Why crews stay longer

Running crews in today’s market means thinking beyond tools and timelines. Safety, retention and productivity all depend on clear communication, and sometimes that means rethinking how your team talks on the job.

This week, we’re spotlighting why construction firms are investing in ESL training to build trust and improve performance. You’ll also find insights on copper pricing and a surprising team-building story out of San Diego.

>>  It’s not your imagination. There’s a reason copper prices are on the rise in the U.S. and not in other countries. 

>>  Go for a spin. Who says construction can't be fun? Here's something to try when you’ve got a little downtime on the job.

>>  Peace at work. At the height of COVID, one job site found teamwork in an unexpected place: a butterfly garden. 🦋 

>>  Is this your next reno? This week’s a good time to give the old cooler banging around your truck bed a facelift.

‘Miscommunication is expensive’

Depending on who you ask, the percentage of Spanish-speaking construction crew members is between 30 and 50%. Removing language barriers improves safety and productivity, reduces mistakes and improves overall culture. It can even be a tool for expanding your business. These factors prompted the Hispanic Contractors Association of the Carolinas to work with Monique Lewis of Next 2 Native Language Learning to design a language-led course specifically focused on construction. We sat down with Lewis to learn more about this worthwhile investment. —Margot Lester

Why do we need to do more to improve understanding at the job site?

When language barriers go unaddressed, they don’t just slow down progress, they can cost lives. Training helps ensure that everyone understands what’s expected and, most importantly, goes home at the end of the day. We also flip the model and provide HR or middle management with Spanish instruction. 

With contractors concerned about price hikes and other economic pressures, why does investing in language training make sense now? 

Miscommunication is expensive and leads to rework, delays and safety incidents. Language training reduces those risks while improving efficiency and worker retention. It also boosts productivity and helps unite crews to collaborate. When crews understand expectations clearly, they work faster and safer with less rework and cost overruns. It's risk management with a strong return.  

So language training helps address the labor shortage?

Language training is often overlooked as workforce development, but that’s exactly what it is—upskilling workers through communication. [Training] helps retain skilled labor by showing Spanish-speaking workers that they’re valued and supported, and creates a path for promoting from within. Many already know the job but lack the language skills to move up. When companies can develop internal talent instead of hiring and retraining externally, it saves time, money and strengthens the team overall. As trust grows, participants often share challenges beyond the job, giving us the chance to connect them with resources like suicide prevention or community partners. When we see workers as people first, the impact goes far beyond language.

How to refocus and re-motivate your crew

If your team isn’t functioning as smoothly as you’d like, you need to intervene before the situation gets worse. IMD professors Alyson Meister and Ina Toegel developed six steps to help you get the group back on track. 

Start by exploring the factors that contributed to or created the situation, like external pressures, loss of focus, lack of resources, distrust or conflict. Then, encourage conversation and feedback to improve communication and uncover opportunities. You may discover that you need to provide coaching, training and other resources; or to change policies to ease the strain of commuting, support family obligations and ensures mental health. 

From there, rally workers around a clear, inspiring vision and the steps needed to achieve it. This is also the time to clarify expectations, review the decision-making process, and confirm roles and responsibilities. 

Why it matters: Re-motivating your crew improves morale and overall culture, key aspects of retaining and recruiting good employees. Plus, an inspired and committed team positions your company to better handle disruption and achieve sustainable success. (Harvard Business Review)

It’s a good time to be a specialty contractor

June jobs data from the Bureau of Labor Statistics shows significant job growth for nonresidential specialty trades, the only sub-sector to chart overall increases at mid-year. The category grew by 12,400 jobs contrary to losses in nonresidential (-400) and heavy and civil engineering (-2,800). 

Experts’ analysis of the data was measured. “Hiring is holding up better than expected,” noted AGC senior research analyst Macrina Wilkins, adding that numbers indicate that regardless of uncertainty, specialty contractors are eager to fill positions. 

Why it matters: Overall construction unemployment slid to 3.4% in June, inching closer to historically low levels. That’s pushing average hourly wages up 4.6% for non-supervisory employees, including on-site craftspeople. As job growth slows, wages may accelerate, propelled by higher competition for workers. If you’re in the market for talent, boost recruitment efforts to hire now and budget for higher wages later this year. (ENR)

Homeowner interest in replacement siding grows

Demand for siding is on the rise as homeowners look to improve property values, fortify against natural disasters and climate change, and address or avoid maintenance issues. That gives cladding projects an impressive ROI of up to 94%. Advanced materials—like fiber cement and hurricane-rated vinyl or steel—prompt many climate- and weather-wary homeowners to re-side as a way to increase fire-, wind- and water-resistance. Replacement also improves insulation, reducing utility costs and improving comfort, and protects structures from water and pest infiltration, mold and rot.   

Why it matters: As households continue to brace for financial headwinds, a siding project can be more feasible and cost-effective than other home improvement options. Marketing replacement as an upgrade is a smart business strategy to capitalize on trends and expand your book of business. (Realtor.com)

>>  Innovative idea: Hospitals eye mass timber

>>  Public policy: States unlock affordable housing incentives

>>  Unexpected urbanism: The desire to control sprawl spreads

>>  Suspect arrested in $86K construction equipment theft

The most common reason contractors go out of business

"I don't think I've ever seen a contractor in my 38 years go out of business because they didn't have enough work. It can get ugly, you know.  The founder, the president, has to put on their estimating or PM hat, but eventually they can scale the business down. [Other] contractors…get in trouble going out through the top. They run out of cash, start taking bad jobs and it just becomes kind of a death spiral." 
—Scott Kimpland, partner, FMI 

Kimpland, an industry analyst and business advisor, joined Atomic Construction Podcast hosts Kevin Hohe and Kyle Nitchen to discuss what it takes to run a successful contracting business, including avoiding what Kimpland calls an “obsession with volume and top line versus obsession with bottom line.” Listen here.

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