Russia, Ukraine, and Construction Costs

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The Russian invasion of Ukraine was a surprise to many in the United States. While thousands of Ukrainians continue to flee their homes, the US is among the many countries who have imposed sanctions, or bans, on businesses operating in Russia. The hope is that this sudden economic downturn will encourage Russia to vacate Ukraine and allow a return to peace. 

While these sanctions are a key step to bringing a quick end to the war, they’ve caused a significant disruption to many industries around the world, including construction. Inflation, which was already affecting companies before the conflict, is expected to continue to rise, thanks to rising gas and oil prices. 

Lost Gas Lines & Rising Prices

Prior to the Ukraine invasion, Europe expected the Nord Stream 2 Pipeline to open, which would carry natural gas from Russia under the Baltic sea and into Germany, where it would then be dispersed throughout Europe. However, movement on the pipeline has stopped since the beginning of the war and is not expected to be revived. 

It’s no surprise that these rising gas prices will increase both the cost of shipping and using gas-run machinery, but they also affect the cost of building materials themselves. Many of the materials used in construction are energy-intensive to create, and most contain petro-carbons made from petroleum products. As the price of oil (petroleum) rises, these materials costs will also skyrocket. 

Supply Chain Domino Effect

What’s more, Russia is a main producer of both copper and aluminum, which had already increased in price by 25% and 33% over the last few years. With the war and sanctions disrupting the supply chain of these common metals, both the prices and the time to get items made out of these metals are expected to rise. The cost of steel and plastic are also rising.

Construction & Heavy Equipment Impacted

So what does all of this mean for construction companies? 

It means we’ll have to make important decisions about the types of projects we accept, the deadlines, and the communication with both investors and suppliers. Companies should discuss who will shoulder the burden of increased inflation, and strongly consider what they can afford before entering into any fixed price contracts. 

When considering timelines for jobs, it’s wise to include plenty of additional buffer time due to account for unexpected supply chain disruptions – clients will be happy when it’s done earlier than you originally planned, but not the other way around! If possible, consider smaller projects that have more certainty of cost and less delay risk. This will give you fewer time constraints and allow you to complete your projects without being strangled by labor shortages, rising costs, and supply chain issues. 

We’re in This Together

If your company is struggling to find equipment, staffing, or project management in this difficult time, Steadfast Entities, LLC is here to help. We pride ourselves on our efficiency, which keeps costs low and our customers happy. Contact us to find out more about how we can assist you today.

Housing Building Trends in 2022

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Americans are spending more than ever on their homes, so it’s no surprise that these buildings are becoming more economical, sustainable, and comfortable in 2022. 

As we move into more renovations of single family homes, we expect to see an increase in the following trends: 

Moving the Inside Out… 

After spending much of the last two years inside, many people are moving the comforts of their living spaces into their backyards. High end pools, outdoor televisions, built-in projectors, and outdoor fireplaces are all becoming popular features for families to enjoy year round. 

… And the Outside In

When homeowners do have to be inside, they’re bringing the outdoors with them. There has been an upswing in “biophilic design”, with an increase of organic materials, light and airy spaces, plants, and other elements that focus on nature. 

Sustainability

With climate change coming to the forefront, eco-friendly building elements are on the rise. These include natural materials like brick and stone for home exteriors, and drought resistant landscaping in front and back yards. Metal roofs are also gaining popularity, as they can last 40-70 years and come in a wide variety of colors and styles. More than just being fashionable, sustainable materials like these have been shown to decrease homeowners’ costs, as they tend to require less maintenance and reduce the cost of utilities. 

Love Your Curves

Gone are the days of straight lines. Whether inside or outside, expect to see a transition towards curved edges. These can come in the form of arched door and window frames, barrel vaulted ceilings, or curving walkways. No matter where you find these curves, they’ll be sure to help homeowners show off their unique personalities and provide a warm, welcoming space.

