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7 Trends that Will Shape HR in 2025

 

From building a culture of civility to upskilling en masse, here’s what human resources (HR) professionals can anticipate in 2025.

 

The world of work is changing at a staggering pace. From changes in talent acquisition practices to the rise in people analytics, to the can’t-be-talked-about-enough impact of artificial intelligence (AI), 2025 is sure to be a year of new opportunities and new challenges driven by the need for the workforce to be increasingly flexible and skilled to meet market demands. With that in mind, the Society for Human Resource Management (SHRM) experts shared their insights on seven major trends that are likely to impact HR in the year ahead.

Skills over Degrees

Momentum is surging around skills-based hiring, which is the idea that workers’ skills and capabilities matter more than their educational background or work history. Focusing on what employees can do—not where or how they learned to do it—widens the talent pool, helps solve skills shortages, and boosts retention, says Justin Ladner, Senior Labor Economist at SHRM.

The practice is catching on quickly: In 2024, 81% of employers practiced skills-based hiring, up from 73% in 2023 and just 56% in 2022, according to research from TestGorilla,1 a talent assessment platform.

“The ongoing labor shortage provides a strong incentive for firms to search for ways to expand their ability to recruit and retain workers,” Ladner says.

Disruptive events such as the pandemic and the subsequent labor shortages, as well as the rise of AI, have taught employers that an adaptable workforce is one of the most critical ingredients in future-proofing an organization.

Therefore, says SHRM Chief Human Resources Officer (CHRO) Jim Link, SHRM-SCP, companies are seeking employees who are persuasive, open to learning, and able to communicate well.

“We used to think about [business] sustainability in terms of things,” Link says. “Going forward, we’re going to think that way about people. Do we have the right people with the right skills and enough workforce numbers for today and tomorrow?”

Some employers will also continue to rethink college degree requirements for certain roles. An analysis by Indeed found the number of job postings requiring at least a 4-year degree fell to 17.8% in January 2024, compared with 20.4% in 2019.2 Of employers who eliminated degree requirements for some roles, 73% said they had successfully hired one or more candidates who previously would not have qualified, SHRM’s 2024 Talent Trends research reveals.3

Do we have the right people with the right skills and enough workforce numbers for today and tomorrow?

Jim Link, SHRM Chief Human Resources Officer

Evolving Skills, Thriving Workforces

The need for updated skills in the workplace is accelerating—so quickly, in fact, that new employees may need more training even before they’ve finished onboarding, says James Atkinson, Vice President, Thought Leadership, at SHRM.

Technology is driving this quickening pace of upskilling and reskilling. Quite simply, in a world where AI exists, employees’ skills can’t remain static. In fact, 83% of HR leaders believe upskilling will be essential for workers to remain competitive in a job market shaped by AI, SHRM data shows.4

As more organizations pursue AI, machine learning, and other advanced technology, they are taking stock of their employees’ skills and trying to “match that, as best they can, to what their future needs are likely to be,” Link says.

Additionally, Atkinson says, employers are realizing the importance of determining how employees can work with technology in a role that’s being transformed, or one that’s just emerging. Organizational growth and employee expectations will also continue to drive upskilling and reskilling.

“The fact that customers are more demanding means companies increasingly need to develop new products, and employees need to be more productive to keep up,” Atkinson says.

Employees are equally eager to stay competitive by updating their skills. According to a 2024 PwC survey, almost half of employees say that having opportunities to learn new skills is a key consideration when deciding whether to change employers.5 “This need for these workers to stay at the top of their game coincides with organizations’ needs to pull in that talent,” Atkinson says.

There’s more to explore and implement. While a majority of employers plan to upskill or reskill employees, according to a 2024 Express Employment Professionals–Harris Poll survey,6 just 29% of organizations have taken proactive measures to train and upskill employees who work alongside AI, SHRM research finds.7

People Analytics Shaping the Future

In a still-tight talent market, organizations must find smart, effective ways to encourage long-term employee loyalty. A potential solution is people analytics,8 the science of using data on employee performance, skills, engagement, and sentiment to predict and shape the future of the workforce.

People analytics can reveal a variety of insights.9 Combing through employee engagement survey data, for example, can help companies determine employee morale or recurring reasons for departure or turnover. People analytics can also identify potential learning and development opportunities, such as skills gaps that may hinder forward momentum.

Link also sees people analytics as an opportunity for employers to provide interventions such as mental health resources before such issues become a crisis.

Currently, HR professionals most commonly use people analytics to assess employee retention and turnover (82%) and for recruitment, interviewing, and hiring (71%), according to the report The Use of People Analytics in Human Resources (SHRM, 2023).10 Some organizations also use AI to identify potential high-performing employees using profiles based on past successful employees. That way, Atkinson says, “They can focus on retaining those employees and helping them grow and thrive.”

Going forward, Atkinson expects more employers to use people data for predictive modeling around workplace planning. “It’s not where a lot of organizations are right now, but it’s an exciting opportunity for the future,” he says.

The Concerning Rise of Incivility

If the world seems less courteous or empathetic lately, you’re not imagining it. SHRM launched its civility campaign11 in 2024 precisely because of “rising concerns about an incivility in society that’s bubbling up and overflowing into the workforce,” Atkinson says.

The SHRM Q3 2024 Civility Index survey of more than 1,600 U.S. workers, conducted August 27 – September 4, 2024, proved these concerns to be well-founded.12 Workers said they experience 190 million acts of incivility per day, 58% of which happen in the workplace. The biggest drivers of incivility were:

  • Political viewpoints,
  • Disagreements on social issues,
  • Generational gaps,
  • Racial or ethnic differences, and
  • The direction of U.S. society.

Politics was firmly in mind when SHRM launched its civility campaign in what was the biggest year in history for global elections. “Half the world’s population went through
elections in 2024,” Atkinson says. “And we know with elections in general that you’re pitting parties against each other and pulling out differences.”

Those feelings won’t just disappear in 2025. “Almost half of your employees are going to be disappointed, frustrated, mad,” he adds. “As a leadership team, as an HR professional, you need to recognize that.”

Atkinson recommends having those difficult conversations rather than simply making controversial topics taboo. “It’s not about removing conflict entirely; it’s about how you manage the conflict when it occurs,” he says. “Be clear about what workplace culture you want, and make sure that your leaders model it.”

Communication problems are often at the root of rising incivility, Atkinson says. Take social media, for example, which has made it easier for people to “more quickly engage in uncivil sentiments and not take time to think through alternatives or consequences.”

On top of that, generational differences are making workplace conversations even more difficult, experts say. Older employees may be uncomfortable with younger employees’ desire for more transparent and personal conversations, while younger workers may take constructive criticism as a personal attack. Remote workforces can also make it harder for employees to forge personal connections.

Tackling incivility in the workplace, though, is paramount. Workers who rate their workplaces as uncivil are three times more likely to be dissatisfied with their job, SHRM research has found. In the year ahead, employers may want to try strategies such as encouraging respectful dissent, creating diverse teams, and providing conflict resolution training.13

Employers are also increasingly offering workplace etiquette classes, ResumeBuilder reports,14 with appropriate workplace conversations being at the top of the training agenda.

Be clear about what workplace culture you want, and make sure that your leaders model it.

James Atkinson, SHRM Vice President, Thought Leadership

The Benefits of Financial Wellness

There’s growing momentum among smart employers to thoughtfully consider the role they play in employee wellness. While physical and mental health have been top of mind for years, financial health is now part of the conversation.

It’s become crystal clear how deeply employees’ financial wellness impacts their personal and professional lives, Link says. As a result, more employers are beefing up financial wellness benefits. In 2023, just 14% of U.S. employees had access to financial planning benefits at work.

By 2024, that number doubled to 28%, according to PNC Bank’s Financial Wellness in the Workplace Report.15 By the end of 2026, nearly half of employers are expected to offer a comprehensive financial wellness program, according to Transamerica.16

“Financial wellness is moving from an enhanced benefit to a primary benefit,” Link says. That’s critical, considering that more than half of employees say they are stressed about their finances daily or multiple times a day, according to a survey of 5,000 employees by financial services company ZayZoon.17 The most in-demand financial wellness benefits, according to Morgan Stanley research,18 are:

  • Assistance with retirement preparation,
  • Help with financial planning, and
  • Guidance on goals-based retirement investment planning.

Heading into 2025, employees also increasingly expect financial benefits that are personalized to their needs. Younger employees, for example, may want help saving for a downpayment on a home or managing student loans. Meanwhile, Baby Boomers prioritize financial education, and Millennials and Generation Z favor personalized financial coaching and planning, says Ragan Decker, Ph.D., SHRM-CP, Manager of Executive Network and Enterprise Solutions research at SHRM. While Baby Boomers, Gen Xers, and Millennials all agree that saving for retirement is their top financial goal, Gen Zers’ top priority is boosting their credit score, PNC Bank’s research found.

“This highlights the need for organizations to consider the unique financial needs and preferences of different generations to better support the workforce,” Decker says.

AI’s Impact on Talent Strategy 

As AI usage becomes ever more ubiquitous, an increasing number of organizations are harnessing this still-evolving technology to transform talent acquisition. However, that’s a relatively recent development—of the one in four organizations that use AI to support HR-related tasks, nearly two-thirds only began doing so in 2023, according to SHRM’s 2024 Talent Trends: Artificial Intelligence in HR report.

In other words, most organizations have yet to tap into AI’s vast number of potential
applications. Those who are, though, most commonly put AI into play to support recruitment, interviewing, and hiring by streamlining or increasing efficiency. What does that look like in practice?

  • Nearly two in three companies use AI to develop job descriptions.
  • More than 42% use it to customize or target job postings to specific groups.
  • Around two-thirds use AI to review or screen applicant resumes, communicate
    with applicants during the interview process, or automate candidate searches.

