Boom Town

Despite an already lofty forecast, commercial construction projects in the Ozarks region have nearly doubled projections, and the industry is scrambling to keep up.

Industry officials thought their $417.7 million 12-month projection last September might be just the tip of the iceberg, and they were right. Through May, the region already has seen $717.4 million out for bid and counting.

“We kind of knew this could happen,” said Brent Beattie, Springfield Contractors Association vice president. “Our bid projections were only as good as the information we were given, and we knew there were a lot of private projects out there people weren’t ready to talk about.”

Beattie, a specialty sales manager with Wildcat Material Inc., said despite the warning, the onslaught of unexpected projects outside Springfield city limits was more than originally anticipated.

“Nothing huge has popped up, but lots of little things that add up – like the Wyndham sales center in Branson,” he said. “There also were a lot of school (Federal Emergency Management Agency) shelters that were waiting on April bond issues to pass. We had no way of knowing on those.”

The original projection – the result of a joint study by the SCA, Springfield Area Chamber of Commerce and Missouri State University – surveyed 83 owners and 23 architecture firms regarding projects in the design phase within a 50-mile radius of Springfield. The original plans excluded the tornado-stricken Joplin area, but projects have since been widened to include a 100-mile radius around the Queen City, including $100 million for new barracks at Fort Leonard Wood, which is still in the bidding and negotiating phase.  

CoxHealth’s $130 million patient tower at the intersection of Primrose Street and National Avenue is currently the largest project under construction in the Queen City. While the concrete frame, mechanical, electrical and site work on the tower were bid earlier in 2013 and construction already has begun under joint general contractors Beck Group and Killian Construction Co., the health care organization continues to add to the work load. A February bid included an estimated $50 to $60 million for glass and glazing, roofing, masonry, elevators, fire protection, drywall systems and all interior finish work.

Build a Bear
MSU leads the pack in construction volume. With 131 projects on the slate last September, MSU architect Doug Sampson said despite the continuing work on notable projects such as the $10.6 million Plaster Sports Complex east bleachers, he still has 101 fully-funded projects on his desk ready to bid.

“We have already awarded $38 million in contracts such as Kentwood renovations, the athletic field, the grandstand and Pummill Hall,” the MSU director of planning, design and construction told contractors June 3. “Between now and September, we have another $42 million going out for bid.”

Projects include a 55,000-square-foot occupational therapy building estimated at $17 million, the $4 million welcome center, a $1.1 million renovation to the fifth floor of the Morris Building and a $9.5 million renovation of Sunvilla Tower. Beyond September, Sampson already has a handful of large projects in the works, but the school has yet to nail down specific bid dates.

“We had a shifting of something we thought would be happening sooner,” he said, pointing to a $25 million addition and renovation to Glass Hall, which the school is continuing to fundraise for. “We also have some possible grant funding that adds to the pot.”

Sampson said a potential FEMA storm shelter grant could mean the construction of a $1.5 million parking structure at Sunvilla. The university also might receive unexpected funding from the state through Senate Bill 723, which passed the General Assembly but hasn’t been signed by Gov. Jay Nixon. The bill provides for bond funding of a number of facilities throughout the state, including capital projects at higher education institutions. Sampson said MSU’s portion would be $20.4 million and the university already has plans, including $18.5 million in maintenance and repairs to Hill and Ellis halls and $2 million in upgrades at its West Plains campus.

“There is also some concern that even if it is allowed to become legislation, the governor may withhold funding,” he said. “We are still in a wait and see posture.”
 
The Joplin factor
SCA President Jerry Hackleman told the assembled members June 3 that Joplin wasn’t originally in the plan because it represented too much of an anomaly for the industry.

“There was so much construction going on there it wasn’t a true picture,” said Hackleman, a vice president at Dewitt & Associates Inc. “What we have realized is a lot of local sweat has gone into that town. That’s a lot of guys who have been taken away from working in this area, and it affects us.”

Beattie said as more work goes on in Joplin, resources become scarcer in the Queen City.

“Following the recession, workforce numbers are down and a lot of people are still hesitant to hire and build that crew back up,” he said. “They don’t want to have to make those hard cuts again.”

Beattie said it’s better to keep an eye on Joplin than to be surprised with a large project down the road.

“Projects in areas like Joplin and Fort Leonard Wood might not happen for a six months or a year, but they might get the green light tomorrow. We have to be prepared,” he said.

Shifting goals
While there’s a plan in place to handle the current workload now, industry officials say the plan doesn’t seem to last long.

“Things are changing constantly,” Sampson said. “Today at 4 p.m., the president asked we start a master plan renovation of Meyer Library.

“I know everyone is thinking, ‘That place isn’t that old.’ But from a technology standpoint and the way we access it, things have changed drastically in the past 10 years.”

Beattie said planned projects such as the $12.9 million Fremont Elementary School for Springfield Public Schools – which went back to the drawing board because designs were over budget – fell off the docket and new ones, such as the unplanned $15 million Heer’s building renovation, rotated on.

“You expect some peaks and valleys, but right now what we’ve got is a gentle rolling wave,” he said. “The bid calendar is full and we’ve been busier than we have been in a long time.”

Beattie said he believes the boom will keep up, noting weather is the ultimate natural delay, but summer offers peak building potential. He said the SCA plans to host another symposium in September to forecast 2015 and recap the year.“It’s so rapid right now, we could slow down and still be busy,” he said. “To say it’s a boom now would be an understatement.”[[In-content Ad]]