Recent reports indicate construction activity is stabilizing in the Portland market.

Mortenson‘s latest , for the first quarter of 2026, suggests developers, owners and contractors are beginning to see increased confidence in the project pipeline. The region’s construction market remains active but selective, with project performance varying in different sectors, according to the report.

Mortenson Vice President Mike Clifford, general manager of the firm’s Portland office, said it is a cautious confidence, and owners are continuing to evaluate projects.

“Compared to where we were a year or two ago, we’re seeing projects starting to go through planning and into the design phase,” he said. “T���re’s greater certainty around pricing, procurement and scheduling than there’s been in the past couple of years.”

Mike Salsgiver, who is preparing to step down as CEO of the Associated General Contractors‘ Oregon-Columbia chapter, stated in an email that overall, the organization is seeing signs that the slowdown experienced over the past year is lessening.

“Larger companies such as Mortensen are reporting improvements in the pipeline as inflationary cost pressures, supply chain challenges, and interest rates are stabilizing,” Salsgiver stated.

Construction and development company Skanska also reports renewed momentum in the project pipeline on a national level.

“In the Portland market, activity seems to be stabilizing, with public sector investment in education, healthcare, and infrastructure driving much of the work,” Skanska Executive Vice President Trevor Wyckoff, general manager of the firm’s operations in Oregon and Southwest Washington, stated in an email. “Private development demand continues to be shaped by sector-specific growth, particularly by data centers and life sciences.”

According to Skanska’s spring , cautious private commercial development is leading companies to focus on essential facilities, critical upgrades and industrial capacity. Modernization, deferred maintenance and energy efficiency improvements are being prioritized over new builds.

Mortenson has seen a slight rise in project starts, Clifford said. Construction starts were up 13 percent in March, according to Mortenson’s report.

There is strong demand for large-scale infrastructure, manufacturing, and data center construction, the report states.

Several regions have reported increasingly competitive bidding environments as trade partners pursue a more limited pool of conventional commercial and institutional work. While overall labor availability and supply chain conditions have stabilized, local constraints persist in specialized trades and steel and electrical scopes.

From AGC’s perspective, availability of trained and skilled workers continues to be a problem, Salsgiver stated.

Energy infrastructure and advanced manufacturing sectors have seen some growth. In energy and infrastructure, there have been projects around the grid, grid resiliency, battery storage and renewable energy, Clifford said. Advanced manufacturing historically is a large sector in the market and it’s now experiencing some encouraging signs.

Some larger projects are starting to move forward in design. In particular, Portland General Electric has advanced some energy infrastructure projects.

Many of AGC’s contractor members, however, are encountering challenges in one sector, according to Salsgiver.

“Public projects, especially in transportation/heavy civil and heavy highway, continue to experience serious headwinds as funding for projects has become uncertain because of the (Oregon) Legislature’s failure to pass and implement a transportation funding bill that can withstand scrutiny from the voters,” he stated.

While nonresidential construction conditions remained stable through the first quarter of 2026, cost escalation and procurement conditions continued to vary by market and project type. Elevated metal pricing and continued demand tied to power, electrification and expansion of data centers are causing pressure on some materials and equipment availability, Mortenson’s report states.

“Our price increase in the market is still year over year on the lower end towards the bottom of the major markets,” Clifford said. “That reflects a market that’s been localized and subdued compared to some of the faster growing parts of the country.”

While things have moderated, the local market is still influenced by global and regional prices.

The post Portland construction market shows signs of stabilization appeared first on Daily Journal of Commerce.

Skyrocketing diesel prices are reverberating through the construction industry, leading contractors and subcontractors to boost their bids as well as project cost increases.

“It’s significant,” said Mike Salsgiver, CEO of the Associated General Contractors‘ Oregon-Columbia chapter. “(Diesel) prices have effectively doubled or more since March. So, it hits the economy overall and the industry badly.”

For contractors and subcontractors, the costs are unavoidable. Diesel runs nearly everything on a typical jobsite, from backhoes and excavators to dump trucks and cranes. Diesel also powers the cargo ships, trains and trucks that bring building materials to a site.

Diesel fuel in Oregon averaged $6.04 per gallon at retail on Tuesday, according to AAA‘s Fuel Gauge Report. That’s up 46.5 percent from a year ago, when prices hovered close to $4 a gallon. Retail prices have dropped recently, down about 21 cents per gallon in the past month.