“By streamlining these tasks, we’re really seeing employees who feel they’re able to be more efficient and effective; and as a result, they’re more engaged,” Link says.

The use of AI can also be a boon to improving diversity in the applicant pool, SHRM’s research shows, with nearly 30% of companies reporting that AI allows them to better tap into underrepresented talent networks.

In addition to talent acquisition, HR professionals are drawing on AI to increase and encourage workforce knowledge and development, identify gaps in employee knowledge, and track employees’ learning and development progress.

“The best employers today are basically offering very large learning management systems (LMSs) so people can tackle any type of learning that they want to have,” Link says.

That is key, he explains, because many younger employees are no longer content to wait years to gain exposure to certain skills or experiences. Employers that give these workers the knowledge they seek may be able to hang onto them longer.

Post-Election Regulatory Shifts

New regulations are introduced every year, but on the heels of a presidential and congressional election, 2025 could give HR professionals a bit of whiplash. Not only are new policies likely to come to the forefront, but it’s possible that existing ones may be scaled back or eliminated altogether.

For example, the new presidential administration could result in either a less or more pro-labor stance, says Emily M. Dickens, J.D., SHRM Chief of Staff, Head of Government Affairs, and Corporate Secretary. If a worker shortage persists, she adds, “it will be very interesting to see how the government handles worker visas to allow workers into the country.”

Potential laws, regulations, and enforcement actions that could affect HR professionals include:

  • The possibility of intensified workplace enforcement and immigration raids.
  • The Trump administration letting stand any court decision striking down the Biden administration’s overtime rule or independent contractor status rule. On November 15, 2024, a district court struck down the overtime rule nationwide. Another district court followed in its footsteps, determining on December 30, 2024, in a separate ase, that the rule should be vacated.
  • The National Labor Relations Board taking a less aggressive approach on existing workplace rules once it has a Republican majority.
  • State laws and regulations on paid leave, AI, and captive audience meetings.

SHRM Resources available at www.shrm.org:

SHRM Research: 2024 Talent Trends Report

SHRM Specialty Credential: People Analytics

Resource: Managing Workplace Conflict Toolkit

Related: Benefits 101: Demystifying Your Benefits Package

 

References

  1. “The State of Skills-Based Hiring – 2024,” TestGorilla, www.testgorilla.com/skills-based-hiring/state-of-skills-based-hiring-2024/
  2. Cory Stahle, “Educational Requirements Are Gradually Disappearing from Job Postings,” Hiring Lab Economic Research by Indeed, February 27, 2024, www.hiringlab.org/2024/02/27/educational-requirements-job-postings/
  3. “2024 Talent Trends Report,” SHRM, www.shrm.org/topics-tools/research/2024-talent-trends-report
  4. “2022 Workplace Learning & Development Trends,” SHRM, www.shrm.org/content/dam/en/shrm/research/2022-Workplace-Learning-and-Development-Trends-Report.pdf
  5.  “Workers are ready for change. Are leaders ready to engage them?” PwC, June 24, 2024, www.pwc.com/gx/en/issues/workforce/hopes-and-fears.html
  6. “More than Two-Thirds of U.S. Companies to Train In-House Talent Amid Cost-Cutting Strategies,” Express Employment Professionals, August 28, 2024,
    www.expresspros.com/newsroom/news-releases/news-releases/2024/08/more-than-two-thirds-of-us-companies-to-train-in-house-talent-amid-cost-cutting-strategies
  7.  “2024 Talent Trends Report,” SHRM, www.shrm.org/topics-tools/research/2024-talent-trends-report
  8. “The Use of People Analytics in HR,” SHRM, January 16, 2024, https://www.shrm.org/topics-tools/research/the-use-of-people-analytics-in-hr
  9. Dave Zielinski, “How GenAI Is Transforming People Analytics Software,” SHRM, October 21, 2024, www.shrm.org/executive-network/insights/artificial-intelligence-transform-people-analytics-softward
  10. Ragan Decker, Ph.D., Kerri Nelson, Ph.D., and Kirsteen E. Anderson, The Use of People Analytics in HR—Current State and Best Practices Moving Forward, SHRM,
    www.shrm.org/content/dam/en/shrm/research/use-of-people-analytics-in-hr.pdf
  11. SHRM Civility Campaign, www.shrm.org/topics-tools/topics/civility
  12. www.shrm.org/topics-tools/topics/civility
  13. www.shrm.org/topics-tools/tools/toolkits/managing-workplace-conflict
  14. “Half of Companies Give Office Etiquette Classes as Workers Struggle with Appropriate Conversation, Dress,” Resumebuilder.com, July 11, 2023,
    www.resumebuilder.com/half-of-companies-give-office-etiquette-classes-as-workers-struggle-with-appropriate-conversation-dress/
  15. “2024 Financial Wellness in the Workplace Report: The Evolving Needs of the Multigenerational American Workforce,” PNC Bank, www.pnc.com/content/dam/pnc-com/pdf/corporateandinstitutional/organizational-financial-wellness/organizational-financial-wellness-workplace-report.pdf
  16. TRANSAMERICA PRESCIENCE 2026 – Fifth report: Financial wellness benefits and retirement, Transamerica Corporation, 2024, https://docs.publicnow.com/viewDoc?filename=122916%5CEXT%5C8C7ED52FBF319718B0D9FBFAE44DC5501D79AA1F_B1017961D662FA65A94E438DDB5C90352F946A7C.PDF
  17. Charlotte Crawford, The State of Employee Financial Wellness Report, ZayZoon, September 5, 2024, www.zayzoon.com/blog/state-of-employee-financial-wellness
  18. State of the Workplace 2024 Financial Benefits Study, Morgan Stanley at Work, www.morganstanley.com/atwork/articles/state-of-workplace-financial-benefits-study
NIA Sites > Insulation Outlook Magazine > Global

Generation Why? Bringing Generations Together in the Insulation Industry

Our industry faces a workplace reality that’s truly unprecedented: usually four, but sometimes up to six generations working side by side! This diversity brings both amazing opportunities and real challenges, especially in hands-on trades, where passing down knowledge while embracing new practices can make or break your company.

The insulation industry is a perfect example, with seasoned pros with decades of experience working alongside digital natives who bring fresh perspectives on efficiency and technology. Rather than seeing these differences as obstacles, forward-thinking companies recognize complementary strengths that create stronger, more adaptable teams.

 

Today’s Generational Landscape in Insulation

Today’s workforce spans Baby Boomers to the emerging Gen Alpha, with each generation shaped by different historical events, technologies, and cultural shifts. Here’s how this specifically plays out in insulation.

Baby Boomers (born 1946–1964) bring irreplaceable knowledge about materials, techniques, and relationships built over decades. They’ve weathered changing building codes, insulation standards, and industry practices. When a complex commercial project faces unusual challenges, their experience can provide solutions that no manual can offer.

Generation X (born 1965–1980) serves as a crucial bridge between traditional approaches and newer methods. Their adaptability and practical nature make them excellent problem solvers who can translate between generations while keeping projects on track. They can modify time-tested techniques to meet modern efficiency standards.

Millennials (born 1981–1996) have raised expectations around efficiency, sustainability, and workplace processes. Their commitment to environmental impact aligns perfectly with insulation’s growing focus on energy conservation. They’re asking important questions about why we use certain materials, and they’re pushing for better documentation of procedures.

Generation Z (born 1997–2012) brings digital fluency that transforms how we document, manage, and communicate about projects. Their comfort with technology enables insulation contractors to implement advanced thermal imaging, energy modeling, and project tracking systems that improve accuracy and client satisfaction.

 

Beyond Stereotypes: Finding the Strengths in Each Generation

In my book, The Retention Formula: Stop the Turnover Crisis, Harmonize the Generations, and Skyrocket Profits, I explore how generational differences that seem problematic often reveal underlying strengths when viewed differently.

For example, when Baby Boomers get labeled as “resistant to change,” they’re actually demonstrating valuable risk assessment skills, honed through experience. In insulation, where improper installation can lead to serious moisture issues or energy losses, this cautious approach prevents costly mistakes. A Boomer asking “have we tested this new material in high-humidity environments?” isn’t being difficult—they’re saving you future callbacks.

Generation X’s “skepticism” functions as crucial critical thinking that identifies potential problems before they become disasters. Their questioning nature ensures insulation specifications truly meet project requirements, rather than just following standard approaches. When a Gen Xer asks why we’re using the same R-value in two different climate zones, they’re helping prevent future performance issues.

Millennial “entitlement” is better understood as healthy standard-setting and clear communication. Their willingness to request better training, documentation, and work processes has elevated quality control throughout the field. When Millennials ask for more comprehensive training on a new spray foam system, they’re not being demanding they’re ensuring proper installation.

Generation Z’s “digital dependence” translates to efficiency enhancement through smart technology adoption. Their comfort with digital tools has accelerated the industry’s use of thermal imaging, energy modeling software, and project management platforms. When a Gen Z team member suggests using an app to document pre-installation conditions, they’re creating valuable project records.

 

The Insulation Industry’s Generational Advantage

Technical trades like insulation actually hold unique advantages in bridging generational differences.

  1. Hands-on learning serves as a powerful common ground. Regardless of age, insulation professionals share the experience of developing skills through direct application. Whether it’s properly fitting pipe insulation or achieving the perfect spray foam application, these tactile skills create mutual respect.
  2. Safety culture provides shared values across generations. From veteran installers to newer team members, the commitment to proper protective equipment and correct procedures creates a foundation of common purpose.
  3. Visible results create pride that transcends age differences. All generations can appreciate walking through a completed project knowing their work will improve comfort and save energy for decades to come.
  4. Technical knowledge flows in multiple directions. While older workers can teach material specifications and installation techniques, younger team members often help implement new digital and documentation technologies that improve efficiency.

