The cranes stretching toward the sky in cities across Florida are sending a clear message. Florida is experiencing record growth. We were recently named the fastest growing state in the country by the U.S. Census Bureau — the first time this has happened since 1957 — and construction starts shot up 35% in the tri-county region in 2022.
As new residents and businesses decide to call our sunny paradise home, having housing and office space with strong foundations available to them is vital. According to the Fort Lauderdale Downtown Development Authority (DDA), downtown growth is exceeding that in Austin and Atlanta, among other cities. To meet this demand, Fort Lauderdale will need to create 13,000 new residential units, 600,000 square feet of shopping and dining, 1.1 million square feet of office space and 1,000 new hotel rooms by 2030.
However, to complete these proposed construction projects and build a more resilient city, local government, communities and developers must come together to address the many challenges facing our industry that could potentially stunt future growth. One of those challenges is the construction labor shortage caused by lower workforce participation, early retirements post-pandemic, aging baby boomers and a lack of skills training for new workers. And the construction industry labor shortage will only continue as more residents and businesses move to Fort Lauderdale.
Construction companies can address the labor shortage by investing in technology and data that can make construction more efficient, accurate and predictable, which will dramatically ease workforce demands. For example, Suffolk Technologies, the venture investment affiliate of Suffolk, has invested in AI and has built solutions in-house and through partnerships. Some recent AI advancements include Newmetrix, which uses predictive algorithms to flag safety risks on job sites, and OpenSpace, which uses image recognition and auto tags to automatically record images so that a project site can be completely documented at all times. We’re also excited about multi-modal generative AI, which essentially generates drawings linked to cost and schedule — it could solve constructability issues and make design changes that previously took months within just minutes.
Aside from investment in new technology, contractors should partner more closely with designers, architects and developers much earlier in the planning process, especially as the increase in funding for statewide infrastructure projects means more private-public partnership (P3) projects. P3s can result in more efficient builds and faster project completions — if they are done right. All too often, design changes from different stakeholders are made too late in the construction process, which can delay the entire project. With the current supply chain delays, close collaboration — especially during the pre-construction process — is more crucial than ever and one of the reasons why P3s are becoming more common.
We must also expand the labor pool by attracting a younger, more diverse workforce to construction. The industry is often overlooked due to certain misconceptions, such as the idea that learning a trade will not lead to a successful career compared to earning a college degree, or that construction is not an option for tech-savvy individuals, or even that construction is only for men.
However, the reality is construction is an industry of innovation and diversity that provides professionals lucrative careers with the potential for growth and exposure to important skill sets such as project management and team leadership. Construction professionals can also make meaningful and tangible impacts on communities while literally transforming city skylines and people’s lives. The stability historically associated with construction careers may also be especially appealing to individuals currently in risky, volatile industries.
The sustained migration of individuals to Fort Lauderdale and the continued impacts of climate change will continue to put pressure on the real estate and construction industries to develop and build more, and to do so in the most sustainable and resilient way. This means both great challenges and great opportunities lie ahead in construction. We must continue to invest heavily in construction projects and technologies that will transform our cities and make Florida more competitive on the world stage, but we must also commit ourselves to investing in our workforce so we will be prepared and positioned for a sustainable and resilient future for years to come.
Kyle Goebel is vice president of operations for Suffolk, one of the largest building contractors in Florida.
