< Previous10 Southeastern Construction Owners and Associates Roundtable construction activity. Industrywide input prices are still up just 1.3 percent over the past year, but that’s largely due to stability in the second half of 2024; input prices have risen at a six percent annualized rate through the first five months of the year, and tariff- affected goods like iron and steel have exhibited particularly steep price increases. In addition to boosting input prices, tariff-related uncertainty has carved into construction levels. One in five Associated Builders and Contractors (ABC) members reported having a project delayed or cancelled due to tariffs in June, and that’s on top of an unknown number of projects that were never green lit in the first place due to the uncertain outlook. Given these various challenges, the industry has exceedingly few sourc- es of momentum. Yes, data centers continue to attract investment at a staggering pace, but that’s because demand is so enormous that even the array of current challenges can’t tamp it down – though it remains to be seen if the recently announced 50 percent copper tariffs change this dynamic. Manufacturing investment, which surged over 200 percent since the start of 2021, has officially turned over under the weight of higher input prices, policy uncertainty, and the unknown future of the Chips Act. Spending in the category is down more than five percent since Decem- ber, with much of that decline com- ing from the massive computer/elec- tronic manufacturing subsegment (i.e., chip plants). While the subcategory still accounts for about one in every six dollars of private nonresidential spending, it is down more than eight percent from the July 2024 peak. Without momentum from manu- facturing-related projects, the indus- try is utterly lacking in sources of to blame? A range of headwinds, many of which may continue to batter the industry throughout the remainder of the year. Lending standards remain uncomfort- ably tight and borrowing costs restrictively elevated. While the consensus forecast sees multiple rate cuts by the end of 2025, that is far from a certainty given the poten- tial for tariff-induced inflation in the second half of the year. Emerging signs of material price escalation have also weighed on N ationwide construc- tion spending has now declined in each of the past nine months and is down more than three percent since reaching an all-time high in August 2024. While much of that weakness is in the residential segment – with spending on housing construc- tion on pace to decline nearly 10 per- cent in 2025 – the nonresidential seg- ment has also struggled of late, con- tracting in four straight months. What’s / FEATURE // By Anirban Basu, Associated Builders and Contractors Industry Outlook Clouded by Uncertainty, Buffeted by Headwinds Southeast Still Outperforms Despite Industrywide Challenges2025 // www.scoar.org 11 years to come. The region’s popula- tion expanded by 1.4 percent in 2024, significantly outpacing the 0.1 percent population growth across the remain- der of the nation. While Florida, South Carolina, and North Carolina led the way, every southeastern state but Mis- sissippi ranked among the 20 fastest growing states. For the time being, the same head- winds buffeting nationwide construc- tion activity are suppressing industry activity in the southeast. Even so, that lull won’t last forever. At some point in the next several quarters there will be lower borrowing costs, looser lend- ing standards, and more economic certainty. When that happens, the southeastern construction industry will regain the momentum necessary to support a rapidly growing resident base. y Anirban Basu is the Chief Econo- mist for Associated Builders and Con- tractors as well as the Chairman and CEO of Sage Policy Group. You can read more at www.SageEcon.com. the cyclical peak in early 2022. This slowdown is widespread; permitting has fallen by at least 12 percent in every southeastern state but Missis- sippi and South Carolina. Unsurprisingly, those two states have added construction jobs faster than the remainder of the region over the past year. South Carolina’s con- struction employment base posted the seventh fastest growth among 50 states from May 2024 to May 2025, while Mississippi ranked 13th. No other state ranks better than 20th, and Georgia and Tennessee actually lost construction jobs over the past year. The lack of construction job growth over much of the region is slightly mis- leading. Even with the recent slow- down, the industry’s regional employ- ment base has grown 15 percent since the start of 2020, over twice as fast as construction job growth across the remainder of the nation. That growth was fueled by ongo- ing migration to the southeast, and rapid population gains will continue to support construction activity in the momentum. Spending on traditional office buildings has plummeted 55 percent (inflation adjusted) since the start of the pandemic. Warehouse investment, which rose rapidly during 2022 and 2023, has fallen back sig- nificantly. Hotel construction remains subdued, as does retail. Southeast’s industry won’t be down for long Construction activity in the south- eastern United States boomed over the past several years, with rapid pop- ulation growth and the resulting eco- nomic expansion fueling a rapid rise in investment. As of the middle of 2025, however, some of that momentum has faded. The region’s residential segment in particular has