In today’s construction news, read about how, after a year of stabilization, the U.S. and Canadian construction industry is poised for success in 2024 due to strong demand, normalizing supply chains, and material pricing. JLL’s new U.S. and Canada Construction Trends 2024 prediction examines construction’s future potential and challenges. Meanwhile, New America Construction, a leading siding installation company in Passaic County, NJ, is excited to now serve Morris, Bergen, Union, Hudson, Ocean, Middlesex, Mercer, and Monmouth counties. Last but not least, local developer Wasl has awarded the US$1.2 billion construction contract to Beijing-based China State Construction Engineering Corporation to build a building in Dubai to house the MGM, Bellagio, and Aria hotel brands, all of which are under the ownership of MGM Resorts.

Construction is Expected to Expand in the United States and Canada

Original Source: Canada’s construction industry poised for growth

After a year of stabilization, the U.S. and Canadian construction industries are poised for success in 2024 due to strong demand, normalizing supply chains, and material pricing. JLL’s new U.S. and Canada Construction Trends 2024 prediction examines construction’s future potential and challenges.

“The industry is ready to successfully meet the challenges of 2024,” said JLL President, Project and Development Services, Americas, Todd Burns. “Despite challenges, the industry is poised for growth with immense housing needs, a return to office strengthening, and federally backed infrastructure and manufacturing accelerating.”

Normalizing supply chains and material pricing

In October 2023, the Global Supply Chain Pressure Index reached a record low, and almost all material divisions saw stable or improving lead times. Slowing private-sector construction starts should relieve supply chain pressure in 2024, but the pipeline and growth in publicly supported construction may limit price cuts.

The exception to widespread supply chain improvement and stability is electrical goods, where data center demand, electrification, and more demanding tech-enabled spaces across sectors are keeping lead times long and prices rising, according to JLL Research Lead, Project and Development Services, Americas, Andrew Volz.

Variable spending

Construction spending in the U.S. is likely to stay stable but vary by sector. Material costs are predicted to climb 2% to 6%, labor pay 3% to 5%, and overall costs 2% to 4%.

In Canada, construction activity will certainly decrease for the next few quarters, but if inflation slows and loan markets recover, builders will gain confidence and launches may rebound in spring 2024. Material costs are predicted to climb 3% to 5%, labor pay 4% to 6%, and overall costs 3% to 6%.

“Residential and industrial sectors drove record construction investment in Canada in 2022,” said Rob Ramsay, Executive Vice President & National Lead, Project and Development Services, JLL Canada. Real estate demand has slowed due to rising interest rates. Slowing demand normalizes inflation, clearing supply chain bottlenecks.

Labor shortages persist

Long-term labor shortages are projected in the U.S. The construction labor force will grow slower in 2024 due to manpower shortages and industry turnover. Technology can alleviate some labor market pressures, but it cannot replace labor.

As the U.S. and Canadian industries face skilled labor shortages and diminishing productivity, workers will value competency and efficiency. Retention, upskilling, and trust are crucial for next year and beyond.

“Looking forward, success requires building durable partnerships with those who have both technical ability and soft skills for problem-solving and innovation in uncertain times,” Ramsay said.

“With materials cost pressures easing, most of the current cost inflation can be attributed to rising wages,” stated JLL National Research Director, Canada, Scott Figler. “Canada’s construction wages were generally up by 5% to 7% from 2022 to 2023, and we expect 4% to 6% wage growth into 2024.”

A year of growth

All these variables affect the building business, but the outlook is good. The global pandemic exposed built environment flaws, which the construction industry must fix, high interest rates or not. Despite the great need to meet these expectations, several structural and complicated challenges must be addressed.

Burns advised industry executives to follow three tactics for a successful year. They must know their people to retain talent, their projects to understand what technologies may help, and their markets to anticipate and plan for success.

JLL Project and Development Services develops, designs, builds, and brands commercial real estate projects for the world’s top corporations, educational institutions, public jurisdictions, healthcare organizations, industrial facilities, retailers, hotels, sports facilities, and real estate owners. Ranked No. 1 Top Development Company by Modern Healthcare, No. 3 in Building Design + Construction’s 2021 Construction Management Giants survey, No. 43 on Interior Design Top 100 Giants, No. 2 on Engineering News-Record’s 2021 Top 50 Program Management Firms, and No. 4 on their 2022 Top 100 Construction Management-for-Fee Firms JLL has 8,500 project managers in 80 countries overseeing $99.4 billion in construction. 

