When Jeff Hargrave started his commercial construction company, Mahogany Inc., 32 years ago, he says the hardest part was finding work. Now, the hardest thing is finding people.
"Salaries are up," he said during the Baltimore Smart Business Dealmakers Conference. "If you've got a company where you've had people in your company for a long period of time, they're getting incremental raises. When you're bring other people in it's, Hey, I need $130, I need $150, I need $160, and you may have a senior PL making $120. So, that's a dilemma in construction. It's a real problem. But this is the market we're in and if you want to play you got to play. Sometimes you got to bite the bullet and hire those people at those salaries, then, of course, now you got to look at your people within and they need to be increased."
There's also the threat of training somebody up just to have them go to a competitor.
"That's the worst," Hargrave says. "Mahogany's taken young project engineers, young people who have no experience, and basically we groom them, we train them, we bring them up to the point where they're project managers. And of course, then someone comes at him and says, I'm gonna give you $115. And you've got three years experience in the industry. Do you make the decision to match that $115? Or do you let that individual walk? Those are decisions I have to make every day?"
Acme Paper & Supply Co. Vice President Andy Attman says as they put ads out on various platforms to hire for the many positions within the company, the quality of the people they're seeing apply just isn't what it used to be.
"We try to hire new, but then trying to get them to stay with us and not take the next higher paying job because we've trained them and they see they don't understand the investment that we may put into that aspect of it," Attman says. "We've got a couple openings that we just can't find the right people. We do collections and we get people who say, Hey, we do collections, I've worked as a cashier at Walmart. And that's what we'll get so people are not necessarily reading the job descriptions that we'll get a lot of the times."
From the senior leadership side, he says they're trying to find innovative thinkers.
"We don't want to be the same as everybody else," he says. "We try to promote innovation. So, we'll try to find people outside of our industry. But again, it's the education aspect of it for them to understand what we do and how we're a little bit different than most."
Looking at the real estate landscape, Owen Rouse, Jr., Senior Vice President at MacKenzie Commercial Real Estate Services, says in an environment in which remote work has become more prominent, there are a couple trends underway.
"Downsize to quality go from 30,000 to 15,000 (square feet), but I'm going up in rent," Rouse says. "Annually, my budget might be less, but I'm going to use nicer spaces as a recruitment and retention tool. There's a downside to the bottom line. I'm shedding 50 percent of my space. I'm saving the money. It's going into the company. Maybe I'll spend it on something else."
Some companies are closing large offices and popping up smaller offices in other markets while spending the same amount. Occasionally, a company will want two kitchens instead of one, they need some touchdown space, huddle rooms and they dump the big conference room and they'll upsize slightly. Overall, it's a fluid dynamic.
"There's blue chip renewals happening and there's companies shedding space," he says. "So, there's more to be revealed and it's not clear where it's going to end up."
While there are challenges in the market that can be attributed to the climbing interest rates, when Hargrave looks at the market, private and public, he says it's a great market right now.
"I just don't know who to believe," Hargrave says. "You hear the news, you watch the news, they talk about a recession, and all this other stuff, but I don't see it. Our backlog is as high as it's ever been in the 32 years we've been in business. There's more work out there than we can bid, so I just don't know where the slowdown is. And maybe it's coming. But I talk to the architectural firms because in construction, we try to get close to the architects because when they get slow, that means they're not designing, and that means we're going to not have anything to bid. But these guys are busy as well. So, I mean, private sector, public sector, it's booming right now."
