“The key to successful leadership today is influence, not authority.

—Ken Blanchard

If a supervisor, regardless of their level, truly understands the dreams and aspirations of their team members, they possess a remarkable talent for influencing others. Our team members can easily discern whether their supervisors genuinely care about them as individuals or if they are solely concerned with their job performance. It is an undeniable fact that individuals perform at their best when they work under the guidance of a supervisor who genuinely cares about their well-being. To transition from being a mere authority figure to becoming a true influencer, supervisors must engage in meaningful communication with each team member, addressing not only job-related matters but also their personal goals. A powerful question that supervisors can rely on is, "What do you hope to achieve during your time with this company?" By fostering such open lines of communication, supervisors can build strong relationships that serve as the bedrock for leading through influence rather than authority. All supervisors must convey to their team members that there is a future within the company. Nothing is more disheartening than feeling trapped in a dead-end job with no prospects beyond a paycheck. Beware! Individuals who work solely for monetary compensation will never consistently contribute to the company's mission. They will never consistently perform their duties well, nor will they prioritize safety. On the other hand, individuals who see their work as a stepping stone toward their future will go above and beyond in every aspect. Unfortunately, many businesses are so fixated on securing and completing projects that they overlook the essential mechanisms that drive success. Supervisors who actively engage with their teams to help shape their future are the true influencers. Their team members respond with heightened productivity and a commitment to safety, driven by their desire to not disappoint their supervisor. With such a team in place, there is no limit to what can be achieved – they can move mountains, or even build them.

— Wayne Jensen

Presented by:

Wannemacher Jensen Architects, Inc.

Currently In The News

Contractors Are Addressing Safety and Health Issues, But They Can Do More

The latest safety management study reveals an increase in the implementation of safety and health strategies, but those measures could have greater adoption across the industry.

Research findings released today show that construction contractors have made progress in addressing worker safety and health issues, such as heat and mental health. However, there are still areas for improvement. The study, Safety Management in the Construction Industry 2023 SmartMarket Report, conducted by Dodge Construction Network (DCN) and CPWR, highlights the challenges in occupational safety and health in the industry. It reveals that while many contractors have implemented measures to prevent heat-related illnesses, there are disparities based on company size. Only 21% of employers with less than 20 employees have made changes to address heat, and 21% do not consider heat stress an issue. The study also shows a high level of interest in resources for managing mental health, suicide, and opioid use among contractors. Additionally, it emphasizes the benefits of engaging multiple viewpoints in pre-construction and pre-task planning, as well as the need for contractors to effectively use project safety data. The report provides more detailed findings and analysis on these topics, along with feature articles and case studies to promote wider implementation of safety practices in the industry.

US Construction Spending Rises in September

U.S. construction spending increased in September, but momentum is slowing as the factory building boom fades.

The Commerce Department reported that construction spending rose 0.4% in September. August's data was revised higher to show a surge of 1.0% instead of the previously reported 0.5% increase. Economists had predicted a 0.4% climb in construction spending. On a year-on-year basis, construction spending increased by 8.7% in September. Private construction projects saw a 0.4% rise, following a 1.0% increase in August. Spending on private non-residential structures, such as factories, edged up 0.1% while spending on manufacturing construction projects fell 0.4%. Residential construction investment increased by 0.6%, with spending on new single-family construction projects soaring by 1.3%. However, the rental vacancy rate for multi-family housing projects jumped to its highest level in 2-1/2 years in the third quarter. Public construction projects saw a 0.4% rise, with state and local government spending increasing by 0.9% and federal government project outlays dropping 5.3%.

U.S. Approves Construction of 2.6 GW Offshore Wind Project

The U.S. Department of Interior on Tuesday approved the construction and operations plan for the 2.6 GW Coastal Virginia Offshore Wind project, located approximately 23.5 nautical miles off Virginia Beach, VA.

The CVOW commercial project, located 23.5 nautical miles offshore of Virginia Beach, is the largest offshore wind energy project in the US. It is expected to create 900 jobs during construction and support 1,100 jobs during operations, providing economic development for Virginia's Hampton Roads area. Dominion Energy confirmed that the project is on schedule and within budget, with onshore construction starting later this year. Once completed in late 2026, the 2.6 gigawatt CVOW project will generate enough renewable energy to power 660,000 homes and meet the requirements of the 2020 Virginia Clean Economy Act. Dominion Energy estimates that the project will save customers $3 billion in fuel costs during its first decade of operation.

Marketplace

Unpacking the Boom in U.S. Construction of Manufacturing Facilities

The United States has experienced a striking surge in construction spending for manufacturing facilities.

Real manufacturing construction spending has doubled since the end of 2021, driven by supportive policies such as the Infrastructure Investment and Jobs Act (IIJA), Inflation Reduction Act (IRA), and CHIPS Act. The surge is mainly due to construction for computer, electronic, and electrical manufacturing, which has become the dominant component of U.S. manufacturing construction. This growth has not crowded out other types of construction spending, which continue to strengthen. The surge in manufacturing construction is unique to the United States and not mirrored in other advanced economies. Within manufacturing construction, the growth has been driven by computer, electronics, and electrical manufacturing, with actual spending on construction for this sector nearly quadrupling since the beginning of 2022. The surge is a real one when considering deflated measures. The boom in computer/electronic manufacturing has not been offset by reduced spending on other manufacturing segments. The CHIPS Act has played a critical part in continuing and expanding this trend, with new chipmaking facilities and semiconductor ecosystem projects being announced. The broader non-residential construction spending in the U.S. has also increased, with actual public spending rising by 7% and real private spending increasing by nearly 20% since the IIJA was signed. The IIJA has increased spending on infrastructure needs such as roads, bridges, public transit, water, and broadband. Private spending on transportation construction has also grown. The surge in U.S. manufacturing construction is not apparent in other advanced economies, although the United Kingdom and Australia did see increases in genuine industrial construction in 2022. This surge aligns with President Biden's economic agenda and Secretary Yellen's approach to Modern Supply-Side Economics.

Direction Of The Business

How much will the global construction industry be worth by 2037?

In the wake of a series of global health, geopolitical, and economic crises that have left many construction markets currently experiencing flat or declining volumes, contractors want to know what the years ahead will bring.

Global Construction Futures, a study by Oxford Economics, predicts that global construction work will grow from US$9.7 trillion in 2022 to US$13.9 trillion by 2037. China, the US, and India will account for half of this work, driving economic development. The top ten construction markets will represent 70% of all work done, worth over US$9.7 trillion. The ASEAN tiger economies, India, and Bangladesh will experience high growth. India alone is expected to surpass the US in construction growth. China's construction growth may slow due to an aging population. Despite this, residential construction is expected to exceed US$500 billion. In the US, residential construction will slump but then experience sustainable growth. US construction work is forecasted to grow by almost 30% to reach over US$1.8 trillion by 2037. The Inflation Reduction Act will drive growth, attracting private capital. In the UK, mega infrastructure projects and the green transition will drive growth. Eastern Europe's construction market is expected to grow by over US$180 billion by 2037. External financial support is crucial for Ukraine's stability. Overall, the global construction industry presents a massive opportunity.

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