 

Leadership Approaches that Work across Generations

Leadership styles have evolved dramatically over the past 3 decades. Here’s how to connect with different age groups.

Baby Boomers often respond best to clearly defined structures and recognition for expertise. In insulation companies, this might mean creating formal mentorship programs that honor their experience while documenting their knowledge for future teams.

Generation X typically values autonomy and results-oriented leadership, with minimal micromanagement. Allowing these team members to solve complex insulation challenges their own way often yields innovative solutions, especially on retrofit projects with unexpected conditions.

Millennials generally seek purpose-driven leadership that connects daily tasks to larger goals. Emphasizing how insulation work directly contributes to energy conservation and environmental sustainability makes work more meaningful and improves retention.

Generation Z responds to authentic leadership that embraces technology and social responsibility. Involving these team members in modernizing documentation systems or community outreach initiatives leverages their natural strengths while building commitment.

 

Practical Strategies from the Retention Formula

Here are several approaches derived from my research that insulation industry leaders can
implement right away.

Create cross-generational project teams that deliberately mix experience levels and technological aptitudes. Pair a veteran insulator with newer team members on complex projects, encouraging knowledge transfer while allowing space for innovation. For example, have an experienced installer lead the technical aspects, while a younger team member handles digital documentation.

Develop training systems that work for different learning styles. While written manuals might work for some, others learn better through videos or hands-on demonstrations. Creating a library of installation techniques that includes all these formats ensures everyone can access information in ways that work for them.

Establish communication protocols that respect diverse preferences. Some team members prefer in-person discussions about project changes, while others respond better to digital documentation. Creating consistent expectations around which channels are used for different types of information helps everyone stay informed.

Implement recognition approaches that resonate across generations. Public acknowledgment works for some, while others value additional responsibility or professional development. Understanding individual preferences helps ensure everyone feels valued for their contributions.

 

The Competitive Edge of Generational Harmony

Insulation companies that successfully bridge generational divides gain significant advantages, including:

  • Effective knowledge transfer that preserves critical expertise before retirement;
  • Enhanced innovation through combining experience with fresh perspectives;
  • Improved client relations through diverse communication styles;
  • Reduced turnover, as team members across generations feel valued; and
  • Greater adaptability to changing market conditions and technologies.

 

Building Teams that Last

The insulation industry stands at a pivotal moment where generational diversity can either become a source of conflict or a catalyst for growth. By recognizing what each generation brings to the table, and creating systems that leverage these complementary abilities, forward-thinking leaders turn potential friction points into powerful collaboration.

This approach to generational harmony offers not just a theoretical model but also a practical roadmap for building stronger teams. The companies that master this won’t just survive the current laborretention challenges—they’ll thrive through the
combined wisdom, innovation, and technical
excellence that only a truly collaborative,
multi-generational workforce can provide.

NIA Sites > Insulation Outlook Magazine > Global

Architectural, Engineering, and Construction CEOs: Sentiment Index Reflects Optimism while Design Index Slips

 

The Construction Industry Round Table (CIRT) is composed of approximately 130 CEOs from the architectural, engineering, and construction firms doing business in the United States. The first quarter 2025 CIRT Sentiment Index increased to 67.9 from 64.1 in the fourth quarter of 2024, reflecting optimism and expectations for the industry not seen since 2021–2022. However, the outlook isn’t as positive among those focused solely on design, with the Design Index falling to 61.8 from 71.1 (see Figure 1).

 

 

The last time the Design Index and Sentiment Index diverged this significantly was during the economic turbulence of COVID-19 5 years ago. Since then, the design segment has consistently led the trend—rising in expanding markets and declining in those expected to contract. This current divergence could be a signal of something significant and, at the least, suggests that the lag between front-end design activity and its downstream impact on construction has widened. Notably, the rapid and substantial paradigm shifts introduced by the new administration are already being felt in the planning and design stages, though not yet in the subsequent building phase. Either way, this remains a critical trend to monitor throughout the remainder of 2025.

This quarter, CIRT members report slight declines in sentiment across most economic components, including the overall U.S. economy, regional economies where members operate, and members’ own construction businesses—although optimism is up for the nonresidential sector. Respondents also report stronger backlogs and productivity but anticipate higher labor and material costs in the coming months.

Compared to the previous quarter, design sentiment toward individual segments improved, driven by strengthened expectations in residential work, with continued optimism in health care, education, predesign work, and consulting planning. In contrast, sentiment weakened in heavy civil, transportation, and commercial design. Construction sentiment remains stable overall but varies by segment: commercial, office, lodging, education, and health care sentiment improved, but for manufacturing, public works, industrial, transportation, and international expectations, it declined (see Figure 2).

 

 

CIRT members were asked this quarter to respond to current-issue questions focused on their backlogs, capacity and hiring goals, procurement, delivery methods, selection criteria and top challenges expected in 2025.

Backlog levels remain strong, with nearly half of respondents maintaining backlogs of 19 months or longer, though firms must navigate labor constraints to effectively meet demand. Firm capacity has declined since 2024, with more than half of respondents reporting labor shortages relative to backlog needs, leading to mixed hiring outlooks. While labor availability remains the top challenge for 2025, geopolitical instability, including trade, tariffs, and commerce disruptions, has emerged as a growing concern, particularly considering recent political transitions.

Procurement trends highlight inconsistent technology adoption and prolonged decision- making, with major projects often taking longer than 6 months for firms to finalize. Clients continue to prioritize cost and experience in making selection decisions, while quality and innovation remain secondary considerations. Design-bid-build remains the dominant delivery method, although interest in alternative models such as design-build and construction manager at risk is increasing, driven by risk transfer, speed to market, and regulatory considerations.

Among the industries represented by CIRT’s members, segment expectations remain mixed. In the near-term, design expectations are weakened across most sectors except transportation, while long-term optimism is up for international work. Conversely, sentiment has shifted from expansion to contraction for consulting planning, industrial, heavy civil, residential, and predesign work looking to 2026. Within the construction sector, manufacturing, industrial, and transportation show notable strength over the last quarter. Moderate improvements have also emerged in commercial, lodging, health care, international, office. and public works. However, education has weakened and, along with lodging and office, is expected to remain challenged into next year.

NIA Sites > Insulation Outlook Magazine > Global

Staff Picks: Our Favorite NIA Resources

NIA offers hundreds of valuable resources to support both members and insulation end users. To help you navigate these offerings, we've asked each member of the NIA team to highlight their two most essential resources—one for members and one for external audiences. Explore these carefully curated recommendations to discover powerful tools you may have overlooked or find new ways to leverage familiar resources with your team, colleagues, and customers.

For NIA Members: NIA’s Education Center

The Education Center is a great tool for companies looking for flexible, on-demand training. With more than 70 continuously updated courses, there’s something for every mechanical insulation professional. To make it even easier, we’ve created a helpful guide with tailored course recommendations for estimating, project management, insulation training, health and safety, HR, and IT. Ensure your team is gaining the knowledge they need with NIA’s Education Center! (Browse the courses at www.niaeducationcenter.org.)

For Insulation End Users: NIA’s Insulation Energy Appraisal Program™ (IEAP)

IEAP is a 2-day course that teaches students how to determine the optimal insulation thickness and corresponding energy and dollar savings for a project using the 3E Plus® software. The program was designed to teach students the necessary information to give facility managers a better understanding of the true dollar and performance value of their insulated systems. (Visit www.insulation.org/appraiser to learn more.)

For NIA Members: NIA Committees 

NIA boasts a robust list of committees, addressing each of NIA’s member industry types, and current issues such as health and safety, technical issues, and more. Most committee meetings take place during our Fall Summit and Annual Convention. Participation in committees allows members to share their expertise, experiences, and industry knowledge, learn about the industry, and make connections with industry colleagues. It’s a great way to get involved in NIA! (Visit www.insulation.org/committees to learn more.)

For Insulation End Users: Mechanical Insulation Design Guide

If you’ve ever questioned why a mechanical system should be insulated, what parts of the mechanical system should be insulated, what factors affect the decision to insulate, and what materials are appropriate for the job, NIA’s Mechanical Insulation Design Guide is a great resource. Designed to assist the novice or the knowledgeable user alike in the design, selection, specification, installation, and maintenance of mechanical insulation, the Design Guide is continually updated with the most current and complete information. (For more information about the Design Guide, visit www.insulation.org/training-tools/systemdesign.)

For NIA Members: E-News Bulletin

This twice-a-month email provides a quick snapshot of the latest news, information, and deadlines for NIA members. We know you are busy, and to ensure you never miss out on membership benefits and industry news, you can find the latest issue in three places on our website: the homepage News section, homepage rotating images, and the E-News Bulletin webpage. (Visit www.insulation.org/enb to see the latest edition and subscribe.)

For Insulation End Users: Carbon Reduction Web Page

Our Carbon Reduction web page serves as your one-stop resource for demonstrating insulation's impact on energy efficiency and emissions reduction. Access research, data, articles, and webinars all in one place to help showcase the benefits to your clients. (Bookmark www.insulation.org/carbon for easy reference whenever you need it.)

For NIA Members: The Mechanical Insulation Installation Video Series

This series is an easy-to-follow, user-friendly visual resource for anyone in mechanical insulation installation. Each video provides a basic how-to guide for different project applications for Calcium Silicate and Perlite, Cellular Foam, Cellular Glass, Elastomeric and Polyolefin, Fiber Glass, Mineral Wool, Removable/Reusable Flexible Insulation Covers, and Fasteners. Videos are available to stream online or view on DVD, as a compilation series or by individual DVD, and in both English and Spanish. When I joined the NIA staff, these videos were so useful as I learned about the industry. (Learn more at www.insulation.org/products.)

