7 Insights on the Current & Future State of Construction

For this article, CBIZ partnered with Amici Engineering Contractors. Amici is a full-service civil contractor with a focus on complex infrastructure work for municipalities throughout Florida. The company focuses on underground utility work including transmission mains, horizontal directional drilling and roadwork. Founded in 2019 by Christopher Lazzari, Juan Barreneche and Nelson Liberti II, members of the company recently took time to chat about the current and anticipated state of the construction market.

How would you describe the overall state of the construction industry in 2024?

The construction industry is proving to be resilient in the face of 2024’s economic challenges. As a utility company running critical water and sewer transmission mains, our industry is a leading indicator of development coming down the line. There is robust demand for infrastructure projects thanks to heightened government investment, and urban centers are seeing increased demand across the state of Florida and nationally. Even still, challenges arose as we saw rising fuel costs, interest rate hikes and inflation contribute to a slowdown in private development, as well as a reduction in the scale and scope of projects overall. These delays have, in some cases, proven costly and prompted stakeholders to explore alternative development timelines or to focus on enhancing existing infrastructure instead.

What impact have economic factors such as inflation and interest rates had on construction projects and planning?

Inflation and rising interest rates have significantly affected project planning and execution. Increases in labor costs and material costs upwards of 30% to 40% in some cases are squeezing profit margins and necessitating meticulous budgeting. We’ve had to be strategic in planning ahead to secure materials and manage budgets to navigate these challenges. Nevertheless, the material shortages we saw in the times of COVID-19 have decreased, and we are finding standard pipeline material sizes to be more readily available in our market.

Looking forward, what key trends do you anticipate will shape the construction industry in 2025?

• Infrastructure investment — As population density moves from the larger cities along the coasts into smaller cities in emerging markets, demand for improved infrastructure will drive construction needs. This will lead to a surge in both public works and private utility upgrades in these areas.
• Focus on resilience — Given the vulnerability of our infrastructure in the face of more severe weather patterns, there will be an increasing emphasis on resilience in construction coupled with a focus on green building/energy efficient solutions. Projects will prioritize designs that can withstand extreme weather events, ensuring that they are robust and reliable. Many low-lying areas have long planned for stormwater pumping and roadway elevation projects to help alleviate some of the consistent impacts of these extreme weather events. Although these take years to plan, budget and design, we expect to see more of these projects reach the construction phase in 2025 and beyond.

What is the status of the labor market in the construction industry? Are there specific skill gaps that are particularly challenging to address?

The labor market is tight, with a persistent shortage of skilled workers, particularly in specialized areas like utility installation and maintenance. The lack of younger workers entering the field is worsening skill gaps in excavation and underground construction. Utility installation is physically and mentally demanding, as much of the work involves excavating around existing live utilities, requiring on-the-spot problem-solving since historical build records can be limited — especially in older communities with aging infrastructure.

Can you discuss the importance of ongoing training and education for construction workers, and what initiatives or partnerships are proving to be effective?

• Safety — The construction environment, particularly underground, can be hazardous. Regular training helps ensure that workers are up to date on the latest safety protocols and best practices, significantly reducing the risk of accidents and injuries.
• Skill development — The industry is rapidly evolving, with new technologies and methodologies emerging constantly. Ongoing education enables our workforce to stay current with these advancements, improving the efficiency and quality of our work. With the increased use of cloud storage and online meetings that came with COVID-19, our management and accounting staff has become more efficient in all aspects of planning and information sharing with field crews and our clients.
• Regulatory compliance — Compliance with local, state and federal regulations is critical. Continuous training ensures that our workers understand and adhere to these regulations, avoiding potential legal issues and enhancing our company’s reputation.

Investing in ongoing training and education is a win-win. It enhances worker safety and satisfaction, improves project outcomes and ultimately drives the success of our company in a highly competitive field.

Are there any anticipated policy changes for 2025 that you believe will significantly affect the construction industry?

There’s likely to be a stronger push for policies aimed at sustainability and environmental protection. This may include stricter regulations on emissions and waste management, which would affect how we plan and execute projects. Environmental regulatory agencies are generally slow to react, causing delays in construction and development. In turn, this increases costs and build timelines. Further, a changing political landscape may impact tax regulations and affect certain tax incentives that promote investment in business growth.

What advice would you give to new companies entering the industry in these times?

New companies should prioritize building relationships and networking within the industry. Understanding local market dynamics is crucial. Begin with small projects — focus on quality and utilize technology to streamline operations. Flexibility and a commitment to continuous learning will be vital for long-term success.