There’s little that contractors can do to avoid paying higher diesel costs, Salsgiver said.

“T��� work is the work,” he said. “We’re always making strides on making equipment more efficient, but (for avoiding costs), the immediate answer is not really.”

Project owners are noticing the effects. In April, the Oregon Department of Transportation paid contractors about 1 percent more than expected if fuel prices had remained unchanged.

ODOT uses a “fuel escalation/de-escalation” clause in its contracts. Contractors do not have to build in extra costs to cover fuel price increases after they submit a bid. Instead, ODOT adjusts payments after a project begins construction based on a monthly fuel price index.

“We expect prices to change, and our contracts make allowances for price fluctuations,” ODOT spokeswoman Katherine Benenati stated in an email message.

ODOT paid $4.66 per gallon in May, up from $2.51 a year earlier — a nearly 86 percent increase.

If prices remain high, the situation could eat into project budgets for major multibillion-dollar projects such as the Interstate 5 Rose Quarter Improvement Project, and the efforts to replace the Interstate and Burnside bridges.

Diesel price spikes are likely to hit large road and infrastructure projects the hardest, said Macrina Wilkins, director of market insights for AGC of America. That’s because diesel is used in the manufacturing processes for road materials, in addition to the work itself.

So far, AGC is tracking a modest escalation in costs.

“What we’re seeing is a slight uptick in the price of a bid or project,” she said.

Energy prices grew 10.1 percent in March and 7.8 percent in April, according to the Bureau of Labor Statistics‘ Producer Price Index.

“I would expect — as with any supply shock — you might see it begin to trickle into other areas,” Wilkins said.

Adding to contractors’ caution is the uncertainty of the United States’ ongoing conflict with Iran, industry officials said. It’s not clear when oil will resume flowing through the Strait of Hormuz at normal rates.

Salsgiver said he expects this price spike to endure longer than the 2022 disruption caused by Russia’s invasion of Ukraine.

“This one is dragging out a lot longer,” he said. “Certainly, as long as the situation in Iran is what it is, it’s going to last a while.”

Salsgiver added, “I’m not an economist, but I talk to economists, and they do not see an early end to this price spike.”

Contractors have so far largely taken the increased costs in stride. Dan Drinkward, vice president at Hoffman Construction, said the effects are hard to discern by general contractors. Subcontractors may notice the price spike first, he said.

“I would expect it to be a driver of escalation,” Drinkward said, adding that it’s only one component of increased costs across the industry. “For the most part, it’s a second-degree driver of escalation.”

The post Diesel price spikes begin to bite building industry in Oregon appeared first on Daily Journal of Commerce.

The Associated General Contractors‘ Oregon-Columbia chapter has named Josh Tompkins as chief executive officer, the organization announced last week. He will begin work by the end of this month.

Tompkins succeeds Mike Salsgiver, who will work with Tompkins during a transition period through the remainder of the year. Salsgiver will retire in January 2027 after 19 years of leading the chapter.

“Mike’s someone I’ve always viewed as a professional mentor,” Tompkins said, noting that he will take advantage of the overlap period to make sure he has all the tools he needs to be successful.

“Josh brings a strong understanding of the intersection between business and public policy, as well as a demonstrated commitment to our industry,” Brandon Flint, president of the chapter’s board of directors, stated in a press release. “T��� board is confident that he will provide steady leadership and build on the chapter’s long-standing work on behalf of our members.”

Tompkins is well-known within the association and has attended a lot of its events, Flint said.

“One of the key factors (in selecting) him was he understands Oregon landscape and can navigate Oregonians,” he said.

Tompkins has experience in business, public policy and regional economic affairs, along with a long-standing connection to AGC’s Oregon-Columbia chapter. Since December, he has served as president/CEO of the Washington County Chamber of Commerce. Past roles include business and talent development manager at Dick’s Auto Group and president of Associated Builders and Contractors‘ Central Texas chapter.

Dick’s Auto Group has been a member of AGC’s Oregon-Columbia chapter since 2017, Tompkins said. The relationship has involved community outreach and sales of vehicles to contractors.

He was also a board member and chair of the AGC chapter’s Professional and Industry Associates Council and vice chair of its Workforce and Professional Development Committee. Tompkins said he has about eight years of experience working with the organization that has provided him with a lot of insight into the CEO role.

