INDUSTRY NEWS
We continue to see a steady flow of opportunities. However, it seems there is more public work than private in the pipeline which may be a sign the economy is ebbing. As a Butler Builder we participate in both sectors. Most of the Architectural firms we speak with remain busy so we are not overly concerned. Studies show construction volume mirrors Architects billings by a 12-month lag so as long as the design firms remain busy, we will as well (and we are very busy).
Building department woes linger and there does not seem to be any relief in sight. It takes longer to design and permit most projects than it does to construct. With regard to public work, we are very excited to have completed several Sourcewell projects. Sourcewell is a government agency which functions as a buying cooperative and through our Butler relationship, we can offer construction services to any non-federal government or non-profit entity. This is done through a contract Bluescope Construction holds with Sourcewell. Bluescope Buildings N.A. is Butler’s parent and we provide the local contact and expertise for this work. It remains an exciting contracting method. Our customers are likely to save oodles of time and aggravation by buying directly from us and Butler.
Pricing Volatility
Butler President, Christen Funk, recommends greater caution when budgeting future work, suggesting builders incorporate escalation clauses where feasible. Lead times are subject to supply and demand. For more complex projects, lead times are extended and vary based on requirements. Due to the volatility of the market, we should expect to see an increase on pricing of raw materials.
2023 Butler Sales Meeting
In September, John, Rich M., and Bruce attended the Butler North East Butler Builders Round Table meeting. 33 Builderships were in attendance along with Butler and Bluescope upper management. Many issues were discussed and there seems to be a common thread of slow permitting, lack of qualified help available, and concern for the next few years backlog. Most important update from Butler was the upcoming roll-out of long-awaited new engineering and estimating software, OMNI™. The launch of the OMNI™ Design software is on track for a mid-2024 launch. In anticipation of this new software release, our office engaged early and enrolled in the Beta program. Keith and Bruce are in training and hopefully will have some input on the program as they learn more.
Kansas City, Missouri 2023 Butler Builder Meeting
The 2023 Butler Builder meeting, held in Kansas City, Missouri, provided an opportunity to network and engage in presentations held by industry leaders. Breakout sessions included insight on many topics, notably how to leverage the Butler Difference and how to optimize design for better pricing. Although we were not in attendance, we are provided access to great insights and resources from the event.
Click the below to expand on these topics and much more!
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