Ingram’s January 2023

are more narrow” in scope. Distribution- center construction and facilities for solar-related and battery manufacturing would continue to drive much of the construction activity, he said. Steve Swanson addressed a concern of many—interest rates—by offering a bit of perspective. “We’re looking at about 7 percent rates,” he said, but by historical comparison, that’s closer to the norm. During periods of near-zero rates, he said, “money was cheap for a long time, and I think some people got lazy because of it.” Supply-chain issues, many said, remain a concern. The industry has breathed a collective sigh of relief throughout 2022, as prices for many construction materials retreated from 2021 spikes triggered in large part by the pandemic. While the ports in California have resolved much of backlog there, the continuing COVID-19 lockdown in China could trigger a fresh disruption of material deliveries—and a resumption of higher prices. But demand, as well, has kept prices in check. Owners have been cautious about new projects as they keep an eye on interest rates, and the housing sector has been ravaged with demand slashed by high home price, lack of inventory and buyer sensitivity to higher mortgage rates. “It’s still an ongoing problem,” said Rosie Privitera Biondo. Orders for switch gears, she said, were now running 85 weeks behind. “It’s horrible. We are not in control of our destiny.” Builders should approach projects now with that in mind; “it’s becoming the norm for our industry,” said Emily Tilgner. One upside of the dilemma Privitera Biondo cited, said Steve Swanson, is that if a buyer is waiting 85 weeks for materials, the project itself must be fairly sophisticated—the work may be delayed, but the project is likely to move forward. Not so with restaurant and retail work, he said. What’s required, said Greg Carlson, is an understanding by pre-construction managers that material deliveries will require longer lead times, and project schedules will have to be built around availability of various materials.

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1. Erica Jones said builders can no longer make safety a program-level concern; it must be part of the organizational culture. | 2. Todd Winnerman said the conflict between remote work and on-site work was a significant issue within companies in the sector. | 3. Pete Browne noted the challenges presented when clients’ workplaces are heavily reliant on remote work. | 4. Finding, recruiting and retaining talented employees is a huge issue, said Steve Swanson .

The factors that have driven prices up, said Brandy McCombs, are not going way. As a result suppliers “are not able to go back” to previous pricing levels. The Next Generation of Employees Discussions about talent acquisition and retention among construction executives invariably lead to broader social concerns about the way jobs in the sector are viewed by many young workers, and especially by parents. Too many of the latter, these executives say, are convinced that their children can only succeed with four-year college degrees. Emily Tilgner credited the metro area’s junior colleges, especially Metropolitan Community College and Johnson County Community College, with raising awareness among students. The ability to start a trades

job at $75,000, with no college debt, can position someone for much greater life success than spending four years securing a degree, especially if it’s not in a field relevant to today’s employer needs. Chris Vaeth said increasing numbers of school districts are implementing Career Technical Institutes, and Pete Browne said his company had hoped to use a Burns & McDonnell/North Kansas City School District collaboration as a model for its own goal of aligning with the Center School District. Unfortunately, the district said it didn’t have the resources to respond in kind. “If we want to have a greater impact, we as an industry have to go together” and approach K-12 educators with oppor tunities to engage young students, Steve Swanson said.

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c o n s t r u c t i o n & e n g i n e e r i n g i n d u s t r y o u t l o o k

Kansas City’s Business Media