“T��� AGC Oregon-Columbia chapter is a very high-performing organization,” Tompkins said, adding that one of his goals as CEO is to maintain that standing.

Other goals, he said, are to ensure members continue to have great experiences as well as dig into workforce development and apprenticeships.

“This is an opportunity I’ve looked at for years as a big career goal,” he said.

The post AGC’s Oregon-Columbia chapter names Tompkins its next CEO appeared first on Daily Journal of Commerce.

After serving more than 18 years as the chief executive officer of the Associated General Contractors‘ Oregon-Columbia chapter, Mike Salsgiver is preparing to retire next January. But he has already begun taking on a new challenge.

Common Sense Institute (CSI), a nonpartisan research organization, announced last week that Salsgiver will serve as its executive director, bringing more than four decades of leadership experience in public policy, economic development, and government affairs to the organization.

Salsgiver has led AGC’s Oregon-Columbia chapter since 2008. Prior to taking that role, he worked in government affairs, public affairs, and economic development. He served the Oregon Department of Economic and Community Development, Intel in Oregon, and U.S. Senator Mark Hatfield.

Though Salsgiver announced his retirement from AGC in January 2025, he is under contract through January 2027.

On Monday, the AGC chapter announced the selection of Josh Tompkins as its next CEO. Tompkins is expected to join the organization in May and then work with Salsgiver during a structured transition period through the remainder of the year.

“My time at AGC has been very gratifying,” Salsgiver said. “Almost 20 years is a long time in a role like this, and I feel very good about the association handing off to my successor.”

Brandon Flint, president of the Oregon-Columbia chapter’s board of directors, said the group is sad to see Salsgiver go and that he has always been a steadfast leader for the construction industry in Oregon.

“He will be dearly missed,” Flint said. “He is a hard person to replace.”

Flint added that his longtime friend has clearly impacted the construction industry.

“You talk construction in Oregon, Mike’s in there somewhere,” he said.

The AGC chapter’s board believes it has found the right person to fill the executive director role and is looking forward to the next generation of leadership, Flint said.

CSI asked Salsgiver whether he would be interested in doing some work for the organization when he retires from AGC, he said. CSI is dedicated to advancing economic opportunity and prosperity through data-driven analysis. He said that AGC has been supporting CSI for a couple of years.

“We’re trying to grow their footprint and establish them more firmly in the Pacific Northwest,” he said.

In his new role, Salsgiver will lead CSI’s efforts to expand its impact through rigorous, data-driven research and analysis, helping inform policymakers, business leaders, and the public on the economic issues shaping Oregon’s future. His background in economic strategy, regulatory policy, and industry leadership positions him to further advance CSI’s mission of promoting economic vitality and free enterprise statewide, the CSI press release states.

Salsgiver will contract work with CSI under his new consultant company Forward Strategies.

“Mike brings a rare combination of public policy expertise, private sector leadership, and deep knowledge of Oregon’s economic landscape,” Cinamon Watson, CEO of Common Sense Institute, stated in the press release. “His experience working across industries and at every level of government will strengthen CSI’s ability to deliver high-quality research and expand our impact in Oregon. We are very excited to have him on board.”

The post AGC’s Oregon-Columbia chapter entering leadership transition appeared first on Daily Journal of Commerce.

Federal agencies have published the final supplemental environmental impact statement for the Interstate Bridge replacement project, a milestone that moves the potential $14.4 billion infrastructure package closer to construction.

The federal document lays out a modified locally preferred alternative centering on a single-level fixed-span bridge, an additional lane in each direction on Interstate 5, ramps to connect I-5 to downtown Vancouver, Washington and an extension of the MAX light-rail system into Vancouver.

The 944-page study from the Federal Transit Administration and the Federal Highway Administration examines various scenarios for building the bridge. The modified locally preferred alternative calls for two spans of three lanes each.

Two park-and-ride lots would be built to accommodate 1,270 vehicles. One would be near the planned Waterfront Station and another near the future Evergreen Station.

Industry groups hailed the step forward for the project, which Oregon and Washington leaders have been trying to move into construction for more than 20 years, dating to the Columbia River Crossing effort.

The final SEIS is a “key next step,” said Mike Salsgiver, executive director of the Associated General Contractors‘ Oregon-Columbia chapter.

The bridge replacement “is critical for the region’s safety, for the reliability of the transportation system and for the economic viability of the region,” Salsgiver said.

