Q3 2024 Economic Indicators

mmcrebuildstg on November 7, 2024

2024 Q3 Economic Indicators

Architecture Firm Billings and Reconstruction Trends: A significant portion of architecture firms report steady or increased work on reconstruction projects, focusing on modernization, adaptive reuse, and upgrades in building systems. However, challenges loom as billings have declined for 12 straight months, including securing agreements for larger projects, partly due to high interest rates.

ABC Construction Backlog and Confidence: The Construction Backlog Indicator showed a slight increase in September 2024, reflecting moderate confidence in future sales and profit margins despite economic headwinds. Contractors are optimistic about the easing of interest rates and material costs.

Dodge Momentum Index: The index, a leading indicator of nonresidential construction, declined by 4.2% in September due to a slowdown in data center projects, though institutional projects in education and healthcare saw growth. The index remains high, driven by institutional, education, healthcare, and recreational projects entering the planning queue.

Sector-Specific Forecasts:

  • Nonresidential Construction: Expected to slow, with key drivers including economic factors like high office vacancy rates and reduced warehouse construction.
  • Healthcare and Education: Stable investment levels are anticipated, with growth expected in late 2025. Education sector growth is projected due to bond measures and continued support for higher-education projects.
  • Residential: Multifamily residential construction is forecasted to decline due to inventory surpluses and stable rental rates, while single-family residential shows signs of recovery.
  • Manufacturing: Federal funding initiatives are expected to fuel a significant increase in construction investment in semiconductors, electric vehicles, and biomanufacturing sectors. However, talent shortages and supply chain issues pose challenges.

Outlook: The construction industry expects moderate growth through 2024, with slower expansion in sectors sensitive to interest rates. Anticipated federal rate cuts in 2025 may stimulate new projects, particularly in public safety, manufacturing, and amusement/recreation. Our report reflects a cautiously optimistic outlook, tempered by ongoing challenges related to high interest rates, supply chain constraints, and sector-specific issues like high office vacancies and the multifamily housing slowdown.

 

Kannapolis approves money for realignment of city hall to accommodate growth

mmcrebuildstg on August 28, 2024

KANNAPOLIS — As part of the implementation of the Imagine Kannapolis Strategic Plan, the city council Monday night approved several budget amendments, including one that will allow for “upfits” or adjustments in space to accommodate growth in city hall.

Read more at: https://www.salisburypost.com/2024/08/14/kannapolis-approves-money-for-realignment-of-city-hall-to-accommodate-growth/

Miles-McClellan Construction Helps North Carolina Community Beat the Heat With Historic Community Pool Renovations

mmcrebuildstg on August 18, 2024

North Park Pool

As cities nationwide continue to experience record-breaking summer temperatures, the importance of community spaces that allow residents to find relief, socially engage and promote safe physical activity becomes that much clearer. In Burlington, North Carolina, one of those spaces is the historic North Park Pool. Originally built in the 1950s, it was one of the first places black families could gather for special events, celebrations and summer pool days in a still segregated country. It continues to hold special importance to the community today, so when it was time for the space to receive some serious upgrades, the City of Burlington reached out to the experts at Miles-McClellan Construction.

The city opted for a design-build construction plan, which is when our experts take a project from conception to finish, delivering a finished product that meets the desired needs and budget. The North Park Pool project was significant, not only because of its deep historic roots, but also because it is the City of Burlington Aquatics’ largest outdoor aquatic recreation facility. While the city originally planned to tear down the existing building and build a new facility, Miles-McClellan Construction determined that revising the plans to utilize the existing building would allow the city to complete the project within budget.