For Insulation End Users: NIA’s Online Membership Directory 

The online Membership Directory provides an accessible platform for end users to find important and relevant information about more than 700 NIA member locations that serve the commercial, industrial, and mechanical insulation industries. With options to search by location, member type, products, or specialties, end users can easily locate the company that best meets their needs. (Access the online directory at www.insulation.org/directory.)

For NIA Members: NIA’s Annual Convention

Attending NIA’s Annual Convention provides access to hundreds of decision-makers within the industry on a national level at one location. You will be meeting potential customers, bonding with existing customers, receiving industry-specific information and news of the latest technologies during sessions, participating in industry specific committee meetings, enjoying amazing locations, and it is just plain old fun. (Learn more at www.insulation.org/events.)

For Insulation End Users: Insulation Outlook Magazine and Article Database

Insulation Outlook is published 11 times a year and focuses exclusively on mechanical insulation, its benefits, proper design, maintenance, and best practices for thermal systems. In addition to the printed magazine, we have an online searchable article database, which allows the user to pull articles from hundreds of topics and authors. If you have a question on mechanical insulation, there is a very high probability you can find the answer in one of these articles. The articles contain the author’s information, providing you with an expert contact. (Search articles at www.insulation.org/io/archives.)

For NIA Members: Insulation Outlook Online Image Gallery 

Our image gallery features each issue of the magazine and highlights each article, offering a great platform for NIA member companies and authors to showcase their work. It allows users to browse through images, enriching the overall experience, and amplifying the magazine’s message about the power of insulation through a visual experience. (See the gallery at www.insulation.org/io/image-gallery.)

For Insulation End Users: Insulation Outlook Current Online Issue

This web page showcases the latest issue of our publication, enticing readers with a preview of the content and helping you understand the magazine's structure, ensuring a positive user experience. The magazine's cover image is featured at the top of the page, inviting all readers to get a sense of what's inside! (View the online version of Insulation Outlook at www.insulation.org/io/current-issue.)

For NIA Members: NIA's Thermal Insulation Inspector
Certification™ Program 

This 4-day course educates insulation inspectors on how to evaluate installation work and determine whether it is compliant with mechanical insulation specifications. We are seeing an increasing requirement for contractors to have Certified Thermal Insulation Inspectors on their payroll, particularly in data centers and LNG projects. It would be helpful for you to have at least one Certified Inspector as part of your team! (Visit www.insulation.org/inspector to learn more.)

For Insulation End Users: Certified Inspectors and Certified Appraisers 

Lists of Certified Inspectors and Appraisers are available on NIA’s website, with options to search by location, last name, or company. Insulation end users can easily find a trained and certified professional in your area and for your specific project. (Visit www.insulationinspectors.org and www.insulation.org/findanappraiser.)

Whether you're a seasoned industry professional or new to mechanical insulation, NIA's diverse resources provide the knowledge, connections, and tools needed to succeed in today's market. From certification programs that validate expertise to educational materials that build fundamental skills, these staff-selected resources represent just a fraction of what NIA offers. We encourage you to explore these recommendations and discover how they can enhance your professional growth and business success. For assistance learning more about the resource recommendations above and discovering the additional resources that NIA offers for your specific needs, contact niainfo@insulation.org—our staff is ready to connect you with the perfect tools to meet your challenges. 

NIA Sites > Insulation Outlook Magazine > Global

NIA Contractor Member Insul-Tech Inc. Discusses System Design

This Series Features the Participants of NIA’s Insulation Project Art Gallery Showcase and Competition

 

PROJECT SNAPSHOT

Insulation Contractor: Insul-Tech Inc.

Industry Segment: Commercial

Type of Plant/Facility: Mission Critical Data Center

Project Goals: Freeze Protection, Condensation Control, and Process Efficiency

Type of System/Application: Chilled Water, Condenser Water, and Thermal Energy Storage (TES) Tank Pipe

Temperature Range: Below Ambient

Region: Northeast

Insulation Materials: Owens Corning Fiber Glass

Jacketing: Ideal Metal Jacketing

Vapor Barrier: CP33 (Childers)

Tape/Jacket Adhesive: ASJ Tape (Ideal Tape), FSK Tape (3M Tape)

Fittings: Proto Corporation Pre-Molded PVC Fitting and Flange Covers

Other Adhesives & Sealants: Everkem Trusil 100 Caulk (used on inside equipment only)

 

Project Description and Goals

This enormous $7 million new construction project located in Northern Virginia is part of “Data Center Alley.” It involved insulating nearly 10,000 feet of pipe, including 3,000+ feet of 36″ pipe, and 6,500+ feet of 24” pipe that needed to be completed within 12 months of contract award. That meant insulating the extremely large-diameter piping outdoors working through the harsh elements of winter and the heat of summer. The owner of the facility had three main goals for the insulation system: freeze protection, condensation control, and process efficiency.

 

Challenges

Aside from the project’s size, this job had many challenges that all stemmed from the aggressive 12-month overall construction schedule. For example, the final design was still being finalized post contract award. With the 12 month clock ticking, completing the insulation specifications with engineers was imperative. Vice President Matt Stillitano says, “Insul-Tech assisted our mechanical partner, as well as the design engineer, to ensure that the insulation specifications were adequately constructed. Engineers are typically tasked with solving problems, and we assist with that. You have to make a case for being part of the process and justify taking up their time. Once you explain your knowledge of the project, they understand that you can be a trusted source. We are willing to engage on any mechanical insulation topic, large or small, and they recognize that Insul-Tech puts in the time, energy, and effort into our projects, and it is rewarding.”

Once the specifications were finalized, Insul-Tech could begin placing the made-to-order (MTO) large diameter pipe covering. Insul-Tech worked closely with their distribution and manufacturer partners to ensure all of the special-order large-diameter fiber glass and PVC jacketing lead times stayed on schedule. Stillitano says, “Communicating with our partners, Metro Supply, Owens Corning, and Proto Corporation was incredibly important. Although nothing will ever go perfectly, especially when purchasing this volume of material, we worked in lockstep with all of them to ensure we knew the lead times, as well as the setbacks.”

The mechanical piping layout of the mission-critical facility had numerous challenges for field installation, with curves and large, irregular shapes (see Photos 1 and 2). Project Manager Sean McLaughlin explains, “Due to the large diameter size of the chilled water and condenser water piping, factory fittings were not available, and therefore our employees were tasked with customizing many of the fittings and flange covers. We had dedicated crews fabricating custom fittings for months ahead of testing to ensure that they were available for installation once testing was complete.”

Stillitano says one of his goals was for Insul-Tech’s employees to always bring a healthy attitude to these types of situations. He elaborates, “On a blueprint, you are not able to foresee how everything will be installed by a mechanical partner. Because of that, you have to be flexible and adjust your install accordingly to ensure a high-quality product.” He stresses, “I can guarantee that in my 16+ years, mechanical companies do not willingly install pipe to make our life harder. They install pipe, fittings, and valves per their own set of specifications and per the design engineer. They, like us, are held to a high standard for installation. Knowing this and having this perspective is invaluable to our overall company culture. We preach this mindset daily to our Superintendents and Field Personnel.” So, while the curves and irregular shapes “created extra work that we could not foresee up front,” Stillitano observes, “if you always do the same type of project, your knowledge will never learn and evolve. Our insulators took this in stride and enjoyed it. They were up to the challenge.” Insul-Tech Superintendent Felix Calderon underscores that point, saying, “The most interesting and exciting part of this project was facing the challenge of being able to customize the large insulation products, given lead time, availability from the manufacturer, and the project schedule. Insul-Tech had to adjust to a new experience. We had to coordinate a separate team dedicated to fabricating the necessary parts. Our crew did a tremendous job, demonstrating what is possible with a committed, competent team.”

One aspect of the job that was less enjoyable was insulating 3,000+ feet of 36” pipe outdoors in temperatures ranging from high humidity and heat to freezing rain, snow, and ice. Project Manager Sean McLaughlin described the conditions: “Insul-Tech employees were faced with working through all four seasons, from an extremely cold environment in the winter months to extreme heat in the summer. The big push to the completion of Phase A landed in July and August, when it is the hottest and most humid.” Rain, snow, and ice also resulted in the shutdown of exterior work. During one particularly cold snap, where temperatures fell to the single digits, the mechanical yard was covered in ice and shut down for a few days before crews were allowed to resume work.”

As mentioned earlier, McLaughlin and Stillitano continued to emphasize that completing this project on time would not have been possible without the company’s partnership with its distributor and manufacturers. Insul-Tech needed to minimize material procurement lead times as much as possible. The company’s relationships with manufacturers and distributors—many formed within NIA—allowed them to obtain materials quickly. (See sidebar, “NIA [Manufacturer] Members’ Products Helped Make the Project a Success.”) Stillitano notes, “Early in the project, Owens Corning visited the jobsite to gain an understanding of the project scope. It really stood out to me how committed they were, listening to us and wanting to understand what was needed not by phone but by being present on site. When you have the manufacturer and distributor wanting to put forth that kind of effort, it gives you more peace of mind for the overall project success.” McLaughlin says their partners “worked tirelessly through the logistical challenges of keeping material stocked and ready for us when we needed it.” They all worked together to make this project a success.

 

NIA Associate (Manufacturer) Members’ Products Helped Make the Project a Success

  • 3M—FSL Tape
  • Ideal Products—Jacketing
  • Ideal Tape—ASJ Tape
  • Owens Corning—Fiber Glass Insulation
  • Proto Corporation—Pre-Molded Flange Covers, PVC Fitting Covers

 

 

Always Emphasize Safety

On a large, fast-paced jobsite, with so many trades putting in long hours to meet an aggressive schedule, there can be pressure to cut corners. Beyond regular safety training, Stillitano emphasizes, “We tell our employees, if you ever feel uncomfortable, don’t do it! We work hard with our customers to ensure proper safety practices are followed daily by our employees. Safety is a very serious, never-ending job that we take pride in.”