Funding is a looming challenge for the project as the price tag has ballooned. Oregon and Washington officials have narrowed their focus to replacing the two bridge spans, connecting I-5 and extending light rail into Vancouver. Those aspects would total $7.65 billion, officials from the two states revealed in March.

“Funding is always a challenge, so having a project of this magnitude depending on federal and state funding packages could definitely create some problems if it’s not handled well,” Salsgiver said.

Salsgiver is traveling this week to Washington, D.C., to discuss Interstate Bridge project funding and other matters with members of Oregon and Washington’s congressional delegations and Trump administration officials.

Project backers are trying to avoid a repeat of the federal government awarding funding and then pulling back, as occurred last year when President Donald Trump’s budget bill rescinded more than $400 million from the I-5 Rose Quarter Improvement Project.

As part of the Interstate Bridge project’s narrower focus, the light rail extension has been pared back, from downtown Vancouver to an elevated station near the Columbia River’s edge.

Transit discussions remain ongoing between the two states and federal agencies, Salsgiver said.

“That policy ping-pong has been going back and forth for years,” he said. “T���y just need to address and resolve things in that arena. It’s definitely doable but will require some focus and dedication.”

Joe Cortright, a Portland economist and prominent critic of the Interstate Bridge replacement project, said the one described in the federal study cuts against reality.

“It’s basically an EIS for a project that they pretty much said they can’t build,” Cortright said.

He criticized project officials for moving forward before completing an investment-grade analysis. That report is expected to forecast traffic counts and toll revenues. The Oregon Department of Transportation is relying on 2019 traffic data, from before the pandemic changed commuting habits, Cortright said.

The project office reports 143,400 trips were taken daily in vehicles and all other modes in 2019.

“T��� traffic analysis is wrong and woefully outdated,” Cortright said. “Traffic has gone down since then.”

The tolling analysis is critical to the project’s financing, Cortright said.

“Basically, anything that isn’t paid for with tolls, the two states will have to pick up,” he said. “So, it has real financial implications.”

An investment-grade analysis would almost certainly show far less traffic on I-5 in a tolling scenario, Cortright said.

The report considers a long list of possible impacts. Among them: Construction would require the demolition of the Normandy Apartments, a building with 33 affordable units on Seventh Street in downtown Vancouver.

Fort Vancouver National Historic Site would also see some impacts from highway and bridge construction. Noise and views would be affected, and the project team would need to acquire 0.4 acres from the historic site along State Route 14 west of the Vancouver Land Bridge.

The post Federal report advances Interstate Bridge megaproject appeared first on Daily Journal of Commerce.

Oregon and Washington state leaders on Tuesday released an updated price tag for the Interstate Bridge replacement project that fell closely in line with documents unearthed months ago by critics of the long-planned expansion.

The total cost estimate for the bridge and 5-mile corridor of Interstate 5 rose to $13.5 billion to $15.2 billion, with a “most likely cost” of $14.4 billion, according to a joint statement from state highway officials. That price tag lands within highway officials’ earlier estimated range of $12.2 billion to $17.7 billion.

Oregon Gov. Tina Kotek and Washington Gov. Bob Ferguson doubled down on their support for the project despite rising costs.

“We need a new bridge and it’s time to start building it,” Kotek expressed in the joint statement.

By focusing on “a core set of projects,” she stated, the states can deliver a “modern, earthquake-ready bridge, with no bridge lifts, less traffic congestion, extended light rail and better options for people walking and biking.”

Tuesday’s cost estimates were the first released by the two states since 2022, when program officials gauged the cost at $5 billion to $7.5 billion. Since then, construction costs have run hotter than overall inflation, mostly because of materials and labor and fluctuating tariffs.

The Interstate Bridge replacement (IBR) program team, made up of Oregon and Washington transportation departments, plans to hire a contractor in 2027 to complete design work. The bridge is regarded as at risk of collapse in a major earthquake.

“T��� bridge must, and will be replaced,” Ferguson stated. “Delaying a major project has never made costs go down. We’ve achieved important progress in the past year, and we will continue to move forward by focusing on the core mission of replacing the bridge.”

Highway officials and state leaders refocused Tuesday on the more modest goal of replacing the two bridge spans, connecting them to I-5 and extending light rail service to Vancouver. Those aspects would total $7.65 billion, according to the joint statement.

