Civil & nonresidential starts beat expectations

The news wasn’t all bad. New analysis shows better-than-expected starts in the civil and nonresidential sectors (sorry, housing). We have the breakdown, plus criteria to guide your next construction AI purchase, a look at how 3D construction printing could address multiple housing challenges and tactics for training new hires in reality capture.

But first, enjoy social media sensation Adam Rose’s reactions to construction site shenanigans.  

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Trends show promise for some sectors

Nonresidential and civil construction starts continue to perform well year-to-date, according to data from ConstructConnect.

Nonresidential charted 14.9% growth to end the 12-month period at $69.8 billion, despite a 13.9% retreat from June’s record $81.1 billion. Mega-projects continue to propel progress, with offices and data centers experiencing a whopping 88% jump through midyear. Manufacturing facilities (up 66%) and sports and convention venues (up 62%) were also stand-out performers. Civil projects showed more modest growth of 4.5%, which still outpaced expectations, juiced by airports (up 35.2%) and dam and marine projects (up 26.8%).

Housing starts, however, remain in decline, with recent YTD data confirming contractions of 8% and 12% in multifamily and single-family starts, respectively. 

After analyzing the trend lines, the firm’s chief economist, Michael Guckes, is forecasting total construction spending growth of 1.0% for 2025, “a marked revision from last quarter's anticipated 1.8% contraction.” 

Why it matters: The 2.8 percentage point turnaround may signal a reduction in worst-case scenario outcomes. (ConstructConnect)

A better way to choose construction AI solutions

There’s a lot of construction AI out there, and choosing the right solution for your business can feel overwhelming. Ramyani Basu, a partner in Kearney’s digital and analytics practice, says good decision-making starts with changing your approach.

“The key is investing in tomorrow, not optimizing yesterday,” Basu counsels. “Think about how your sector will evolve in the next three years. What trends can you observe now? What scenarios are most likely? Then consider how you can invest in or build to compete and win in the future against your peers.”

Why it matters: Only about 4% of companies leverage AI for competitive advantage. Strategically deploying this advanced technology now multiplies the upside. (Harvard Business Review)

Construction 3D printing could solve many problems

Demand for housing is on the rise, and with it growing needs for improved affordability, faster disaster response and stronger climate resistance. Construction 3D printing is gaining traction as a viable option to make progress on all these fronts. Shorter build times relieve supply shortages and enable rapid rebuilding after wildfires. Advanced materials provide better protection from wind and wildfires. A recent example: VeroVistas in Buena Vista, Colo., which were printed by VeroTouch in just over two weeks using an A1-rated concrete that won’t fuel combustion. 

Why it matters: 3D construction printing can also help builders cope with the labor shortage since projects can be completed with smaller crews. (VoxelMatters)

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How to get new hires up to speed fast

"We have an internal learning education platform…we call it the playbook...And we also use different media, such as a weekly newsletter or going live on our learning and development platform for training. So we hit them with different touch points." 
- Trevor Owen, Rogers O'Brien

Recently on the “Matthew Byrd Podcast,” Trevor Owen, reality capture leader at Rogers O'Brien, joined the host to talk about how reality capture is changing the industry, and explains how his firm skills up new hires who lack training and experience in reality capture or virtual design and construction.

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The Level is curated and written by Margot Lester and edited by Bianca Prieto.