On a project like this, with so many people and so much equipment in the field, and all the environmental challenges, the issue of safety is magnified. Stillitano notes, “We had over 30 insulators working 6 to 7 days a week for 3+ months.” To make sure everyone stayed safe, he adds, “Our Foreman takes on a larger safety role. They fill out daily safety reports, they have toolbox talks, and they reiterate to everyone to make smart decisions to ensure everyone goes home safely to their families each night.” Superintendent Calderon says that message flows throughout the company: “Insul-Tech puts high priority on safety and accident and risk prevention at all times, in every project. Our crews are dedicated to preventing injuries and accidents on the job, and the company always provides the necessary support to ensure our crews have all the safety equipment and training required, including water/hydration, and extra food on occasions where we had to work for long periods of time to meet the aggressive project schedule.”

 

Insul-Tech’s Insulation Solution

The new construction involved both outdoor and indoor system components. Table 1 provides an overview of insulation system product types and brands used on the exterior pipes and equipment.

Fiber glass insulation was selected as a cost-effective solution to support the customer’s objectives. The product offers the thermal protection needed, and it is durable, cost effective, and relatively easy to install. Given the large diameter of the pipes, and the quantity of material required, Insul-Tech needed to coordinate with Owens Corning to fabricate the pipe covering at the appropriate size since they produce fiber glass in sizes larger than 24 inches.

Metal jacketing was selected to protect the fiber glass insulation (and the pipes underneath) from physical damage, environmental threats like UV exposure and weather conditions, and the ever-present enemy—water. Both jacketing and vapor barrier materials are vital to preventing corrosion and ensuring the insulation system performs as expected.

For the flanges and valve covers, the company turned to another long-standing partner, Proto Corporation. Insul- Tech fabricated all flange covers above 24” x 2” at its fabrication facility.

Owens Corning fiber glass insulation, as well as Proto Corporation parts, were used for indoor applications.

Under each large fitting are mitered pieces of Owens Corning pipe and tank wrap, with mitered PVC jacketing pieces installed over/on top. Each mitered PVC piece ran through a beader and crimper prior to installation, for both functional and aesthetic purposes. Functionally, this process created a proper seal/edge. At the same time, the approach resulted in a final appearance that the customer was pleased with.

Table 2 offers an overview of insulation system components used on the interior pipes and equipment, including product types and brands used.

 

What Made the Project a Winner

Matt Stillitano emphasizes that with all projects, but especially one as large as this, education, communication, and collaboration are vital. He observes, “When you’re voting on a project or looking at pictures of quality insulation [at Fall Summit], very seldomly does anyone realize what you did to get there—especially at this scale. There’s so much preparation, planning, communication, consideration of efficiencies, and an extreme level of coordination involved.”

The collaboration began with the owner and design engineers bringing in Insul-Tech to discuss the proper materials to use and the best installation techniques to meet each of the design objectives. “We work with engineers to be part of the conversation and design. We are trying to pull insulation into the 21st Century and not to just install insulation as directed. We are forward-thinking and try to show engineers that we exist for a purpose. We solve problems and work hard to simplify the process. Our goal is to give them the best possible mechanical insulation system,” Stillitano explains, adding that the company’s success on other projects for this customer gave them credibility. “We are typically involved at some level in design conversations, which has created value to our customers. With a repeat customer, they feel comfortable with our level of expertise as it pertains to their design.”

Once construction was underway, Insul-Tech was not the only contractor laser-focused on getting its work done on time. The jobsite was enormous, bustling with activity. As Stillitano describes it, “There are tractor trailers, 18-wheelers coming in and out constantly. We are just some of people on the project among hundreds and hundreds on the jobsite. Every day, coordination with other trades was necessary to keep making sure the material and personnel are in the right place at all times, ensuring everyone has space to do their work and keeping everyone on the jobsite safe.” With new construction, the list of participants includes sheet metal, pipefitters, plumbers, project managers, general contractors, lift operators, infrastructure support personnel, and more. Insul-Tech alone had a project manager, superintendent, multiple foremen, and crew team members on site. Just as it sounds, Stillitano concludes, “The amount of teamwork and collaboration required for a successful project is staggering.”

 

Project Takeaways

Work with People You Can Trust

It all starts with quality people. For facility owners/managers and others with decision-making authority, Stillitano emphasizes “hiring a vetted, qualified insulation contractor with a proven track record should be priority number one. Even a quick conversation with a competent mechanical insulation contractor could save an owner, GC, or mechanical company dollars and headaches in the long run.”

Build on Your Relationships

“I have always used any situation in this business as an interview for the next. I was raised to never know who is watching and to always put your best foot forward, to help people, give everyone a chance, and be patient with others. I have met great people in the construction industry, people that want to help you succeed. In return, they want you to learn, grow, and evolve so you can be an asset to them as well—a true partnership.” Furthermore, Stillitano says, “Not everyone understands that’s really what it’s about in this business—partnerships. We are the insulation contractor, we have the stress and the headaches, but we also get the award. Metro Supply, Owens Corning, and Proto are not eligible to win this contractor award [NIA’s Insulation Project Art Gallery Showcase and Competition win], but we know we could not do it without them.” The importance of teamwork and long-standing relationships cannot be overstated. “In today’s world of lead times and procurement struggles,” Stillitano says, “having positive relationships with distributors and manufacturers can be the difference between meeting a deadline or not.”

Educate Yourself So You Can Educate Others

Underscoring a theme many NIA members voice, Stillitano says, “getting input from insulation professionals is a very underappreciated aspect of what we do. I have never had issues with specifications for a project when we assist an engineer. However, I have had many issues when not involved in that process. There is simply a lack of knowledge about what we do and how important it is to get it right the first time. I have seen lots of time, energy, and dollars wasted over the years when the specifications are incorrect.”

Bring Initiative to Every Project

Along with education, initiative goes a long way in delivering a top-notch insulation system. Stillitano says, “You’re not just contracting us to perform the work, but to guide you every step of the way and speak up if needed.” He recognizes that it takes a lot of work. Thinking back on how they insulated the large, irregular shapes and curves of this project, he says, “Putting in the time and effort to develop a solution is part of how Insul-Tech has earned repeat customers. It also keeps our employees engaged and developing as industry-leading insulators.”

 

Closing Thoughts

Stillitano says, “The size and speed at which this project was constructed made it challenging. I am proud of our team and the level of execution they maintained throughout. It takes constant communication to ensure a quality project is delivered on time.”

NIA congratulates Insul-Tech on a job well done!

In addition to Sean McLaughlin and Felix Calderon, Insul-Tech recognizes the following employees, who each played a vital role in this project.

  • Jack Vogt, Pre-Construction/Estimating
  • Sabrina Sweeney, Accounting
  • Jonathan Ramos, Superintendent
  • John Adkins, Superintendent
  • Carlos Gonzalez, Foreman
  • Ociel Carranza Ambriz, Lead Mechanic
  • Gabriel Carranza Ambriz, Lead Mechanic
  • Juan Gonzalez, Lead Mechanic
  • Emerson Melendez, Mechanic
  • Gerson Ortiz, Mechanic
  • Jose Armando Ambiz, Mechanic
  • Henry Argucia, Mechanic

Calderon adds, “We also want to thank our office staff for their incredible support. They are always a part of our successful experience too.”

 

About Insul-Tech Inc.

Founded in 2003, Insul-Tech Inc. is a family owned and operated commercial and industrial mechanical insulation contractor headquartered in Frederick, Maryland and serving Washington, DC, Maryland, and Northern Virginia. With insulation requirements and specifications continuing to evolve, the emphasis at Insul-Tech remains on the customer, with energy efficiency and conservation constantly in mind. The company values the importance of staying up to date on the latest materials, designs, and proper installation of all insulation products.

In addition to mechanical insulation, Insul-Tech offers additional services in fire stopping, mold and mildew control, and mechanical insulation energy appraisals.

The Insul-Tech team is well equipped to provide the necessary information for planning and completing your next mechanical insulation project. For more information, visit www.insultech-inc.com.

NIA Sites > Insulation Outlook Magazine > Global

Zombie Specs: Why Your Insulation Language Might Be Older than Your Intern

We welcome readers to submit their own stories of  baffling project insulation requirements and weird specifications. Send your stories or requests to be interviewed to editor@insulation.org.

If you’ve ever stumbled across a mechanical insulation specification calling for asbestos wrap or sewn lagging cloth, you might have had the same reaction I did—something between shock and disbelief, followed by a desperate urge to check the calendar. Surely, it couldn’t still be 1974. Yet, here we are. Outdated insulation specifications are the ghosts of projects past, and they haunt more boilerplate language than most of us would like to admit.

 

Welcome to the Mechanical Insulation Time Capsule

There’s nothing wrong with history. In fact, I have a deep respect for the long evolution of our industry. But specifications are supposed to be living documents, not historical artifacts. And yet, in plant and facilities across the country, we’re still seeing specs that seem to have been pulled from a dusty three-ring binder labeled “Disco Era – Do Not Open.”

The problem is simple: Cut-and-paste culture has taken over the specification process. This might be one instance where recycling isn’t a good idea. Reusing firm specifications that haven’t been reviewed recently isn’t efficient. It is time consuming in the long run.

 

Boilerplate Blunders: The Greatest Hits

Here are a few real-life golden oldies that I (and my fellow insulation veterans) have spotted recently:

  • Sewn Lagging Cloth: This practice went out of style sometime around the end of the Cold War. Unless you’re insulating a steamship in a maritime museum, this has no place in modern mechanical systems.
  • Asbestos Insulation: Nothing says “retro spec” like an explicit call for materials that are illegal, hazardous, and guaranteed to get your project team some unwanted attention from health and safety regulators.
  • Insulation Thicknesses from Another Era: When specs assume thermal performance requirements from days of yore, you’ve got a problem. Today’s energy codes demand more, and your specs should too.
  • Products that No Longer Exist: I’ve seen products listed that the manufacturer hasn’t made in 60 years. The spec writer might as well have asked for a DeLorean with a flux capacitor.