Renovations for this project included:

  • New zero-entry pool with a tiled walking path
  • Competition race lanes
  • Splash pad with water features
  • Diving well
  • 13,000 SF deck
  • Shade pavilion
  • Revitalizing the outdated support building by adding a pump room and concession area in conjunction with updated changing areas and a meeting room

Design-build services provided by Miles-McClellan Construction included:

  • Project management and administration through project leadership and overall team coordination
  • Interdisciplinary coordination
  • Review of codes and standards
  • Identifying opportunities for economy of scale
  • Project planning and scheduling
  • Coordination of contract documents
  • Providing documents and drawings

The North Park Pool

“The North Park Pool is an important part of our community’s history. We are honoring that history by preserving the mural dedicated to the members of North Park’s late 1950s swim team. [This] modern outdoor recreation facility provides new ways patrons can stay active and have fun during the hot summer months.”
Rachel Kelly
Assistant City Manager for Administrative Services
City of Burlington, NC

Ultimately the North Park Pool project was completed on time and under budget. The community was grateful to have this historic gem restored to its former glory, and the city even decided to commemorate its unique past by preserving one of the original murals.

Are you ready to discover how our design-build services can build excellence in your community? Then contact us today and learn more about our superior design-build services and solutions!

2024 Q1 Economic Indicator

mmcrebuildstg on June 11, 2024

2024 Q1 Economic Indicator
Contrary to earlier predictions of a recession in early 2024, the AIA and FMI now suggest a potential slowdown in the back half of 2024. While our indicators do point to a deceleration, our internal data and anecdotal evidence consistently demonstrate the robustness of the construction industry, which does not align with the notion of a significant downturn.

To summarize the AIA and FMI reports, they expect an increase in construction spending between 2-3% in 2024, followed by a rise of 1% in 2025. Accounting for the anticipated slowdown of construction over the next two years, the AIA points to three factors that, when combined, cause banks to tighten up lending, resulting in difficulty in getting projects started:

  1. Rising long-term interest rates.
  2. Higher construction input costs with input prices remaining 35% to 40% higher than pre-pandemic rates.
  3. Construction labor costs are continuing to rise at a 4% annual pace.

Despite the AIA Billing Index remaining below 50 for 9 consecutive months and the Dodge Momentum Index staying low for the past 10 months, the Charlotte and Columbus construction markets are still brimming with potential. Contractor backlogs, as measured by ABC and FMI, saw an increase at the end of Q1. This positive trend is mirrored at Miles-McClellan, where our backlog is higher today than it was at the end of Q1.

As you read the full report, you will learn more details about these numbers and trends.

Recent MM Bidding Experience

Immediately below is a summary from one recent bid effort, but it indicates what our teams are experiencing as they continue to price projects for our clients actively.

Sharing a recent bidding experience, Brad Bloomberg, MM Vice President, expressed, “Our most recent bid was for a local office remodel in downtown Columbus. The project primarily focuses on updating elevator lobbies, restrooms’ finishes, lighting, and ceilings. We had a prequalified list of limited subcontractors invited to the project. While the coverage was average on drywall and fire suppression, we received feedback from painters, electricians, and HVAC contractors that they were too busy with the existing backlog over the summer months to take on any new work.”

  • Painting: 2 bidders of the 7 invited.
  • Electrical: 2 bidders of the 10 invited.
  • HVAC: 1 bidder of the 10 invited.
  • Flooring: 2 bidders of the 6 invited.
  • Drywall & Demo: 4 bidders of the 5 invited.
  • Fire Suppression: 3 bidders of the 6 invited.

This level of bidding activity is typical for the summer months. We will monitor the trends and report on contractor backlogs in Q3.

Read the Report

Building Excellence from the Beginning: The Benefits of Construction Management at Risk

mmcrebuildstg on May 2, 2024

Construction Management at Risk

For over 46 years, our customers have trusted us to build excellence and find smarter solutions for all their construction needs to ensure the best possible outcome for any project. With comprehensive Construction Management at Risk (CMR) services, our strategic approach to crucial components of a construction project that include project and risk management, project cost estimate and budgeting and design and engineering services, we help our customers minimize risks, control costs and get projects completed on time and at the highest standard of excellence.