Light-rail service may be needed to access some federal funding, but some elected officials and residents in Vancouver have protested bringing Portland-based light rail to Southwest Washington.

Joe Cortright, an economist and director of Portland-based City Observatory who has been a persistent critic of the project, said the state transportation departments were misleading constituents by focusing on half of the project.

“T��� high-level bridge requires elevated freeways on both the Oregon and Washington sides of the river, with new interchanges elevated high into the air to reach the new roadway,” Cortright stated Tuesday. “ODOT and WSDOT have intentionally designed this so once you start, you must build everything. The reality is they’ll never stop with Phase I. Start construction and you’re signing up for $15 billion and 20 years of construction hell.”

The IBR program currently has $5.5 billion in available state and federal funds.

“This funding is sufficient to continue the states’ momentum and begin the construction process while working toward further improvements to the larger corridor on both sides of the bridge,” the team stated Tuesday.

Highway officials are pursuing an additional $1 billion in funding through the Federal Transit Administration‘s Capital Investment Grants program.

“Managing our risks, including schedule, is imperative,” ODOT interim Director Lisa Sumption stated. “We are committed to moving this program into construction and completing this critical infrastructure for our region and the economy.”

Contractors and union representatives have touted the project, saying it would bring huge economic benefits in wages and other spending.

“We’re pleased to see this part of this moving forward now, and it’s time to get this project built,” said Mike Salsgiver, executive director of the Associated General Contractors‘ Oregon-Columbia chapter.

He lamented that it’s taken so long to replace the aging bridge.

“It also demonstrates the cost of the delay,” he said. “If we’d done this 15 years ago, it probably would have cost less than $3 billion.”

The post ‘Most likely cost’ of bridge project now $14.4 billion appeared first on Daily Journal of Commerce.

A Marion County Circuit Court judge has struck down Gov. Tina Kotek’s executive order requiring union-friendly project labor agreements.

Judge Thomas Hart ruled from the bench on Thursday that Kotek had exceeded her constitutional authority by effectively requiring project labor agreements be used for large infrastructure projects.

A coalition of contractors and industry groups sued Kotek in February 2025, charging that her executive order, issued in December 2024, unconstitutionally made law without the Legislature. The contractors alleged the rules illegally hindered open-shop firms.

Hart agreed, granting a preliminary injunction in March 2025, preventing the rules from taking effect. Thursday’s ruling is a significant victory for contractors, but Kotek could appeal the decision.

Kotek, in a statement issued on Friday, did not indicate whether she would appeal Hart’s ruling.

“We’re currently evaluating the court’s oral ruling,” she stated via email. “I continue to believe that this was the right policy for the state at the right time. I am resolved to continue to find pathways to encourage fair, living-wage jobs that meet the needs of Oregon families while our state grows.”

Contractors hailed the ruling. Laurie Kendall, interim president and CEO of the Associated Builders and Contractors‘ Pacific Northwest chapter, called the ruling a “big win for merit-shop contractors” in an email to members. She could not immediately be reached for comment.

Kotek’s executive order required project labor agreements to be used for state-funded projects when on-site labor amounts to 15 percent or more of project costs. The agreements, known as PLAs, typically mandate prevailing wages to be paid, but also prevent labor disruptions.

Contractors charge that PLAs raise costs for large-scale projects.

ABC was joined in the lawsuit by the Associated General Contractors‘ Oregon-Columbia chapter, the Northwest Utility Contractors Association, the National Federation of Independent Business, and more than a dozen Oregon contractors.

The plaintiffs were represented by Joshua P. Dennis of Schwabe, Williamson & Wyatt, Angela Otto of Dunn Carney, D. Brent Carpenter of Jordan Ramis and Darien S. Loiselle of Sokol Larkin. The governor was represented by the Oregon Department of Justice.

The post Oregon judge nixes Kotek’s order requiring use of PLAs appeared first on Daily Journal of Commerce.

A research group backed by contractors is looking to expand its presence in Oregon policy circles with studies of interest to industry.

Contractors are supporting the Common Sense Institute (CSI) as an ally able to bolster their political efforts in Salem and locally with data-driven studies.

CSI’s Oregon chapter is billed as a “non-partisan research organization dedicated to the protection and promotion of Oregon’s economy.” The chapter receives funding from groups including the Associated General Contractors‘ Oregon-Columbia chapter, Oregon Realtors and Oregon Business & Industry, an AGC official said.

