends to struggle. Beyond the innovations and investment in con-tech, it’s also possible that technology will help recruit younger workers into a field plagued by a labor shortage. Garrett Harley, vice president of strategic accounts for Aconex, told Construction Dive that “Technology is another emerging way to get people into this business. Not many people coming out of school understand there’s this much tech in construction. It’s an exciting time to be a part of it.” These technologies include gamify safety training courses, which can improve learners’ engagement and retention rates. Construction is a notoriously dangerous profession — construction worker fatalities increased 6% from 2015 to 2016 — and these technologies can be a major boon to increasing safety. Although wearables are slow to be adopted, according to the report Safety Management in the Construction Industry, 82% of adopters say they have a positive impact. Meanwhile, more contractors are looking to drones to survey sites and improve upon worker safety as well. ON WHAT TO AVOID.
Stop shopping online. Try to use builders’ vendors—they have arranged for best pricing. your attempts to piece together vendors might add up more than you think. Consider multiple uses for rooms instead of an abundance of specialty rooms. Music rooms are so 2000-and-late if you’re not actually a musician. Your family is great. But don’t let the opinions of family and friends be the final word on your dream house. Don’t skimp on that pocket office off the kitchen. You will use it all the time. Don’t delay your selections. Using a designer will help when it comes to navigating the many choices. Don’t avoid the value-engineering process. It results in a smarter and more cost-effective design. Don’t get impatient. The last 10 percent of the build requires patience. Focus on the positives. Don’t get hyper critical before the whole installation is complete. Enjoy the process. |










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