How Does Miles-McClellan Construction Approach Construction Management at Risk?

As with all of our projects, the process begins with one of our talented leaders serving as Project Executive and committing to delivering a construction project within a guaranteed maximum price (GMP). From there, the Project Executive takes on the role as consultant throughout the development and design phase, and does everything possible to ensure a project is prepared and ready to enter the next phase.

How Can Construction Management at Risk Benefit My Next Project?

In our experience, CMR with Miles-McClellan Construction provides several benefits that ensure a project is successful from beginning to end. These include:

  • Projects Completed on Time – When a construction manager is involved early in the process, they can optimize the construction schedule and plan for multiple aspects of a project, including delivery of materials, procuring labor and equipment, coordinating various timelines, etc. Ultimately, this allows for increased speed of project execution.
  • Construction Managers With Decades of Experience – Our construction managers have decades of experience, and are dedicated to client satisfaction and building excellence. They have worked with clients of all sizes in all industries, and found ways to overcome a variety of construction challenges. Learn more about their approach to construction and why they are the best in the business.
  • Enhanced Synergies Between Stakeholders- Talented construction managers have the ability to foster a culture of collaboration and transparency amongst stakeholders involved in a project, which allows stakeholders to identify areas for improvement and construction managers to adapt and plan for changing project requirements. This goes a long way in enhancing stakeholder satisfaction.
  • Cost and Pricing Transparency- As stated earlier, one of the hallmark features of CMR is the creation of a Guaranteed Maximum Price (GMP), which provides owners with cost certainty and transparency and ensures that projects remain within allocated budget constraints. This requires significant planning and cost monitoring from construction managers, and helps minimize the risk of budget overruns.

Ready for Project Success? Then Ask About Our Construction Management at Risk Services!

We believe in building excellence before construction ever begins and have the talent and expertise to provide a seamless and efficient design process that leads to exceptional results. Contact us to learn more about our CMR services and experience on time, on budget construction!

Blueprints and Beyond: Industrial Construction That Shapes the Nation

mmcrebuildstg on February 2, 2024

Industrial Construction That Shapes the Nation

“I have been able to build long-lasting relationships with our industrial clients built on trust, respect and confidence in Miles-McClellan Construction and our team.”

– Matt Recchiuti, Miles-McClellan Construction Vice President and Industrial Construction Director

For over 46 years, we have been building excellence with construction projects of all sizes in a variety of industries. Throughout that time, some of our most memorable projects have been in the industrial sector.

Industrial construction involves building highly specialized structures and facilities for manufacturing, warehousing and fulfillment operations. At Miles-McClellan Construction, we regularly do work for clients in the industrial sector that includes food processing facilities, pharmaceutical facilities, automotive and aerospace manufacturing facilities, chemical and material input facilities, as well as warehouse and distribution center construction, research and development laboratories and more. These types of industrial projects are the backbone of American industry, and foster innovation, create employment opportunities and drive technological advancement.

Our experience in the industrial construction sector has taught us one important lesson – working in industrial environments is very unique for a variety of reasons. It often involves being surrounded by heavy machinery and equipment, and safety precautions are the top priority. Also, the construction team and the client must have open, transparent communication at all times to meet important deadlines and schedule demands. And usually, industrial construction projects are done in occupied facilities, which adds another level of complexity to these projects.

As the construction company with over 46 years of experience building excellence and exceeding client expectations, we are experts at overcoming construction obstacles and challenges. In the words of Matt Recchiuti, Miles-McClellan Construction Vice President, “There is usually always a way if you’re willing to look at alternative solutions and find a new way of doing something that is outside of the norm.” Let’s take a look at some of our most memorable industrial construction projects.