Read the rest here:
Baltimore Business Leaders See An Economy of Both Ups And Downs - Smart Business Dealmakers
- Architectural Design Consulting Market to Witness Massive Growth ... - Digital Journal - May 7th, 2023 [May 7th, 2023]
- Wightman opening new South Bend office - Moody on the Market - May 7th, 2023 [May 7th, 2023]
- Neal McCoy to appear at Sally Buffalo Park in Cadiz - Times Reporter - May 7th, 2023 [May 7th, 2023]
- Demolition continues in Strand Theater block - Clinton Herald - May 7th, 2023 [May 7th, 2023]
- For the Record | Business licenses issued in February and March ... - wenatcheeworld.com - May 7th, 2023 [May 7th, 2023]
- Siteline | The 10 Major New Developments Set to Reshape Santa ... - Siteline Santa Barbara - May 7th, 2023 [May 7th, 2023]
- Decorative Glass Market Upcoming Growth, Key Player Analysis and Forecast 2032 - EIN News - May 7th, 2023 [May 7th, 2023]
- Ligne Roset's new CEOs, Kravet appoints a new CMO and more - Business of Home - May 7th, 2023 [May 7th, 2023]
- 5 Conservative And Cheap Dividend Stocks To Invest In - May 2023 - Seeking Alpha - May 7th, 2023 [May 7th, 2023]
- /R E P E A T -- REDEVELOPMENT OF THE FORMER MONTREAL CHEST INSTITUTE SITE:/ - Yahoo Finance - May 7th, 2023 [May 7th, 2023]
- Oxo Alcohol Market Competitive Landscape, Emerging Trends and ... - GlobeNewswire - May 7th, 2023 [May 7th, 2023]
- MASONITE INTERNATIONAL CORP Management's Discussion and Analysis of Financial Condition and Results of Operations (form 10-Q) - Marketscreener.com - November 10th, 2022 [November 10th, 2022]
- Road Construction and Maintenance Market Size to Grow by USD 259.95 Billion From 2022 to 2027, Assessment on Parent Market, Five Forces Analysis,... - November 10th, 2022 [November 10th, 2022]
- OLO INC. Management's Discussion and Analysis of Financial Condition and Results of Operations. (form 10-Q) - Marketscreener.com - November 10th, 2022 [November 10th, 2022]
- Eastwing Architects Are Helping Residential and Commercial Clients to Create their Dream Spaces - GlobeNewswire - August 20th, 2022 [August 20th, 2022]
- Op-ed | Why a hybrid space architecture makes sense for economic and national security - SpaceNews - August 20th, 2022 [August 20th, 2022]
- Jamison to raze building for 188 apartments in Koreatown - The Real Deal - August 20th, 2022 [August 20th, 2022]
- The 10 Biggest Roofing Companies in the U.S. in 2022 - Levelset - August 20th, 2022 [August 20th, 2022]
- $300,000 Luxury Container Homes Are Coming To The South Side This Winter - Block Club Chicago - August 20th, 2022 [August 20th, 2022]
- Ed Day Admonishes Town Supervisors For Inaction On Finding Alternative Site For Animal Shelter Rebuild - Rockland County Business Journal - August 20th, 2022 [August 20th, 2022]
- Chipping Away at the Monolith: Applying MVPs and MVAs to Legacy Applications - InfoQ.com - August 20th, 2022 [August 20th, 2022]
- Q&A: The Rockwell Project in downtown Oconomowoc | Oconomowoc News | gmtoday.com - Greater Milwaukee Today | GMToday.com - August 20th, 2022 [August 20th, 2022]
- Toll Brothers Apartment Living and PGIM Real Estate Announce Joint Venture to Develop 422-Unit Luxury Rental Community in San Diego, California -... - August 20th, 2022 [August 20th, 2022]
- City of Clinton building permits - Clinton Herald - November 4th, 2021 [November 4th, 2021]
- Gov. McMaster to spend remaining COVID education relief to fully fund two-year training - Greenville News - November 4th, 2021 [November 4th, 2021]
- Redevelopment in Wilton-Why, What and How By Lynne Vanderslice - Patch.com - November 4th, 2021 [November 4th, 2021]
- Small and diverse business owners prepped to bolster profits with conclusion of new USF-Skanska mentor-protg program - University of South Florida - November 4th, 2021 [November 4th, 2021]
- City Of Suisun City: Marina Village Apartments Notice Of Intent To Adopt A Mitigated Negative Declaration And Notice Of Public Hearing - Patch.com - November 4th, 2021 [November 4th, 2021]
