Optimistic Outlook

Construction Firms See High Demand Amidst Labor Shortages

ASAP; specifically the I-680/ Dodge Interchange and I-480 bridge rehabilitation in downtown Omaha.

“The I-480 project downtown is one that was completed in time for both shutdown phases of bridge rehabilitation,” he explained.

As infrastructure is the firm’s primary sector, McGill said the IIJA will present a lot of opportunities for workers entering the trade to stay busy year-round.

“We’re still waiting to understand the full effects of the funding, but it will help push some important projects into motion much faster,” he said.

Thus far, the team is testing out different recruiting tactics but, he said, “It’s very common for new hires to come with little to no construction experience and need time to be trained in more advanced skill sets.”

As to supply chain issues, in 2022 McGill increased on-hand inventory four-fold.

“In 2023, we believe that we can reduce the amount of inventory we keep on hand as the manufacturing of our materials is trending in a positive direction,” McGill stated.

Ronco Construction Company isolated activity in industrial and multi-family construction; notably, President Zak Olsen highlighted warehouses and distribution centers in areas such as around I-80 and 144th Street, Highway 370 and Gretna.

“At the end of 2022, Omaha’s new construction and proposed multi-family projects totaled more than 26,000 units, with over 3,000 of those in construction already,” he said.

Olsen attributed robustness in these sectors to the lack of singlefamily homes and high interest rates.

“So, the demand is high for affordable, convenient multi-family options,” he said. “On the industrial side, it’s mainly the lack of space — it’s around a 1% vacancy. Larger distribution centers for e-commerce companies like Amazon and Home Depot are growing.”

Projects span Home Depot market delivery operations; a 320,000-square-foot space for new tenant UPS; and a 300,000-squarefoot nerve center for GXO Logistics – all at the I-80 Logistics Hub.

On the multi-family side, Olsen noted how the former 24 Hour Fitness at 120th and Blondo streets is being reimagined into a 160unit, 225,000-square-foot apartment complex, while the 84-unit, 108,400-square-foot Nest Apartments is owned by La Vista biotech firm, Streck, as the “first-of-its-kind, employer-assisted housing project in Nebraska.”

Investments for the firm included surveying and modeling equipment; for example, a Matterport 3D scanner to scan and model existing building/property conditions and to generate a useable Revit model.

“Now, instead of doing this by hand with tape measures and pictures that can take weeks, we can generate results in a matter of days that are more accurate which, in turn, helps to accelerate project planning,” Olsen explained.

The use of drones in aerial surveys and greenfield developments, too, allows for quicker and more accurate scanning and documentation, while virtual and augmented reality showcases spaces and supports design feedback all in real time.

“You can ‘walk’ your project before it’s even constructed,” he stated.

Firms See High Demand Amidst Labor Shortages

Industry-wide Advancements

Boyd Jones VP of Preconstruction and Estimating Adam Marr reflected on technology advances.

“One advancement we’re proud to put to work to make things easier for clients is an advanced laser scanner,” Marr said. “It’s a wearable scanner that captures extremely accurate and detailed data that we use to document as-built conditions and create virtual tours.”

Marr said this information provides a reference to enhance the efficiency of future facility modifications.

“We know exactly what’s behind the walls or above the ceilings, where conduit and other building components are located,” he said. Such technology and foresight are complemented by robust relationship-building, exemplified by long-term partnerships with the likes of Airlite Plastics, Baxter Auto Group and Kids Can. Newer clients include Hillcrest Health Services.

“Since we first began working with the Bellevue-based senior living provider five years ago, we’ve completed or begun work on independent living, assisted living, memory support, and skilled nursing facilities at properties in Sarpy County,” said Boyd Jones SVP of Integrated Services George Schuler.

Repeat work is also afforded by higher-education projects for Southeast Community College, University of Nebraska Medical Center, University of Nebraska at Omaha and K-12 projects for Springfield Platteview Community Schools, DC West Community Schools, and other school districts in Nebraska and Iowa.

Boyd Jones SVP of Operations Tim Meyer spotlighted awardwinning projects. Engineering News-Record Midwest awarded Boyd Jones an Award of Merit for the renovation of the Omaha Box Co. complex into the Ceres Group headquarters. The National Association of Women in Construction also awarded it the President’s Choice honor at its Project Excellence Awards for its utility-scale solar project in Burt and Dodge counties.

“The project team reclaimed existing materials like beams and hardwood flooring and incorporated them into design details, including stair treads, interior shutters and wall cladding,” Meyer said of the Ceres Group project.

The latter project, Meyer said, enables Burt County Public Power District to store energy for anticipated peak usage days and put it onto the local distribution grid during periods of high demand for better cost control.

For JE Dunn’s Nebraska office, 2022 was a “record year” for sales, new hires, awards and project achievements, according to VP Doug Duren. Notably, ENR Midwest named the firm its top contractor in Nebraska.

Opening its Nebraska in 2008 with just six employees, JE Dunn has grown to be one of the largest general contractors in the state.

Arguably, its most important recognition is the National Safety Council of Nebraska’s safest company award winner, with Duren noting: “We strive for each person who steps foot on our job sites to go home in the same condition they showed up. We have some of the lowest incident ratings in the country because of these efforts.”

Industrywide, JE Dunn Senior Preconstruction and Estimating Manager Colby Vetter said materials shortages and cost increases have eased, but lead times continue to be extended on many materials, impacting schedule and budget.

“Currently, we’re seeing overall construction costs 25% to 35% higher than they were pre-pandemic,” he said.

Since many budgets were approved two to five years ago, teams are fighting an uphill battle to hit budgets and underscore collaboration and alignment among contractor/client/designer.

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