Spice in the Kitchen

They say the kitchen is the heart of the home, so it’s no surprise that we are seeing sweeping changes in kitchen design. Minimalist, mostly white kitchens are being dropped in favor of warm, colorful cabinets, counters with a splash of color made of alternative materials, and patterned floors that celebrate and welcome all who enter.

Home Sweet Office

Working from your bed or couch is a thing of the past. As more people leave the corporate office behind, home offices are becoming an integral part of every house. For new construction, this can mean more rooms or set-aside office spaces. During renovations, rooms are transformed to be multifunctional, often combining the office with a guest room or part of the kitchen. 

Whatever your project, Steadfast Entities, LLC can support you with the equipment and staff you need to complete it quickly, efficiently, and for the best price. Contact us today! 1.855.449.0777

Top 10 Best States for Construction Jobs

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Does the New Year have you itching for a change? 

As the pandemic slows and people return to work, construction jobs are now more available than ever across the country. The Bureau of Labor Statistics reports that the number of construction industry jobs is expected to grow by 7% into 2030, and that the increase in federal funding from the Infrastructure Bill will provide stability for many types of construction companies throughout the coming years. 

Maybe you’re looking for better opportunities, to make some money in the booming housing market, or to start fresh somewhere different. If you’re in the construction field or just starting in the industry, and looking for a change in locale, here are the top 10 best states for construction.

Top 10 states with the most construction job openings: 

  • California: 672,280
  • Texas: 608,110
  • Florida: 413,800
  • New York: 311,430
  • Pennsylvania: 213,630
  • Illinois: 181,550
  • Ohio: 178,900
  • North Carolina: 178,710
  • Virginia: 165,410
  • Washington: 161,780

While having plenty of opportunity is important, so are wages. Many of the states with the most jobs available (Texas, Florida, Ohio, North Carolina, and Virginia in particular) all have an average wage below the national average of $25.93. 

Top 10 states with the best wages per hour:

  • Hawaii: $35.08
  • Illinois: $33.86
  • Massachusetts: $32.65
  • New York: $32.49
  • Alaska: $32.33
  • Washington: $32.23
  • New Jersey: $31.51
  • California: $30.78
  • Connecticut: $30.15
  • Minnesota: $30.09

Enjoying the warm, sandy beaches of Hawaii after a long day of work might sound relaxing, but  once again it’s important to consider other factors, like the high costs of living. Taking this into consideration, let’s look at what states have the most growth potential, measured by population growth from 2020-2021. 

Top 10 states with the most growth potential:

  • Texas: +310,288
  • Florida: +211,196
  • Arizona: +98,330
  • North Carolina: +93,985
  • Georgia: +73,766
  • South Carolina: +59,976
  • Utah: +56,291
  • Tennessee: +55,099
  • Idaho: +53,151
  • Nevada: +29,920

Top 10 states with the largest populations (in billions): 

  • California: 39.512
  • Texas: 28.996
  • Florida: 21.478
  • New York: 19.454
  • Pennsylvania: 12.802
  • Illinois: 12.672
  • Ohio: 11.689
  • Georgia: 10.617
  • North Carolina: 10.488
  • Michigan: 9.987

When combining all of these factors, professionals found the following 10 states to be the absolute best for those looking to work in the construction industry, with great potential, growth, and wage numbers. 

Top 10 best states for construction work:

  • California
  • Illinois
  • New York
  • Washington
  • Texas
  • Florida
  • Pennsylvania
  • Ohio
  • Georgia
  • North Carolina

No matter where you live, now is a great time to be in construction. We’re happy to be a part of this ever-growing industry and to be recognized for our dedication to quality workmanship and customer service. 

If you’re one of the many project managers looking for staff in the new year, reach out today to see what we can do for you. Let’s ease those staffing woes and provide you with the people you need, when you need them.

 

Read more employment data and the full article at CONEXPO-CON/AGG.

Diversity in Construction

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The construction industry often struggles with diversity. 