 

The Real Cost of Outdated Specs

These resurrected zombie specifications don’t just make you look out of touch—they cost real time and money. Here’s how the horror movie usually plays out:

  1. The insulation contractor reads the spec and immediately raises an eyebrow (or both).
  2. The contractor contacts the mechanical contractor, who then reaches out to the general contractor or project manager, who calls the engineer, who digs up the spec writer.
  3. The whole chain gets bogged down in back-and-forth clarifications, requests for information, and revisions.
  4. Once the confusion is sorted, the correct materials are ordered—often with expedited shipping to avoid further delays and cost increases.
  5. All of this slows down the project and adds unnecessary costs, and no one’s happy.

All this happens because someone copied and pasted the wrong paragraph from a project that predates Google.

 

Modern Solutions for Modern Systems

So, what’s the cure for this epidemic of outdated insulation specs? It’s easier than you think:

  • Periodic Specification Reviews: Make it a regular habit to review your mechanical insulation specs at least every couple of years. Better yet, make friends with your insulation contractor or manufacturer rep—they live and breathe this stuff and can help keep you current. If you don’t know whom to call, make a new friend with the experts at any insulation manufacturer’s technical department. Visit www.insulation.org/directory to find one.
  • Use Online Industry Resources: NIA offers a free insulation design guide and
    eight insulation calculators to do the work for you. Or scan material properties on the Spec Chart, search for manufacturers by standard, and learn tricky terms in the insulation science glossary terms, all at www.insulation.org/resources. Another useful guide is the North American Insulation Manufacturer Association’s (NAIMA’s) Guide to Insulating Chilled Water Piping Systems. Visit www.insulationinstitute.org to download the guide, use NAIMA’s free thickness calculator, 3E Plus®, or their new estimator software. These tools help everyone (specifiers, contractors, and engineers) get on the same page and prevent those “what year is this spec from?” moments.
  • Leverage the North American Commercial & Industrial Insulation Standards Manual: This handy resource from Midwest Insulation Contractors Association (MICA), sometimes just called the MICA Manual, is like having a time machine set to “current best practices.” It contains standardized system plates that show insulation materials, installation methods, and accessory details that reflect today’s codes and technologies.

 

Why It Matters: It’s More than Just Insulation

Remember, insulation isn’t just a box to check—it’s a critical part of your building’s energy performance, safety, and long-term durability. When you use outdated specs, you’re not just creating confusion for the contractor—you’re potentially compromising the very systems you’re trying to protect. Plus, nobody wants to explain to a client why their brand new “high-performance” building is saddled with insulation technology that predates email.

 

A Plea from an Industry Veteran

I get it—spec writing isn’t glamorous. It’s not the part of the job anyone dreams about. But good plans and specs are the foundation of good projects. They set the tone for everything that follows. So, when you create the project documents for your next project, take a minute to make sure they do not accidentally call for materials that belong on display in a museum. In fact, you can reach out to NIA members and they will be happy to help you determine if there is a new design or product that will help the owner save money and energy while reducing carbon emissions.

At the end of the day, the only thing that should be retro on your jobsite is the playlist—not the insulation system.

 

Need Help? Don’t Reinvent the Wheel (or the Spec)

If you’re not sure where to start, the experts at NIA are happy to help. We’ve got members who love nothing more than reviewing boilerplate language and helping you bring it into the 21st century. Find out more at www.insulation.org/membershipdirectory. In this business, the only thing scarier than bad insulation is bad insulation specifications.

NIA Sites > Insulation Outlook Magazine > Global

A Discussion of Changes to ISO15665:2023-12 Acoustics—Acoustic Insulation for Pipes, Valves, and Flanges

ISO 15665:2023 Acoustics — Acoustic Insulation for Pipes, Valves, and Flanges is the international standard governing the determination and certification of acoustic insulation insertion loss for pipes, valves and flanges. This second edition of ISO15665 (2023–12) cancels and replaces the first edition (ISO15665:2003) and incorporates the Technical Corrigendum ISO15665:2003/Cor.1:2004.

The revision was tasked with updating the standard to align with improvements in material technology and techniques; incorporate considerations in the thermal credit of acoustic materials in thermal-acoustic systems and in selection of materials where corrosion under insulation (CUI) is a concern; and amalgamate the classification of D2 and D3 insertional loss defined in the Shell DEP 31.46.00.31.

This article will present the following updates and revisions:

  • Acoustic Insertion Loss
  • Understanding the Overall Noise Reduction
  • System Constructions and Testing
  • Removeable Acoustic Jackets
  • Determination of Infield Sound Insertion Loss (Sound Pressure)

 

Acoustic Insertion Loss

The acoustic insertion loss provided by a pipework insulation material or system is the difference in the sound power level radiated from a noise source before and after the application of the acoustic insulation for any octave or one-third-octave frequency band.

Clause 4 of the standard defines the classification of acoustic insulation for various pipe diameters:

  1. Less than 300 mm outside diameter,
  2. Greater than or equal to 300 mm diameter, but less than 650 mm;
  3. Greater than or equal to 650 mm diameter, but less than 1,000 mm.

The 2003 version of the standard presented three classifications for each of these diameter ranges, Class A-C, with prescribed acoustic insertion loss at each octave band frequency between 125Hz to 8,000Hz. Multinational oil and gas company, Shell, then produced an additional insertion loss classification for diameters (2) and (3), Class D, in their Design Engineering Practice (DEP) document DEP 31.46.00.31. Between the issuance of these original documents and the issuance of the 2023 revision of the standard, the four classes have been referenced regularly within industry. The 2023 revision has now incorporated the Shell DEP classifications into the main standard so that all four are now held in ISO15665:2023. The updated insertion loss classifications and requirements are presented in Table 1.

To satisfy a given classification, the insertion loss of all seven octave bands must exceed or be equal to the insertion loss values provided in Table 1. Any insulation system that does not fully satisfy the above requirements would be designated as “unclassified.”

 

Understanding the Overall Noise Reduction

To understand the effectiveness of an acoustic insulation system on a noise source, the overall reduction can only be undertaken for the octave band frequency spectrum of the noise. It is noted that, where possible, the actual sound level frequency spectrum of the pipe under consideration should be obtained. The insertion loss at each frequency of a given insulation system can then be subtracted from the corresponding pipe sound level frequencies. Logarithmically adding these attenuated octave band frequency levels will then provide the predicted insulated pipe sound level.

However, the determination of the actual pipe sound levels in octave bands is often not possible. ISO15665 therefore provides generic octave band frequency spectra for pipes attached to typical industrial sound sources. The 2023 revision of the standard has extended the types of sound source to now include solids conveyor pipes in both the dilute and solids phases.

If the overall noise level of a pipe is known, a correction is applied for the different sound source at each octave band frequency. Figure 1 presents the generic, expected noise source frequency spectra for typical noise sources often associated with pipe noise. In this example, the overall sound level for each source is 100 dBA. As can be seen, the frequency spectrum varies significantly with each sound source. The selection of acoustic insulation will therefore depend on the insertion loss performance at each octave band frequency of the insulation system, presented in the test certificate for that system, and the noise source spectrum.

To highlight the range of reduction that can be achieved with a simple classification requirement, Table 2 provides a comparison. If we consider the noise attenuation that could be achieved with an insulation system that equals the standard Class C2 insertion loss, for each of these noise sources in the standard, then apply the calculation in Clause 5 of the ISO15665 standard, the following results are predicted.

The standard provides a typical performance and reduction of the noise sources. However, it is recommended that the actual noise source data is determined and used in conjunction with the certified insertion loss performance of specific material systems to predict the achievable noise reduction more accurately for a given situation.

 

System Constructions and Testing

With more material systems now available for acoustic pipework insulation, it is often not just the acoustic performance that needs to be considered. With material systems also having to account for thermal performance and address concerns around CUI, the standard revision has made several changes to reflect these topics. These changes include the following:

  • Additional emphasis placed on the requirement for insertion loss testing for determining acoustic performance of pipework insulation systems.
  • Introduction of flexible elastomeric foam and aerogel blankets.
  • Removal of airflow resistivity for porous layer, as this parameter is not necessary for all material systems.
  • Change of previous Clause 9: “Acoustic insulation constructions that meet the insulation class requirements” into Annex A to update and expand the use of various, newer material system constructions.
  • Introduction of CUI as a material/system selection requirement.
  • Consideration of the thermal performance of acoustic materials for thermal-acoustic systems.

Since the original standard release in 2003, material technologies have improved. In 2003, the primary materials of choice, and for the attainment of the acoustic insertion loss curves, were mineral wool and steel. It was noted that other materials could be suitable for outer layers, additional layers, vibro-acoustic seals, and porous materials. Many of the original listed materials have been retained, and two materials were added: flexible elastomeric foams (FEF) and aerogel blankets.

Both FEF and aerogel blankets have allowed for a significant reduction in the thickness of acoustic insulation while still maintaining and often exceeding the classic insertion loss performance of mineral wool systems. The original version of the standard outlined material characteristics for a mineral wool “porous” layer to maximize the airborne acoustic absorption and minimize the transmission of structure-borne sound to the cladding for the system. The main requirements for this porous layer were a low dynamic stiffness, defined density, and airflow resistivity. However, with the advent of FEF and aerogel blankets, the density and airflow resistivities are no longer considered to be as necessary.