struggled due to per- sistently high interest rates and the large number of units completed over the past few years. As a result of sup- pressed homebuyer demand, new home permitting has plunged across the region, down 17 percent on a year- over-year basis and 25 percent from holistic well-being, and suicide pre- vention are being addressed through- out the company, including: • An Employee Assistance Program (EAP) is available to employees and their families, which includes tele- mental health counseling and other support services options, such as legal and life coaching sessions. • Teladoc Health was incorporated into the group health insurance plan to increase access for both physical and mental healthcare. • SmartDollar was added as a free benefit for individuals and families looking for financial counseling. • A video series “Under The Hard Hat” was created to reduce stig- ma by allowing employees to share their story; the videos are released internally and publicly. and intentionally addressing root causes of stressors that affect the Total Human Health of workers and their families. Sell states, “It all starts with a CEO and leadership team that ‘gets it’; every executive, director, manager, and supervisor is a part of our cul- ture of caring.” Sell believes this com- mitment “engages our entire team to address mental health issues in the exact same manner as we would a physical threat like fall protection.” Kwest has initiated additional program- ming to help ensure mental health, M ental health and sui- cide prevention are critical leadership priorities in the con- struction industry. The Southeastern Construction Owners & Associates Roundtable (SCOAR) first addressed these topics in 2020, with Greg Sizemore, Vice President of Environmental, Health and Safety and Workforce Development for the national Associated Builders and Con- tractors (ABC), as a lead presenter. At the time, Sizemore was also serving as Chairperson of the Construction Industry Alliance for Suicide Prevention (CIASP), which was launched by the Construction Financial Management Association in 2016. Sizemore, alongside co-presenter Kevin Sell, emphasized the increas- ing urgency of supporting construc- tion workers and their families during the pandemic. Sell, then with United Services Group and now with SCOAR member Kwest Group, shared that his journey began in 2019 when Kwest Group CEO Ryan Odendahl and EHS Director Jim Thompson invited him to his first educational session on suicide prevention in construction. Voices from SCOAR members Kwest Group: Kevin Sell, Sr. Man- ager, Corporate Development Kevin Sell believes the construction industry is experiencing a shifting call to action to move beyond the num- bers of suicides to understand the why behind the numbers. Sell describes how leading companies are proactively / LET’S TALK SAFETY // By Cal Beyer, SAFE Project Mental Health and Suicide Prevention in the Construction Industry 12 Southeastern Construction Owners and Associates Roundtablecare and on-demand resources that employees can utilize. The EAP pro- vides support for supervisors who want to help with a direct report in need. • Certified three trainers to provide Mental Health First Aid (MHFA) in- house. One of these three trainers is certified to train in Spanish, so many of the front-line supervisors can receive training in their preferred lan- guage and help those Spanish speak- ers who work with them. • Provided 8-hour MHFA training to around 170 employees (as of April 2025) with another 80 people sched- uled for training later in 2025. • Required that there be at least two MHFA-trained people on each proj- ect site throughout the company. • Developed an Emergency Action Plan for mental health crises. This docu- ment provides a step-by-step plan for use when an MHFA-trained project leader may not be available to assist in a situation. • Stocked naloxone kits in the ware- house so that all projects and offices can keep it on hand. Quick action steps for SCOAR members 1. Construction leaders in all disciplines are encouraged to learn more about mental health and well-being chal- lenges affecting the construction workforce. 2. Teach managers and first-line supervi- sors how to recognize and respond to employees showing signs of distress. 3. Provide field leaders training on how to share the services available through both Employee Assistance Programs as well as employer- and/or union- sponsored health plans to address financial pressures, caregiving respon- sibilities, and substance use. 4. Share resources with all employees on these resources as well as 988, the nation’s free and confidential three- digit Crisis and Suicide Prevention Lifeline available 24/7-365. y Cal Beyer, CWP, NAC, is Sr. Director for SAFE Workplaces for national nonprofit SAFE Project. SAFE stands for Stop the Addiction Fatality Epidemic. Beyer serves • Kwest Group Health and Safety staff are completing the VitalCog in Con- struction train-the-trainer course to advance mental health first aid into all business operations. Sell shared, “It is getting easier to talk about mental health and suicide preven- tion,” yet he acknowledges, “We have a long way to go and need to do a better job of explaining Total Human Health to our clients.” Sell also sees, “the need to continue peer-to-peer engagement to have more contractors create their own programs.” Sundt: Patricia (Tricia) Mason, Project Engineer, Industrial Division Sundt began providing mental health and suicide