It’s most clear when it comes to gender: as of 2021, women comprise only about 8% of the total construction workforce, despite making up 47% of all employed people worldwide. Of that 8%, only about 1% work on jobsites, with the majority of women being placed in office and sales positions. 

Similarly, there is a huge disparity when it comes to race: 58.7% of those working in construction are white, followed by 24.5% Hispanic or Latino and 10.7% Black or African American. 

Why does it matter?

Research has shown that having a wider mix of people on your staff improves morale and productivity, and keeps workers on your team longer. The good news is that diversity is always improving and there are things you or your job leaders can do to help. With the ever-increasing housing market, it’s expected that the industry will need another 430,000 workers in the coming year. Widening your search to include underrepresented individuals can help fill those labor gaps. This also tends to improve performance, as a larger hiring pool means opening yourself up to finding more talent and a wider range of skills (studies have shown inclusive firms have 1.32 times higher productivity than less diverse firms). 

An increase in talent can also lead to improved problem-solving, as a wide range of experiences and perspectives mean more innovation when facing challenges on the jobsite. More innovation leads to quicker solutions, which means your company can outperform your less diverse competition. It’s also going to get you noticed, as high performance and a positive work environment are two of the best ways (along with decent pay and benefits) to attract and retain quality craftspeople to your team – critically important with today’s labor shortages. 

How do I diversify my workforce? 

First, check in with yourself. Make sure that you are offering the same opportunities for leadership and promotion to everyone. For example, are the women on your team offered the same leadership opportunities as the men, or are they limited to only administrative positions? These changes often start with company management reevaluating their current policies, and making sure they are free from unconscious biases and discrimination. This could mean changing promotion criteria and providing diversity training to both management and employees. 

When hiring new employees, aim for a blind review that omits the applicant’s name so you can be more impartial. Have multiple people on your hiring team, and whenever possible include people from diverse backgrounds. 

Building new partnerships is also key to bringing in new and varied talent. Starting a partnership with a local high school, community college, or nonprofit to teach youth and young adults construction skills can not only get your name out into the community, but can also jump start the training of your next batch of employees with little effort on your part. This also ensures the diversity of your workforce is representative of your community. 

Diversity and inclusion is the way of the future. Put your organization in a position to succeed by hiring and promoting a diverse range of staff. With this mindset, you can resolve labor shortages while ensuring your staff feel safe, satisfied, and empowered in the new year. 

Data Source: Zippia

New Year, New Trends in Construction

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2021 was full of growth for many construction companies, but it wasn’t always easy. Bottlenecks in production and delayed shipping increased material costs, and a shortage of labor slowed down projects. Necessity is the mother of invention, though, and these struggles have led to the creation of many new and creative solutions in the industry. The following trends are expected to become commonplace in 2022 as crews work toward faster build speeds, efficient use of quality materials, and finding ways to keep their crews happy and safe.

  • Digitalization. Last month we told you all about exosuits, wearables to keep workers injury free on the job site. They are just one example of technology that keeps projects running smoothly and workers safe. Technology like cloud-based collaboration software, drones, and robots are also becoming standard and will shape the industry through the coming years. 
  • Happy Workers. You can have all the robots in the industry, but without enough people on your crew, your job will be at a standstill. The “great resignation” of 2021 has left a serious skills gap throughout the construction world, and companies are having to incentivise workers in new and thoughtful ways. These methods include better pay and benefits, regular training and opportunities for upward momentum, and innovative tools to maximize safety. 
  • New Materials. Transparent aluminum. Self-healing concrete. These are just a few of the newly engineered materials on the market created to reduce construction costs. Many utilize recycled base components, which save money and reduce waste. 
  • 3D Printing. Similarly, 3D printing is quickly becoming a rising star in the industry. Whether printing a replacement part for a machine or creating a highly detailed construction model, 3D printing is becoming popular as a quick and efficient way to keep jobs on schedule.
  • Building Information Modeling (BIM) & Digital Twins. Both built using IOT technology, BIM and Digital Twins allow better communication between workers, management and customers. BIM provides information throughout all the construction phases, including project schedule, cost, and materials. A Digital Twin is a virtual model of a building site or building. It captures thousands of data points that can then be viewed, monitored, and even changed in real time. This allows crews to text new ideas or try new designs, saving both time and materials. 

