Construction Labor Costs: 4 Ways to Avoid Budget Surprises in 2019

Photo by Matt Harding, Yuma Sun

 

As the economy thrives and capital investment grows, the construction market continues to face a labor shortage in 2019. This can especially be a factor when it comes to skilled labor for specialized disciplines, such as refrigeration.

What does this mean for food and beverage companies looking to build or expand? If it’s been a few years since your business has tackled a large capital investment project, you’ll need to manage expectations and plan accordingly. Today’s economy is a different playing field with different challenges.

If you’re planning to invest in a new facility, renovation or expansion, here are four things you can do to avoid budget surprises along the way.

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An Inside Look at the Award-winning Royal Cup Coffee & Tea Processing Facility [PHOTOS]

For more than 120 years, Royal Cup Coffee & Tea has been rooted in its hometown of Birmingham, Alabama. Over the past century, Royal Cup has grown from selling coffee out of a horse-drawn wagon to a major international importer, roaster and distributor of premium coffees and teas.

Recently, in an effort to meet the demand of its rapidly growing consumer base, Royal Cup consulted with the Stellar team on how it could revamp its 40-acre campus to increase production as well as set the industry standard for safety and efficiency.

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Designing Food Plant Welfare Spaces to Attract and Retain Employees

Food and beverage manufacturing facilities in the U.S. today are experiencing a labor shortage, mostly due to a healthy economy and low unemployment rate. Turnover rates at these facilities are already high to begin with, so more food plant owners are looking to attract employees and increase retention rates.

Many of Stellar’s clients — whether they are building new facilities or renovating existing ones — are asking us to design employee welfare spaces to be more unique and attractive to prospective employees.

While processing areas are still the heart of a food plant, these spaces are increasingly being viewed from a personnel-focused perspective. Plus, break rooms and employee amenities are becoming more important for business than ever before.

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Augmented Reality in Building Design and Construction

Image credit: VisualLive‘s AR app, MobiLive

 

Augmented reality (AR) — superimposing computer-generated images on the user’s view of the real world — is increasingly used in a variety of applications today. From smartphone games and social media filters to furniture design and classroom education, this technology is being utilized across virtually every industry, and building design and construction is no exception.

In fact, exciting developments are happening at the intersection of AR and the work we do at Stellar. While it’s been used as a marketing and selling tool, we’re beginning to apply AR on job sites more frequently. It’s safe to say this powerful technology is revolutionizing the way buildings are designed, constructed and renovated.

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Procore: 4 Ways the Construction Management Software is Benefitting Our Clients

In today’s fast-paced market, companies are setting more aggressive deadlines for their construction projects and are prioritizing speed to market more than ever before. To keep up with this increasing demand, Stellar adopted the Procore construction management software to streamline our project management processes and communicate even faster.

We’ve been using the software for a couple of years, but we’ve truly realized its tangible benefits in the past several months. The bottom line? A more efficient project translates into time and cost savings for the owner. Here are four ways our clients are benefitting from this new process:

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7 Ways to Use Drones in Building Design, Construction and Maintenance

Drone technology is helping redefine the way we design, construct and maintain buildings. Drones do more than just take photos — they can benefit both the builder and owner by improving design accuracy, overall quality and long-term maintenance.

Thanks to software and technology advancements, drones can be used in various stages of a building’s life and can perform several key functions, including:

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Food Plant Construction: How We Cut Three Months of Weather Delays Down to One

Combating weather delays in a construction project is always a shifting challenge, but how do you cope with record-breaking rainfall, subzero temperatures, delayed equipment and an aggressive project schedule? Read on for lessons learned from a recent project we completed in the state with the second-coldest winter in the continental U.S.

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How to Get the Best Price for Your Next Food Plant Construction Project in Today’s Fast-Paced Market

It’s an exciting and interesting time for both the food manufacturing and construction industries. Thanks to recent tax reform, a healthy economy and other factors, capital spending is up, and the industrial/commercial construction industry is bigger than it has been in decades. This trend is expected to continue, with U.S. construction projected to grow by 4.5 percent over the next several years.

While many would agree that this is a positive, it can also present challenges for food and beverage companies looking to build new facilities or renovate existing ones. Today’s booming construction market means things move fast and contractors can be more selective.

So how can you ensure you get the best price when seeking out a firm for your next project?

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Food Plant Construction: The Design-Build Method Continues to Grow

Business owners are increasingly discovering the benefits of working with design-build firms, according to a comprehensive new study on the design-build market released by Food Marketing Institute (FMI). The study found design-build now makes up almost half of all construction projects nationwide, and market share is expected to keep growing over the next three years.

Research showed design-build use has not only expanded across all sectors and regions of the U.S., but owners who used this project delivery method were more satisfied with their experience compared to other methods due to advantages like innovation and quick speed to market.

Here are the key takeaways from FMI’s study on the design-build market now and where it’s headed in the next few years.  

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A Cost Segregation Study Can Save Thousands on Your Next Facility Renovation or Construction Project

Renovating an older food manufacturing facility, or building a new one altogether, is a complex process with a lot of moving parts. You need to vet firms and contractors, navigate design decisions, select materials, choose equipment, consider the possibility of future expansion…the list goes on and on.

Like with any investment, there are always ways to cut costs based on what options you select for your facility — but what if you could reap savings off the top, regardless of what materials and equipment you choose? With a cost segregation study, you can.

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