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A Construction Market in Transition: the 2024 Construction Hiring and Business Outlook

Summary

The outlook for the construction market in 2024 is decidedly mixed as contractors predict transitions in demand for projects, the challenges they will face, and the types of technology they will embrace. Amid these changes, however, contractors are still struggling to cope with significant labor shortages, the impacts of higher interest rates and costs, and a supply chain that, while better, is still far from normal.

Demand for different types of projects is changing. Respondents to this year’s Construction Hiring and Business Outlook Survey (Outlook) are less confident about growth prospects for many market segments than they were a year ago. They are most optimistic about a range of public-sector market segments, including water and sewer projects, transportation, federal, and bridge and highway work. Conversely, they predict private sector demand will be less robust for segments such as manufacturing and multifamily residential and will decline for lodging, retail, and private office construction.

Contractors have also tempered last year’s high expectations for new federal investments in infrastructure and other construction projects. Nowhere did contractors’ expectations for growth in a market segment drop more between last year and this year than in the highway and street and other transportation construction segments. Relatively few firms report having picked up work because of new federal investments in 2023. A growing number of firms likely have found that the federal review process and complex new Buy America rules associated with these projects are limiting the benefits of the federal funds.

While contractors remain mostly upbeat, their top worries for 2024 include fears about the impacts of higher interest rates on demand for construction and the risk that the economy could enter a recession. In addition to these new worries, contractors continue to be concerned about workforce shortages and their impacts on construction prices and schedules. And they continue to see projects being delayed—sometimes indefinitely—because of rising costs, slower schedules, and shrinking demand for the finished products.

Perhaps because of the challenges they face, contractors plan to invest in new technologies that promise to make their operations more efficient and productive. Many firms report they will make new or continued investments in drones, artificial intelligence tools, and off-site production. Many will also continue investing in information technology (IT)tools to make their accounting, project management, and other functions more efficient. But even as firms make these investments, many worry that they lack the time and personnel to properly implement and train for these new technologies.

In other words, 2024 offers a mixed bag for construction contractors. On one hand, demand for many types of construction should continue to expand. And firms will continue to invest in the tools they need to be more efficient, productive, and profitable. Yet contractors are less enthusiastic about most market segments than they were at the start of 2023. Meanwhile, they face significant challenges when it comes to finding workers, coping with rising costs, and weathering the impacts of higher interest rates.

If Washington can get out of its own way in moving infrastructure projects forward, if the Federal Reserve can successfully manage the “soft landing” it has been pursuing, and if the industry can find a way to successfully recruit and retain more workers, 2024 should be a good year for most construction firms. AGC will do everything in its power to make sure those “ifs” turn into “whens.”

Contractors Expect Demand for Projects to Increase but Are Less Confident than a Year Ago

On balance, contractors remain upbeat about the available dollar value of projects to bid on in 2024. But the optimism regarding opportunities for most project types is less widespread than it was a year ago.

The net reading—the percentage of respondents who expect the available dollar value of projects to expand compared to the percentage who expect it to shrink—is positive for 14 of the 17 categories of construction included in the survey, as it was in the 2023 survey. However, a smaller share than last year expects the markets they compete in to expand in the coming year (see Figure 1).

As in the 2023 survey, respondents are most optimistic about infrastructure, power, and federal construction projects, although the order has changed somewhat. Specifically, the highest net positive reading in the 2024 survey—32%—is for water and sewer construction, which had the third-highest reading a year ago. That category nosed out last year’s leading segments, highway and bridge construction; and transportation projects such as transit, rail, and airports. Both of those categories have net positive readings of 30% in the 2024 survey. Contractors are almost as upbeat about work for federal government agencies such as the General Services Administration, Department of Veterans Affairs, U.S. Army Corps of Engineers, and the Naval Facilities and Engineering Command. The net reading for federal projects is 29%.

The highest expectation among predominantly private-sector categories is for power projects, with a net reading of 25%. Close behind are the readings for hospital construction, with a net of 23%, and non-hospital health-care facilities, such as clinics, testing facilities, and medical labs, with a net of 22%.

The largest increase in optimism from the previous survey is for data center construction, with a net positive reading of 20%. That is up from 12% a year ago.

On balance, contractors are optimistic, as well, about the education sector. The net reading is 18% for K–12 schools and 15% for higher education construction.

Three other segments have readings that are positive, on net, by double-digit percentages. The net reading for both public buildings and manufacturing construction is 15%. The net is 10% for warehouses.

In addition, there are four market segments for which respondents are closely divided between favorable and unfavorable outlooks or have negative expectations on balance. There is a net positive reading of 4% for multifamily residential construction. Expectations are bearish for lodging, with a net negative reading of -3%, retail construction at -15%, and private office construction at -24%.

Despite the largely positive net readings, fewer respondents are confident about growth prospects than they were a year ago. The net reading decreased from the 2023 survey for nine project types, increased for six types, and remained unchanged for two— hospitals and warehouses.

The steepest downturn in expectations occurred with transportation and bridge/highway construction, both of which recorded declines of 12 percentage points from the net readings in the 2023 survey. The net readings for public building and federal construction both slid 8 percentage points. In contrast, the largest upswing in net readings is 8 percentage points—for data center construction—while there were only small upturns for the other five categories that have higher net readings than a year ago.

The Bipartisan Infrastructure Law Will Make a Difference but Not Yet

The decline in optimism regarding infrastructure projects may be because few contractors report having been awarded projects that received funding from the federal Bipartisan Infrastructure Law, even though it was enacted more than 2 years ago in November 2021. Indeed, only 9% of respondents say they have worked on new projects funded by the law, while 6% have won bids but have not started work. Seven percent say they have bid on projects but have not won any awards yet, whereas 12% plan to bid on projects but say nothing suitable has been offered yet.

Hiring Expectations Are High but So Are the Obstacles

Most firms anticipate adding workers in 2024 to accommodate the higher demand for projects. More than two-thirds (69%) of the respondents expect to add to their headcount, compared to only 10% who expect a decrease. While just under half (47%) of firms expect to increase their headcount by 10% or less, nearly one-quarter anticipate larger increases. Eighteen percent of respondents say their headcount will grow by 11–25%, and 4% of respondents anticipate an increase in headcount of more than 25% (see Figure 2).

However, respondents expect difficulty adding workers—a situation that has changed little over the past year. Seventy-seven percent of respondents report they are having a hard time filling some or all salaried or hourly craft positions, close to the 80% who reported difficulty in the 2023 survey. Only 10% say they are having no difficulty. (The rest have no openings.) In addition, the majority (55%) expects that hiring will continue to be hard (35%) or will become harder (20%). Only 13% say it will become easier or remain easy to hire, while 31% expect no change.

Union and open-shop firms have similar expectations about expanding their headcount and the difficulty in doing so. For both types of firms, 70% of respondents expect their companies will add to their headcount in 2024. Both types of firms report difficulty filling positions: Only 7% of open-shop respondents and 9% of union respondents report no difficulty filling any salaried or hourly craft positions.