prevention resources in March of 2022. The impetus for address- ing mental health and suicide prevention was Paul Levin, Senior Vice President of Health, Safety, and Environmental (HSE). Levin attended an event where facts and statistics were highlighted, and he want- ed to ensure leaders had the tools need- ed to address the challenges head-on. The initiative started with roughly 20 people getting trained to present mate- rials on suicide prevention. This was a combination of people from the HSE department, project leaders, and individ- uals with lived experience and a passion to drive this mission forward. The efforts evolved into a committee of individu- als who are passionate about the sub- ject. There are representatives from every business unit and profit center involved in Sundt’s mental health and suicide pre- vention initiatives. As with most things in construc- tion, acceptance of the programming was slow at first. Now that people have been exposed to the statistics and have been able to put the risk factors into con- text with their own experiences, there is growing acceptance. More people reach out for training, rather than the lead- ership group needing to try to recruit people. Examples of initiatives undertaken by Sundt to address mental health, suicide prevention, substance use, and overdose prevention include: • Implemented a new Employee Assis- tance Program (EAP), which provides eight free sessions of mental health Citations and Additional Resources: • Construction Industry Alliance for Suicide Prevention. www.Prevent- ConstructionSuicide.com. • SAFE Project. Stop the Addiction Fatality Epidemic. www.safepro- ject.us/workplaces. • Sussell A, Peterson C, Li J, Miniño A, Scott KA, Stone DM. Suicide Rates by Industry and Occupa- tion – National Vital Statistics Sys- tem, United States, 2021. MMWR Morb Mortal Wkly Rep 2023; 72:1346–1350. DOI: http://dx.doi. org/10.15585/mmwr.mm7250a2. • Trueblood A, Harris W, Yohannes T, Rinehart R. (January 2020). Cen- ter for Construction Research and Training (CPWR) Data Bulletin. Lead- ing Causes of All Deaths Among Current, Retired, and Former Con- struction Workers. https://www.cpwr. com/wp-content/uploads/DataBul- letin-January2023.pdf. Suicides and Overdoses in the US Construction Industry The first data on suicide by industry was reported by the Cen- ters for Disease Control and Preven- tion (CDC) in July 2016. By 2023, the CDC reported construction has the second highest rate of suicides among major industries per 100,000 workers at 56 deaths for males and 10.4 per 100,000 female workers. Moreover, analysis by the Construc- tion Center for Research and Train- ing (CPWR) in January 2023 con- cluded “there were 14,200 overdos- es and 5,500 suicide deaths among construction workers in 2020.” on the Executive Committee for the National Action Alliance for Suicide Pre- vention and helped launch the Construc- tion Industry Alliance for Suicide Preven- tion in 2016. He also works with the Lived Experience Advisory Group of the Suicide Prevention Resource Center. Contact Beyer at cal@safeproject.us or cell via 651-307- 7883. Visit www.safeproject.us for more. 2025 // www.scoar.org 1316 Southeastern Construction Owners and Associates Roundtable to ensure consistency and efficiency, as well as using in-house estimating and feasibility tools to develop cost projec- tions and secure funding approvals. Asset protection: Asset protection projects range in scale and include repairs and renovations such as paving and roofing. The Construction Man- agement Group maintains roofing and pavement condition assessment docu- ments, which help field teams plan for lifecycle repairs and replacements. They also work closely with trusted consultants who understand UPS’s phi- losophy of asset protection. “Façade maintenance is another key area of asset protection and varies by location. spans generations,” says Antonio Jones, Director – Construction Man- agement Group, Building and Systems Engineering (BaSE) at UPS. “While we honor our legacy, we continuously evolve by embracing new innovations in the construction industry, all while maintaining the standards and speci- fications that have consistently proven effective for our operational needs.” Project types When supporting UPS from a con- struction perspective, the Construction Management Group focuses on four main types of projects, maintaining standardized specifications and details / FEATURE // Behind the Package Car: UPS Construction Management Group By Paul Adair, Staff Writer F ounded in 1907 by James E. Casey as the American Mes- senger Company – becom- ing United Parcel Service (UPS) in 1919 – in Seattle, Washington, UPS today is the world’s premier package delivery company and a leader in the transportation and logistics industry, offering innovative solutions to customers, big and small. Part of UPS’s broader Building and Systems Engineering (BaSE) division, the UPS Construction Management Group has been tasked within the company “to innovate, construct, and maintain safe and compliant facilities and systems that provide sustainable, industry-leading technology and reliability.” Where the Systems Engineering Group develops sophisticated pack- age handling conveyor systems that keep packages moving through UPS facilities across the globe, it is the Construction Management Group that designs and constructs the building shell to house these conveyor systems, along with essential support areas for operational staff – such as