Q3 2018 Economic Indicators
Executive Summary
The labor shortage over the past years has caused wages to escalate. According to a report by Zillo Research, at the start of 2017, wages for construction-industry workers were growing slightly slower than wages for other workers – around 2.5% per year. But they are now growing 3.8% per year. This is happening for both skilled laborers and salaried positions. Anirban Basu, ABC’s Chief Economist, states in a Nov. 1 construction employment news release, “one potential cause for concern is growing evidence that wages have begun to rise much more rapidly of late. That, along with other sources of inflation, can be expected to push interest rates higher, which in turn would ultimately translate into more expensive financing for construction projects and fewer construction starts. But for now, it is all systems go for the U.S. nonresidential construction industry.” We’ll be keeping a close eye on how this might impact the industry.
2018 Q2 Economic Indicators
12 Month Performance Summary
The construction industry has seen a 4.4% increase in net new jobs (308,000) since the first of the year. Industry unemployment decreased to 3.4% in July, which is the lowest in recorded history. Construction starts are up 2% Jan.-July 2018 from the same period last year. While these numbers look good, there is still a lack of skilled workers, and the pinch is being felt on construction schedules. Even after careful planning and paying attention to the labor market and concurrent local projects, schedules are being delayed. The consequences of which are felt throughout the project’s duration. Organizations are working to make a difference. Workforce development is a high priority of the Associated Builders and Contractors, Inc. (ABC) and they are pushing to expand apprenticeship opportunities in congressional testimony. Miles-McClellan is an active member of the ABC both in Central Ohio and Charlotte. Trade partners that invest in their people and workforce development programs, generally are also members of ABC. We participate because we want to have relationships with those companies. The apprenticeships that are happening now aren’t necessarily putting more people on jobs right now, but it speaks to the commitment from within the industry to improve the labor market.
Miles-McClellan Celebrates 40 Years in Business
COLUMBUS, Ohio, (July 16, 2018) – “Aged” is an excellent complement for two things; whiskey and business. With that being said, let’s stick to business. 2018 marks Miles-McClellan Construction (MMC) 40th year of growth in the Greater Columbus Area.
The family-owned and operated company was founded in 1978 by Terry McClellan under the name McClellan Construction. Starting out in the same office as Concept Construction Company, owned by Lonnie Miles, it made sense for the two owners to form a partnership. Thus came the name Miles-McClellan Construction in 1988.
Today MMC is home to 136 employees. This includes employees at their Charlotte, NC branch which was established in 2007. With a commercial and industrial construction focus, MMC can do anything from a small waiting room renovation to constructing a multi-story hotel.
Starting with the renovation of the Grandview Heights Pool House back in the early 1980’s, MMC has continued to leave a legacy throughout the Columbus area. A few notable projects include the Franklin Park Conservatory Wells Barn, Grove City’s Library, and North Bank Park.
With their mark left throughout Columbus, MMC separates itself from their competition with their intense focus to solve complex construction issues. Their high performance has continued by perfecting detailed planning and pre-construction excellence.
“Thank you to all our clients and construction partners throughout the past 40 years. It takes a community to build a community. We look forward to continuing to help our clients and Columbus, Ohio grow for the next 40 years”, expressed Matt McClellan, President of Miles-McClellan Construction.
Miles-McClellan Construction’s 40th anniversary establishes a foundation to grow and continue to give back to the communities that support them. Similar to a nice glass of whiskey, right?
Cheers.
2017 4th Quarter Economic Indicators
According to the latest Associated Builders and Contractors (ABC) Construction Confidence Index (CCI), the majority of commercial and industrial contractors are confident about sales growth, profits, and staffing levels heading into 2018.
“Despite the completion of approximately eight and a half years of economic recovery, both inflation and interest rates remain low,” said Basu. “The combination of elevated wealth and confidence with low borrowing costs drives spending and investment, which supports higher demand for construction services.”
We like that positive news!
Adapted from: Basu, A. (2017, December 7). Buoyed by Healthy Economy, ABC Index Finds Contractors Upbeat. Retrieved from abc.org
2017 3rd Quarter Economic Indicators
The Associated Builders & Contractors reported a slight decline in nonresidential construction employment. Determining why this happened is proving difficult because of the following possible reasons: stalled construction projects, impact from the recent storms, or lack of skilled laborers to take over for the skilled laborers that retired. In our case, the lack of qualified labor to replace/fill positions hurts us the most. We’re curious, have the other two reasons affected your productivity?
The Importance of Team in Achieving Technical Excellence
Believe it or not, the ability to work collaboratively as a team is a learned skill. The longer your project team has worked together, the more skilled they are at problem-solving. Through their shared experiences, team members become proficient in applying their intuition and offer creative problem-solving solutions. A few characteristics of an integrated project team are:
- Team members knowing their role in the project’s success – Each professional understands how their role impacts the project and focuses on the subtle details of their position, confirming they are done accurately and thoroughly.
- Hold each other to high standards – While the team makes an agreement with their owner, they make a promise to each other. As an owner, you may not see the accountability they hold to each other, but the effect is seen in the quality of your project.
- Confidence in solutions – They all know how each other operate, how they break down issues and analyze the best path forward, and they know how to work together to develop creative solutions.
- Connecting to people, not just your project – All team members are informed of the status of the project at all times. They maintain appreciation and comradery as you work together as partners, leading you to success.
“Collaborative problem solving refers to an open process for generating multiple alternatives, fostering the exchange of ideas and producing a validated solution.” (Garvin & Roberto, 2001)
Miles-McClellan Construction Named Accredited Quality Contractor by ABC
“Associated Builders and Contractors is pleased to honor Miles-McClellan Construction with Accredited Quality Contractor status for its commitment to excellence in construction, its workforce and the communities it helps build,” said 2017 ABC National Chair Chuck Goodrich, president of Gaylor Electric, Indianapolis. “Miles-McClellan Constructionearned this recognition for world-class safety performance, a strong record of investment in a talented and well-trained workforce, diversity leadership and community service.”
Launched in 1993, ABC’s AQC program provides recognition to world-class construction firms that have documented their commitment in five areas of corporate responsibility:
• Quality
• Safety (ABC Safety Training Evaluation Process (STEP) Gold, Platinum or Diamond level required)
• Employee benefits
• Training
• Community relations and diversity
In achieving AQC status, each member company takes the following pledge:
As an Accredited Quality Contractor, our company is committed to providing our clients with the highest quality construction services and we care deeply about our employees and the communities in which we build. We are proud to be part of the construction industry and are dedicated to the principle of free enterprise. We commit ourselves to serve our communities and to provide our employees with the skills they need to work safely and productively in order to meet the needs of our clients.
AQC is recognized by Construction Users Roundtable (CURT®), an organization founded by leading construction project owners.
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Founded in 1950, Associated Builders and Contractors (ABC) is a national construction industry trade association representing more than 21,000 members. Founded on the merit shop philosophy, ABC and its 70 chapters help members develop people, win work and deliver that work safely, ethically and profitably for the betterment of the communities in which ABC and its members work. Visit us at abc.org.