A large majority of firms took steps in 2023 to attract and retain workers. Sixty-three percent increased base pay rates more than in 2022. Additionally, 25% of firms provided incentives or bonuses, and 24% of the firms increased their portion of benefit contributions and/or improved employee benefits. Only 9% of firms provided no increases in pay, incentives, or benefits in 2023.

In general, there is little variation by region among contractors’ responses, but firms in the South are somewhat more likely than in other regions to have offered steeper pay increases to attract and retain workers. Nearly two-thirds (66%) of firms based in the South increased base pay rates in 2023 more than in 2022, compared to 64% of firms in the Midwest, 61% in the Northeast, and 58% in the West.

Rising Costs and Interest Rates Are Causing Postponements

As in the past two surveys, nearly two-thirds of respondents say projects have been postponed or canceled. Almost equal percentages of firms report projects were postponed or canceled in 2023 and not rescheduled (36% of respondents) as report projects were postponed but rescheduled (37%). Ten percent have already experienced postponement or cancellation of a project that had been scheduled for the first half of 2024.

More than half (53%) of firms say a project was postponed or canceled due to rising costs (for construction, insurance, etc.), while 38% of firms cite rising interest rates as a cause of deferrals. In addition, 34% cite reduced funding availability. Delays in likely completion dates and reduced demand for completed projects are each listed as reasons for deferral by 11% of respondents.

Supply-Chain Problems Have Diminished, Not Disappeared

Although only 23% of respondents say they have not had any significant supply-chain problems, that is a marked improvement over the previous two surveys, when only about 10% of respondents said they had had no problems. To cope with problems, 56% of respondents have accelerated purchases after winning contracts, compared to 70% in the 2023 survey. Forty-five percent have turned to alternative suppliers, compared to 56% in the 2023 survey. Thirty-six percent have specified alternative materials or products, compared to 49% a year ago. And only 14% have stockpiled items before winning contracts, down from 22% a year earlier.

Despite the overall improvement in the supply chain, more than 140 respondents took the trouble to list specific items or categories with problems. By far, the most frequently mentioned issues are with electrical items such as panels, transformers, and the switchgear used to control, protect, and isolate electrical equipment. Numerous contractors also mentioned heating, ventilation, and air conditioning equipment.

Top Concerns Include Interest Rates, Worker Supply, and Recession

Three concerns top contractors’ lists of worries about 2024. Sixty-four percent pick rising interest rates/financing costs as one of their biggest concerns, while 63% list insufficient supply of workers or subcontractors, and 62% name economic slowdown/recession. (Respondents were offered 22 choices, along with the chance to write in other answers. They could list multiple “biggest concerns.”)

Three industry-specific concerns are cited by a majority of respondents: Fifty-eight percent list rising direct labor costs (pay, benefits, employer taxes), while 56% pick worker quality, and 54% list materials costs.

Most of these concerns are cited less often in the 2024 survey than a year ago. The biggest change is in the share of respondents listing project delays due to availability/supply-chain issues: 34% this year, compared to 63% in the 2023 survey (see Figure 3).

Besides worrying about worker quality, 81% of firms view inexperienced skilled labor or workforce shortage as a challenge regarding the safety and health of their workers. Among seven listed challenges regarding worker safety and health, the next-most frequently cited (by 36% of respondents) is mental health challenges for workers. In addition, 25% cite poor subcontractor safety and health performance. Twenty-three percent of respondents point to unclear or unworkable government regulations, and 22% cite safety hazards created by third parties such as motorist crashes into work zones. Twenty percent pick unreasonable inspection or enforcement of government rules as a challenge regarding the safety and health of their workers.

Contractors Plan to Invest in Drones, Artificial Intelligence, and Off-Site Production

Construction firms have been seeking ways of adapting to the shortage of skilled workers and improving jobsite safety and productivity. In particular, nearly 40% of firms say they will either increase their investment in drones (26%) or make an initial investment (14%). Thirty percent of firms will make an initial investment in artificial intelligence (19%) or increase their investment (11%). And almost 30% plan to make more use of off-site production (21%) or start to use it (9%).

In contrast, few firms expect to invest in robotics (15%) or autonomous equipment/vehicles (14%). Even fewer firms—12%—are ready to invest in 3-D printing (see Figure 4).


The most likely candidates for increased software spending are accounting software and project management software—for each type, 38% of respondents expect to increase their investment. Close behind is document management software, cited by 36% of firms. Thirty-one percent plan to increase spending on estimating software. All of these
percentages are higher than in the 2023 survey.

Firms list numerous ways in which they plan to use mobile software technology, while only 8% report having no plan to use it. Two-thirds of respondents (67%) say it would be used for daily field reports. More than half of respondents pick employee time tracking and approval (59%); access to customer and job information from the field (58%); and sharing of drawings, photos, and documents (54%). Other widely cited uses include access to job cost and project reports from the field (48%), punch lists and scheduling (42% each), and equipment tracking (41%).

Firms use cloud-hosted IT in various ways. The most prevalent use is in project management, cited by 58% of firms. Nearly half list accounting (48%) and field operations (47%), while time tracking is noted by 46%. However, only 17% list tool management, while 20% say they do not use the cloud. These percentages are little changed from the 2023 and 2022 surveys.

Among the biggest IT challenges noted by firms, three stand out. Forty-three percent of contractors say it is difficult to find the time to implement and train on new technology. Forty-two percent of firms mention keeping company data secure from hackers, while 41% cite employee resistance to technology. In addition, 35% point to connectivity to remote job sites as among the biggest challenges, and 33% list communication between the field and office.

Conclusion

Contractors remain mostly upbeat about the construction industry’s prospects for 2024. They expect demand to grow for most market segments. Most firms plan to add new staff and to make new or
continued investments in IT. A growing number of firms are embracing new technologies like drones and artificial intelligence. And they are investing
in ways to build more efficiently via off-site
prefabrication.

Yet contractors are less optimistic at the start of this year than they were 12 months ago. Their expectations for massive new federal investments in infrastructure and construction have come down. They expect demand for retail, office, and lodging construction to contract this year. They continue to struggle with labor shortages and are increasingly worried about the impacts of high inflation rates and the risks of the economy entering a recession. In other words, there are enough challenges that the year may not end up being as positive as expected.

NIA Sites > Insulation Outlook Magazine > Global

Bill Aims to End Hiring Bias Against Workers without Bachelor’s Degrees

Legislation ensuring that workers who do not have bachelor’s degrees receive fair consideration in hiring is gaining co-sponsors. Reps. Raja Krishnamoorthi, (D-IL), and John James, (R-MI), introduced the Opportunity to Compete Act in October 2023. Since then, a total of four co-sponsors—two Democrats and two Republicans—have signed on, demonstrating the bipartisan interest in skills-based hiring.

The legislation would amend the Fair Labor Standards Act to ensure that job applicants who do not possess a bachelor’s degree are not pre-emptively rejected by automated screening systems without consideration of alternative experience such as military service, community college, and training programs.

