What it costs to lose a skilled crew member

Are you positioned to get and keep the best talent? We are sharing survey findings to inform your compensation package and compete for crew members. We also stick our collective big toe into agentic AI and scope out a new material for affordable, resilient housing. Finally, as temperatures remain high for most of the country, there’s renewed interest in national heat safety standards. 

But first, read about a new coalition led by Lowe’s that’s committed to launching a million skilled trades careers by 2035.

» Now you’re cookin’. See what building scientists learned about concrete from puff pastry.

» What’re you looking at? Construction Yeti recently dumped a slew of industry-related Pokémon memes.

» Nailed it! Meet the crew member who’ll never have to go looking for a tape measure again.

» Hands-on high school. Students in this construction trades program redesigned their classroom.

Ford Super Duty is built to help you say yes to more jobs, not just the ones your current equipment can handle. Heavier loads, tighter deadlines, tougher sites. All of it is possible with the right truck.

More capability means more jobs you can say yes to, and more confidence bidding on the next one.

Technological innovation is more difficult to leverage in construction, especially for smaller companies. That’s because the work is project-specific, systems are siloed, requirements evolve, jobsite variables abound and insurance/compliance is daunting. The result is an ecosystem of disparate and disconnected systems that struggle to collaborate. Analysts at McKinsey see a solution in agentic AI—machine learning models that complete specified tasks with minimal human oversight.

“It can work with messy, unstructured information, such as drawings, specifications and field observations, so companies do not need perfectly clean data to start creating value,” write members of the consulting giant’s Engineering, Construction & Building Materials Practice. “AI can also reduce coordination friction and the need for handoffs between systems of record and disparate teams.”

Why it matters: When strategically embedded into core systems, agentic AI can automate the lion’s share of non-physical operations, integrating knowledge, coordination and execution work to streamline processes, improve efficiency, reduce timelines and generate ROI. (McKinsey)

3D printing gets a lot of press for lowering the cost of affordable housing, but high-performance structural cellular concrete (HPSCC)—a material that’s 20% cement and 80% air—is making headlines now, too. One example: the Wyoming Housing Network and contractor InOurHands are partnering to build 22 domed for-rent homes in Casper, Wyo., using HPSCC. With InOurHands’ approach, the concrete is both structural material and insulation. That makes the homes energy-efficient and able to withstand severe weather conditions, including wind and fire. Each unit is built within 24 hours.

Why it matters: Reducing time and cost to build is only one aspect of improving affordability. Total cost to operate is another. Innovations like HPSCC address both. (Oil City News)

A new compensation trends study shows contractors anticipate higher base pay rates and wider use of incentives. Respondents project a 4.3% average base pay rise, with some bracing for increases as high as 12.3%. More companies are rolling out incentives beyond better pay. Short-term incentives are the most popular, with 76% of firms offering them. Longer-term inducements like stock and deferred cash are gaining popularity, with 55% of survey-takers using them. As more contractors expand their territories to keep project pipelines full, 58% now provide travel and mobility pay, such as per diems and housing and travel premiums.

Why it matters: “Turnover is costly, and not just in terms of recruiting expenses,” notes FMI’s Priya Kapila, who led the research. “Lower productivity, leadership loss, wider skills and knowledge gaps and more overtime drain company coffers.” (FMI)

» Growth guide: NAHB publishes brand-building how-to

» Energy efficiency: PVC roofing lowers HVAC demand

» Crew concerns: Industry focuses on mental health 

» Raids return: ICE arrests 40 Pa. construction workers

At a recent U.S. House Subcommittee on Workforce Protections hearing, AFL-CIO Director of Safety and Health Rebecca Reindel testified on the need for federal heat standards for workers. Proposed rules cover rest periods, access to water and shade and acclimatization protocols that prohibit putting new crew members immediately on heavy labor. “You have to do that gradually over a period of days,” she said. “People need a gradual increase.” (Threads)

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