New America Construction Incorporates All of North and Central Jersey Into Its Service Area

Original Source: New America Construction Expands Service Area to All North and Central Jersey

Leading siding installation company in Passaic County, NJ, New America Construction is excited to now serve Morris, Bergen, Union, Hudson, Ocean, Middlesex, Mercer, and Monmouth County throughout North and Central Jersey.

New America Construction is an authorized roofing and siding contractor in Bergen and Passaic counties, and its expansion reflect its commitment to provide the best services in new locations.

New America Construction spokesperson: “Siding and Roofing installation is an important part of your home as it protects you from the elements and is a key point for property value. You need a reliable siding and roofing contractor to protect your investment. New America Construction, a premier NJ home improvement company, excels at installations.”

Siding and roofing installation in NJ

Many homeowners test their heater before winter. Siding and roofing are equally necessary to protect a property from ice, snow, and severe winds in winter.

Cracks can let water in and destroy the underlying materials. Even a tiny amount of water damage can cause mold, fungus, rotting, corrosion, swelling, and warping.

Customers trust New America Construction as a roofing installation and siding contractor due to its 20 years of experience and many siding and roofing certifications.

At New America Construction, customers can choose from siding installation, roof replacement, window replacements, concrete services, and all home renovation inside and outside residential properties.

Their latest expansion will assist New Jersey homeowners plan repairs, replacements, installations, and renovations and provide them access to New America Construction’s high-quality and trustworthy services.

New America Building

New America Construction, a siding and roof construction firm in New Jersey, also remodels exterior homes since 2000. New America Construction is New Jersey’s one-stop shop for residential and commercial home remodeling, with a growing demand for experienced vinyl siding installers in Union, Passaic, and Hudson County.

Contract to build US$1.2 billion MGM-linked resort in Dubai handed to Beijing’s China State Construction Engineering Corporation

Original Source: Beijing’s China State Construction Engineering Corporation awarded contract to develop US$1.2 billion MGM-linked resort in Dubai

Local developer Wasl has hired Beijing-based China State Construction Engineering Corporation to build a US$1.2 billion Dubai complex for MGM, Bellagio, and Aria.

The Island project off Umm Suqeim is the largest building agreement in the emirate since 2017, according to MEED.

It will include the three MGM-linked hotel brands with 1,400 rooms, retail, cuisine, and entertainment over the 10.5-hectare island.

During an investor presentation in September, MGM Resorts CEO and President Bill Hornbuckle said the company was preparing a 150,000-square-foot space that could be converted into a casino if casino legislation passes.

“The UAE is a fascinating opportunity,” Hornbuckle added. “We think [gaming in the UAE] has compelling long-term potential.”

According to sources, each of the UAE’s seven emirates would be given one casino license to a chosen operator, and Wynn Resorts plans to incorporate casino gambling into its Ras Al Khaimah integrated resort development.

“Reportedly, there’s a gaming decree that has been signed but not released,” Hornbuckle said. Each ruler must rule whether they desire gaming or not.

“We will wait for Dubai to hopefully make this happen.”

Summary of today’s construction news

In summary, competency and efficiency will be more and more valued among workers in the U.S. and Canada as a result of the industry’s declining productivity and shortage of skilled people. For the upcoming year and beyond, retention, upskilling, and trust-building will be essential.

Meanwhile, since 2000, New America Construction has provided full exterior home remodeling contractor services in New Jersey in addition to installing siding and roofing. New America Construction is the go-to company in New Jersey for all residential and commercial home remodeling needs because of its experience and skills in meeting the expanding demand for highly experienced vinyl siding installers in Union, Passaic, and Hudson County.

Lastly, a casino is not currently planned for the development, but CEO and President of MGM Resorts Bill Hornbuckle stated in a September investor presentation that the company was preparing a 150,000 square foot space that could be turned into a casino in the unlikely event that rumors of casino legislation passing soon come true.