Q2 2023 Construction Delivery Outlook

The construction industry continues to remain highly active across the nation, particularly in our core markets of Dallas and Phoenix. At LGE, we are dedicated to delivering cost-effective projects and innovative solutions, even amidst ever-changing market conditions. Our team remains focused on providing exceptional service and successful project outcomes, no matter the challenges we face.

A summary of the Construction Delivery Outlook key findings include:
Construction Labor

Construction labor shortages are not expected to disappear anytime soon. Contractors are experiencing significant demand for mega-projects related to chip manufacturing plants and clean energy facilities, while still struggling with a shortage of younger workers entering skilled trades.

Supply Chain

Over the past six months, there has been an improvement in freight and supply chain issues. However, suppliers are now faced with the challenge of balancing softening demand while simultaneously dealing with the effects of past price increases and maintaining competitiveness.

Material Costs

Unpredictability within the supply chain is impacting all aspects of the construction process, including raw materials and transportation. The ongoing war in Ukraine has also led to supply barriers and increased export prices for materials such as copper and aluminum.

Demand by Product Type

There are significant variations in the year-over-year percentage changes for type of structure in square feet millions for each category of construction in the U.S. between 2022 and 2023. The industrial construction market experienced an increase in activity in 2022 with a year-over-year growth of 84.8%. However, this is followed by a significant projected decline of 28.9% in 2023.

View the full Construction Delivery Outlook report by downloading it below.

LGE’s Tenant Improvement Process and Team

We have nearly 30-years of experience planning, designing and imagining awe-inspiring interiors for our clients who are looking to make their space uniquely their own. Recently, we’ve doubled-down by establishing a division exclusively focused on accelerating tenant-improvement schedules while still maintaining the highest standards of quality LGE is known for.

LGE’s Tenant Improvement Process in 5-steps:

Conceptual designInitial concepts take shape as LGE defines the project vision:

  • A customized client proposal that includes detailed specification guidelines, budget, and pre-construction agreement
  • Project schedule outlining design, engineering, build, and timeline

Budget & cost controlWith conceptual designs and proposal approval, LGE ensures adherence to budgets:

  • Controlling scope to ensure the design intent remains aligned with the established budget
  • Generates construction documents that adhere to project and budget scope
  • Competitive bidding from four qualified subcontractors for each trade to ensure quality and economy

Plan & permit approvalCoordinating required documents for permit approval prior to construction, LGE:

  • Manages the teams and required documents for maximum communication and transparency
  • Route architectural, engineering, and construction comments to drawings
  • Coordinates the submittal and permit process through city, municipal, and/or design review boards
  • Controlling scope to ensure the design intent remains aligned with the established budget
  • Generates construction documents that adhere to project and budget scope
  • Competitive bidding from four qualified subcontractors for each trade to ensure quality and economy

Construction administrationDuring construction, LGE manages tasks related to on-site activity and ensures:

  • Construction teams coordinate all aspects of a build with proper communication and approval
  • Development of weekly, day-to-day schedules to ensure on-time delivery
  • Weekly client updates with a three-week look ahead snapshots
  • Procore Construction Process software used for full client transparency

Close out & warranty – After completion of an LGE project, we continue to support clients by:

  • Providing an above-market 2-year warranty backed by more than 900 projects and a client repeat rate of over 92%
  • Following project close-out, LGE maintains relationships with building owner(s), ensuring complete project satisfaction

LGE’s Tenant Improvement Team:

Nathan Padron
Director of Tenant Improvement – Construction

Issie Castillo
Business Development Manager

Shelbie McDiffett
Texas Director of Business Development

Ben McRae
Vice President / Principal

Layna Justice
Interior Designer

Carlos Elias
Design Manager

John Mocarski
Director of Business Development / Registered Architect

Josh Rogers
Director of Sales