We can’t wait to see all the ways you and your crew put modern tech to real use in your projects. In the meantime, have a safe and happy new year! We at Steadfast look forward to meeting all of your staffing and equipment needs in 2022.

Stability and Industry Growth in 2022

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After the uncertainty of the last two years, many in the heavy equipment and construction agencies are looking towards 2022 with hope for stability and profits. 

Thanks in part to the federal funding provided by the American Jobs Plan (AJP), a sharp uptick of work on the country’s roads, bridges, and railways is expected to start in 2022. This, combined with the continued need for single family homes that began in 2021, has model simulations expecting a growth of 3.5% for the construction industry as a whole through the end of 2023.

What the numbers show.

Mostly due to influx in funding from the AJP, the private, local, state and federal sectors are all expected to experience double-digit growth through at least 2023. While this is promising for those who work in the infrastructure and residential sectors, the outlook is more mixed for those whose construction focuses on business and commerce. Some businesses, like health care facilities and schools, received federal funding during the pandemic and have grown. Warehouses and transportation facilities have benefitted from private funding as home shipping has increased. And others, like office buildings, have seen a steep decrease in funding as many workers have shifted to remote work. 

According to the Association of Equipment Manufacturers, these shifts flatlined growth in the business and commerce sectors in 2021, but experts are cautiously optimistic that a resurgence of those returning to work post Covid will see a 2.9% growth in 2022. 

While growth is usually great for an economy, there can be downsides.

This has been seen in the current housing crisis, where the urgent need for affordable housing has led to a shortage of materials and labor and, ultimately, inflation. This is expected to continue through 2022 and beyond, with the US now ranking 4th globally for year-over-year home price increases behind Sweden, Denmark, and Russia. 

Inflation is not just limited to the housing market. 

Supply chain issues and labor shortages have led to inflation in manufacturing, which then ripples outward toward both construction companies and their clients. However, experts expect that this will level out in 2022. The extra work has also led to an increase in heavy equipment purchases, which has now passed pre-pandemic levels. This is expected to result in a 4% increase in construction machinery sales for 2022, and further growth beyond. 

A more positive future is coming soon! 

In 2022, Steadfast hopes to see all our partners gain renewed profits and growth. 

Whether back in the saddle and ramping up projects or still experiencing tight budgets, Steadfast is here to help you maximize cost and efficiency with the right equipment and staffing. We ourselves are very familiar with the hurdles of the past years, and our goal is to partner with other organizations in success and forward momentum. Contact us today to help you get your project – and your new year! – off to a great start.

Managing Construction During the Ho-Ho-Holidays

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The holidays are fast approaching, which means keeping your construction crews happy, safe, and productive as the days get shorter and celebrations with family and friends are on their minds. It can be hard to strike a balance between maintaining project momentum and giving your crews a much-needed break, so we’ve provided the following tips to help you manage the holidays and start the new year on a high note:

  1. Underpromise & Overdeliver.

    Clients can be stressed during the holidays, and may set high expectations that can’t be met when crews are taking extended time off to spend with their families. Plan ahead for the additional time needed, and be honest with clients about reduced productivity from November to January, while assuring them the project will continue to move. By working this extra time into your schedule, you’ll be able to focus on quality work instead of unsafely rushing, and you’ll still meet deadlines. Plus, if you finish early, you’re sure to be your client’s favorite holiday gift giver! 
  1. Limit the Overtime.

