Construction industry braces for double hurricane whammy

Thank you for joining us for the second issue of The Level. If you signed up as a new subscriber this week, welcome! 

As the construction industry cleans up from Hurricane Helene, Milton is stoking its own set of fears. How can the industry brace for round two, and what will it mean for the construction supply chain? Plus: Check out this $100M construction price tag for an aquarium. 

In today's issue:
// Hurricane Helene's impact and a look at Hurricane Milton
// What the interest rate reduction means for the industry
// Preparing for open enrollment season
// Rules for talking about politics at work, with clients

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Interest impact: What the reduction means for the industry

The federal interest rate's 0.5 percentage-point rate decrease should increase the velocity of new construction projects in the coming year thanks to lower rates for construction loans and higher availability of equity investment.

That could be especially good news for asset classes hungry for investment and activity, if they can wait for the pipeline to improve. “Lower interest rates are not a panacea,” cautions John Sullivan, chair of the U.S. real estate practice at the DLA Piper law firm. “But they make many projects more economical and can drive positive sentiment in the market."

Why It Matters: "It often takes time for a reduction in the federal funds rate to translate into a reduction in construction loan rates, but positive sentiment may drive investment forward sooner,” Sullivan notes. (ConstructionDive.com)

>> A sneak peek at construction conferences in 2025

>> Contractors urged to prep for Hurricane Milton

>> Hurricane Helene's effect on the supply chain

>> Top 10 cities for new-construction homes

>> For construction, climate is a strategic issue

ACA actions: Get ready for open enrollment

Open enrollment starts Nov. 1. If your team members get their coverage from the Healthcare Marketplace, it’s time to help them prepare. Start by helping them understand the process. Local experts can help with this. HealthCare.gov has a helpful webpage with step-by-step instructions and a handy downloadable checklist.

Why It Matters: Scaffolding employees in preparing for Open Enrollment helps them make informed decisions about the coverage they choose or themselves and their families. (HealthCare.gov)

• Site Safety for Floods & Stormwater: Tips from the CDC to keep crews safe when waters rise.
• Union Labor Audit Tool:  Safeguard your business and be audit ready by implementing a system for data retention and internal.
• Creating a Circular Economy in Construction: Reduce waste and increase sustainability by adopting circular economy principles. 

Future focus: Plan now for ownership transfer 

With almost half of all private companies owned by Baby Boomers and another 35% by Gen Xers, succession and ownership transfer should be priorities for your enterprise.

However, recent research from FMI Capital Advisors found that 58% of respondents to a survey of construction and engineering executives lack an ownership transfer plan and that fewer companies are developing formal succession plans now compared to four years ago. 

Starting early is critical, whether you plan to transfer ownership internally, sell to an outside owner or execute an employee stock ownership plan.

Why It Matters: “This is your biggest asset. It’s most of your life savings and often it’s wealth that may span more than one generation," says Nathan Perkins, FMI's managing director, ESOPs. "To be a good steward of that asset you need to make sure that if you're going to sell it or take some liquidity out you understand very clearly what your options are and the implications of that decision.” (FMI Capital Advisors)

Election etiquette: Rules for talking about politics

Political conversations can get heated in the run-up to Election Day. Kara Govro, chief HR legal expert at Mineral, shares these tips for communicating guidelines for political/election conversations:

• Recognize that some employees, regardless of party affiliation, feel tension, fear and anxiety.
• Reinforce that everyone should be respected at the job site and in the office.
• Encourage people who want to talk politics to do with an eye toward understanding another’s position, not changing their mind.
• Explain that you aren’t prohibiting constructive conversation – you want to limit disruptive and disrespectful comments. (SHRM.com)

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The Level is curated and written by Margot Lester and edited by Katie Parsons.