The bill would require that large employers with more than 500 employees that use automated degree requirement settings in hiring systems disclose the expected years of experience applicants need and allow job candidates to substitute years of experience for a 4-year degree.

Covered hiring systems are defined as “a recruitment management system, recruitment marketing system, applicant tracking system, or any other computer-based system that receives, manages, tracks, evaluates, or responds to applications for employment,’’ according to the legislation.

“As U.S. workers and employers seek to meet the rapidly changing needs of the 21st century, it is imperative that we eliminate discrimination against workers who meet every qualification for the jobs for which they are applying except for having a bachelor’s degree,” Krishnamoorthi said. “The Opportunity to Compete Act will address this issue by ensuring prospective employees are evaluated based on whether they have the relevant skills and experience to do the job rather than whether they have a 4-year degree.”

Experts have said that automation and other advances in recruiting technology have made it significantly easier for job seekers to apply for jobs and for employers to screen resumes, which led to an increase in requirements like educational criteria as a way to filter applicants out.

According to a 2021 study, more than 90% of employers reported using an automated recruitment system to screen job applicants, and half reported using education level as a filter.

On the other hand, roughly two-thirds of U.S. workers do not have a bachelor’s degree.

“Predetermined degree filters can introduce unintentional—and intentional—bias against talented individuals who have gained skills through alternative routes, though [they] do not hold a 4-year degree,” said Michelle Sims, CEO of YUPRO Placement, a skills-first placement firm based in Boston. “This legislation will diversify evaluation criteria on the front end of hiring, prior to when a recruiter even first reviews candidates, which builds fairer consideration in the recruiting process.”

Sims said that the proposal addresses the false assumption that degrees are a proxy for skills. “That’s a dangerous and damaging practice that reduces the number and quality of job matches,” she said. “The bill supports equitable job opportunity access and supports diversity and inclusion efforts as well.”

Blair Corcoran de Castillo, Vice President of Policy at Opportunity@Work, a nonprofit workforce development organization in Washington, DC, said that the bill “is especially important for the 70-plus million workers in this country who … bring valuable skills to our economy from experience in community college, apprenticeships, bootcamps and, most commonly, through skills gained on the job, instead of through a bachelor’s degree.”

Sims said that these alternative educational routes provide accessible and affordable means for people outside of traditional talent pools to build skills for many nonspecialized early and midcareer roles.

“These programs can also offer focused training and support for specific in-demand jobs, potentially giving them a leg up on candidates with four-year degrees because they have honed specific skills for specific jobs,” she said. “Roles such as digital marketing, application development, and customer service may not need a broader academic degree.”

NIA Sites > Insulation Outlook Magazine > Global

Ignoring Resilience Benefits Limits Growth of Energy Efficiency Programs

Building retrofit measures—such as insulation and air sealing, daylighting, and installing efficient windows—do not just reduce energy costs. They can improve the capacity of a building to retain livable conditions for longer periods during extreme temperatures, hurricanes, and wildfires, making buildings more resilient to disasters.

Improving building energy efficiency enhances resilience—the ability of buildings, the grid, and communities to withstand and rapidly recover from power outages and maintain operations. It can support grid reliability by lowering power demand and balancing the power demand and supply when electric systems are under stress to reduce the risk of grid overload and disruptions. In an outage, improved energy resilience of buildings also supports more orderly restoration of services, giving utilities time to prioritize where to restore first and in the most cost efficient manner.

A new American Council for an Energy Efficient Economy (ACEEE) report, available at www.aceee.org/research-report/b2402, finds that although there are many resilience benefits from energy efficiency retrofits, these benefits are undervalued or missing from program cost-benefit evaluations and selection processes. That undercounting could even tip the scales to prevent an efficiency program from happening.

Table 1 outlines the benefits enhanced building energy resilience yields to utilities, building owners, and everyone who lives and does business in a community. Many of these benefits are not assessed in utility cost-effectiveness tests because no established or standardized methods exist to capture their value. The data on these benefits are often not collected for utility efficiency programs, and utility regulators do not require that this information be reported.

If resilience benefits are assigned a value, utilities and regulators could consider these benefits in determining the cost-effectiveness of energy efficiency programs and have a more accurate assessment of the benefits. Incorporating resilience benefits in program evaluations can improve program decision-making and promote investment in demand-side measures to enable more energy efficiency improvements.

Varying methods for quantifying resilience benefits

Quantitative methods used for valuing resilience benefits vary in complexity. They can be at the building project or utility program evaluation scale to capture the risk-reduction benefit from increased system reliability and grid resilience. Project-level evaluations include resilience benefits to determine if an investment is financially beneficial; tracking resilience-related metrics in projects such as estimating outage frequency, magnitude, and duration; or employing a risk assessment analysis.

At the program level, resilience value can be estimated using the concept of avoided cost, such as not having to supply backup electricity from a diesel generator during a blackout, or by including resilience as a metric in program evaluations. Apex Analytics uses avoided cost to value building resilience benefits in its study for the Northwest Power and Conservation Council (https://rtf.nwcouncil.org/other/energy-efficiency-resilience-valuation-methodology-study). Its method involves identifying the resilience event and its duration, estimating the energy savings from energy efficiency upgrades, and estimating the marginal costs and avoided costs as determined by savings from a backup power system.

Some states include resilience as an impact in program-level cost-effectiveness assessments using the National Standard Practice Manual for Benefit-Cost Analysis of Distributed Energy Resources (NSPM for DERs). Minnesota’s Department of Commerce, which leads the effort to update the cost-effectiveness methodologies for Minnesota’s investor-owned utilities, uses the guidance in NSPM for DERs and acknowledges resilience as an impact in its new cost test for the 2024–2026 period. Resilience is considered both a participant energy and societal impact within the Minnesota Cost Test. Maryland has similarly used the NSPM for DERs framework and included resilience in its estimate of program cost-effectiveness.

Next steps for utilities, regulators, jurisdictions, and advocates

Despite these early examples, more analyses are needed to demonstrate how to value resilience benefits in utility programs. While the early examples of Minnesota and Maryland have shown increasing recognition and acceptance of valuing resilience, we identify the following actions to further integrate resilience benefits in energy efficiency programs:

  • Utilities can develop and formalize approaches to integrate resilience with efficiency approaches.
  • Regulators can help standardize methodologies for quantifying resilience to enable more widespread consideration of resilience benefits.
  • State and local jurisdictions can incorporate building energy resilience in emergency planning efforts and work with utilities to advance local resilience planning.
  • Advocates, building owners, and tenants can prioritize resilience alongside other benefits to advocate for the policies and programs that scale retrofits and increase cities’ and municipalities’ resilience.

Advancing and expanding efforts to value the resilience benefits of energy efficiency can be a critical driver in increasing investments in efficiency measures, improving the communities’ ability to withstand extreme weather and climate events.

