Construction Industry Outlook 2014
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DCK Pacific Construction
“We specialize in developing flexible and agile relationships with our clients,” explains Eric Tessem, Senior Vice President & General Manager for dck pacific construction. “That may mean we’re hanging a door or remodeling a nurses station and then, in the next breath, fast tracking a complete hospital renovation or additional wing. That’s what makes us so viable in Hawaii—we’ve done some of the largest projects right down to some of the smaller ones.”
With a portfolio of completed installations in some of the most challenging site locations, dck pacific construction is celebrating 75 years of doing business in Hawaii. “We’re optimistic about 2014, but all signs are pointing towards a great year,” Tessem says. “What has been and will continue to be incredibly successful for dck pacific construction is that we span multiple business sectors—public works, federal, retail, hospitality, healthcare, and more—and if one sector drops down, the others typically pick up and fill in the gaps. That balanced workload allows us to grow and get busier all the time.”
Bays Lung Rose & Holma
“We are cautiously optimistic going into 2014. While the development of Kaka’ako and rail is very exciting, you do have to carve through the smoke a little bit to see what the net benefits will be,” says Ryan H. Engle, Partner at Bays Lung Rose & Holma. “Those are great developments, but they don’t necessarily translate to the re-energization of the full construction landscape. There will be great opportunities out there, but companies still need to be deliberate in their growth.”
As an attorney and advocate for the construction industry, Engle reports that one of the signs of a flourishing economy, like the one he is beginning to see now, is in the number of contracts that cross his desk. “When you have the opportunity to have your legal advisor draft and review your contracts, you should,” he recommends. “The function of a contract is to fairly and properly allocate risk so that if something goes wrong you know who will be
Visit Bay Lung Rose & Holma online at www.legalhawaii.com.
Photo: Courtesy of Thinkstock.com
Since reopening in 2003, Swinerton has grown to become one of Hawaii’s premiere contractors. In 2012, the company was recognized as the state’s second largest contractor with projects including Hilton Hawaiian Village, Turtle Bay Resort, the Kaiser Moanalua ancillary wing, and the Andaz Maui at Wailea. “We are committed to providing best in class construction services to our clients. We work collaboratively with our clients and always have their best interests as our priorities,” says Mark Tacazon, Marketing Manager. “Much of what we’re able to do for our clients comes from implementing the latest construction methods and technologies to increase efficiencies and overall field performance.”
“As we move forward in 2014, we will not be short of opportunities,” continues Tacazon. “The federal market is expected to rise, hospitality and retail markets will continue to gain strength as tourism remains strong in Hawaii, and we can also expect a lot of activity in Kaka’ako to follow the several high rise projects that are preparing to begin.”
Hawaiian Dredging Construction Company, Inc.
Hawaiian Dredging Construction Company, Inc. knows a thing or two about longevity. With over 110 years under its tool belt, it is the oldest and largest general contractor in the state. “We value each opportunity as very important. Working here in Hawaii, whether it’s a small or large project—we’re simply focused on our clients,” says Gerry Majkut, Senior Vice President, Marketing and Engineering. “And we’re always looking towards the future in order to provide the highest level of service to our clients and the best opportunities to our employees.”
Five divisions keep the 800-employee company busy: Building, Commercial, Heavy, Power & Industrial, and Waterfront & Foundations. “Each of us wished we knew what the future held exactly, but looking at it from our perspective we continue to see growth in construction,” Majkut says of 2014. “The stock market’s good run in 2013 indicates positive signs for 2014, and staying agile and flexible in an ever changing economy continues to be our key to success.”
Visit the recently re-launched Hawaiian Dredging Construction Company, Inc. website to learn more: www.hdcc.com.
HPM Building Supply
This year, HPM Building Supply will celebrate 93 years of providing professional grade construction materials to Hawaii. “My great grandfather started the business when, as a general contractor, he was unhappy with his suppliers and the quality of goods he could acquire,” says Michael Fujimoto, President and CEO of the company. “Nearly a century later, the predominant building material of choice—high quality Douglas fir—continues to be the same. But
The company, with seven locations throughout the state, is continually adding to its inventory with on-trend products of the highest quality such as pre-manufactured roof trusses, countertops, and even zero-waste wall panels that can quadruple the speed to frame a single family home. “Distributors like us really work hard on behalf of our customers. Ultimately our purpose is to help more people live more comfortable lives by reducing costs and widening home ownership to our population,” Fujimoto says. “We’re enthusiastic about seeing continued growth this year and adding to our local economy.”
Learn more by visiting www.hpmhawaii.com today.
Pacific Pump & Power
Pacific Pump & Power deals in pumps, generators, light plants, pipe, and other fluid transfer related supplies to support contractors. With an emphasis on safety and quality, the company turns out thousands of projects annually. “Last year was a good year for us but it consisted of a different composition of work than we’ve seen in previous years—less big government work and more, smaller projects,” says Paul Leonard, General Manager. “
“In 2014, we are bidding a lot of work with military installations and the municipalities. Pacific Pump and Power has invested heavily in our stock of equipment for rental and for resale so that we can stay ahead of increasing demand in Hawaii. There are many vertical construction and transportation opportunities right now, and these projects are fueling a lot of work for the construction industry as a whole. We’re confident that our Specialized Fluids Handling portion of the Hawaii construction industry is going to have a growth year in 2014.”
From lumber and building products to windows and finishing materials, Honsador Holding’s multiple businesses function as one-stop shops for construction trades. “Our services include early morning and afternoon deliveries, bonding, design, technical professionals, and manufacturing along with our distribution hub in Portland,” says Peter Schiller, CEO of the holding company that includes Honsador Lumber, Alpha Electric Supply, HWT, and Honsador Truss Plants.
“Last year was a good year for us; we increased our employee base by over 10 percent and realized over 20 percent growth in our LBM business. This year should be a continuation of the gradual economic improvement that we experienced, statewide, in 2013.” Schiller says. “There are a lot of exciting projects on the horizon, especially with rail, the high rise boom expected in Honolulu, and the new housing projects planned for Ho`opili and Koa Ridge. We just have to remember that most of those will probably not begin to materialize until 2015 and beyond.”
Pacific Resource Partnership
Hawaii’s construction environment saw significant improvement in 2013, positioning the industry to play a major role in the state’s economic recovery in 2014 and beyond.
Construction activity on Oahu continues to be strong with combined public awards and private sector permits on pace to reach $2.5 billion for 2013, a level seen only in 2007. For the first three quarters of 2013, total Honolulu permit values increased by 10% from 2012 levels. The signs of turnaround are
The importance of residential construction – to the industry as well as residents – can’t be overstated. This sector not only provides jobs for those in the industry; it also provides a product supply that will enable Hawaii’s population and economy to grow. But economic growth won’t happen unless Hawaii is affordable for residents. Home prices are rising far faster than are incomes, largely because demand exceeds supply. To keep up with population growth, Honolulu will require 35% more housing units by 2050 than it had in 2010. Addressing the demand for housing is going to be critical to Hawaii’s future.
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