In this issue
4 Offsite construction
– Here to stay
5 The Katerra and building
technology story
8 Construction: Top 10 List
of Provisions Included
in 2017 Tax Reform
12 14
PROJECTS AND
OPPORTUNITIES ASSOCIATION
NEWS Publisher’s
Viewpoint Mark Buckshon, publisher
If there are two critical themes underly-
ing North Carolina’s construction industry,
they would be labor supply/skills and tech-
nology. This issue of North Carolina Construction
News covers both themes, both by report-
ing on Associated General Contractors
(AGC) of America data outlining the scale of
labor supply challenges, and our introduc-
tory report about Katerra, which aims to
combine high-technology systems and fac-
tory-built construction to revolutionize the
industry. Katerra, I realize, hasn’t made much of
an impact in North Carolina yet. Its first
projects are largely in the western states,
reflecting its California tech/capital orienta-
tion. But its potential impact on the industry
cannot be overstated. While factory-built
construction has been around for decades,
the difference here is the systematization of
design, technology and production effi-
ciency to streamline the process to an in-
credible degree and change the traditional
industry geographical and skills/qualifica-
tions silos. While it is too early to say
Katerra will be to construction like Google
was to the advertising/news business, I
think it is worthy of close observation and
anyone in the trades and supply chain
should observe/understand how it operates.
You can share your observations, news
releases and story ideas by sharing them
via email to buckshon@ncconstruction-
news.com. North Carolina Construction News (NCCN) is distributed
throughout the Carolinas construction industry.
For information contact:
Chase, Phone: 1-888-627-8717 ext 212
chase@ncconstructionnews.com www.ncconstructionnews.com. ISSN 1940-3682.
2 — Winter 2018 — The North Carolina Construction News
NCCN is circulated on a controlled circulation list to qualified
readers including members of most major construction asso-
ciations in the Carolinas. The magazine is supplemented
by a weekly e-letter which reaches more than 4,000 industry
leaders each week.
AGC survey indicates NC market
optimism, tempered by challenges
in recruiting skilled workers
North Carolina Construction News staff writer
North Carolina contractors are feeling modestly opti-
mistic about their prospects for 2018, but many are
struggling to recruit enough skilled workers, according
to a report from the Associated General Contractors of
America (AGGA).
“Expecting Growth to Continue: The 2018 Construc-
tion Industry Hiring and Business Outlook,” shows that
75 percent of construction firms nationwide plan to ex-
pand their payrolls in 2018, based on the feeling that
economic conditions will remain strong as tax rates and
regulatory burdens fall.
Nationwide, “construction firms appear to be very
optimistic about 2018 as they expect demand for all
types of construction services to continue to expand,”
AGCA CEO Stephen E. Sandherr, the association’s CEO,
said in a statement. “This optimism is likely based on
current economic conditions, an increasingly business-
friendly regulatory environment and expectations that
the Trump administration will boost infrastructure in-
vestments.” The survey indicates that in North Carolina, contrac-
tors overall anticipate a relatively stable business envi-
ronment this year, with 48 percent expecting growth,
eight percent expecting a decline, and 44 percent antici-
pating things will be about the same as the previous
year. The most optimistic sector for growth is power,
while there is an expectation of a decline in the multi-
family residential sector.
Significantly, the majority of contractors anticipate in-
creasing their headcount; with 33 percent expecting to
add one to 10 employees, 22 percent increasing by 11-
25 and 19 percent anticipating increasing headcount by
more than 25.
The majority of contractors (74 percent) say they are
having a hard time filling both salaried and craft worker
positions, while 74 percent expect the trend to continue
through the year.
The report shows that 63 percent of the construction
firms that were polled increased their base pay in 2017
to help recruit and retain workers, while 33 percent in-
creased contributions/improved employee benefits and
26 percent provided incentives or bonuses.
The North Carolina Construction News — Winter 2018 — 3