"Tomorrow is the most important thing in life. Comes into us at midnight very clean. It’s perfect when it arrives and it puts itself in our hands. It hopes we’ve learned something from yesterday."

— John Wayne

Tomorrow is our fresh opportunity—truly an opportunity to advance the cause of “yesterday”.  The Annie-Tomorrow Lyrics are worth reading or singing if you do that well.  The hope, the promise of a “better tomorrow” only takes one thing to create lasting value and that is “action today” doing things we learned to make tomorrow better.

— Wayne Jensen

Presented by: Wannemacher Jensen Architects, Inc.

DIG INTO THIS ONE

No matter your goals, Atomic Habits offers a proven framework for improving - every day. James Clear, one of the world's leading experts on habit formation, reveals practical strategies that will teach you exactly how to form good habits, break bad ones, and master the tiny behaviors that lead to remarkable results.

IN THE NEWS

Israel's thriving startup culture is the driving force behind its groundbreaking tech innovation

The country’s business environment is a boon for enterprising construction technology firms, but it leaves little room to grow once a company is up and running, experts say.

Silicon Valley is the top startup haven, but Israel is also a promising ecosystem for tech startups. Israel is ranked third in the world for startup activity, behind the US and UK. Budding entrepreneurs in Israel receive strong support, government funding, and access to investors. However, expanding beyond Israel's borders can be challenging. Israeli startup executives and experts praise the country's development ecosystem but also acknowledge unique challenges. Israelis have a strong entrepreneurial spirit, and the military plays a role in developing business skills. Making connections in the construction industry is easier in Israel due to its close-knit community. Israel's thriving startup ecosystem provides valuable networking opportunities. The government and tech community support entrepreneurs in Israel.

AI will not take your construction job unless you willingly allow it to

Construction pros say given the shortage of workers, the tech will enhance more positions than it replaces, but employment law issues remain.

Henning Roedel, robotics lead for the innovation team at DPR Construction, believes that concerns about AI taking away jobs in construction are misguided. He argues that the industry needs more workers to meet the demand for construction projects. Despite construction layoffs during the pandemic, there were still over 341,000 unfilled jobs in the sector. Roedel sees AI and robotics as solutions to the labor crisis in construction, allowing workers to be more productive and efficient. For example, DPR Construction is using AI tools like ChatGPT for email correspondence and project summaries, as well as AI-powered tools for tasks like drilling into concrete. Roedel emphasizes that AI is meant to enhance the work of human workers, not replace them. He believes that AI can improve productivity and well-being in the industry and position construction as a leader in adopting new technologies.

Contractors boldly confront the challenges posed by the groundbreaking Florida immigration law.

New legislation that requires companies to confirm that employees are allowed to work in the U.S. could result in severe consequences for construction firms.

A viral video shows an abandoned Florida job site as immigrants fear deportation due to a new law signed by Gov. Ron DeSantis. The law requires private companies with more than 25 employees to use E-Verify to prevent unauthorized immigrants from filling jobs. This has caused uncertainty and a shortage of workers in the construction industry. The expiration of Title 42, a federal policy limiting asylum, has also raised concerns. Florida's E-Verify law will go into effect on July 1, and non-compliant employers may face fines. Some companies may try to dodge the law by trimming their workforce. Experts warn that the law creates uncertainty and could have disastrous consequences. Immigrants play vital roles in various industries and their absence could worsen potential disasters like hurricanes. The enforcement of the law is a challenge, but more states may adopt similar laws due to the federal government's failure to address immigration issues. The construction industry calls for tighter border security and a path to legal status for undocumented workers already in the country. However, federal guidance on immigration is unlikely to come soon. Improving the legal immigration process could have long-term benefits for the economy.

Banking turmoil stirs up new headwinds for construction

Recent uncertainty among lenders could lead to new challenges for U.S. construction firms as more projects fail to pencil out.

Decreased construction activity is expected in the coming months due to high financing costs for developers. Increased interest rates are making projects riskier and less profitable. Recent uncertainty in the banking industry is compounding the issue for construction firms. Construction backlog and nonresidential building planning have both decreased. Access to capital is becoming more challenging, leading to concerns about a potential recession. Developers are now required to achieve higher yields on cost, creating challenges for new projects. Owners and developers are willing to wait out interest rate fluctuations, further slowing down building starts. Long lead times for materials are also causing lending challenges. The Federal Reserve's liquidity support and potential rate cuts may help stabilize the situation. While the industry is not facing a crisis like 2008, a moderate downturn is more likely.

When school is out, construction is in

As elementary and high schools plan for a surge of federally funded upgrades over the next few months, many administrators remain concerned about spending deadlines.

Shiwi Ts’ana Elementary School in Zuni, New Mexico, will soon have an outdoor learning space for students to enjoy the beautiful views of the surrounding landscape. The $1.2 million project will include Wi-Fi-accessible stadium seating next to the school playground. Construction will begin after the school year ends and should be completed by the fall. This project is part of a larger trend of federally funded facility upgrades happening across schools in the country this summer. The funds, allocated through the Elementary and Secondary School Emergency Relief program, have allowed schools to address backlogged projects and improve their facilities. In Zuni, the district is also planning a $1.3 million outdoor learning area for its middle school, featuring a pond and elevated teaching platforms. Many schools are using their COVID-19 recovery funds to upgrade facilities, with HVAC system repairs and improvements being the most common projects. This influx of funding has provided schools with the opportunity to address long-standing facility needs and create inviting spaces for students.

DRIVE PROFIT

Backlog dips, but contractor confidence remains high

Despite firms’ stable profit margins and expanding sales, the economy faces several challenges that could affect construction, said ABC’s chief economist.

The backlog in the construction industry decreased to nine months in September, according to Associated Builders and Contractors. The Construction Backlog Indicator fell by 0.2 months compared to August and remained unchanged from the previous year. Large contractors were most affected, with those earning over $100 million experiencing a decrease of 3.2 months in backlog. Despite this decline, the Construction Confidence Index for sales and staffing levels increased in September, while profit margins slightly decreased. However, industry challenges such as political dysfunction, rising labor costs, and supply chain issues are growing. The U.S. economy is also expected to slow down. The South continues to have the longest backlog, while the West is the only region experiencing an increase in backlog over the past year.

DIRECTION OF THE BUSINESS

Amtrak to triple infrastructure investment over the next 2 years

With funding from the 2021 infrastructure law, Amtrak plans major work on bridges, tunnels, and other projects.

Amtrak plans to triple its annual infrastructure investment to $6 billion by 2025, funded by the 2021 infrastructure law. They also plan to contract $15 billion over the next 15 months and $32 billion in the next three years. These investments are necessary for Amtrak to double its ridership by 2040. The bipartisan infrastructure law provided Amtrak with $66 billion over five years for various projects, including new tunnels, bridges, repairs, and new rail routes. Major projects along the Northeast Corridor include the Baltimore and Potomac Tunnel replacement and the Hudson River Tunnel. Other projects include bridges in New Jersey and Connecticut, the East River Tunnel, the Sunnyside Yard facility, and upgrades to maintenance facilities in Boston, Seattle, and Washington, D.C. Amtrak has hired over 3,700 people and invested $2.3 billion in capital projects in the fiscal year 2022. They have also launched an electric bus service and are considering a partnership for a high-speed rail line between Dallas and Houston.

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