Q&A talks about the state of the construction industry with Thomas E. Beebe, senior program manager of Middletown construction consultancy Arcadis Inc., and president of the Connecticut Building Congress (CBC).
Q: What is the state of the construction industry in CT? How does it compare to New England and the country?
A: Our members have been seeing steady, but slow growth, and margins remain thin. Our friends in Boston and New York City have enjoyed both a more rapid growth and robust market.Â
In Connecticut, as reflected in the region and the rest of the country, development seems to be concentrated in urban areas, with particular emphasis on health care, education, brownfield, and transit-oriented development. For instance, this year CBC is exploring adaptive re-use opportunities in the higher education and urban/post-industrial areas like Bridgeport. UConn is reusing an existing facility in Hartford and the University of New Haven developed an off-campus facility from the old Hubbell Headquarters in Orange. We’re seeing more interest in brownfields in part because of economic assistance from the state and the fact that some locations are very desirable.
Q: What are some of the challenges facing construction in CT? What are some steps that could be taken to resolve them?
A: A lot of change in construction is being driven by the demand for ever-increasing efficiency. Our members are constantly challenged to deliver projects and results faster and more cost effectively with fewer resources. The focus to meet these challenges is on technology and innovations in design, construction methods, and project delivery systems. Technology is a huge response to that, including Building Information Modeling (BIM). Drawings are better coordinated and more design is modeled on computer as opposed to discovering conflicts in the field, where the solutions are more costly.
Q: Which segment is currently stronger: the public or the private sector?
A: The public sector seems to be slowing down a bit, while the private sector is beginning to rebound. We are seeing growth in health care, education, multi-family housing and manufacturing. Geographically, the urban areas are leading the charge in the private sector with multi-family housing strong in Hartford, Fairfield County and other community center/multi-use developments in pockets around the state. Health care, education and manufacturing are more widespread, but still concentrated around the more densely populated areas of the state making use of existing infrastructure.
A significant number of public schools have been upgraded and we anticipate funds for bridges and roadways to increase and continue as the infrastructure deteriorates. Energy-related projects in the quasi-public/private sector will continue to increase as we improve production and distribution facilities and increase our use of renewable sources.
In the public sector, our horizontal construction members see continued demand for work on the state’s roads, bridges, rail and other public-transit work.
Q: What is the five-year outlook for construction in CT?
A: We believe the construction industry will continue to see growth over the next five years, but it will be at a slow and steady pace. There is a pent-up demand. There’s an opinion that you can’t, not renovate forever. At some point the slow growth will come from the need to renovate buildings to keep them stable. To not maintain them is more costly in the long run.
Public-private partnerships (P3s) have been used extensively in other parts of the country and all over the world, and we now expect to see P3s become more prevalent here in Connecticut and throughout New England, driven by the growing funding demands particularly for large projects.Â
Q: How is the workforce for construction in the state? Is a sufficient level of new employees being trained or is there a declining interest in the trades?
A: We are seeing a reduced labor pool for the construction industry. This is due in part to some industry veterans reaching retirement, others who left the industry during the economic downturn over the last five years, and as young people are lured to other professions and industries. There are greater demands for construction jobs in other parts of the country. It’s a work segment that is portable.
Yet, well-paying architecture, engineering and environmental careers are critical to solving some of society’s most pressing problems. And, construction jobs offer relatively high wages for some who prefer or choose not to attend a four-year college. But there are construction jobs that require and desire four-year degrees.
Q: How is green building doing in CT?
A: Green building is becoming a standard in our industry. In fact, most building codes for mechanical systems equate to LEED certified standards, effectively institutionalizing energy efficiency. Public schools and universities have embraced LEED certification as an endorsement of their commitment to our planet’s future. And the industry is adapting and adding new initiatives and programs, such as Green Globe and Living Building Challenge.
