Archives for February 2022

Many hotels and senior living facilities are operating at partial capacity because they can’t hire enough people.

Nearly 90% of companies to remain open in 2022, Density study showed.

For all the debate around hybrid work schedules and remote work, one study finds that most employers continue to embrace a traditional approach to work, with two-thirds (63%) of large companies remaining open throughout the pandemic and more than half of all companies (59%) neither closing during the pandemic nor offering any hybrid working option (55%).

This is in addition to 88% of companies saying that they are keeping their offices open in 2022, with only 10% limiting the number of employees allowed back at one time.

Density, an analytics platform for measuring workplace performance, commissioned the survey and study with YouGov, which was conducted in mid-December.

Of course, this is one data point in a sea of data that is emerging about the future of work. Another point, just to highlight the wide range of views on the subject, comes from a new survey by CoreNet Global that found that 57% of corporate real estate professionals said their companies were using anywhere from the same amount of space to up to 20% less than in March 2020. Another 28% were using between 20% to 30% less space, while 15% had taken on more.

The Density survey makes it loud and clear how employees feel about traditional office work schedules. When asked about the quality valued most in a hybrid workplace, more than half of employees (57%) said a flexible work schedule. This is especially true of employees (59%) at large-scale companies (500–999 employees). The study also showed that one in three employees (32%) want the flexibility to choose where they work day-to-day, despite 39% saying they were working full time from the office.

Employees Need a Reason to Return

But even companies that plan to forge ahead with return-to-office policies should have a plan in place on how to communicate that decision with workers. It also wouldn’t hurt to sweeten the directive with an emphasis on safety and comfort. Michael Casolo, Chief Revenue Officer at Unispace, tells GlobeSt.com that companies that focus only on return-to-office policies miss the point: Employees will need to want to come back to the office, and there has to be a reason to come back to the office.

“To entice them, the office has to be something new, because the way we now work has evolved to be something very different to what it was pre-pandemic.”

He said that there has been no other time in the history of work where so much has changed in a two-year period, and forming return-to-office policies thinking that employees can come back without missing a beat is unrealistic.

“Increasingly, our clients are looking for ways to experiment and innovate in their workspace to quickly incorporate elements of comfort, safety and collaboration,” Cosolo said.

The Before, After and In-Between Meetings

Steelcase started working in a hybrid way in early 2021 and has been able  to safely continue with that strategy despite the virus waves, Donna Flynn, VP of Global Talent at the company, tells GlobeSt.com.

“We’re back in the office because we believe we work better when we’re together—it’s what builds our communities of belonging and helps us make meaningful progress. Together doesn’t necessarily happen over video—it’s the before, after and in between meetings that we continue to learn from one another.”

Steelcase also recognizes the risk and varying comfort levels that have accompanied the pandemic and believes in empowering employees to choose what the best place to work is for them, which may change from day to day, she said.

“We continue to move forward empathetically, recognizing everyone is tired from the constant adaptation and challenges brought by the pandemic. We trust they make the right decisions for their work and for their physical and mental wellbeing as well as that of their households.”

Source: “Employers Reluctant to Adapt to New Workplace Reality“

Construction items such as copper, lumber, steel and cement saw hyperinflation in 2021.

At least one leading construction consultancy firm sees lower prices ahead for construction materials and also a surge in construction spending by 4.5% year-over-year overall thanks to efforts tied to the recent infrastructure bill passed by Congress.

Much of the inflationary pressure on prices was due to shortages prompted by pandemic-related supply chain issues, increased global demand, labor disruptions, and extreme weather.

The findings are part of Linesight’s fourth-quarter Commodity Report and price forecast, based on interviews with over 160 industry experts across the globe.

Higher Costs Blunted Construction Output in 2021

In 2021, prices for essential construction materials such as copper, lumber, steel, and cement hit record highs amid shortages. These higher costs and delays for delivery blunted construction output to $1.626 trillion, compared to previous projections of $1.645 trillion.

While the US construction sector still faces many of these challenges, Linesight expects to see declines in prices in 2022.

Prices for flat steel saw the most significant year-over-year increase in 2021 for the commodities tracked in the report, rising 131% to $1,486/MT ($1,348/t), driven by demand for durable goods like appliances and automobiles. However, while global and domestic production have ramped up, Linesight expects prices to decline slightly, flat steel by -0.8% and steel rebar by -0.7% in the first quarter of 2022.

Lumber prices surged 32% in 2021 to $9.9/cu ft due to labor disruptions and destructive wildfires in Canada and the United States. Demand, especially from residential construction, continues to be strong. Linesight expects lumber prices to climb moderately by 0.7% in Q1.

The price of copper spiked by just over 50% in 2021, to $9,451/MT ($8,574/t) from production issues in China and Peru and increased global demand. However, as the supply chain normalizes, Linesight sees prices declining by 2% in the first quarter.

Current Costs, Volatility, Remain High

Justin Brown, President & CEO, Skender, tells GlobeSt.com that he anticipates that some of the challenges around supply shortages will subside this year, but that some volatility will remain.

“Our teams are continuing to prioritize flexibility and risk mitigation, and work proactively to meet project needs, Brown said. “Overall, we’re very bullish on 2022. There is still some uncertainty in the economy, but the construction risks are tolerable and quantifiable, and our pipeline of new projects is strong.”

Jeff Taylor, managing director, Digital Risk, tells GlobeSt.com he’s still seeing higher costs today.

“Our construction and developer contacts continue to voice concern about the effect of high construction material costs, particularly that of lumber, on housing supply and do not anticipate any alleviation in the immediate future due to persistent supply chain complications and labor shortages,” Taylor said.

Currently, the hardest hit items are metal-related—anything from reinforcing to structural steel to a pre-engineered metal building, Barry Wurzel, president of Wurzel Builders, LTD, tells GlobeSt.com. “Additionally, lighting, plumbing fissures, and electrical wiring are the most volatile, primarily from manufacturing and the combination of lack of access to supplies and high shipping expenses,” Wurzel said.

Source: “After Huge Run-Up, Materials Costs Set to Moderate in Q1“