Rohini Srivastava is a Senior Researcher in the Buildings Program at ACEEE. Rohini
Srivastava conducts research on new technologies, practices, and programs to increase energy efficiency in buildings. Specific research areas include innovative program approaches, the multiple benefits of efficiency retrofits, and workforce skills needed to advance high-performance building technologies and zero-energy buildings. Prior to joining ACEEE in 2018, Srivastava was a contributing researcher for the U.S. Department of Energy’s Consortium for Building Energy Innovation and the U.S.–India Centre for Building Energy Research and Development. Srivastava is a registered architect in India and is a LEED Accredited Professional. She received her PhD in building performance and diagnostics from Carnegie Mellon University and a master of architecture from Kent State University.

NIA Sites > Insulation Outlook Magazine > Global

NIA Contractor Members Discuss System Design: Elite Insulation

NIA is proud of the professionalism, creativity, and artistry of our Contractor members. To celebrate the craftsmanship of NIA mechanical and industrial insulation contractors, in 2023 we unveiled the first-ever NIA Insulation Project Art Gallery Showcase and Competition. We invited all NIA insulation contractors to submit photographs and a brief description of projects representing their most creative and artistic efforts. At Fall Summit, we posted all the submissions anonymously, and attendees voted for the top three projects in terms of number of parts insulated, aesthetics, difficulty of installation, and well-installed application. As a new regular column, we will profile these knowledgeable contractors and learn how each submitted project was designed, beginning this month with the 1st Place winner: Elite Insulation, Inc. We encourage NIA Contractor members to participate in the 2024 Insulation Project Art Gallery Showcase and Competition, and possibly be featured in future articles.

PROJECT SNAPSHOT

  • Insulation Contractor: Elite Insulation, Inc.
  • Industry Segment: Food Processing
  • Type of Plant/Facility: Brewery
  • Temperature Range: Below Ambient
  • Region: Midwest
  • Location: Indoors and Outdoors
  • System Designed/Application Type: Chilled Water

Project Description and Goals

A brewery in the Midwest was looking to complete a major expansion, which involved both indoor and outdoor new construction and insulation installation. The customer’s goals were to achieve energy savings and maximize system performance and longevity in a high humidity/high-moisture environment, while also building in flexibility for future expansion at the site.

Challenges

The first challenge was the point when Elite was brought into the project. Construction was already well underway when they were asked to conduct an inspection of existing conditions and provide an approach and estimate for the way ahead. When Elite owner and founder Brooks Holmgren walked the site, “I was really shocked at how large the expansion was.” He also saw why it was critical that a knowledgeable insulation contractor be involved. The catwalks and a lot of expensive equipment, from the 1,200 can per minute canning machine to the massive tunnel pasteurizer, were already installed. This required Elite professionals to operate the boom and scissor lifts very carefully to avoid damage to any of the sensitive equipment. Having previous experience with the unique environment in a brewery, and the additional considerations for health and safety in all food processing facilities, helped guide Elite’s solution.

Finally, starting work weeks before the Christmas and New Year’s holidays, with the customer desiring everything to be fully operational as soon as possible, translated to long hours and no small amount of stress. Inside, Holmgren knew once testing/production started, they would run the risk of condensation, so the interior insulation work was priority. Once that was completed (right before Christmas), they moved outside, where the cold Wisconsin winter actually worked in their favor: The pipes were too cold for condensation to form.

Elite’s Solution

The performance goals for the insulation system were to achieve the best R-value possible for a below-ambient system, provide high-density protection, and resist condensation and moisture intrusion. As shown in Figure 1, Elite’s pipe insulation approach was a two-layer, half round shiplap, with staggered joints and a vapor retarder. Joints were staggered to reduce potential for thermal bridging and moisture intrusion. Holmgren explains, “With any insulation, over time, if compromised the insulation joints will start to separate, allowing for condensation and moisture intrusion. With an overlap joint, moisture intrusion does not have a direct, straight path. Even if the first layer shrinks, you still have that R-value coverage.”

Elbows were either polyiso/styro (two piece), or two-layer/two-piece elastomeric/rubber, necessitated by the size of the equipment and the tight position where they were installed. This approach also reduced the amount of seams and cut joints, and provided a vapor retarder. Again, seams were staggered.

Elastomeric was used on flanges and valves to accommodate the customer’s plans for future expansion and ease of maintenance. Holmgren explains, “There’s so much wet work with a brewery, cleaning and washing stuff down. If they get wet, joints and seals are the perfect place for mold to grow… You need something to be fully sealed, with no open seams, 100% glued, not just taped so it can hold up to hot high-pressure washing.”

The same approach was used for the outside components, but Elite used stucco aluminum metal jacketing instead of PVC for protection against the elements and UV damage. Additionally, stainless banding was used instead of screws so as not to puncture the vapor retarder. Both inside and outside, on the fittings that were bigger than stamped two-piece fittings, gored segments were field fabricated and installed.

Elite had recently purchased a CNC cutting machine. Holmgren explained it “cuts polyisocyanurate, styrofoam, cellular glass, and mineral wool. Behind the scenes, we’d been trying to get this machine set up so we can make our own pipe covering… [The] machine allows you to select thickness, size, segments, and all that. It was a mad dash to get that set up to use it for this and ship it out.” This allowed them to “really customize a job, regardless of shape.” Holmgren was able to get “all the buns and spent endless hours getting it done in time.”

Table 1 offers an overview of insulation system components, as well as product types and brands used.

The “Wow Factor”

The use of two colors for the interior PVC jacketing has a practical benefit: It makes it easy for the customer’s employees to identify and follow the supply and return lines in the maze of pipes. Holmgren says once the customer understood the utility of the two-tone approach—and learned there would be no change in cost to use color—it only made sense to use the brewery’s colors. Their original logo was purple, which has transitioned to blue, so those are the colors you see in the photos. The “wow factor” is further amped up by the artwork, which brings the brewery’s Octopi logo to life. To carry the look outside, Holmgren hand-rolled the logo into a metal endcap.

The creativity not only won Elite 1st place in NIA’s competition, but it won over the customer. Holmgren says, “The cool thing is, after doing the project… the owner noticed every little detail, which was refreshing.” He adds that there was another, intangible benefit he saw during installation: “When we did the purple beer line, it brightened people’s day. Doing color makes people happier.”

Project Takeaways

This project is not only visually striking, but it also offers lessons in several key areas.

Design. The project is a case study in why insulation contractors should be consulted early in the design process. “If you’re going to do a project in the future, before you get too far into it, bring insulation contractors in and involve us so we can educate you on what type of hangers to use, for example, to leave enough space,” Holmgren says, adding that mechanical insulation contractors’ expertise and input can save customers both time and money. Even a simple observation that pipe and ducts could be run a shorter, more direct, way can reduce the amount of footage needing insulation—and, therefore, project cost. And because Holmgren knows the main areas to troubleshoot, for example, where condensation or leaks are most likely to occur, getting his input in the design phase can result in selecting an approach and materials that will require less maintenance over time. “Elite’s [goal] is to make it work efficiently and have longevity of lifespan for the customer, so they avoid issues down the road. Elite’s main focus is not to come back and repair it year after year.” Finally, bringing in the insulation contractor late in the schedule makes additional, unexpected work or change orders more likely, as elements not originally scoped need to be insulated to achieve the customer’s goals.