Clause 9 of the original 2003 standard presented material constructions that could be expected to meet the insertion loss classifications A–C, with the Shell DEP 31 document extending this clause for Class D. The emphasis of the 2023 revision, however, puts less emphasis on these prescribed constructions and considers the independent testing and certification of material constructions to be a more reliable method for creating confidence in the insertion loss for a given system. The original Clause 9 construction examples have been relocated to Annex A (informative). These constructions would be expected to meet the classification requirements but are not guaranteed to do so unless they can be supported by specific independent test certificates and materials meet their technical data sheet requirements. This is true for any material system construction.

Further emphasis on material selection is also made in Clause 6 of the new revision to allow consideration to CUI. It is a known issue within industry that where insulation is applied to pipework systems, under certain circumstances, corrosion of the pipe wall can occur underneath the insulation. CUI remains potentially undetected unless measures are taken to inspect and monitor the condition of the pipe periodically. It is not within the standard’s remit to prevent or reduce the risk of CUI. The 2003 version of the standard brought to attention the potential use of anti-corrosion coatings and prevention of water and vapor ingress into the insulation. It is noted that such ingress prevention is often unlikely during the life of the insulation system, particularly where rigid cladding systems are utilized.

The 2023 revision highlights porous materials that reduce moisture ingress down to the pipe wall and thus mitigate the spread of any moisture along the pipe wall. Additionally, the use of material spacer wraps (e.g., PVC and/or PTFE) between the pipe wall, the insulation material, and cladding, has been demonstrated to offer further improvements to the acoustic, thermal, corrosion, and stress corrosion cracking (SCC) mitigation performance.

The original 2003 standard identified the combination of thermal and acoustic systems, though noted that the thermal requirements of insulation are beyond the scope of the standard. The standard presented that for hot services, the same porous material can be used for thermal and acoustic insulation, though the thickness would be determined by the more stringent requirement. For cold services, the previous version of the standard discussed the use of a rigid thermal insulation (PIR/cellular glass) with an acoustic insulation placed on top of the thermal insulation.

Within the 2023 revision, it is now possible to combine the thermal credit of flexible acoustic materials, such as aerogel blankets and FEF, to reduce or even replace the rigid thermal materials and thus provide a combined thermal-acoustic system. This approach has the potential to significantly reduce the thickness of the system and reduce the cost of installing insulation systems, steelwork, cladding, etc. As with the hot services, the thickness of the system used for cold service is determined by the more stringent requirement. With cold service systems, the use of vapor barriers/seals remains crucial.

The 2003 version of the standard specifically says in Clause 6.3 that the porous layer should be added on top of any rigid thermal layers. The 2023 revision of Clause 6.3 specifically now allows for the inclusion of FEF and aerogel blankets for the porous layers, and also specifically introduces the combination of the thermal–acoustic function that recognizes the thermal functionality of the porous layer.

Additionally, the standard now highlights the approach of using only flexible porous layers (with some layers as sacrificial thermal layers) as the whole thermal-acoustic system. This example seeks to show the possibility of 1) taking the thermal credit of the additional acoustic porous layers on top of a rigid thermal layer, which reduces the amount of rigid insulation required; and 2) using only a flexible porous layer to achieve both thermal and acoustic performance. These different approaches may be beneficial for those seeking to reduce the footprint of the piping systems or the amount for metal cladding required.

 

Worked Example

Examples of such systems are presented in Figures 3–5 as a worked example for a cold service system.

Assuming the thermal requirement for heat gain less than or equal to 25W/m2, a comparison of typical thermal insulation materials was calculated according to ASTM C680-19.

Assuming a 12” pipe on a liquified natural gas process plant operating at -163°C (-261°F) with an ambient temperature of 24°C (75°F), wind speed of 1 m/s; relative humidity of 80%, and an emissivity of 0.3, the following materials were compared: aerogel, cellular glass, PIR, and mineral wool.

The heat gain of the above insulation materials was calculated to be 39.5 W/m for the aerogel, 44.9 W/m for the PIR, and 51.2 W/m for the cellular glass.

Because of the different thermal properties of different materials, varying thicknesses of thermal insulation are needed to provide the required thermal performance. However, if we now consider an additional acoustic requirement for ISO15665 Class C, the 2003 standard would consider the following systems to be suitable as a thermal plus acoustic performance.

The example presented in Figure 4 would meet the thermal requirement and the acoustic requirement. The new standard offers two thermal performance designs with a porous layer and then with or without a rigid layer, depending on the design goals. However, the 12” pipe with 135 mm of PIR applied will have an effective diameter of 594 mm (~24”), and with the 170 mm of cellular glass, this diameter would be 664 mm (~26”).

It should be noted that where rigid thermal insulation is applied to the mid-diameter pipes
(300–650 mm diameter), the acoustic classification may change from a mid-diameter class requirement to a larger class requirement. Care should be taken to apply the correct classification of acoustic system construction. In this instance, for a Class C mineral wool system, there would be no change in construction for the cellular glass to meet Class C3; however, for other material systems, changes may be required.

The 2023 revision of the standard allows the possibility of using an appropriate flexible (porous) material for thermal insulation and acoustic insulation. In this example, as the 90 mm of aerogel blanket required for the thermal insulation purpose is much thicker than the acoustic thickness for the Class C2, it would only be necessary to add the appropriate amount of mass loaded vinyl and cladding to the outside of the aerogel blanket (as certified in independent testing) to complete the thermal-acoustic system.

Adding the mineral wool system on top of the rigid insulation would increase the diameter of the pipe by a further 200 mm. In such circumstances, the PIR + mineral wool system would extend a 12” pipe to 795.3 mm (~31”), and the cellular glass + mineral wool system from 12” to 865.3 mm (~34”). The aerogel thermal-acoustic system would increase the 12” pipe to 516.5 mm (~20”).

However, if the thermal credit of the acoustic systems is considered to provide a true thermal and acoustic combined system, the thicknesses can be further reduced. Using a single type of material for both thermal and acoustic performance, the thickness can be more efficiently minimized. Figure 5 highlights these advantages.

By taking the thermal credit for the mineral wool used in the system, it is possible to reduce the amount of PIR and cellular glass used in the system (note the acoustic system used on top of the rigid material must remain the ISO15665 class certified thickness and construction). Taking this combined approach from ISO15665:2023, these systems have reduced the PIR and mineral wool system from 795.3 mm to 635.3 mm (~31” to ~25”), and the cellular glass and mineral wool from 865.3 mm to 665.3 mm (~34” to ~26”). The aerogel system remains significantly thinner at 516.5 mm (~20”).

Calculating the systems in Figure 5, according to ASTM C680-19, the heat gain (linear) for each system was predicted to be 39.5 W/m for aerogel, 47.5 W/m for PIR and mineral wool combined, and 49.1 W/m for cellular glass and mineral wool combined.

 

Removable Acoustic Jackets

In 2003, Clause 7.4 made cursory mention of the usefulness of acoustic “blankets.” Due to the advances in material technology, the use of the term “removable blankets/jackets” became more prevalent by 2023. The revision has moved to acknowledge this change, introduce a more detailed description of the usefulness of this measure, and present details relating to the construction requirements.

Removable acoustic jackets must be composed of a porous layer and the additional mass layers within a glass/silicone cloth jacket that is designed to fit the shape of the valve/flange/pipe. The jacket construction should have the same insertion loss class as the fixed insulation system used either side of the valve/flange; and, depending on the classification and the construction used, should have an independently tested and certified insertion loss performance. The jacket should overlap the adjacent insulation by 100 mm for Class A, 200 mm for Class B, and 300 mm for Class C and D. A generic construction diagram is presented in the standard in Appendix D, and is shown in Figure 6, below.

 

Determination of Infield Sound Insertion Loss (Sound Pressure)

Determining the insulation insertion loss was discussed in detail in the 2003 standard, and the laboratory method remains valid and has not been updated. However, it was considered that the infield method required expansion for the sound pressure methodology. Detailed guidance in how to measure and calculate the insulation insertion loss in the field using a sound pressure methodology has therefore been provided in the revision.

Generally, the sound pressure level method for determining insertion loss is the least accurate method. Criteria are presented for checking whether the sound pressure method can be suitable. Where the criteria are not met, the methodology for sound power is recommended. Locations for measurement are presented, and formulas are given for using the results of the measurements to determine the insertion loss.

 

Summary

Revision of the ISO15665 standard has been 20 years in development. The revision has combined the original document and the addendum produced by Shell DEP 31.46.00.31 to bring all insertion loss classes and performances into one document. Advances in insulation materials technology have improved the insertion loss performance and reduced weight and thickness of insulation. The scope of the standard has now widened to recognize such materials to be used.

By introducing these approved materials, it was also necessary to de-emphasize previous guidance on standard system constructions as they appeared in Clause 9. Though these constructions remain for information purposes in the Appendix, the emphasis of the standard is now on the testing and certification of acoustic insulation systems, regardless of the material used. Materials can now be selected for other requirements (thermal/CUI protection etc.), constructed and tested to meet the insertion loss requirements laid out within the standard.

Additionally, the change of focus from the design of independent thermal and acoustic insulation systems to one where the thermal contribution of the acoustic insulation is considered provides a method for reducing pipe diameters in thermal-acoustic systems.

The other key revision is the more detailed introduction of removable acoustic jackets/ blankets to be used where fixed insulation may not be suitable. Rather than relying solely on enclosures of boxes to envelop items such as valves or flanges, advice is provided for the construction and application of flexible acoustic jackets. Such jackets can be installed and removed easily, allowing for maintenance and inspection of these items while providing equivalent sound attenuation as that of the fixed insulation system adjacent to these items.

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2025 Economic Analysis

Construction Outlays Slipped in January as Potential Widespread Tariffs Threaten to Push Back Investment Decisions, Upend Costs and Supply Chain

Construction spending decreased 0.2% from December to January, with mixed results across residential, nonresidential, and public segments, according to an analysis of a new government report that the AGC released recently. AGC officials cautioned that spending on new construction projects could be negatively impacted by proposed new tariffs on a range of goods from Canada, Mexico, and China that are likely to make projects more costly.

