Construction's hourly wages 10% higher than private sector's

Construction Dive | July 19, 2019

New analysis from the Associated General Contractors of America backs up what many in the industry already know: Construction firms are having to pay higher wages to attract skilled workers from a shrinking labor pool. Average hourly earnings in construction - a measure of all wages and salaries - increased 3.2% over the year to $30.73, 10% higher than the private-sector average of $27.90, the association said. In addition to raising pay and benefits, many firms have told the AGC that they have increased investments in training as they recruit workers with little to no prior experience in construction. Most of the construction job growth during the past year came from the nonresidential construction sector, which added 146,700 jobs during the past year, according to federal data. Meanwhile, residential contractors added 78,000 jobs in the same time period.

Spotlight

When specifying the mechanical and electrical equipment for a building, it is easy to assume that extra capacity is a good thing, but it actually can be just as counterproductive as having undersized installations. In the first place, extra capacity comes at a higher upfront cost, which makes the building owner assume unnecessary expenses. There are also many types of equipment that experience performance issues when over-engineered, which can range from low energy efficiency to a diminished service life.

Spotlight

When specifying the mechanical and electrical equipment for a building, it is easy to assume that extra capacity is a good thing, but it actually can be just as counterproductive as having undersized installations. In the first place, extra capacity comes at a higher upfront cost, which makes the building owner assume unnecessary expenses. There are also many types of equipment that experience performance issues when over-engineered, which can range from low energy efficiency to a diminished service life.

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ROBOTICS AND AUTOMATION

Allied Motion Acquires Spectrum Controls, Inc., a Leader in Industrial Control Solutions

Allied Motion Technologies Inc. | January 03, 2022

Allied Motion Technologies Inc. (Nasdaq: AMOT) (“Allied Motion” or the “Company”), a designer and manufacturer of precision and specialty controlled motion products and solutions for the global market, announced that it has acquired Spectrum Controls, Inc. (“Spectrum”), an innovator and manufacturer of a wide variety of Industrial I/O and Universal Communications Gateway products. The purchase price was $70 million, of which $45 million was paid at closing with a combination of $27 million in cash and the remainder in the Company’s common stock at a price of $35.82 per share. The remaining $25 million will be paid in two equal payments in 2022 and 2023 comprised of 50% cash and 50% stock. Spectrum has a long history of innovation, partnership, and customized customer fulfillment, and we are excited to welcome the entire Spectrum team to the Allied family. This acquisition is an excellent strategic fit and provides us with a tremendous opportunity to enhance our position as a value-added solutions supplier to the industrial automation and industrial controls market,” commented Dick Warzala, Chairman and CEO. “In addition, Spectrum enhances our customer base, adds significant engineering resources and has the technology and know-how to provide solutions that meet the system requirements of Functional Safety. “Allied has built an impressive organization. We believe that given their strong leadership team and their One Allied culture, we have found the ideal partner to successfully execute on the many strategic initiatives and opportunities we have in front of us. We look forward to a bright future together.” -Bruce Wanta, Founder and President of Spectrum Mr. Warzala further added, We believe we can drive growth by leveraging Spectrum’s strong partner relationships with large industrial automation companies, utilizing their global distribution channels, and benefiting from the continued digital transformation around IIoT, AI and analytics that are driving the increased use of smart factory floor devices. In 2022, Spectrum is expected to be accretive to both Allied’s earnings per share and gross margin profile. The acquisition structure includes a tax election that is expected to offset cash taxes by approximately $10 million over the next 15 years. Founded in 1983 and headquartered in Bellevue, WA, Spectrum designs and manufactures a wide range of highly sophisticated I/O modules, marquee displays, and industrial gateways for broad industrial controls applications through partnerships with PLC manufacturers and distributors. With approximately 72 employees, Spectrum serves large industrial automation projects and specialty applications domestically and throughout the world, including Europe, Asia, the Americas, and the Middle East. For more information visit https://www.spectrumcontrols.com. About Allied Motion Technologies Inc. Allied Motion (Nasdaq: AMOT) designs, manufactures and sells precision and specialty controlled motion products and solutions used in a broad range of industries within our major served markets, which include Vehicle, Medical, Aerospace & Defense, and Industrial. Headquartered in Amherst, NY, the Company has global operations and sells into markets across the United States, Canada, South America, Europe, and Asia-Pacific. Allied Motion is focused on controlled motion applications and is known worldwide for its expertise in electro-magnetic, mechanical, and electronic motion technology. Its products include brush and brushless DC motors, brushless servo and torque motors, coreless DC motors, integrated brushless motor-drives, gear motors, gearing, modular digital servo drives, motion controllers, incremental and absolute optical encoders, active (electronic) and passive (magnetic) filters for power quality and harmonic issues, and other controlled motion-related products. The Company’s growth strategy is focused on being the controlled motion solutions leader in its selected target markets by leveraging its “technology/know how” to develop integrated precision solutions that utilize multiple Allied Motion technologies to “change the game” and create higher value solutions for its customers. The Company routinely posts news and other important information on its website at www.alliedmotion.com.