The Value of Branding. This project underscores the value for contractors in showcasing not only their skills and commitment to quality workmanship and safety, but also their creativity and artistry—even beyond entering NIA’s competition. Elite got the initial referral because someone from another trade on the job had seen pictures Holmgren posted of another brewery project the company completed. “We get a lot of new work from pictures we put on LinkedIn,” Holmgren says. “Most people just look at insulation and keep walking by. We want the aesthetics and appearance to get attention,” and social media is a great way to expand that reach beyond people who physically visit the site. Holmgren notes that as people see that insulation can be physically attractive, in addition to all its other benefits, “Now, more people want something cool and more visible.” The use of color makes the space more appealing to brewery patrons, and since the brewery’s lines run by the windows, even people driving by can see the colors. Adding the logo allows the insulation to promote the brewery’s brand, even as it delivers performance.

Industry Growth. Holmgren says it is up to contractors to help move the industry forward and explain the difference a creative design and quality installation can make. “If you don’t share it, no one’s going to grow… We need to be licensed installers, certified, and have inspections where we’re held accountable for what we’re installing, just like the plumbing and electrical trades. People’s health can be at risk when working 8–12 hours a day if there is mold.” As the industry faces a continuing labor shortage, Holmgren observes that education, training, good pay, hygienic bathrooms, and “cool projects” can make insulation work attractive to people entering the workforce. “This industry has its opportunities to be artistic and creative when doing projects, so it is interesting. There’s always something new.”

 

About Elite Insulation, Inc.

Brooks Holmgren founded Elite as a company focused on commercial and industrial customers in February 2002. Since then, the company has grown, completing new construction and renovations on schools and university buildings, restaurants, hospitals, retail stores, government buildings, breweries, water/wastewater facilities, hotels, and more. You can learn more by visiting Elite’s website (https://www.eliteinsulationinc.com/wp/) or contacting Brooks directly (brooks@eliteinsulationinc.com).

NIA Sites > Insulation Outlook Magazine > Global

Insulation Revolution: Charting the Progress of Mechanical Insulation in the Year 2024

Construction is often viewed as a laggard among U.S. industries in terms of pace of change and adaptation to new processes and technologies. For instance, drive by the typical road construction project and one may view a jobsite that looks virtually identical to its counterpart 5 or more decades ago. There is often one person working a heavy piece of equipment, digging a hole where people once drove. Others are standing around. Undoubtedly, they play a role, but it is not clear what that role would be. Finally, there is an individual standing with a sign that alternates between “stop” and “slow.” That sums up much of the construction world nicely.

A construction project that suffers cost overruns and schedule delays would be considered par for the course, as opposed to a bogey or double bogey. And such phenomena are not unique to the United States. According to Bent Flyvbjerg and Dan Gardner’s book How Big Things Get Done, based on the performance of 16,000 public and private projects of various types across multiple countries, mean project cost overruns were 238% for nuclear storage, 120% for nuclear power, 75% for hydroelectric dams, 34% for oil and gas, 16% for fossil thermal power, 13% for wind power, and 8% for energy transmission.

Those cost overruns come atop significant known increases in costs sustained in recent years. For instance, according to the producer price index for new industrial building construction, costs rose 40% during the 4-year period spanning from 2019 to 2023.

Thankfully, mechanical insulation has largely managed to defy such patterns. Standing in contrast to much of the construction industry’s dynamic, mechanical insulation represents a cornerstone of innovation as we move through 2024. Though often overlooked, this segment of the economy plays a crucial role in the inner workings and functionality of a wide range of facilities. As has been the case in the past, the industry has often changed and adapted alongside the broader economy, especially with an increasing focus on sustainability and energy optimization, as well as advancement in material sciences.

In the commercial sector in particular, mechanical insulation has emerged as a non negotiable aspect of many projects, including in the large infrastructures of corporate buildings and headquarters, retail complexes, and medical facilities. It is a key player in HVAC systems, themselves a critical element in large and expansive projects. Likewise, in the industrial sphere, from power plants to manufacturing facilities, insulation supplies a technical backbone by maintaining proper temperatures and enhancing workforce safety. With America rebuilding its supply chains, energy generation, and distribution infrastructure, there will be even greater call for reliable thermal management solutions going forward.

The move toward more efficient solutions and innovation has not slowed in recent years. Materials such as aerogels, vacuum-insulated panels, and supercritical foam technologies are setting new benchmarks for thermal efficiency and environmental compatibility. Moreover, these new technologies do more than enhance performance. They can also alleviate and reduce rising concerns regarding construction’s environmental footprint.

The regulatory side of the equation also must be considered. The current landscape is incorporating increasingly stringent building codes and standards, primarily intended to reduce emissions and increase fire safety. These changes, however, are not uniform across the country, varying widely across states. This poses a problem for industry professionals who must navigate the matrix of regulations while also remaining flexible and well informed to retain competitive advantages, including along the dimension of cost.

For engineers, specifiers, designers, and other stakeholders entrenched in the world of mechanical insulation, understanding and adapting to these potential shifts is essential. Those who adapt will prosper. Those who fail to do so will professionally perish. Exploring these challenges and the best way to deal with them will provide all those involved with the greatest chance to succeed not only in 2024 but for years to come. The balance of this article considers three megatrends that could help separate the winners from the others.

Artificial Intelligence: A New Frontier that No One Fully Understands

What was once the buzz phrase of 2023 has now become a catalyst for the economy, including for the mechanical insulation industry. Artificial intelligence (AI) continues to revolutionize the way the construction industry approaches insulation, from design to implementation and maintenance.

In the category of design, AI’s biggest impact will be revolutionary. Tapping into its ability to deploy sophisticated algorithms and programs, AI has the potential to simulate and analyze various insulation materials and configurations. Moreover, it can do this with extreme speed and high levels of precision.

The mechanical insulation industry has existing tools to predict thermal performance, optimize along the dimension of insulation thickness, and make better decisions regarding what materials to use but, combined with AI, these tools become exponentially more powerful. Its genius lies in its capacity to account for numerous interacting variables at once, including climate conditions, material response, and energy utilization. Remarkably, AI not only can account for environmental performance in its computations, but also simultaneously for financial performance. Anyone working in mechanical insulation who does not benefit from such analytical prowess will suffer massive competitive disadvantage. They will also be supplying their customers with sub-optimal outcomes.

AI can even extend the operational life of current and future insulation systems. By turning data into foresight, AI can determine when maintenance is required.  However, this may require a paradigm shift in the type of data and means of data collection. The data needed for predictive maintenance may not exist in a form readily available for AI. For example, testing and models are currently being performed to predict timeframes for the development of corrosion under insulation (CUI), however that data is not widely available yet. When this data is collected for AI implementation, and done properly, this will avert long downtimes and extend the overall life spans of systems, saving property owners massively. In the context of industrial facilities, AI can also detect irregularities in performance, potentially spotting issues with machinery and equipment before they escalate into costly or deadly problems. This proactive approach ensures that both insulation and machinery operate at high levels of efficiency, maximizing energy conservation while minimizing costs.

