Dan Mehls//December 19, 2017//

Twenty-five years ago, people dreamed of moving to California. Industries moved there as people followed ample jobs and sunshine. As the region flourished and outgrew itself, Seattle became the next big place to move, providing the lifestyle and amenities people came to associate with the West Coast.
However, Seattle has also faced unprecedented growth and people now have set their sights on Portland – another city with the active lifestyle and amenities the West Coast is known for. We have a tremendous opportunity to embrace the changes ahead for our community and do so constructively with a focus on the future.
According to estimates from Portland State University’s College of Urban and Public Affairs, between 2016 and 2017, Oregon’s population increased by approximately 65,000 people. Portland’s population is now hovering around 639,000.
This growth, coupled with limited infrastructure investment over the years, has created a seemingly insatiable demand for new development, and contributed to the incredible amount of construction work we have seen this year – and we’ve seen a lot. As the city of Portland and local developers race to keep up, increased development, including major investments in schools, hotels and housing, is also occurring across the region.
Multiple – and sizable – bond measures came out of school districts this year and in 2016, and the construction industry has been busy working with schools to make necessary upgrades. Seismic improvements, lead paint remediation, and radon and asbestos mitigation work occurred and will continue over the next few years to meet those schools’ health and safety standards.
Along with school construction, new hospitality and housing projects are also highlights for 2017. At this time, half a dozen hotels are being built across Portland, and more are likely in the upcoming year. Successful ad campaigns highlighting all the things to see and do in the city have tourism, like development, also booming.
As for Portland transplants, they need somewhere to live.
The current wave of downtown redevelopment – one of many urban revivals happening across the country – has people moving to the heart of the city, drawn by the city’s restaurant scene, easy access to the mountains and the coast, and the ability to live and work in close proximity.
To address the influx of people moving to the city and the need for development, the Portland City Council unanimously passed in mid-2016 a new road map for growth, which promises to set the city’s development course through the year 2035. Developers are eagerly awaiting further details on the 2035 Comprehensive Plan, which will be released in May 2018.
The plan will dictate where and how the city will develop through zoning rules. It also is set to prioritize infrastructure improvements, such as transportation and parks projects, and include ideas about taller buildings downtown, more apartments in single-family neighborhoods and a new streetcar line.
This, however, is not without some concerns. As developers and city councilors continue to grapple with the challenge of providing enough affordable housing for residents, new inclusionary zoning laws stemming from the 2035 Comprehensive Plan require that most new multifamily housing projects set aside 20 percent of their units for families earning less than 80 percent of area median income.
Many developers across the city have put their projects on hold until the plan is finalized. Aside from these delays, the construction demand across the city is in high gear and has many developers working overtime to catch up and hire more skilled workers.
Shortage of skilled labor is often discussed, but remains a very tangible need in the construction industry. Traditional hiring campaigns over recent years have focused on recruiting talent and promoting industry jobs as viable, family-wage professions. More work remains to be done, however. Talent is just a part of the equation.
In line with this work, 2017 saw the implementation of specific technologies that have fueled innovation on construction jobsites and helped bridge the skills gap. Mortenson has taken a lead in the integration of technology in construction and we have found the application of digital tools on our jobsites has helped improve project performance in a number of areas.
While technology is not the only solution to the labor shortage, the integration of virtual and augmented reality technologies has helped provide rapid, on-site training and improve productivity. Whether the jobsite is a school, hotel or housing project, virtual reality (VR) and augmented reality (AR) technology is providing crews with information, details, and changing the way projects are built.
While virtual reality is a means to improve design outcomes and primarily serves as a communication tool, augmented reality will help dictate the future of construction. In addition to serving as an immersive public engagement tool, augmented reality carries the promise of reimagining the construction site for even better performance.
With 2018 only promising to be busier, the construction industry will likely continue to see the use of AR, VR and other technological innovations that help address the need for on-demand training and serve to attract the next generation of construction workers.
Between the flurry of activity in school, hospitality and housing construction, looming changes to the 2035 Comprehensive Plan, and innovative technological advancements on the jobsite, it’s an exciting time to be a part of Portland’s construction industry.
Dan Mehls is the vice president and general manager of Mortenson Construction’s Portland office. Contact him at 971-202-4113.