L.A. rebuilding will outpace local contractor capacity
From robotics to 3D printing, augmented reality and drones, there's no shortage of innovation in our industry these days. Here's what's propelling the smart construction movement forward. Even more eye-opening: how the industry is harnessing the power of technology to fight climate change, Lego-style bricks included.
Here's a peek at what's in today's issue:
// What to expect for rebuilding L.A.
// How you can support employees after natural disasters
// What residential brokers see in the market
// How new BLS jobs data may inform interest rate decisions
>> Who we're following: Scott Wadsworth (@essentialcraftsman) on YouTube. Wadsworth draws from four decades in building to showcase topics of interest, cool tools and a little history.
>> What we're listening to: "The Secret to Smarter, Focused Productivity." In this episode of the Duct Tape Marketing podcast, Jay Papasan, author and vice president of strategic content at Keller Williams Realty International, shares actionable strategies to help you choose between competing priorities, enhance time management and grow your business.
>> What we're reading: The Corporation in the Twenty-First Century: Why (Almost) Everything We Are Told about Business Is Wrong (Yale University Press). In this new book, economist John Kay redefines the way we look at business, drive the economy and think about success.
>> What's happening soon: The International Roofing Expo (Feb. 19-21). Head to San Antonio for North America's largest roofing and exteriors event.
>> Just for fun: Take a look at the ultra-low-carbon next-gen cement that could revolutionize the industry.
Exclusive Q&A: Real Estate Trends
Sheryl McKelvey is a residential Realtor at The Charlotte John Company in Little Rock, Ark. She often works alongside contractors as they prepare her client's homes for sale, and has a pulse on what buyers want in their purchased homes. Here, she weighs in on the trends that contractors should expect in 2025.
What are you seeing in demand from home buyers, and how does that compare to this time last year?
In 15 years as a Realtor, I’ve never seen buyer demand as high as it was in 2023 through early 2024. Many listings saw multiple offers within the first few days on the market. This seemed to shift in late spring. The market leveled as inventory of available homes rose and buyer demand slowed. It’s highly possible buyers began waiting on the sidelines hoping for a fall in interest rates. While some homes still enjoy multiple offers or a quick sale, the market has become more favorable for buyers who have more negotiating power.
What is the most sought-after amenity for buyers right now?
Since the onset of the pandemic, outdoor spaces have become more popular and many buyers aren’t willing to compromise. Buyers want a fenced yard for their kids and pets and love outdoor entertaining spaces with fireplaces and entertainment systems.
What other features make homes a "must buy"?
Quality, neutral finishes are always in style. I can spot bad flooring in the listing’s photographs! Also, skip trendy features that will be outdated in a year — or less. What’s trending on social media today will be taboo tomorrow. When it comes to hard-to-replace features like tile or countertops, it’s better to stick to classic, timeless finishes unless it’s a custom build.
Rebuilding Boom: An influx of contractors for L.A.?
AccuWeather’s estimate of $250B to $275B in property and business losses from the L.A. wildfires has surpassed the $225B to $250B attributed to Hurricane Helene. The figure includes damage to and destruction of homes, businesses, infrastructure and utilities. It also factors in the financial impact of lost wages, evacuation orders and emergency shelter expenses, the long-term cost of rebuilding or relocation, projected cleanup and recovery costs, and current and future healthcare costs.
With the dire need for rebuilding and renovation across all sectors, “The fires will also stimulate economic activity as displaced residents hunt for temporary shelter and hire building contractors,” writes Jeff Collins for The Voice News.
Adam Rose, a professor at The University of Southern California’s Sol Price School of Public Policy, tells Collins, “Local government policy to promote rebuilding and cut through the red tape on housing permits, and government assistance … will help.” In a separate article in Metal Miner, however, reporter Jennifer Kary suggests that Golden State regulators, “will likely impose stricter regulations on building codes and fire-resistant construction materials,” which could slow the process, raise costs and further burden the supply chain.
Why it matters: The rebuilding boom will outpace what local contractors can handle, creating opportunities for out-of-state contractors. “You can bet your bottom dollar crews will be coming in here. It’s not going to just be local labor force,” predicts Christopher Thornberg, founding partner of Beacon Economics. (The Voice News)
>> Inflation Insights: U.S. producer prices rose less than expected
>> Bullish on Buffalo: City is top housing market again
>> Capital Conversions: DC launches 'Office to Anything'
>> Building Buzz: New T&G siding for wildland-urban interface builds
Crew Concerns: Supporting workers after natural disasters
Extreme weather events like wildfires and floods are occurring more frequently, making it imperative for employers to develop ways to support the workforce. The most effective disaster response plans are created in advance so emergency policies, benefits and support networks are completed before you need them. Here are some recommendations that Robin Gurwitch, a psychiatrist and professor at Duke University, shared with Employee Benefit News:
- Establish and promote clear lines of communication and policies for emergencies
- Articulate assistance options, like support for family caregivers
- Add psychological first aid to your safety training
- Share disaster preparedness and planning tips regularly
Why it matters: "Dealing with these immediate needs sends the message that an employer is looking out for an employee's well-being first and foremost, and that work can wait,” writes reporter Lee Hafner. Gallup data show a good return on this kind of investment. Workers who strongly agree their employer cares about their well-being are 53% less likely to be watching for or actively seeking a new job and are 4.4 times as likely to be engaged in their work. (Employee Benefit News)
Data Dump: BLS data show slight rise in jobs
It was mostly good news in the Bureau of Labor Statistics’ final jobs report of the year. The U.S. economy added 256,000 jobs in December, blowing past the 153,000 estimate, the biggest boost since March 2024. Additionally, the national unemployment rate contracted slightly to 4.1% from 4.2%, though construction unemployment closed up at 5.2%.
Why it matters: The trends most likely signal, “a stabilization of labor market conditions rather than a re-tightening of labor market slack,” J.P. Morgan Wealth Management analyst Cristina Dwyer writes in an analysis from last week. The BLS data also suggests the Federal Reserve may reconsider its earlier announcement presaging two rate cuts in 2025, notes Morgan’s head of investment strategy, Elyse Ausenbaugh: “We shouldn’t expect to see another rate cut coming out of the next few FOMC [Federal Open Market Committee] meetings. The jobs report underscored that this is a strong economy that doesn’t currently need meaningful additional policy easing to see its expansion persist.” (J.P. Morgan)
- Improve painters' safety and health Learn how to reduce exposure to harmful chemicals in paints from University of Massachusetts Lowell researchers during this Jan. 28 webinar hosted by The Center for Construction Research and Training.
- Boost your health with boundaries at work Follow the steps in this Associated Press article to set healthy limits at work and improve your overall well-being at the same time.
- Upgrade your lunch Keep that New Year's resolution to eat better with these fresh ideas for your mid-day meal from The Food Network.
Thanks for reading today's edition! You can reach the newsletter team at thelevel@mynewsletter.co. We enjoy hearing from you.
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The Level is written by Margot Lester and edited by Katie Parsons.