CSI was founded in Greenwood Village, Colorado. The Oregon chapter was established in March 2024, according to state records.

“We’ve seen it as something helpful,” said Kirsten Adams, an AGC lobbyist.

CSI produces research on business matters, including a recent study finding “renewed weakness” in Oregon’s labor market at the end of 2025. Another study, released Tuesday, quantified the economic impact of the state’s outdoor recreation industries, such as golf and skiing.

AGC’s Oregon-Columbia chapter supported bringing CSI here after contractors in Colorado spoke positively of CSI’s role in that state, Adams said.

“We talked with our counterparts from AGC Colorado, and they saw some benefit from having a nonpartisan research group,” she said.

Cinamon Watson, the group’s Colorado-based CEO, said CSI’s research does not support either major political party.

“We are not an advocacy organization, and we are not partisan,” she said. “We are strictly nonpartisan. We deliver the facts and the data that impact jobs and the economy.”

Mark McMullen, the longtime former state chief economist, serves as CSI’s vice president of policy and research. McMullen took the CSI job after serving as the state’s point person for calculating the income tax “kicker” refund.

CSI also has chapters in Arizona and Iowa, and has done work in other states.

“When people have good facts and data instead of political spin or rhetoric, they make better decisions,” Watson said.

Some parties are skeptical of research produced by industry-backed groups — reasoning that they have an incentive to produce research that paints industry in a good light or to bury research that does otherwise.

“One has to question the findings in these types of studies given that there is a conflict of interest by the researchers,” stated Richard Clucas, a Portland State University professor of political science, in an email.

Clucas emphasized that he wasn’t familiar with CSI’s research specifically.

CSI Oregon’s board includes Tom Gerding, former CEO and current board chairman of Gerding Cos., based in Corvallis. Gerding has long been involved with AGC. Other board members include Dan Vannoy of Emery & Sons Construction Group, Angela Wilhelms of Oregon Business & Industry, Lynn Snodgrass of Drake’s 7 Dees and Jenny Pakula of Oregon Realtors.

“T��� board members (in Oregon) are really thoughtful about public policy and do care deeply about the state,” Watson said.

The group’s nonpartisan status does not mean that its reports don’t touch on hot political issues. Last year, as the Oregon Legislature debated a transportation bill to raise $4.3 billion over 10 years, CSI produced two reports analyzing the package’s costs and benefits.

AGC has important issues at play in Salem, including funding for the state’s megaprojects such as the Interstate Bridge replacement and the I-5 Rose Quarter Improvement Project.

As the Legislature meets for a five-week short session that began Monday, CSI will keep churning out analysis.

“We’ve got some good reports coming out,” Watson said.

The post Industry-backed research group expands Oregon policy role appeared first on Daily Journal of Commerce.

The Associated General Contractors of America reported on Thursday that the construction industry will see a mix of ups and downs across different segments in the new year. After surveying nearly 1,300 contractors with Portland-based Sage, AGC released the .

“T��� survey finds the outlook for 2024 is decidedly mixed, as contractors predict transitions in demands for projects, the challenges they will face and technology they will embrace,” said Stephen A. Sandherr, AGC’s chief executive officer.

Problems with labor shortages, high interest rates and supply chain improved but were still far from normal, he added. That news is compounded with fears over high interest rates and the possibility of a recession.

Infrastructure and public projects remain prime

Ken Simonson, AGC’s top economist, said optimism around most project types was positive but still lower than it was a year ago.

Contractors expected the value of infrastructure projects to be higher in the new year, the survey showed. Water and sewer were at 32 percent, followed by transportation at 30 percent and bridge and highway projects at 30 percent, according to survey results.

Lodging, retail and private office construction will be “bearish,” Simonson remarked. The value for lodging is expected to fall by 3 percent, retail down by 15 percent and private office down by 24 percent, the survey showed.

While the value of public projects was expected to increase, the number of respondents who actually worked on projects supported by Bipartisan Infrastructure Law showed a different story. According to the survey, only 9 percent of respondents said they actually worked on projects supported by the law.

Six percent of contractors said they won infrastructure-law project bids but haven’t started work and 7 percent said they bid on projects but haven’t won awards yet, the survey showed. A total of 33 percent of respondents said they don’t expect their business to change because of the law. The remaining 30 percent said they didn’t know what changes would happen, the survey showed.