For commercial projects, AI-integrated insulation systems are part of a broader system. They communicate with building management’s systems, creating harmonic efficiency. AI algorithms can analyze various data from within a building and dynamically adjust “active” insulation in building envelope insulation properties when and as needed. This helps ensure the comfort of tenants while also optimizing energy usage. What was once science fiction has become our new reality, but it has also become a competitive battleground that will segregate the leading edge from the also-rans.

One of the principal objectives of businesspeople is to learn from each experience to improve performance. AI is not only able to customize and respond, it learns from the past and integrates project-based learning neatly into the future. In other words, those who utilize AI in their project design and delivery are also positioned to navigate learning curves more quickly, staying ahead of the competition while positioning younger people to master their trades with greater rapidity.

Nothing worthwhile is easy. AI is complicated. Learning and implementing these new AI driven systems will not be simple. It will test both managerial and front-line workers. AI is more than a new technology; it is a paradigm shift, set to fundamentally alter how the mechanical insulation industry operates. Nonetheless, it is at least theoretically possible for one to become so enamored by the capabilities of AI that one forgets the contributions of other technological advances, including with respect to material and mechanical science.

Cutting-Edge Materials + Smart Technologies = A Radically Different Future Available Now

Similarly, the emergence of new materials in the insulation manufacturing process is helping project managers cut costs and emerge as more eco-friendly. For instance, aerogels provide a high level of thermal resistance while remaining relatively lightweight. Nicknamed “frozen smoke” for its ethereal appearance, aerogels have been used by NASA to catch tiny particles left behind by comets. Other bio-based compounds are also finding a niche in the insulation market, providing alternatives to traditional materials. As these materials become more commonplace, the need for fossil fuel–based insulation will decrease, further reducing the industry’s carbon footprint in the process. As another example of innovation, vacuum-insulated panels supply low thermal conductivity, offering R-values in the range of R-30 per inch of thickness.

Unlike AI, which embraces an active role in insulation systems, smart technologies aid building managers by supplying real-time monitoring and energy tracking. Sensors installed within the building relay metrics such as temperature, humidity, and energy usage. Proactive maintenance can keep energy costs under control, provide a comfortable climate for building tenants, and prevent small problems from escalating into larger (and more expensive) problems.

Analytically, separating smart technologies from AI is an artifice. It makes as much sense as trying to discuss Taylor Swift without including Travis Kelce. Among other things, AI will supply insights into optimal material use, technological mix, and predicted environmental and economic outcomes.

Regulatory Overload

If change is good, then those impacted by regulatory shifts must be loving life. Mechanical insulation stakeholders find themselves in a precarious position in 2024, facing an increasingly complex and intricate regulatory framework that seeks to move the industry rapidly toward greater environmental sustainability. Coming years will undoubtedly feature a prominent shift in the way the construction industry operates for several reasons, including attempts to at least partially offset the massive delivery cost increases of the past several years, as well as to satisfy environmental imperatives.

In the past, the primary focus on environmental regulation was on energy efficiency. Today’s regulations are more all-encompassing, embracing a more holistic approach to sustainability. Aspects of the production process that were once largely ignored by regulators are now at the heart of the conversation, including the types of materials used and from where they are sourced.

Many regulators have embraced the concept of a “circular economy,” a theme more likely to impact mechanical insulation stakeholders. According to the Ellen MacArthur Foundation, a circular economy is based on three principles: 1) eliminate waste and pollution, 2) circulate products and materials (at their highest value), and 3) regenerate nature. The idea behind this is to move away from the “take-make-dispose” model that has been a construction industry hallmark. Rather than take-make-dispose, materials would be continuously reused and recycled from one project to the next. The objectives are obvious—use less material, produce less waste, and deploy less energy. But while the principle is straightforward, the practice is not.

For those bidding on projects, emphasizing circular economy principles may be a pathway to securing victory without sacrificing pricing power and margins. Guess what? AI may be able to help determine how practice and principle can find their way into alignment.

From Where Will Demand for Industry Services Emerge?

To this point, this article has focused on the supply side of the mechanical insulation industry equation, but there is also market demand to consider. As usual, market demand for industry services and capital goods will depend on several factors beyond the reach of the construction industry itself.

In America, the mechanical insulation market is observing expanding demand from a handful of segments that are especially well positioned to grow in the future. Among these are manufacturing, data centers, and health care. Supply chains are coming back to the United States. While that has driven up costs and rendered America’s shortages of skilled tradespeople even more apparent, there is little doubt that global manufacturers will continue to pour more capital into the United States in order to simplify logistics, take advantage of ongoing infrastructure improvements, better protect intellectual property, limit the intrusion of foreign governments, and avail themselves of massive public subsidies. Among the manufacturing segments generating the most construction activity are chip production facilities, and battery and electric vehicle plants.

Data centers will also be a source of massive demand for mechanical insulation solutions, in part because of (what else?) AI. Data centers produce an abundance of heat that must be managed. For its part, health care also stands to be a prime driver of activity. Health-care facilities must be temperature precise and stable. Demand for them will continue to expand as America continues to age, driving up health-care utilization in the process.

Beyond the United States, demand in the global insulation market also stands to be elevated. Many developing countries will require mechanical insulation to support the transformational changes taking place within their economies; including India, with its rapid industrialization and terrible air quality. Regulatory demands are likely to play an outsized role in Europe, where governments are racing both toward net zero and to eliminate dependence on fossil fuels, including those supplied by the likes of Russia and Iran.

Looking Ahead

The world of mechanical insulation is undergoing a revolution. There is no way to avoid it. Between AI, materials science, environmental regulations, mechanical innovations, and a desire to massively drive down costs, those who stand still will falter, while those who change with the times will achieve success. That is how life works.

Thankfully, change—at least occasionally—comes with benefits. Innovations in mechanical insulation stand to make the world greener, cleaner, and more affordable. Under those circumstances, everyone wins.

 

 

NIA Sites > Insulation Outlook Magazine > Global

State of Decarbonization Report: Spotlight on Retrofitting

Opportunities in Retrofit and Renovation of Existing Buildings

Addressing commercial typology trends, organizational commitments, levers of transformation, and decarbonization technologies, the report covers a lot of ground. The section “Retrofit and Renovation” discusses how making the existing building stock greener and more energy efficient will help us reach climate goals. The report states:

Retro-commissioning (RCx) is a valuable tool for identifying and maximizing potential
energy savings. For example, every 1% of retro-commissioning market penetration results in energy savings of almost four billion kBtu, the equivalent of over 830,000 metric tons of CO2 e per year—more than the average of two U.S. natural gas-fired power plants operating for an entire year.

According to the data, growth in commercial sector renovations and retrofits is projected to increase up to 11% annually by 2027 with additional funding from the Inflation Reduction Act (IRA).

“IRA amendments to the commercial building incentive known as Section 179D update the financial benefits for energy efficiency retrofits to existing buildings,” shares the report, explaining that buildings constructed before 1980 that have not been renovated since 2000 make up 37% of the national gross commercial floor area; 47% of the tax deductions provided under Section 179D are tied to these buildings.