- New hotels, homes seek Orange OK - The Record Newspapers - TheRecordLive.com - November 4th, 2021 [November 4th, 2021]
- Atilla Kara and Tzu-Ching Lai Join the Washington, DC Studio of National Interior Design and Consulting Firm MKDA | Milo Kleinberg Design Associates... - February 20th, 2021 [February 20th, 2021]
- Burns & Klemm - The SandPaper - February 20th, 2021 [February 20th, 2021]
- Partner Engineering and Science, Inc. Announces Rapid Expansion Throughout 2020, Increasing Headcount by 8% - Business Wire - February 20th, 2021 [February 20th, 2021]
- What Is the Future of Work Space in RI - Will Staff Ever Return to the Office - GoLocalProv - February 20th, 2021 [February 20th, 2021]
- Paul Williams, Architect to the Stars, Designed the Buildings That Shaped Southern California - Robb Report - February 2nd, 2021 [February 2nd, 2021]
- Commercial Lighting Market 2021-2026 Booming Growth Analysis and Future Prospects | Deco Lighting, Syska, Toshiba Corporation - KSU | The Sentinel... - January 20th, 2021 [January 20th, 2021]
- Panzura Expands Leadership With Six Key Hires to Intensify Growth Initiatives - PR Web - January 20th, 2021 [January 20th, 2021]
- KBS Completes an $11 Million Renovation to an Iconic 31-Story Office Tower in Downtown Denver, Colorado - Business Wire - January 20th, 2021 [January 20th, 2021]
- Resilient year for East Midlands architect with expansion plans for 2021 - East Midlands Business Link - December 18th, 2020 [December 18th, 2020]
- Courts Are Deciding Some Conservation Easement Cases In Favor Of Taxpayers - At Least In Part. Is It Time To Rethink Settlement? - Forbes - December 18th, 2020 [December 18th, 2020]
- What is Commercial Architecture? | PionArch, LLC - December 17th, 2020 [December 17th, 2020]
- Architect eyes larger office after 'strong' year | TheBusinessDesk.com - The Business Desk - December 17th, 2020 [December 17th, 2020]
- Why 2021 is the year you should become an Interior Design major - Study International News - December 17th, 2020 [December 17th, 2020]
- Architectural Acoustic Panels Market to Hit USD 9,752.8 Million by 2027; Rising Demand for Efficient Soundproofing Solutions from the Hotel Industry... - December 17th, 2020 [December 17th, 2020]
- Best At The Office Posts of 2020 - Design Milk - December 17th, 2020 [December 17th, 2020]
- Who are the Top Workplaces contenders? - Oklahoman.com - December 10th, 2020 [December 10th, 2020]
- Covington, Ludlow Development Projects Awarded Funds - The River City News - December 10th, 2020 [December 10th, 2020]
- $21 Million Sheriff's Building Would Be Financed With 15-Year CenterState Bank Loan at 1.83% Interest - FlaglerLive.com - December 10th, 2020 [December 10th, 2020]
- Duke Energy awards more than $200000 to Greater Cincinnati ventures that aim to spark redevelopment, help small businesses - Duke Energy News Center - December 10th, 2020 [December 10th, 2020]
- Movers and Shakers Week Ending 12.11.20 - milehighcre.com - December 10th, 2020 [December 10th, 2020]
- Jim Kolb Promoted To SVP Of STV|DPM - Citybizlist - December 10th, 2020 [December 10th, 2020]
- Memorandum on The National Space Policy - Imperial Valley News - December 10th, 2020 [December 10th, 2020]
- Show Your Work: D-Wave Opens the Door to Performance Comparisons Between Quantum Computing Architectures - HPCwire - December 10th, 2020 [December 10th, 2020]
- Tower Holdings Group expands to the United Arab Emirates - PR Web - December 10th, 2020 [December 10th, 2020]
- City gets update on capital projects - The Suffolk News-Herald - Suffolk News-Herald - November 29th, 2020 [November 29th, 2020]
- New Metropolitan Sea Airport Of Elefsina: "One Of The Most Ambitious And Visionary Projects Taking - GreekCityTimes.com - November 29th, 2020 [November 29th, 2020]