“Construction spending growth has been slowing under pressure from high interest costs and now the prospect of new waves of tariffs,” said Ken Simonson, AGC’s Chief Economist. “There have already been notable cancellations and postponements for major manufacturing plants, and the impacts of new tariffs are likely to lead to more delays and cancellations.”

Spending totaled $2.19 trillion at a seasonally adjusted annual rate in January. The total was 0.2% below from the December rate and 3.3% above the January 2024 level. Simonson noted that construction spending increased at a 6.6% rate in 2024 as a whole—twice as fast as the latest year-over-year increase.

Manufacturing construction spending declined 0.3% in January, and the year-over-year growth slowed to 5.6% from 20% in 2024. Simonson noted that last week alone, Air Products pulled out of three planned projects, and Intel pushed out completion of its $28 billion Ohio project from 2026 to 2031.

Other major categories that slipped in January include educational construction, which fell 0.6% from December; multifamily construction, which decreased 0.7%; and private office construction, which declined 0.5%. These and other contractions outweighed increases in single-family homebuilding, which rose 0.6%; data center construction, which climbed 1.9%; and gains in several infrastructure sectors. In particular, highway and street construction spending rose 0.6% for the month, sewage and waste treatment outlays increased 0.4%, and spending on transportation facilities edged up 0.1%.

AGC officials noted that the new tariffs set to start in March will make the cost of a broad range of construction materials more expensive, whether they are from Canada, Mexico, China, or from domestic producers who are likely to raise prices as well. They urged the Trump administration to work quickly to resolve the underlying disputes that are prompting the new tariffs in order to mitigate the negative impacts of the tariffs.

“Higher interest rates are making it harder to get private sector projects approved, and these new tariffs are likely to prompt many developers to hit pause on new projects,” said Jeffrey H. Shoaf, AGC’s Chief Executive Officer. “We all want to see more domestic suppliers of construction materials, but undermining demand for construction isn’t the right way to
stimulate new domestic capacity.”

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New Report on Small Business Shows Increased Optimism

This quarterly survey focuses on the construction, manufacturing, retail, and services industries.

The NFIB Research Center released an industry- specific quarterly Small Business Economic Trends survey highlighting the construction, manufacturing, retail, and services industries. According to the report, the Optimism Index for these four reported industries increased from the prior quarter and was higher than the 51-year average. In fact, small businesses in the construction, manufacturing, and services industries were more optimistic than the overall small business population.

“Although labor pressures, supply chain disruptions, and increased operating costs have hindered small business growth over the last few years, optimism levels have increased significantly over the last quarter,” said Holly Wade, Executive Director of NFIB’s Research Center. “Small businesses in the construction, manufacturing, retail, and services industries are not only optimistic, but hopeful that business conditions will finally improve. Looking forward, firms in these four sectors anticipate improved sales, increased opportunities for growth, and a pro-business economic environment that enables Main Streets to thrive.”

The survey was conducted in January and the overall Optimism Index in January was 102.8.

 

Key findings by industry:

CONSTRUCTION

  • In January, the Optimism Index for the construction industry was 104.9, up 7.8 points from October and higher than the overall Index by 2.1 points. Owners in the construction industry were the second most optimistic of the four reported industries.
  • A net 32% of construction firms plan to hire in the next 3 months, up 11 points from last quarter and the highest of the four reported industries. Hiring plans in this industry were 14 points higher than the reading for all firms.
  • Small businesses in the construction industry had the highest percentage of unfilled job openings, at 49%, down 1 point from last quarter. Job openings in construction were 14 points higher than the reading for all firms.
  • Forty-two percent of the job openings in construction are for skilled workers (down 3 points from last quarter) and 11% (up 3 points) for unskilled labor.
  • Fifty-one percent of construction firms reported few or no qualified applicants, down 3 points from October.
  • Earnings trends in construction fell 1 point from October to a net negative 23%. Although this reading decreased from the previous quarter, the construction industry is seeing better earnings trends than the other three reported industries and the aggregate for all firms.

MANUFACTURING

  • The Optimism Index for the manufacturing industry was 106.2 in January, the highest of the four reported industries and 3.4 points higher than the overall Optimism Index. This reading was 15.9 points higher than in October and had the largest quarterly change.
  • The percentage of firms in the manufacturing industry expecting strong future sales rose 31 points from the prior quarter to a net 21% in January. This was the highest reading of the four reported industries and was 1 point higher than the reading for all firms.
  • Twenty-seven percent of firms in the manufacturing sector reported plans to make capital outlays in the coming months, the highest of all reported industries. Plans to make capital outlays were reported by 27% of the firms in the industry, unchanged from October’s reading and 7 points better than that of all firms.

RETAIL

  • The Optimism Index for the retail sector improved 8.8 points this quarter, to 100.1. This sector exhibited the lowest level of optimism among the four reported industries and was 2.7 points below the reading for all firms. Even so, optimism in this sector is still higher than the 51-year average.
  • The retail industry had the lowest percentage of firms with hiring plans, at a net 12%, 6 points worse than the aggregate reading of all firms. Despite the comparatively low reading, hiring plans among retailers increased 8 points from the prior quarter.
  • A net negative 9% of retailers reported current inventory levels as “too low” this quarter, down 7 points from October’s reading, and 8 points worse than the reading for all firms.
  • Plans to increase inventory increased 6 points from last quarter to a net 2%. This reading is 2 points better than that of all firms.
  • The percentage of small firms in the retail industry expecting strong future sales increased 26 points from October to a net 18%. Despite this large increase, sales expectations for the retail industry were 2 points lower than the reading for all firms.

SERVICES

  • In January, the Optimism Index for the services industry was 103.1, up 9.1 points from October. Of the four reported industries, the services sector had the closest reading to that of the overall Optimism Index.
  • A net negative 48% of owners in the services industry reported they expect the economy to improve in the coming months. January’s reading was 52 points better than in October 2024, and 1 point higher than the all-firms reading.
  • In accordance with the overall trend in hiring plans among small businesses, a net 15% of small firms in the services sector plan to hire in the next 3 months, down 7 points from October. Of the four reported industries, this reading is the closest to the overall reading for January.

 

The full report is available at https://tinyurl.com/3w8rmrfk. NFIB is a member-driven
organization advocating on behalf of small and independent businesses nationwide. NFIB was founded by C. Wilson Harder in 1943, whose vision was to give small and independent business a voice in governmental decision-making through advocacy. For more information, visit www.nfib.com.

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Construction Industry Must Attract 439,000 Workers in 2025

The construction industry will need to attract an estimated 439,000 net new workers in 2025 to meet anticipated demand for construction services, according to a proprietary model developed and released recently by ABC. In 2026, the industry will need to bring in 499,000 new workers, as spending picks up in response to presumed lower interest rates.

“While the construction workforce has become younger and more plentiful in recent years, the industry still must attract 439,000 new workers in 2025 to balance supply and demand,” said ABC Chief Economist Anirban Basu. “If it fails to do so, industrywide labor cost escalation will accelerate, exacerbating already high construction costs and reducing the volume of work that is financially feasible. Average hourly earnings throughout the industry are up 4.4% over the past 12 months, significantly outpacing earnings growth across all industries.”

ABC’s proprietary model uses the historical relationship between inflation-adjusted construction spending growth, sourced from the U.S. Census Bureau’s Construction Put in Place Survey, and payroll construction employment, sourced from the U.S. Bureau of Labor Statistics, to convert anticipated increases in construction outlays into demand for construction workers at a rate of approximately 3,550 jobs per billion dollars of additional spending. The model also incorporates the current level of job openings, unemployment, and projected industry retirements and exits into its computations.

“This represents improved labor availability relative to recent years,” said Basu. “The improvement can be traced to two primary factors. First, construction spending is expected to grow at its slowest pace in years throughout 2025, especially in interest rate-sensitive segments like homebuilding. Interest rates will remain elevated in 2025 before likely beginning to dip next year. Second, the industrywide workforce has become significantly younger over the past several quarters, with the median construction worker now younger than 42 for the first time since 2011. As a result, the pace of retirements is expected to slow this year.

“Despite that improvement, contractors will struggle to fill open positions,” said Basu. “This will be especially true in areas where manufacturing and data center megaprojects are underway. More than $1 in every $5 spent on nonresidential construction currently goes toward manufacturing projects, and those projects are absorbing a significant share of the labor force in their respective regions.”

“The U.S. construction industry’s efforts to hire more workers to replace retirees and meet the demand for new construction projects gained momentum in 2024,” said Michael Bellaman, ABC President and CEO. “That is fantastic news, but we still have a long way to go to shore up the talent pipeline. The data on the number of young people choosing a career in construction suggests that employing practical technology and innovation in educational programs and on jobsites helps maximize the productivity and efficiency of the construction workforce. ABC’s all-of-the-above workforce development strategy is working to draw new entrants into the industry through hundreds of entry points, and upskill them through both industry-driven and government-registered apprenticeship programs.”

“There are also factors that could render this model overly conservative, meaning worker shortages could be more severe than predicted in 2025,” said Basu. “While the consensus forecast has construction spending increasing by less than 3% in 2025, that same forecast has underestimated growth by a significant margin during each of the past 3 years. If inflation dissipates in coming months, borrowing costs will subside and construction volumes will increase. Faster-than-expected immigration over the past few years has also bolstered labor supply, and potential changes to immigration policy will likely constrain worker availability.”

“ABC’s goal is to work with the Trump administration and Congress to create a visa system that allows people who want to contribute to society and work legally in the construction industry to do so,” said Bellaman

“President Trump and the 119th Congress have a significant opportunity to advance policies and regulations that protect free enterprise, reduce regulatory burdens, [and] expand workforce development,” said Bellaman.