Murphy contends workforce shortages will continue to be a challenge this year, particularly in South Florida where “we are at a disadvantage geographically because we cannot pull from nearby states.” Given the challenge of finding quality workers, Coastal has a stringent subcontractor prequalification process in place and seeks resources out of state.

“Our subcontractors must go through a prequalification process prior to working with us that ensures the team members selected for each project have the staff, capabilities and financial strength to assist in the success of the project,” he explains. “We have also started bringing contractors in from out of state and teaming them up with local companies, doubling their resources and adding quality trade personnel. This has worked really well for us.”

What about rising labor costs? Murphy agrees this will continue to be a challenge in 2017 and explained that South Florida is a very competitive market, noting that “subcontractors are poaching workers from each other, which drives up labor costs.”

MIAMI—The construction industry has relatively high expectations for 2017 as most firms expect public and private market segments to expand. The construction industry has relatively high expectations for 2017 as most firms expect public and private market segments to expand.

It seems their optimism is based on the assumption the economy will keep growing and the Trump administration will enact significant new investments in a range of public works projects, especially for highways and public buildings. So says the Association of General Contractors of America's 2017 Construction Hiring and Business Outlook report. As a result of this optimism, the association says, many firms expect to expand their headcount next year. As optimistic as the industry is about 2017, the group suggests, there are still significant challenges facing the industry, including growing workforce shortages and increasing health care costs.

Sean Murphy, co-president of Miami-based Coastal Construction Group, one of Florida's largest general contractors, is optimistic about the construction market in 2017. He tells GlobeSt.com, in South Florida “multifamily and workforce housing are in strong demand right now.”

Murphy also reports an uptick in activity within the private school sector and says the luxury home market will remain steady. While the condo market has slowed down, he notes activity continues to be strong in the $30 million to $75 million projects: “We are also seeing a lot of activity shifting northward to Ft. Lauderdale and Palm Beach.”

Murphy contends workforce shortages will continue to be a challenge this year, particularly in South Florida where “we are at a disadvantage geographically because we cannot pull from nearby states.” Given the challenge of finding quality workers, Coastal has a stringent subcontractor prequalification process in place and seeks resources out of state.

“Our subcontractors must go through a prequalification process prior to working with us that ensures the team members selected for each project have the staff, capabilities and financial strength to assist in the success of the project,” he explains. “We have also started bringing contractors in from out of state and teaming them up with local companies, doubling their resources and adding quality trade personnel. This has worked really well for us.”

What about rising labor costs? Murphy agrees this will continue to be a challenge in 2017 and explained that South Florida is a very competitive market, noting that “subcontractors are poaching workers from each other, which drives up labor costs.”