“If all existing commercial buildings in the United States were retrofitted with energy efficiency upgrades in compliance with their respective states’ current energy code, $314B of tax deductions could be recognized, resulting in $66B in net total tax savings,” estimates the report.

With subsections on whole life carbon savings, building ownership and occupancy, funding and incentives, and commissioning and retro-commissioning market penetration, the report paints a picture of just how many opportunities exist to decarbonize through existing buildings.

For more insights on retrofitting trends and opportunities, explore the State of Decarbonization: Progress in U.S. Commercial Buildings 2023 at
https://www.usgbc.org/resources/state-decarbonization-progress-us-commercial-buildings-2023.

NIA Sites > Insulation Outlook Magazine > Global

New USGBC Report Says U.S. Has the Necessary Tools to Reach Climate Goals

A first-of-its kind report released in early December 2023 by the U.S. Green Building Council (USGBC), an authority on green building and the global developer of the LEED green building program, reviews 30 years of data from the U.S. commercial real estate sector. The State of Decarbonization: Progress in U.S. Commercial Buildings 2023, released at the Conference of the Parties (COP) summit, found the U.S. has made vital, yet unequal, progress in decarbonizing commercial real estate. The report identifies levers and outlines pathways for all 50 states to achieve decarbonization targets.

Produced in collaboration with the global sustainable development firm Arup, the inaugural State of Decarbonization report is the first ever to deliver both key historical data and targeted opportunities for future improvement. Importantly, the report identified high-opportunity areas that can be decarbonized faster, such as deep retrofits in refrigerated warehouses, where emissions grew in recent years; and older commercial buildings, where pre-1980 buildings account for nearly 40% of gross commercial floor area in the United States and could utilize nearly half of the expanded commercial energy efficiency tax deduction in 2022’s Inflation Reduction Act, a key lever for decarbonization, per the report.

The report underscores that the United States has the tools it needs to reduce building-related emissions, and new federal funds provide the real estate sector with a unique, immediate opportunity to deploy critical improvements swiftly and widely across the nation. For example, the investments from the Inflation Reduction Act’s clean energy and climate action provisions could enable the building sector to meet its proportional share of the Paris target early, in 2029.

With proven decarbonization strategies long championed by USGBC becoming available and cost-competitive, commercial buildings have become 37% less carbon intensive and 26% more energy efficient on average. However, despite these significant reductions, the report found that the overall sector emissions of commercial buildings have remained flat since 1990, a result of significant increases in total building floor area.

“This report confirms our progress to date on U.S. commercial building decarbonization and serves as a powerful call to deploy proven solutions at greater speed and scale across all sectors and communities,” said Peter Templeton, President and CEO, USGBC. “We can and must work together—with partners across and beyond the building industry—to seize immediate opportunities for achieving our urgent goals.”

“This report is a crucial resource in understanding where we are presently, where we need to be in the very near future, and the strategies we can leverage to help us meet our critical climate goals,” said Robert Kay, Arup’s Americas Climate and Sustainability Services Leader. “We must accelerate decarbonization progress from where each city and state is at right now in order to reach our objectives.”

The State of Decarbonization report was released as USGBC and other global leaders convened at COP28 in Dubai, United Arab Emirates. USGBC has participated in the annual COP meeting since Copenhagen in 2009, where the organization was a lone but influential voice bringing much-needed attention to the central role that buildings must play in addressing climate change.

With full citations, sources, and methodology provided, report analyses focus on energy and operational emissions where data are more robust and actions more mature. This report complements critical new resources for building decarbonization, including the RMI-USGBC report Driving Action on Embodied Carbon in Buildings, released in late September 2023 (available at http://tinyurl.com/4ruzft2n). It will help policymakers, advocates, and companies understand the landscape and develop strategies to achieve the urgent scale of action needed.

Alongside the report, USGBC has announced LEED v5, the forthcoming leadership standard that aligns building decarbonization action with the urgency of the 2030 and 2050 Paris Agreement targets while also addressing critical imperatives related to human health, resilience, biodiversity, and equity.

The State of Decarbonization: Progress in U.S. Commercial Buildings 2023 report can be read in full at http://tinyurl.com/msrmywnj.

NIA Sites > Insulation Outlook Magazine > Global

Final Independent Contractor Rule Issued

The Department of Labor’s Wage and Hour Division has announced the final rule on worker classification, titled “Employee or Independent Contractor Classification Under the Fair Labor Standards Act [FLSA],” scheduled to take effect March 11.

This rule aims to clarify worker status as either employee or independent contractor under the FLSA. It rescinds the 2021 Independent Contractor Rule, which designated “core factors” to evaluate in determining an employment relationship. The new rule considers
multiple factors equally, including:

  • Opportunity for Profit or Loss Depending on Managerial Skill: This considers whether the worker can make money or lose money based on their ability to manage their work effectively, including using their judgment and business skills.
  • Investments by the Worker and the Employer: This factor considers whether the worker or the employer has invested money or resources in a way that resembles a business investment or a more typical worker’s investment.
  • Degree of Permanence of the Work Relationship: This considers the working relationship’s status as long term or ongoing.
  • Nature and Degree of Control: This factor considers whether the potential employer determines the worker’s work schedule, directly supervises how the work is carried out, or imposes restrictions on the worker’s ability to work for other employers.
  • The Extent to which the Work Performed Is an Integral Part of the Employer’s Business: This factor considers whether the specific tasks performed are integral to the overall functioning of the business.
  • Skill and Initiative: This point considers whether the worker uses specialized skills to perform the work, and whether those skills resemble managing a business rather than simply performing a job.
  • Additional Factors: This allows for consideration of other factors not listed that may be relevant to indicate whether the worker is in business for themself, as opposed to being economically dependent on the potential employer for work.

Defining an Independent Contractor

As used in the FLSA, the term “independent contractor” refers to workers who, as a matter of economic reality, are not economically dependent on an employer for work and are in business for themselves. Such workers play an important role in the economy and are commonly referred to by different titles, including independent contractor, self-employed worker, and freelancer. This rule is not intended to disrupt the businesses of independent contractors who are, as a matter of economic reality, in business for themselves.

Source: www.federalregister.gov/documents/2024/01/10/2024-00067/employee-or-
independent-contractor-classification-under-the-fair-labor-standards-act

When the rule was initially proposed, SHRM expressed concerns around the lack of clarity over how to evaluate a worker relationship, which could lead to ambiguity in worker classification. SHRM had advocated for retaining the 2021 classification test, emphasizing its clarity and consistency.

SHRM remains committed to providing updates and resources to help human resources (HR) professionals navigate this final rule, and it continues advocacy efforts aimed at supporting your needs and concerns. For additional summaries of this act or other HR policies, visit SHRM.org.

For more information on the Employee or Independent Contractor Classification Under the Fair Labor Standards Act, visit http://tinyurl.com/5yzz7b64.

