ENR Article Highlights Opportunities & Challenges in NYC Area Based On Input From Executives at Large Construction Firms
A recent article in Engineering News Record (ENR)highlights some interesting insights from top executives at the largest construction companies operating in the NY / Tri-State area. The executives were interviewed about some of the main challenges and opportunities they see for construction firms in the NYC area. The article also highlights some of the industry stats in terms of growth (according to data provided by companies on ENR's 2018 List of NY's Top 60 Contractors).
Of note (and very relevant to Beacon's Surety clients), leading industry executives are noting that "subcontractors are spread thin" and finding highly qualified contruction project personnel has become more challenging with all of the ongoing construction and competition for experienced staff members.
Click Here to read the full article. Below are some highlights and excerpts from the article:
Trends & Opportunities:
- "With NYC breaking tourism records in each of the past eight years ... we haven’t yet seen a hotel development slowdown."..."The hospitality & hotel sector has provided the greatest opportunity ... while we are also experiencing a rise in office building construction projects." (Anthony Rinaldi, CEO The Rinaldi Group)
- "We see the healthcare space [offering opportunities] with drivers including industry consolidation, acquisition of physician practices, construction of urgent care centers, new ambulatory care facilities, single patient rooms [and] expanded emergency rooms. Additional drivers include the Affordable Care Act and the ‘silver tsunami' [of more people age 65 and older]. There’s also the aviation sector, due to upgrading of major airports and infrastructure." (Christopher Asaro, President, Holt Construction)
Where the NYC area construction industry is heading in next year:
- "Thanks to new zoning laws around midtown east, NYC will grow even taller. New York City has already seen a 500% increase in the number of super-tall towers in the last four years." (Jay Badame, President & COO, AECOM-Tishman)
- "We are seeing trends toward office building construction and development in Manhattan and outer boroughs, while residential [is] moving out of the city and into [locations with] access to mass transit into and close proximity to New York City." (Anthony Rinaldi, CEO The Rinaldi Group)
Other Challenges & Issues:
- "The subcontractors are all spread thin. Choosing the right subcontractor team is critical to the success of any project." (Lance Franklin, COO, Triton Construction Co.)
- "As construction continues to be in high demand due to prime real estate locations seeing a boom, challenges include acquiring qualified talent." (Christopher Asaro, President, Holt Construction)
- "We have watched the cost of purchasing property in Manhattan and much of the outer boroughs reach such highs that the price makes residential development and, in particular, rental development impossible." (Anthony Rinaldi, CEO The Rinaldi Group)