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The Kimmel Construction Industry Newsletter spoke recently with five members of the 12-member Mechanical/Electrical Division at Kimmel. The consultants provided insights into their marketplaces and even made some educated guesses as to which trends will strengthen and which types of work may diminish in the coming months or next few years. Hear what these experts in Mechanical-Electrical search have to say about your part of the country.
Construction Industry Newsletter (CIN): What do you hear when you survey the territory you work and talk to your clients everyday?
MARK JONES (Mechanical-Electrical Contractors, Mid-Atlantic and the Carolinas):
There is such tremendous demand for talented project managers and superintendents. That's self-evident, like saying a baseball team really wants good starting pitching and solid hitting, but the need is as pronounced as I've ever seen. PMs and Supers of various skill levels are gold right now.
CIN: Where is the demand the greatest?
MJ: The types of projects that are flourishing are healthcare, hospitality, mixed-use, and offices, among others. Washington, D.C. is an exciting place to work right now: there is, not surprisingly, an abundance of government work, as well as high-rise residential and condos.
CIN: What about down through Virginia and into the Carolinas?
MJ: There is a great deal of work throughout the Southeast in rebuilding infrastructure. There is good work for people who can build water and wastewater facilities. Electrical talent is in demand for power and substation operations, and I am also addressing clients' needs for electrical professionals who can work on smart signs for traffic regulation, such as you see in Atlanta.
CIN: Do you see other trends of interest?
MJ: I have definitely been in touch with any number of candidates who are intrigued by the prospect of relocating from the Northeast and upper Midwest down to the Southeast and Southwest. Beyond the milder climate, candidates see a different lifestyle that appeals to them, and a lower cost of living in many markets that stretches their dollars and allows, for example, a PE in some giant metropolitan area up North who's renting a house to own a bigger house in Raleigh or Charlotte.
Construction Industry Newsletter (CIN): What building trends are you seeing?
ALICIA SISK-MORRIS (Mechanical-Electrical Contractors, Northeast and Florida):
Up until recently the big trend in Florida was mixed use condominiums. But everything is cyclical, and the market for that appears to be slowing for now in Florida, even though I know it's still strong in other places around the country. But now the hot trend appears to be schools. That market is very strong and estimators are projecting that this trend should last for another 5 years. Commercial and hospital work also appears to be steady.
CIN: That's some of what you see in Florida, but you also work the Northeast.
ASM: The Northeast appears to also be enjoying a strong push in the school market. We see renovations and new additions as well as new buildings starting throughout the market. Current concerns are that the ever-tightening schedules are now so unreasonable that the subcontractors are being affected tremendously. The ever-changing technology is also another factor in building construction; subcontractors are having to constantly be diligent to stay up on the latest trends as they are changing so quickly, particularly as it relates to multi media needs.
CIN: How are companies adjusting to changes in market conditions?
ASM: I have seen several shifts. Some subcontractors are seeking to add additional services or departments such as a service department. Other companies are looking to supplement their commercial and medical markets with work in industrial markets such as petro/chemical and water/waste water plants.
CIN: What skills are companies most interested in when interviewing candidates?
ASM: Estimating and AutoCAD engineering and design are in huge demand throughout the east coast. More and more of the mechanical and electrical engineering grads are seeking employment in product design or computer industries, leaving a serious shortage in the construction industry.
Construction Industry Newsletter (CIN): California always seems to have a few surprises. What do you see in that market?
ROBERT STEIN (Mechanical-Electrical Contractors, California):
It remains a hot market. Institutional work, schools, libraries, offices, 911 centers, healthcare ... there is activity in all those disciplines. Plus, there is a flurry of activity in labs, biopharm, clean rooms. I am scrambling to find the right people for my clients in those specialties. Biopharm and all its adjunct industries has taken off in San Francisco, the Silicon Valley, northern San Diego County. And, here’s something fairly specific to California, since you asked. Of real interest is work that must be done to conform to a seismic referendum that was passed that demands lots of retrofit work.