    Clients might push extra hard during the holidays, but don’t let that turn into running your crews into the ground. Extra long hours, all nighters, and extreme stress on the jobsite can lead to mistakes, injuries, and/or burnout, especially when workers are expected home for holiday celebrations. If you do need your crew to work extra during this season, consider offering holiday bonuses and/or flexible hours to boost morale and keep workers productive. In today’s labor shortage, you can’t afford not to.
  1. Communicate your holiday schedule.

    Communication is always key, but it’s especially important when communicating expectations around holiday work. Plan what days you’re giving your crew off. Is it just Thanksgiving or also the Friday after? Is Christmas Eve a half day, a full day, or completely off? If you want to give your crews a break, but also want to keep that productivity on high, some companies find it helpful to hire a dedicated holiday team, often filled with out-of-state workers who are already planning on spending the holidays away from home. While these workers often expect higher pay to make up for spending the season away from their families, they are also expecting to work the hours that your current crews want off, and can be key to finishing projects by their expected deadline. See what Steadfast has available by contacting us here. 
  1. Don’t schedule new or complicated projects.

    With national staffing and supply shortages everywhere, you should expect holiday projects to take even longer than usual. To avoid disappointing clients, focus on completing current projects first. If you’re able to take on something new, limit it to projects your crew is already familiar with. Managing projects on the frontside can keep both clients and operators happy during the holiday season. 

Managing projects during the holidays requires some extra thought, but with these tips and proper planning, it’s sure to be your best season yet. And don’t forget that Steadfast Entities is here to help. Whether it’s finding staff for the holidays, equipment rentals to finish that project on time, or getting the key products to keep your site running at maximum efficiency, we’re here to help. 

Contact us today to see how we can help keep your holidays (and your worksite) bright! 

Doing More with Less: Facing the Labor & Supply Shortage

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As projects and funding increase, labor and supplies still remain at an all-time low. Expectations have also returned to pre-pandemic levels, but construction leaders are still struggling with limited resources and project delays. 

To manage this tight situation we’re facing, construction leaders must better manage their assets to deliver on projects despite fewer workers and more expensive or unavailable materials. 

Here are some ways you can do more with less:

Technology

Harnessing the right construction technology could be your saving grace. The right software can help you bid and build better project teams, track data to improve workflow, cut down on costs, and improve teamwork and resource allocation across projects. 

When staffing options are limited, technology can also increase the candidate pool and improve safety conditions. One great example of this is using remote controlled excavators. 

Watch this recorded webinar to learn more about how you can best use technology. 

Renting

When choosing the right equipment or staffing the right operators, going with a rental service like Steadfast ensures you’re perfectly matched with what you need. 

Don’t buy equipment that sits in a warehouse, unproductive, after the project scope changes or you can’t afford a repair. By renting, you’ll get help identifying the right equipment and operator on the front side, and then be able to use them efficiently only where they’re needed.

Renting saves time, money, and energy, allowing you to do more with less. 

Relationships 

There’s a reason that word of mouth is king in the construction industry: personal connections and project teams are the backbone of this field. Especially in these difficult times of labor and supply shortages, establishing strong relationships with other vendors, clients, and your employees could be the answer to your long-term success. 

Communicate effectively, offer a reasonable level of transparency, and show that you care. Explore new opportunities for staffing, follow through on vendor promises, and maintain integrity in your work. These efforts will translate to strong community ties that will support you through difficult times. 

Whatever your struggle, the construction industry is here for you! Explore construction articles online or email us at info@steadfastentities.com for more information about our rental and staffing services. 

The 5 Biggest Construction Cyber Risks

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October is cybersecurity month, so we’re spotlighting the risks construction companies are now facing and how you can prevent them! 

While this hasn’t always been the top concern for construction leaders, cybersecurity is quickly rising in the ranks as more and more construction firms are targeted in malware and ransomware attacks.

Why is construction a target? 

Construction data doesn’t include the same amount of compromising client information as data from a bank might. While this seems like a good thing at first, it also means there are significantly fewer regulations around privacy and data security in the construction industry. 