  • American Honda Midwest Consolidation Center

    American Honda Midwest Consolidation Center: Troy, OH

    • Project included work on a 500,000 SF domestic parts supplier distribution hub, an 80,000 SF mezzanine within the warehouse and 49,000 SF procurement operations support office.
    • We were able to incorporate many sustainable elements into this project, including a stormwater runoff that is redirected to a permanent pond that also serves as the sole water source for landscape irrigation, extensive use of light-colored concrete pavement and highly reflective roofing material to reduce heat island effect. Project achieved LEED Gold certification.
    • Project was completed a month ahead of schedule and on budget.
    • Received an ABC Excellence in Construction Award.
  • Honda Aircraft Co. World Headquarters and Research

    Honda Aircraft Co. World Headquarters and Research & Development Facility: Greensboro, NC

    • The campus has 2 buildings. The first building houses over 150 employees, boasts a flight operations room, and an opulent VIP/Lounge specifically designed for current and future customer arrivals. This building also received LEED Gold certification.
    • The second building is a 170,000 SF research and development facility. While this building is not part of the LEED Certification, we diverted 85% of waste from landfill on this portion of the project.

Do you have an industrial construction project coming up? Then contact our team and let’s discuss how working with Miles-McClellan Construction is the best way to make your project a success and build excellence!

We Change the Spaces That Change Lives

mmcrebuildstg on November 22, 2023

Wells Barn at the Franklin Park Conservatory

“We thrive on challenges and are your go-to problem-solving partners.”

Kevin Joseph, Miles-McClellan Construction Project Executive

As defined by Merriam-Webster, renovation is the act of restoring life, vigor or activity.

As the smarter construction company on a mission to build excellence, we are proud of our renovation projects that restore and bring fresh energy into the communities where we live, work and play. Steered by our skilled leaders and a talented IMMPact team, we have witnessed firsthand how exceptional renovation construction can transform communities and change lives.

Beautifying the Community Through Renovation

One of Miles-McClellan Construction’s most noteworthy renovation projects was our work on Wells Barn at the Franklin Park Conservatory in Columbus, Ohio. Wells Barn is an existing heavy timber barn frame from the late 1800s that was renovated into a new education, community outreach and events facility on Franklin Park Conservatory’s campus. One of the most complex construction considerations faced during this renovation project was finding a way to incorporate the original timber from the barn into the modernized version that met current building codes and was structurally sound. Ultimately, our structural engineer was able to design new studs that could be fastened to the existing timber, and C-channel beams provided an additional layer of support. The updated Wells Barn has been a great addition to Franklin Park Conservatory, and now holds a variety of events that benefit the community, such as cooking demonstrations, do-it-yourself cooking classes and tastings within the kitchen space, children and youth classes, adult classes, summer camps, lectures and conferences/symposia.

Family-Friendly Renovation

It doesn’t get much more memorable than having stingrays as a client! Well, not exactly, but we loved partnering with the Columbus Zoo for numerous renovation projects that included the Freshwater Mussel Conservation & Research Center, Nocturnal Building and Aviary upgrades to create a habitat/exhibit space for the Weedy Seadragon and renovation of an existing stingray touch experience. Due to weather issues, Miles-McClellan Construction had to find resourceful ways to complete the project, including repurposing soil used in other areas of the zoo undergoing renovation and using it to cover up miles of pipework.

Renovation That Improves Safety at Schools

Some of our most important renovations have nothing to do with aesthetics, but improving critical components of a space. For our work with Columbus City Schools, we led several HVAC renovations that would make schools safer for students and staff. Under the supervision of Brad Bloomberg, Vice President, HVAC renovations at Valleyview Elementary School, Westgate Elementary School and West Broad Elementary School included replacement of the HVAC systems, new electrical service and both structural and architectural elements to support the new systems. Working strategically, these projects were completed on-time and without issues.

Changing Spaces, Changing Communities, Changing Lives

Our renovation projects transform and improve the lives of residents.  With every renovation project, we are doing our part to help our clients breathe new life into spaces that are vital to the community.

We believe in renovation that makes an impact. Contact us and let’s make a difference through excellent renovation!