Private projects push commercial construction meter

Less than four months ago, more than 200 Ozarks region construction industry leaders came together to predict a slate of 132 projects totaling some $417.7 million during the following 13 months. Now, the construction queue is about to top 200.

“After the symposium, the feedback immediately began and more and more private projects started surfacing,” said Brent Beattie, specialty sales manager for Springfield-based construction supplier Wildcat Materials Inc. and vice president of Springfield Contractors Association. “We knew private work was out there and under-reported. By the end of October and into November, the tally was up around 190. That’s a significant jump.”

The original results were part of a joint study by the Springfield Area Chamber of Commerce, SCA and Missouri State University, where 83 project owners and 23 architecture firms were surveyed regarding projects in the design process within a 50-mile radius of Springfield.

Beattie said the increase in private, or what he termed “negotiated work” that requires no public bid process, is a good indicator of an improving area industry.

“Public work is what kept the industry afloat through the recession, but negotiated work means people have money to spend again,” he said.

Beattie said some recent private work added to the slate includes a multimillion-dollar renovation of the 30,000-square-foot Price Cutter grocery store at 2851 W. Republic Road for a Planet Fitness franchise, a $4.2 million project for Wyndham Branson at The Meadows to expand its sales department and convert space into condominiums, and spa renovations at Branson’s Big Cedar Lodge.

While the majority of public work discussed at the symposium was originally slated for bid in March, April and May, leaders were worried about a potential logjam to the system.

Presiding over the September symposium and now SCA immediate past-president, David Foreman said large projects at MSU and with Springfield Public Schools are delayed in the design phase, freeing up the bid calendar for private work and other projects.

“This is good because we are not stacked right now, but it is going to cause more of a pile up in June, July and August when things get rolling,” he said, noting the university and R-12 school district are trying to coordinate their efforts better following conversations at the symposium.

DeWitt & Associates Inc. Senior Vice President and newly-installed SCA President Jerry Hackleman said the delays could mean improved results for owners and builders.

“Take MSU for example. They were originally going to remodel the upper two floors and exterior of Pummill Hall, but during design decided to tackle the lower two floors as well,” he said. “That means the project is shut down until design is finished.”

Hackleman said the original $3.3 million project now has been upgraded to nearly $4.5 million.

Spending is up across the board. Nonresidential construction spending totaled $583.4 billion nationwide in November, a 0.6 percent bump to pre government shutdown levels, according to the Associated Builders and Contractors. Education-related construction spending expanded 0.2 percent for the month and is up 1.3 percent on a year-over-year basis, and commercial construction spending grew 4.5 percent in November, up 17.4 percent for the year.

The second issue of concern during the September symposium, Beattie said construction jobs are starting to return, but at a metered pace.

“The recession layoffs were extremely difficult for these companies emotionally,” he said. “Firms are thinking about hiring again, but they are waiting for that backlog to increase before pushing the button.”

According to Springfield Business Journal list research, the Top 5 area commercial general contractors had a backlog of around $226 million as of Oct. 28, 2013, up 33 percent from 2012’s backlog.

Hackleman said while the problem is on hold until work pans out, when companies are ready to hire, there may not be enough skilled workers to fill the need.

“Skilled workers and tradesmen moved away during the recession to find other work,” he said. “That’s created a void here in the Ozarks. Even if jobs open up, the fear is now we will have this huge need, but nobody to fill it.”[[In-content Ad]]