offices, rest- rooms, locker rooms, and other facility spaces needed for smooth operations. “The Construction Management Group is built on a foundation that The final Mebane Facility. The original site for construction. Photos courtesy of UPS Construction Management Group.2025 // www.scoar.org 17 It can include painting, joint caulking of concrete panels, mortar repairs for brick or block buildings, and – in some jurisdictions – compliance with local requirements for routine inspections of multi-story facilities,” says Jones. “Addition- ally, parking structure inspections and repairs are a critical part of our asset protection strategy.” Brownfield projects: Currently, brownfield projects make up the majority of the Construction Management Group’s workload. These projects typically support the installation of automated conveyor systems within existing facilities. The scope of these projects can vary – from minor office renova- tions to the installation of elevated equipment platforms or even the expansion of existing buildings. For these projects, general construction is limited to only what is necessary to support the new automated conveyor systems being installed, ensuring targeted and cost-effective delivery. Greenfield projects: Greenfield projects have decreased over the past few years, as retrofitting existing buildings with automation has proven to be the most cost-effective approach for UPS. For decades, the Construction Manage- ment Group has maintained its own specifications and design standards tailored to its operational needs, ensur- ing the company’s buildings are both efficient and cost- effective. “Historically, we used the Design-Bid-Build model, which served us well for many years,” says Jones. “However, as the construction industry has evolved, UPS has started to transition to the Design/Build model. While this approach has introduced several benefits – such as faster project delivery and more integrated collaboration – we continue to focus on developing trusted contractor relationships with those who understand UPS’s construction philosophy.” Developer build: Developer Build projects have proven to be a highly efficient solution for several business entities within UPS. For example, the company’s Supply Chain Solutions divi- sion often leverages existing warehouse spaces to quickly meet client needs. Similarly, Small Package division uses pre-existing warehouse facilities to rapidly expand sorting and delivery capacity when necessary. In select cases, UPS partners with developers to custom-build facilities that the company either leases or has the option to purchase – offering greater flexibility and speed to market when expanding into new areas. Safety as a value At UPS, nothing is more important than the safety and well-being of the people and the communities it serves. As part of this, the company has invested more than $500 million on safety training in the United States and – in 2024 alone – UPS operations employees completed more than eight million hours of safety training. “Safety is everyone’s responsibility, and we hold our on- site contractors to the same high standards,” says Jones. “We expect them to uphold and practice strict safety protocols on all project sites. We have a vested interest in fostering a strong culture of safety and providing a safe work environment for all personnel the moment they step onto a UPS property.” This dedication to safety meshes well with the goals of Southeastern Construction Owners and Associates Roundtable (SCOAR), which aims to improve its mem- bers’ performance, productivity, and safety metrics. The UPS Construction Management Group strongly believes membership with the organization and attending SCOAR conference offers numerous professional benefits, such as information about the latest industry standards, new tools that can improve UPS’ daily operations, and invaluable networking opportunities. “Overall, attending this conference allows us to acquire new insights, explore innovative methods, and stay current with trends in the construction industry,” says Jones. “These experiences ultimately enhance our functional capabilities and improve the service we provide to the company.” y The site cleared, ready for construction.18 Southeastern Construction Owners and Associates Roundtable Built for complexity GrayWolf thrives in the face of com- plexity where others hesitate. Whether the challenge lies in aggressive time- lines, technical precision, or evolving design conditions, GrayWolf consistently demonstrates an unmatched ability to execute. Its deep bench of skilled profes- sionals, combined with a disciplined proj- ect management approach, allows the GrayWolf supports its operations with a team of nearly 1,000 employees and access to more than 2,600 craft professionals nationwide. These teams bring deep expertise to every phase of construction – from preconstruction planning and BIM-based modeling to erection and commissioning – ensuring seamless project delivery from concept to completion. F or nearly five decades, GrayWolf has been a name synonymous with excellence, precision, and performance in industrial construction. Today, as a fully integrated, multi-discipline contractor, GrayWolf is redefining what it means to be a builder – delivering turnkey solutions across industrial and commercial markets, while remaining grounded in the heavy industrial roots that defined its early success. Founded in 1978 as Titan Contracting, GrayWolf began as a