NIA Sites > Insulation Outlook Magazine > Global

National Safety Council Releases Inaugural Report on Workplace Injury Progress

Musculoskeletal disorders, or MSDs, are the most common workplace injury, costing U.S. businesses in the private sector nearly $17 billion a year, according to the Liberty Mutual Workplace Safety Index. Recognizing the impact these injuries have on workers and businesses, the National Safety Council (NSC) developed the MSD Solutions Index, an annual benchmarking survey, and recently released the inaugural findings in the MSD Solutions Index Pledge Community Report, which focuses on three main pledge commitments of advancing MSD risk reduction, innovation and collaboration, and safety culture.

Respondents represented the manufacturing, professional, transportation and warehousing, healthcare, utilities, and several other industries. Organizations received an overall index result, as well as results for the three pledge commitment subsections, that fell into one of five results categories representing MSD prevention maturity: novice, reactive, advancing, proactive, and innovating.

Major insights included:

  • No organization earned a perfect score, underscoring the complexity of MSDs and their prevention. However, 85% of organizations received overall results in the advancing (39%) or proactive (46%) categories, while 15% were in the reactive category. Further, 54% rated their workplace’s ability to prevent MSDs as either very good or excellent.
  • For the three subsections:
    • Risk Reduction: 44% of organizations received a result of advancing.
    • Safety Culture: Respondents showed slightly higher average scores, with 42% in the proactive category.
    • Innovation and Collaboration: Overall results demonstrated slightly lower average scores, with 31% scoring as reactive, though more than half of organizations exhibited advancing, proactive, or innovating results.
  • Larger organizations, which have more than 1,000 employees, are generally more effective at mitigating MSD risk, as they are more likely to have mature, long-standing safety programs and resources to adopt more complex MSD solutions and technology. In contrast, the majority of small- to medium-sized businesses established their safety program in the last 5 years.
  • Eight in 10 pledge members have some form of MSD prevention or ergonomics program in place, and 65% have methods for tracking MSD rates across their workplace.
  • Nearly two-thirds of organizations regularly conduct employee perception surveys, and nearly 90% have methods in place for workers to share suggestions for safety improvements. Notably, the MSD Solutions Index showed that when it comes to safety decisions related to workstation design, employees’ physical work environment, and workflow, frontline workers are regularly consulted on these issues, which leads to stronger safety cultures.
  • Nearly 85% of organizations reported that psychosocial risk factors contribute to MSDs in their workplace. These risk factors include things like mental health, fatigue, lack of tracking, and lack of personnel and proper equipment or tools.
  • More than 80% are currently using technology in their workplace to prevent MSDs, and just as many are effective at ensuring these best practices are broadcast widely across their organizations.

In addition, the report outlined several steps and actions organizations should take, including:

  • Engaging senior leadership, designating an MSD solutions champion to represent the workforce, and creating and empowering an MSD solutions team to collaborate throughout an organization;
  • Collecting and responding to employee feedback regularly and measuring the progress of an MSD program and safety culture, and tracking the impact, solutions effectiveness, return on investment, and year-over-year change;
  • Identifying risk factors with involvement from frontline workers and implementing appropriate changes; and
  • Ensuring MSD solutions are equitable for all employees.

To learn more about these efforts, visit www.nsc.org/msd.

NIA Sites > Insulation Outlook Magazine > Global

Top 4 Construction Trends for 2024 and Beyond

The construction industry is considered one of the true pillars of the global economy. In the eyes of many, as the construction industry goes, so goes the world. Millions of people rely on this segment for employment, and the incomes derived from its jobs cycle through economies across the globe. For this reason and so many others, the condition of the construction industry is always in the crosshairs of financial and economic thought leaders. This segment is that important, but it is not immune to trends.

As in any other part of the business world, trends affect the construction industry. Managing them is one of the many factors that separate the market leaders from the rest of the pack, still trying to make their mark and find their way in this critical yet ultra-competitive economic space. This article reviews four of the top trends construction professionals should remain abreast of for 2024 and beyond.

  1. Adopting the Latest Technologies
    In the early stages, when technology began knocking on the doors of the construction industry, professionals were hesitant to infuse it into their mix. Most held fast to the tried-and-true principles and methods that had shaped the industry for centuries. All that has changed, as more and more are beginning to see the value technology brings to the table and are rapidly adopting it. Several factors are driving this shift, with the increasing complexity of projects, the need for efficiency, and recognized improvements in communications leading the way. From CMS systems to building information modeling (BIM), drones, and more, the industry’s race to embrace technology is in full swing.
  2. Being Green and Sustainable
    We have only one planet, and the responsibility of maintaining it rests of every shoulder that calls it home. As the challenge to preserve our world continues to gain momentum, builders, architects, and engineers have become hyper-focused on doing their part. In the coming years, clients will be more apt to partner with and provide lucrative build opportunities to those who mirror their values. With that being the case, those who champion green ideals and a focus on sustainability stand to gain.
  3. Using Prefabricated Materials
    Construction traditionalists are used to building everything on site by hand, piece by piece. Those methods are still present on some sites, but with each year, the prevalence of prefabricated materials grows. Prefabricated materials increase efficiency, reduce labor costs, and align well with green/sustainability initiatives. As professionals continue realizing the value of this method, more and more will look to infuse it into their production mix during 2024 and the coming years.
  4. Increasing Worker Safety Efforts
    It seems intuitive to think that the industry would have programs and resources to ensure worker safety. While no one wants to see a worker injured, the race to finish fast and increase profit margins often overshadows the importance of creating a safe working environment. As the industry continues evolving, worker safety will move to the forefront. Better safety includes improved training, frequent inspections, and more resources allocated to this area. The payoff from these efforts will be seen in terms of injuries and lives: fewer injuries derailing careers, and more lives being saved because proper safety protocols are in place.

Conclusion

Construction is a pillar of the global economy, and there is no getting around it. The
industry provides jobs, circulates dollars, and fuels various market segments. If the goal of any construction entity is to be a contributing force, it is crucial to remain abreast of the trends and directions of the market. Technology is here, so market leaders should not shun innovation. Leaders should use and embrace the many advancements and position their businesses for growth. The planet should be a priority, too, so infusing methods that protect the environment, including use of prefabricated materials, must be a focus. Finally, workplace safety is rising, as more firms work to protect their most valued asset: their people.

Trends are good things; in many cases, they come and go. Those professionals who show a willingness to adapt to and adopt them are likely to be the ones positioned to stay.

DISCLAIMER: The information provided is not legal opinion or legal advice and does not create an attorney-client relationship of any kind. This article is also not intended to provide guidance as to how project parties should interpret their specific contracts or resolve contract disputes, as those decisions will need to be made in consultation with legal counsel, insurance counsel, and other professionals, and based upon a multitude of factors.

Lynn Pearcey, MBA, is a Copywriter for AIA Contract Documents. AIA Contract Documents has provided this article for general informational purposes only. To learn more about how AIA Contract Documents can help you with your business, visit https://aiacontracts.com. AIA Contract Documents software allows users to efficiently create, share, and manage the industry’s leading construction documents.