AGC asked contractors to predict whether their workforce would increase in 2024. A total of 69 percent of firms responded they would see an increase in their headcount. Of that group, nearly 50 percent said their headcount would rise by 10 percent or less. A total of 18 percent said their headcount would increase by more than 11 percent, while only 4 percent thought their firms would grow by more than 25 percent.

Rising interest rates and financing costs were the top concern for 64 percent of contractors in 2024, survey results showed. Other costs such as trucking, insurance and design services were at 63 percent and economic slowdown or recession at 62 percent.

The remaining top concerns were material costs, direct labor costs, worker quality and an insufficient supply of workers or subcontractors.

Construction continues to invest in technology

“Technology will play an important role in helping teams increase their efficiency with limited resources,” said Dustin Stephens, the vice president of marketing and real estate at Sage.

Between 61 and 89 percent of firms said their technology investment will remain the same, the survey showed. Accounting and project management software both grew at 38 percent. Firms also put more dollars toward document management and estimating software.

According to the survey, around two-thirds of construction firms said they will use mobile software technology for daily field reports. Nearly 60 percent said they will use it for employee time tracking and approval.

The largest information technology challenge for contractors was finding the time to implement new technology and training employees, according to the survey. Cybersecurity and employee resistance to technology took second and third place, respectively, in IT challenges.

Industry wants more young people in the trades pipeline

Sandherr made a call to federal and local officials to boost investment in construction training. He said it was critical for federally funded projects that were likely to start in 2024, which also boosted the industry.

“Many kids don’t know (construction) is a career path,” he added.

AGC officials said they would push for new funding for construction education and training, using momentum from talks around programs such as the Pell Grant. Sandherr explained that AGC wanted to see more people lawfully enter the country and help patch workforce shortages.

Contractors share their predictions

Lynn Hansen, CEO of South Carolina-based Crowder Constructors, said that her firm’s future was bright as it worked on public projects.

“I’m optimistic about Crowder’s markets for the coming year. Our infrastructure markets where we focus water, waste, power, highways and bridges will be fairly strong,” Hansen added.

The executive noted that labor was still a top concern going forward, but those who the company recruited made more than what they previously earned. New engineers needed the least training, so the company was figuring out ways to streamline the process.

“We have good job training for project managers and leaders, but not as good with the craft level,” Hansen noted. Crowder established a registered apprenticeship program a few years ago to pick up the slack, she explained.

While supply chain has improved, finding certain pieces of electrical equipment has remained a challenge, Hansen noted. Some of those delays have gone from months to years and created costs for both general contractors and their clients, she added.

“My new year’s wish is for some stability in the industry. Our employees would like that also,” Hansen said.

By the numbers outlook in Oregon

Oregon firms answered similarly to AGC’s national survey results but differed in some places such as hiring and the types of projects most valued in 2024. A total of 34 Oregon companies answered survey questions.

Most companies predicted the value of projects would stay the same throughout 2024 regardless of what segment. Respondents said they thought the biggest increases would happen for federal (33 percent), hospital (31 percent) and bridge/highway projects (15 percent).

Oregon companies’ predictions about which segments would falter differed somewhat from the national survey, with multifamily residential falling by 33 percent, private office by 27 percent and retail also at 27 percent.

Of responding firms, 32 percent predicted that they would increase their headcount by 1-10 percent in 2024. Around 12 percent answered their firms would grow 11-25 percent, and 3 percent said they would increase by more than 25 percent. Around 21 percent of respondents said their headcount would decrease by around 1-10 percent.

Federal funding was somewhat of a question mark in Oregon compared to the national average. While the national average respondents did not expect any changes because of the Bipartisan Infrastructure Law, around 39 percent of responding firms in Oregon reported not knowing if the law made a difference to their businesses. Around 33 percent said they didn’t expect their business to change because of the law, 9 percent have worked on new projects funded by the law and 9 percent report that they plan to bid on projects but nothing suitable has been offered yet.

Rising interest rates/financing costs was the biggest expected challenge for Oregon construction in 2024, around 79 percent, the survey showed. The next largest concerns were economic slowdown/recession at 76 percent and rising direct labor costs at 61 percent.

The post Construction outlook for Oregon a mixed bag in AGC survey appeared first on Daily Journal of Commerce.