Gender diversity is good for business
Most of the country is dealing with record-low temps and some areas are still grappling with snow and ice. We hope you’re faring well, wherever you are.
The World Economic Forum signaled shifts in federal housing policy and wage and job-growth forecasts that contractors should pay attention to, so we've got the scoop this week. We also take a closer look at how to protect your tools from theft and share perspectives from women working in construction.
But first, check out these construction Dad Jokes that are so bad they're good.
>> Take a day off. Redditors are sharing the benefits of giving up on overbooking jobs.
>> Woooo! Construction Yeti uses a popular Ric Flair meme to illustrate a certain kind of job site personality you’ll probably recognize.
>> What’s your sign? Find the architectural style that corresponds to your zodiac placement.
>> 🦖Shoulda seen this coming. Contractors working on a parking lot at Dinosaur National Monument unearthed—wait for it—dinosaur fossils!
Federal policy not enough to scaffold housing
At the World Economic Forum in Davos, Switzerland, last week, President Trump unveiled his latest scheme to address housing affordability: penalty-free use of 401(k) funds to cover home down payments. But experts like Chris Salviati, chief economist at Apartment List, are wary of this latest action, one in a series of moves that could have the opposite effect and “potentially even drive prices up further by bringing more demand into the market,” he notes.
Why? Pent-up demand that surpasses supply. And that’s not something the federal government can do much about, since local governments hold the reins of local development. Removing zoning restrictions to boost density and allow tiny homes and ADUs would increase inventory. Yet any contractor who’s sat in on public hearings about development knows that’s a nice idea in theory, but making it a reality is difficult.
“We did a survey recently that showed that ... the vast majority of people agree that housing affordability is a big issue,” explains Lisa Sturtevant, Bright MLS's chief economist. “But when you ask them, ‘Is a good solution to allow your local community to build more housing in your community?’” Enthusiasm evaporates. Of eight possible solutions to address the affordability challenge, the least popular was requiring communities to allow more housing construction. The most popular was tax credits or other incentives for first-time homebuyers (another solution that spikes demand without sparking supply).
Why it matters: Housing affordability is a major macroeconomic issue, but it’s also a critical concern for contractors. Opposition it squelches new projects, parching pipelines and making it harder to keep your business healthy. (Marketplace)
Optimism for job opportunities grows
In other news from the World Economic Forum, Nvidia founder and CEO Jensen Huang declared that society is on the brink of the “largest infrastructure buildout in human history” thanks to the mushrooming demand for data centers and high-tech manufacturing facilities. That’s going to create jobs—and good-paying ones—to meet rising need and backfill existing talent shortages. (That’s good since these massive projects are also expected to cause energy rate hikes for everyone.)
“It’s wonderful that the jobs are related to tradecraft, and we’re going to have plumbers and electricians and construction and steelworkers,” he predicted. “Everybody should be able to make a great living... You don’t need to have a Ph.D. in computer science to do so.”
Why it matters: Even contractors not building mega projects could benefit from people attracted by the higher wages Huang predicts. Smaller firms can be training grounds for highly motivated talent eager to enter the field and gain experience. (Fortune)
Small tools can create big costs
Thieves have to be pretty enterprising to bag big construction equipment; smaller tools are an easier quarry. You can reduce theft and accidental loss with assistance from technology like GPS-enabled mini tags and Bluetooth low-energy tags. Both allow you to establish boundaries (geofencing) and get alerts when tools are taken outside the perimeter. Some solutions also enable workers to check items out and in using an app, so you know who last used what. Tags can also help law enforcement get your stuff back and maybe uncover an entire crime ring.
Why it matters: While one item here or there might not cost very much to replace, it still impacts productivity because crew members lose time looking for it and locating a replacement—which can create delays and incur fines. When multiple small tools disappear, the performance and financial costs start to add up. (ForConstructionPros)
>> Jumbo job: This data center could be nation’s largest
>> Money matters: Financial fears slow Denver’s rental builds
>> Incredible innovation: Turning CO2 into solid building material
>> Prodigious partnership: Largest-ever labor deal inked in Calif.
Gender diversity is good business
"When women don't feel respected or supported, I mean, they will leave the industry. That's a huge loss of skill, leadership, human bodies that we need in our industry. It's a big deal."
- Xanica Skuza, director of sales at J&S Mechanical
BuildHERS Club Podcast co-hosts Xanica Skuza, director of sales at J&S Mechanical, and Teresa Williams, owner of KJ Custom Screens & Outdoor Living, take on gender bias in their most recent episode, discussing the impact it has on talent retention, morale and company performance. They share that almost 48% of women in the industry consider leaving because of disrespect and harassment.
Hear from another woman in construction, Julieta Moradei
Thanks for reading today's edition! You can reach the newsletter team at thelevel@mynewsletter.co. We enjoy hearing from you.
Interested in advertising? Email us at newslettersales@mvfglobal.com
Was this email forwarded to you? Sign up here to get this newsletter once a week.
The Level is curated and written by Margot Lester and edited by Bianca Prieto.