Constructing Northeast Florida:
The Compass Group Blog

This month marks three years since the shutdown in the United States for COVID-19, and the construction industry has since deeply felt the effects of the pandemic. Labor shortages, supply chain issues, and high costs of building materials slowed both new and ongoing projects for quite some time. As 2023 rolls on, we have seen an increase in construction starts that bode well for the rest of the year to come.

A new commercial construction project is exciting. It is a time when visions can come to life and progress is being made rapidly. Whether this is your first involvement with a project or your 50th, it is essential not to overlook these four common mistakes made in commercial construction projects.

Finding the positives in construction projects can improve your relationship with the community

The NIMBY (Not In My BackYard) is a well known persona in construction and development. NIMBYs like things in their community just as they are and aren’t keen on new construction or development in “their backyard.” NIMBYs appreciate the consistency of the route home – one so familiar they could drive it with their eyes closed. They hold dear the open fields that help create colorful scenes at sunset. They're quite content going to the same restaurants they’ve been visiting for years. Simply, NIMBYs love the familiarity of their community. 

What’s in store for the construction industry over the next year

Inflation rates will determine the health of the construction industry next year, as well as the U.S. economy as a whole.

As projected in the new year, if interest rates stop increasing and core inflation continues to improve, the U.S. economy will begin to stabilize within the next year, which is a promising outlook for the construction industry as a whole.

In 2022 construction projects increased by nearly 20% and are expected to remain steady in the next year, which is an improvement from the fluctuation after the COVID-19 pandemic.

This is not to say the construction industry is without challenges over the next 12 months. According to Equipment World’s 2023 Industry Outlook, here are the key takeaways to prepare for the year ahead.

One of our vice presidents recently attended a development review committee meeting. At the meeting, he connected with a business contact who was expanding their company and needed to build a new and larger manufacturing facility. Instead of engaging a design-build firm, they were doing it themselves.

Safety should be top priority for everyone in the construction industry. Understanding ladder safety laws can save lives on construction sites. 

OSHA has stairway and ladder safety standards in place to prevent injuries on the job site. While there are many ladder regulations OSHA lists, here are the top five that you should always keep in mind to ensure a safe working environment

Not a manufacturer? This massive bill could still impact your construction project.

In early August, President Biden signed the CHIPS and Science Act, enacting legislation to help keep more semiconductor manufacturing in the U.S. and reduce reliance on overseas production. The $52 billion CHIPS Act will subsidize U.S. semiconductor manufacturing and provide a 25% tax credit for companies that build facilities in the U.S.

If you’ve been delaying your franchise hotel improvement plan, it’s time to roll up your sleeves.

With visitors’ plans shuttered amid travel restrictions, the hotel industry was devastated in the initial months of the COVID-19 pandemic. With reduced occupancy came reduced income and cash flow, ultimately allowing for approved delays in property improvements, as owners may have used allotted Property Improvement Plan funds for working capital or simply had less funding available to contribute to them. Some hotel brands were gracious with their franchisees during this period. According to Hotel Management, hotel chains offered PIP deferrals of 12-18 months, and in some cases, as long as 24 months. 

With many COVID-19 travel restrictions in the rearview mirror, travelers are eager to make up for lost time and enjoy new experiences. Factor in the fading popularity of Airbnbs, and the hotel industry has a golden opportunity to capture new, eager tourists with exciting and authentic properties. After you’ve solidified the idea, researched the market, and developed your hotel business plan, you need to bring your hotel idea to life. And that takes capital. After all, the national average cost (according to Fixr) to build a hotel ranges from $13 million to $32 million. At the low end, you can build a motel for $7.5 million, while luxury five-star hotels can cost more than $60 million.

When the COVID-19 pandemic hit, remote work became a way of life. More than two years later, companies continue to realize the benefits that a flexible work location can have on employee productivity. And with 83% of workers preferring a hybrid model, leaders also realize how offering hybrid options can retain and attract talent.