CIN: Which other regions are active?
RS: East Los Angeles, the Inland Empire, Riverside, Sacramento has a big hospital project, LA and San Francisco continue to reclaim their downtowns. San Diego residential is big right now, and I’m also seeing lots of high-rises, 30 stories and up, in San Diego.
CIN: What talents are most in demand right now?
RS: Everything. I am certainly looking for PMs and Estimators who can do public works. As always, there are great positions available for qualified union Estimators and PMs. There’s equal amounts of work for Design-Build, retrofits, HVAC, Piping, as well as for Hard Bid in healthcare and hospitals. There is a shortage of engineers and designers who know HVAC wet and dry as well as plumbing systems. I have great opportunities for anyone with those talents.
Construction Industry Newsletter (CIN): What are the big needs you see right now?
VICKA TINETTI (Mechanical-Electrical Contractors, Great Lakes and Upper Midwest):
There are outstanding opportunities for operations managers. I know many very solid and accomplished PMs who are still a few years from being able to move up a flight into operations, and that's where the gap is: between Project Management and the upper echelon of management. I liken it to looking for a mechanic who can not only change the oil or replace a battery but can, in fact, fix the entire engine.
CIN: What markets are most active in your territory?
VT: Every market is healthy right now; there is a general resurgence that is encouraging. Chicago is very vibrant right now: my clients there are working at capacity, and I am finding great positions for candidates in the Chicagoland area. One thing I've picked up about Chicago is that there are so many small, new contractors opening up for business that they're bidding low to get work and establish themselves. Prominent owners I've talked to recognize this as a by-product of a healthy economy, but the effect is to dilute the market and drive contractors' prices down. So this glut of contractors signals a strong economy but also flattens out the profit margin for everyone involved.
CIN: Any industries rising or falling?
VT: Some industries are immune to recession or slowdowns; healthcare is, as always, booming. Every hospital has capital improvement projects going on right now. But, honestly, I am meeting strong candidates in markets from Milwaukee to St. Louis to Madison to Kansas City and everywhere in between.
Construction Industry Newsletter (CIN): You do a tremendous amount of work in Texas. Where is the demand the greatest right now?
POLLY McKINNISH (Electrical Contractors, Texas):
The saying "Everything is Bigger in Texas" is very true, and the need for Senior Project Managers and Estimators for Electrical Contractors is especially big currently. Experience with large electrical commercial projects is needed throughout Texas. I have top-of-the-line clients that have immediate needs.
CIN: In which markets are you concentrating your work?
PM: Just about every city in Texas: Austin, Dallas, Houston, of course, but Southern Texas is really coming along as well. The opportunities range from Superintendent to Branch Management. An Electrical background in commercial and light industrial with projects medium to large will open doors to a real career-minded person.
CIN: What building trends are driving those markets?
PM: The market is wide open right now, especially Texas-based companies that have projects all over the USA, and the corresponding open positions that coincide with those projects. Any commercial and light industrial needs appear to be the greatest with Hotels, high-rise, schools, government contracts. Electrical Sub Contractors have pressing needs for home-based Project Managers to traveling PM’s and Superintendents. An experienced Project Manager or Estimator can be placed immediately: the need is that great.
CIN: You work in other states as well. What's going on in Louisiana, Colorado and Oklahoma?
PM: There are great opportunities in each of these states. Louisiana and Colorado are leading the way for strong needs for Estimators and Project Management. The cost of living will be a plus for the right candidates. My clients have led the way searching for talented Electrical Project Managers and Estimators that would like to be groomed to move toward Executive level positions.
CIN: Do you see other trends of interest?
PM: Absolutely; there is a tremendous need for Electrical Designers. Hospital, healthcare, commercial. At one time clients were only interested in PE's, but not anymore. Opportunities are abundant for professionals with Design/Build experience and a Project Management background. Many clients have different stages of designer needs.
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