At the same time, technology is exploding with new possibilities for the future of construction. Without these important security regulations in place, however, these new technologies present a big risk to an enterprising construction tech company.

What are the 5 biggest risks?

  1. Phishing is when someone uses a fake email address, posing as someone trusted, to try to get information from your organization. Rushed employees might overlook the red flags and provide them what they need, compromising your organization. 
  1. Domain imposters purchase domain names similar to your own or to a trusted partner, then email from them. Even if it’s someone you don’t recognize, the domain name creates a false sense of trust. 
  1. Password guessing via computers can also be surprisingly easy, allowing a hacker access to a legitimate employee’s account. From there, a hacker can send emails or access sensitive information.
  1. Ransomware is the scariest of the bunch. After gaining access to your construction company’s system (possibly using one of the methods above), the hacker will block access and demand a ransom for operations to resume. 
  1. Fraudulent wire transfers can also devastate a company. Using one of the above methods along with social engineering (manipulating people into doing what you want), an unsuspecting employee could transfer money to a hacker, all while thinking they were doing their job to keep the company running smoothly.

How do I protect my company?

You’re probably already very familiar with locking and securing your physical equipment. So now you need to learn how to be just as vigilant with your data. 

  • Learn about cybersecurity (by reading articles like this!) and stay on top of the latest hacking methods. 
  • Teach yourself and your staff to recognize suspicious domains and email addresses. Nothing is so urgent that you can’t double-check the sender’s request! 
  • Create strong passwords and enable multi-factor authentication.
  • Set up cybersecurity software, like email spam filters and malware protection.
  • Keep backups of all your data so you won’t be vulnerable to ransomware. 
  • Consider cybersecurity insurance or a third-party cybersecurity company. 

Some of these protections can be set up in just minutes! Protecting yourself and your business is easy when you get in the habit of good security. Explore cybersecurity more at Cox Blue.

Floor Load for Dummies

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Construction often requires complex maneuvering in tight spaces or over existing structures that can’t be damaged. In these cases, operators are responsible for effectively completing projects while using various pieces of heavy equipment, yet without damaging the surrounding floors, walls, or ceilings. Sounds impossible, but it’s no magic act – it’s structural engineering at work!

What is floor load?

Floor load is the maximum weight a floor can safely carry, if evenly distributed. It’s also called ground pressure. At its most basic level, the goal is to find the weight capacity of the floor and compare it to the weight of the heavy equipment, called “machine load.”  

First, let’s look at the weight capacity of the floor itself.

Dead vs. Live

Dead load is the weight a floor must always support, like walls, wood-frame, carpeting, ceilings, and other permanent fixtures. Live loads are the variable, moving weights a floor must support, including people, machines, or furnishings. 

Building codes tell us the minimum live loads a structure must support, and how much the floor may bend in order to absorb the weight. As with any material, there’s a maximum pressure the floor will be able to handle before it breaks. 

Machine Load

Machine load is going to add to the live weight on a floor. That’s just how much the machine weighs, right? Not quite. According to For Construction Pros, this is how you get machine load:

(empty machine weight + max occupied platform capacity)
_____________________________________________
(chassis length x chassis width)

This math takes into account that the machine’s weight isn’t evenly distributed, so there’s more pressure in a smaller area. That tells us the true amount of weight the floor will have to support in that particular area. This is measured in pounds per square foot, or PSF.

Below you’ll see examples of machine load calculated based on different brands, provided by Hy-Brid Lifts. 

Finding Floor Load

Once you have your true machine load weight and total floor load capacity, you can clearly see whether you’re able to use a machine in a space. Understanding these floor load basics is important to understanding the many components of safe and effective heavy equipment operation! 

This information is meant as a general FYI, allowing operators to understand their equipment and the spaces within which they operate. If a project requires accurate floor load computations, please refer to a structural engineer who can account for joist load capacity and the structural properties of building materials.