- This startup wants to become a digital ecosystem that connects spaces, freelancers and entrepreneurs - The Advocate - November 29th, 2020 [November 29th, 2020]
- Advice for "Emily in Paris" season 2: Drop the Americanized fantasy and get to know the real city - Salon - November 29th, 2020 [November 29th, 2020]
- Small towns like Badin have lessons for big cities like Charlotte - The Stanly News & Press - Stanly News & Press - November 29th, 2020 [November 29th, 2020]
- Will reopening of border crossing drive Saudi investment in Iraq? - Al-Monitor - November 29th, 2020 [November 29th, 2020]
- A 30,000-square-foot Ascension clinic is coming to Mequon, but the mayor is among those who isn't happy about it - Milwaukee Journal Sentinel - October 20th, 2020 [October 20th, 2020]
- Serverless Architecture Market Estimated Forecast Analysis 2020 to 2027 by top key Players like Realm, Galactic Fog IP Inc., Snyk Ltd., Dynatrace... - October 20th, 2020 [October 20th, 2020]
- Global Glass Cleaning Chemical Market 2020 Growth Analysis, Opportunities, Trends and Developments to 2025 Wall Street Call - Reported Times - October 20th, 2020 [October 20th, 2020]
- AdventHealth Breaks Ground on ER, Health Park to Serve Fast-Growing Clermont Area - Clermont Report - October 10th, 2020 [October 10th, 2020]
- Towards a More Sustainable Northwest: ALPEN HIGH PERFORMANCE PRODUCTS Developing Energy Efficient Construction Alternatives with an Alliance of 140... - October 10th, 2020 [October 10th, 2020]
- Durbin Park set to expand with Flagler Health+ 75-bed hospital, wellness campus - The Florida Times-Union - October 10th, 2020 [October 10th, 2020]
- Union Bank Plaza Designated First Skyscraper in Los Angeles as a Historic Landmark; KBS Completes Phase I of a $20 Million Repositioning and Historic... - October 10th, 2020 [October 10th, 2020]
- Hear Exclusive Insights on Skynet 6 at SMi Group's 22nd Annual Global MilSatCom - PR.com - October 10th, 2020 [October 10th, 2020]
- Community events and announcements: Oct. 9, 2020 - Verde Independent - October 10th, 2020 [October 10th, 2020]
- Planning staff: Housing development 'costs are unduly allocated to existing taxpayers' - Daily News Journal - October 10th, 2020 [October 10th, 2020]
- Global Architectural LED Lighting Industry Market Forecast Revised in a New Market Research Store Report as COVID-19 Projected to Hold a Massive... - October 10th, 2020 [October 10th, 2020]
- Waterborne Coatings Market projected to exceed $95 billion by 2024, Says Global Market Insights Inc. - GlobeNewswire - October 10th, 2020 [October 10th, 2020]
- A work of art: Fitzpatrick Architects of Tyler named Dallas-area firm of the year - Tyler Morning Telegraph - September 18th, 2020 [September 18th, 2020]
- Architectural firm FBW sued for $3m over breach of Kabira extension contract - Eagle Online - September 18th, 2020 [September 18th, 2020]
- Tecnoglass to Attend the D.A. Davidson 19th Annual Diversified Industrials & Services Virtual Conference - GlobeNewswire - September 18th, 2020 [September 18th, 2020]
- US Commercial Paving Slabs Market to Witness Exponential Growth by 2020-2027 | Leading Players Abbotsford Concrete Products Ltd., Westile Roofing... - September 18th, 2020 [September 18th, 2020]
- Smart Glass Market worth $6.8 billion by 2025- Exclusive Report by MarketsandMarkets - PRNewswire - September 18th, 2020 [September 18th, 2020]
- With new zoning tool, Palo Alto looks to relieve housing drought - Palo Alto Online - September 18th, 2020 [September 18th, 2020]
- BIDU INVESTOR ALERT: Bernstein Liebhard LLP Reminds Investors of the Deadline to File a Lead Plaintiff - Global Banking And Finance Review - September 18th, 2020 [September 18th, 2020]
- The ever-changing faces of Australian commercial design - Architecture and Design - June 16th, 2020 [June 16th, 2020]
- Architectural Lighting Market Technological Innovations and Future Opportunities 2025 - Cole of Duty - June 16th, 2020 [June 16th, 2020]