Lessons Learned and Looking Ahead
As 2015 winds down, it is a time of reflection on the valuable lessons learned this year and what these lessons can mean for 2016. Nationwide, the state of the construction industry is strong, with spending increasing to more than $1.1 trillion in October – the largest increase in the past eight years.
Even though nonresidential construction faced a downturn for most of 2015, Jeff Stiner, chief operating officer and senior vice president at KBD Group, expects continuous growth for warehouse-related builds moving into 2016. Stiner bases his belief on the increase in the nationwide demand for warehouse space, which is driven by three major sectors:
- E-commerce – up 6.4 percent of all retail-related builds
- Third-Party Logistics and Transportation – up 12.1 percent
- Food and Beverage – up 10.9 percent
As industry economists concur about an increase in 2016, KBD Group is focusing on building upon its use of technology over the next year to help meet the demand including utilizing BIM and Procore to help improve construction and communication from the office to the field.
“Technology is accelerating change more now than in all my years in the industry, but we are rapidly adapting to stay on the leading edge,” said Stiner. “The use of technology in our work force helps us save time, be safe and produce quicker and more accurate results on site and in the office.”
Finally, KBD Group saw a 16 percent increase in manufacturing projects (seven percent increase in projects overall) coming back to the U.S. since 2014 and believes the trend will continue as new foreign direct investment reaches U.S. shores in 2016. As new and renegotiated trade agreements like the Trans-Pacific Partnership and the North American Free Trade Agreement take effect, KBD Group will continue to leverage its partnerships with foreign investment groups like Select USA to gauge their impact on U.S. operations.