🧭 Midyear reset

Are you ready for a midyear reset? With two quarters behind you, you’ve got data to inform a review of business performance, an update to your strategy and an investigation of emerging trends. We’ve got the insights this week to help you get started. Plus, we visit outer space to explore building on Mars.

>  This is how you pay it forward. South Florida roofer Manuel De La Cruz is passing down the trade to his little brother this summer, and it’s all captured in this feel-good Instagram series. 

 >> They’re building where? Read about the latest research into construction on the Red Planet.

>>  Go big or go home. Check out the WMS Brothers' enormous project for some painting inspiration.

>>  Hold your horses Learn the origins of the term “horsepower” and find out exactly what it measures. 

>>  Hello in there! Crawl inside (literally) Copenhagen’s flood-prevention infrastructure.

'Demo the outdated mindset'

It’s human nature to continue doing things the way we've always done them. Some old ways retain their value. But outmoded mentalities and approaches often hold business owners back from sustainability and success. That's why we talked to CEO advisor Jen Cáceres of Perpetual Capacity Coaching & Consulting. She helps construction leaders to adopt and adapt practices and philosophies to achieve their goals. —Margot Lester

If we only make one change to improve business, what should it be?

Demo the outdated mindset. Complacency is keeping us stuck and we’re not slowing down to consider why we do certain things or what our competition is doing. From how we hire and lead to how we interact with customers and adopt technology, we can’t keep doing things the way 'Sally' set them up in 1953 in the back office. That goes for customer relationships, too. Outdated thinking creates blame, stalls growth and kills relevance. Longevity and progress begin when we get honest about what’s no longer serving us. It’s time to ask the questions, get a little uncomfortable and evolve.

Can you give us a couple of examples?

The biggest barrier to success in construction right now is failing to meet the needs of the current and next generations. If we want to attract and retain great people, we have to evolve our mindset, our systems and our style. Outdated hiring processes, command-and-control leadership and sink-or-swim unplanned onboarding won’t cut it. We say we care about the labor shortage but still believe in the stories we tell ourselves, like “young people don’t want to work.” Gen Z isn’t lazy; they’re a different generation. They expect clarity, coaching, development,  purpose and a reason to stay. 

One of the most common and costly mistakes in construction leadership is… enabling bad behavior because “that’s how it’s always been” or “that’s just so and so." That leaves you with excuses and a lot to lose. When we overlook and sometimes even reward it, we teach people it's acceptable. Safety shortcuts, hidden incidents and KPIs prioritized over people create a culture lacking integrity and truth. That’s not leadership—that’s risk. If someone’s behavior is costing you good people, clients or culture—you already know. The question is, what has to happen before you’ll do something about it? It’s time to admit what, and potentially whom, we’ve outgrown, reset expectations and hold every level accountable. 

How can construction leaders create long-term sustainability?

We have to stop tossing people in and start shaping them on purpose, not by accident. That shift fuels lasting impact. The best place to start is with a purpose-driven onboarding plan for new and emerging leaders. Not a generic checklist but a tailored process with clear expectations, check-ins and real manager involvement. Due to our often antiquated ways in construction, we’ve gotten comfortable with compliance-based training and “industry standards”—ignoring deeper development work to lead people well. When done right, it boosts productivity, retention and engagement. If you want to compete in any economy, invest in your people.

Make business adjustments now

A lot has likely changed since you last updated your strategic and financial plans. That’s why the dog days of summer are the perfect time to take stock. 

Your assessment should start with strategy, including HR (employees, subs and partners), your project backlog, and technology and equipment needs and maintenance. Then audit your financials, taking a close look at your books, financial obligations, tax strategies and internal controls. A clear picture of your current financial position empowers you to make informed choices about spending, saving and investment necessary to fund priorities and meet performance targets.

Depending on your office staff, you may be able to execute this review internally. Otherwise, talk to your business banker, CPA and/or financial advisor for support, insight and guidance.

Why it matters: Evaluating strategy and finance in the middle of the year gives you a six-month runway to execute the shifts you need to avoid surprises and finish strong. (Forbes)

Office-to-multifamily conversions gain popularity

Office vacancies are still high in most markets, triggering an increase in demolitions and conversions that experts predict will outpace new construction coming online. Historical data from Yardi Matrix shows conversion proposals have increased every year this decade, with 48 million square feet proposed in 2024 alone.

According to a CBRE analysis, conversions are overwhelmingly multifamily, thanks to low inventory and higher rents compared to office floor plates. Adding to the appeal is growing local government interest in augmenting rental and for-sale housing stock and getting un- and under-occupied square footage back in use. 

Why it matters: Many municipalities now offer incentives and relaxed regulations and permitting to spur repurposing. Talk to commercial brokers and your community’s economic development director to see how this trend is playing out locally. (Smart Cities Dive)

Innovations transform electric customers' wish lists

New green and clean electrical technology is supercharging market interest in energy storage, sustainable functionality and alternative power. 

Demand is growing for storage options like smart inverters, two-way power flow and lithium-ion battery banks. These solutions are especially popular in locations where power outages are common due to insufficient and aging infrastructure or climate change. Another emerging trend is power shifting, such as load-sharing, alternatives integration and microgrid-ready wiring, which enables users to power their properties without accessing the main grid.

Environmentally friendly systems such as automated controls, low-voltage fixtures and high-efficiency panels continue to be high on customers’ must-have lists, as does residential and commercial EV charging infrastructure. 

Why it matters: Staying on top of interest and innovation gives you an advantage in the hunt for higher-dollar contracts and more customers. Capitalizing quickly can keep you ahead of the pack. (Analytics Insight)

>>  Policy priorities: Inflexible building rules hamper recovery, growth

>>  Cybersecurity: Study finds building management systems at risk

>>  Data dump: July 8 webinar explores data centers’ environmental impact

>>  Workforce woes: Firms putting new emphasis on labor planning

“Normally [customers] had to go to a salesperson...but then the internet came around and it was like, ‘Oh, I'll just Google that,’ or ‘I'll just find that online.’ It was very empowering to the consumer. And so the big shift in the way we approach marketing now is really just an effort to match the way people shop and buy.” —Spencer Powell, CEO of Builder Funnel and author of The Remodeler Marketing Blueprint

Powell delivered actionable marketing advice for more effective marketing in a recent episode of the PowerTips Unscripted podcast, hosted by Victoria Downing and Marc Harari of Remodelers Advantage.

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