tank erector and took on its current name following the merger of Titan Contracting, Titan Fabrica- tors, and INCO Services. GrayWolf contin- ued to expand its presence into key heavy industrial markets, including pulp and paper, refining, and power generation. Now part of the DBM Global family of companies, GrayWolf has grown its foot- print and capabilities, bringing together a highly skilled workforce and best-in-class technologies to solve the industry’s most complex construction challenges. The power of integration What sets GrayWolf apart is its fully integrated approach to construction. With the ability to self-perform a wide range of services – from civil work, con- crete, structural steel, equipment setting, tank and vessel erection, and piping to electrical and modular construction – GrayWolf provides a single-source solu- tion that minimizes risk and maximizes value throughout a project’s lifecycle. This integration enables tighter con- trol over execution, ensuring that proj- ects are delivered on schedule, with consistent quality and clear accountabil- ity. By managing critical scopes in-house, GrayWolf reduces reliance on multiple subcontractors, streamlines coordination, and provides greater flexibility to adapt in real time. / FEATURE // By Brad Phelan, GrayWolf A Fully Integrated Approach with GrayWolf ABOVE: Power generation. Photo courtesy of Cassie Petersen, DBM Global. RIGHT: Steel manufacturing plant. BELOW: Pulp and paper production. 2025 // www.scoar.org 19 By building its workforce from within, GrayWolf creates teams that are not only technically skilled but deeply aligned with the company’s values of excellence, servant leadership, and teamwork. A call to build As GrayWolf continues to expand into high-demand markets, the company remains focused on its mission to build lasting structures and even longer-last- ing partnerships. Whether constructing complex industrial systems, delivering modular solutions, or providing structural expertise, GrayWolf stands ready to build what others can’t. To learn more or connect with Gray- Wolf’s team, contact: sales@graywolf.com. y Brad Phelan brings over 25 years of experience in industrial construction, specializing in construction, fabrica- tion, heavy lift, and heavy transport. As VP of Sales and Preconstruction at GrayWolf, he serves clients includ- ing owners, general contractors, EPC firms, and OEMs across power, oil and gas, chemical, and other industries. All field professionals undergo exten- sive orientation and participate in more than 25 ongoing training programs, including NCCER-certified apprentice- ship tracks and site-specific protocols. GrayWolf also leverages predictive safety technologies and leading indicators to anticipate risks and maintain a safe work environment. This emphasis on safety, combined with a strong commitment to work- force development and retention, supports GrayWolf’s ability to deliver consistent, high-quality results across complex projects. Tomorrow’s workforce, built today GrayWolf’s craft professionals form the backbone of the business. The company not only recruits top-tier tal- ent but invests heavily in their growth and retention through structured train- ing, career progression, and competi- tive benefits. Apprenticeship programs, upskilling opportunities, and national mobility ensure GrayWolf can meet labor demands while offering meaningful, long-term careers. company to take on intricate scopes and deliver reliable outcomes in high-stakes environments. GrayWolf’s core strength lies in the heavy industrial sector, but the com- pany also supports a growing portfolio of commercial clients in sectors such as healthcare, aviation, government, and education—providing structural steel and modular solutions tailored to each market’s requirements. GrayWolf is licensed and insured to work in all 50 states as required, allowing the compa- ny to mobilize wherever client projects demand. Technology and innovation As emerging technologies reshape the industrial landscape, GrayWolf is meeting new demands with agility and forward-thinking solutions. Nowhere is this more evident than in the rapid growth of data centers, fueled by advancements in artificial intelligence and cloud-based services. These high- tech facilities require robust infrastruc- ture – particularly in power and cooling systems – to operate efficiently at scale. To support this growth, GrayWolf offers a comprehensive, multi-disciplinary approach. From fabrication and erection of structural steel framing to specialized construction for power and utility sys- tems, each division contributes to deliv- ering reliable, high-performance solu- tions for today’s data-driven facilities. GrayWolf’s modular construction capa- bilities add further value by streamlining the delivery of essential components – particularly those supporting power and cooling infrastructure. Whether struc- tural, mechanical, or modular in scope, GrayWolf provides a fully integrated response to the evolving demands of the data center sector – and beyond. Building with integrity and safety At GrayWolf, safety is more than a requirement – it’s a core value integrat- ed into every phase of the project life- cycle. The company’s zero-injury culture is built around proactive planning, rigor- ous training, and consistent accountabil- ity at every level. From preconstruction through final commissioning, safety con- siderations are embedded into process- es, workflows, and team responsibilities.Next >