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Modular Mobilization Coalition Announces Delivery of the First Multifamily Modular Construction Project in the Petworth Area of Washington, D.C.

Modular Mobilization Coalition | September 22, 2020

The Modular Mobilization Coalition (MMC) recently announced the delivery of the first multifamily modular construction project in the Petworth area of Washington, D.C. The Petworth Modo project consists of 44 modular units that will be stacked into a five-story building containing 16 apartments. The building is anticipated to be move-in ready by the end of 2020. The modular project is expected to be completed in 10-months compared to a 12-16 month timeline using traditional site-built construction methods. "The speed of the Modo project was incredible," says Colby Swanson, Executive Director at the MMC. "We entered into a modular contract with Community Three and Rooney Properties in June. One of our manufacturing affiliates, Simplex Homes, began production in July, and all of the modular units will be assembled on-site before the end of September, a remarkable 90-day turn around." The MMC is a collaboration of modular manufacturers who collectively service developers nationwide. The national network of 15 modular construction companies is the first of its kind and works together to compress construction timelines, lower project risk, and offer competitive pricing by leveraging the power of their network.

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CONSTRUCTION

VOLUMETRIC BUILDING COMPANIES AND POLCOM GROUP COMPLETE MERGER, SOLIDIFYING A GLOBAL LEADERSHIP POSITION IN MODULAR CONSTRUCTION TECHNOLOGY

Volumetric Building Companies | January 13, 2022

Volumetric Building Companies (VBC), one of the United States' largest multifamily volumetric modular and components businesses, announced today that the company has merged with Polcom Group (Polcom), a premium steel modular building and custom furniture manufacturing conglomerate for the hospitality market. The deal will revolutionize the construction industry by combining VBC's innovative wood construction technology with Polcom's advanced steel modular system. The Polcom merger closely follows VBC's recent purchase of Katerra, Inc. assets, including their state-of-the-art manufacturing facility operations and offices in Tracy, CA. The global company will be headquartered in the U.S. and led by Vaughan Buckley and his leadership team in Philadelphia. The firm delivers highly efficient and cost-effective construction projects with a lower environmental impact than any other solution on the market. The combined company will have more than 500 employees located in over 1.25 million square feet of manufacturing space located in 2 continents, with a pipeline of business in excess of $1 billion. Polcom, a new division of VBC, will continue to operate all of its current facilities after the merger, and expansion is expected. "This is truly a game changer for our company and our sector. Polcom is an incredible complement to VBC's existing capabilities in design, manufacturing and construction services with a massive advantage in our geographic scope,Polcom is responsible for some of the most exciting and innovative hospitality construction in North America and Europe, including world class hotels in New York City, Seattle, London, Washington D.C. and Amsterdam. By joining forces, VBC's technology driven platform will now be capable of producing buildings from 3 to 35 stories in height, in both wood and steel, across a broader range of market segments and in multiple countries." -Vaughan Buckley, Chief Executive Officer of VBC. The merger highlights VBC's expertise in, and reputation for, innovation in the modular construction industry. VBC offers a vertically integrated wood volumetric modular process focused on the multifamily and Affordable Housing markets. VBC's platform will be enhanced when partnered with Polcom's depth of experience in steel modular systems, and their dominance in the hospitality space. The new company is set to become the leading provider of optimized, cost effective, sustainable solutions for resilient volumetric modular buildings around the world. "While this merger expands our reach in market-rate multifamily construction, it also magnifies our efforts to address the needs of sophisticated general contractors and developers on multiple continents," said Buckley. "We are excited to be in a position to drive change and make more meaningful contributions to what has been an intractable problem for far too long." Polcom provides bespoke steel modules that comply with local building codes in a wide variety of client-specific dimensions, fit-out specifications and different façade types. VBC's capabilities in design and productization of modular construction will result in a Design for Manufacturing and Assembly (DfMA) approach to Polcom's current offerings. "This merger is a great opportunity for both companies to share our technical knowledge and R&D capabilities in modular construction,Bringing together the engineering and execution experience of VBC with the steel framing expertise of Polcom will lead to more sophisticated modular solutions, enhanced delivery and shorter time to market. The entire Polcom team is thrilled with the opportunities that are ahead for serving markets all over the globe." -Tomasz Modzelewski, CEO of Polcom About VBC Volumetric Building Companies is a vertically integrated global volumetric modular construction leader headquartered in Philadelphia, PA with locations across the United States and now, in Europe. Utilizing their technology-enabled design and engineering model, precision-driven manufacturing capabilities, and project-proven modular construction expertise, the company's focus is on building the future by providing high quality, sustainably produced buildings in less time across varied market sectors. About Polcom Headquartered in Gdansk, Poland, Polcom is a leading international turn-key steel modular building manufacturer, with high-rise and custom buildings around the world. The company has a unique mix of modular and furniture production expertise with well-established business operations and a vertically integrated production system. Polcom has three manufacturing facilities in Poland for steel frame modules, furniture and modular fit-out. The company's clients include Citizen M, Marriott, Hilton, IHG, Kimpton and Accor along with other hospitality and multifamily developers.

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