Extreme weather's impact on construction
Our thoughts are with the residents of California fighting wildfires and their aftermath. Check out the many ways the construction industry is pitching in to help. Plus, how will the wildfires affect the cost of rebuilding and plans for redevelopment in fire-prone areas?
Here's a peek at what's in today's issue:
// How extreme weather trends will impact the industry
// What you can do to protect workers' hearing
// When you need to file certain tax documents
// Where you can find a car-free community
>> Who we're following: Christi Powell on LinkedIn. The leader of 84 Lumber's Women's Business Enterprise Division shares her expertise and insights on building materials and the construction industry, including new business development, team building and successful ownership strategies.
>> What we're watching: Building a Safer Business on The Construction Life channel on YouTube. Find out why host Manny Neves says hiring a safety consultant is more than worth the money.
>> What we're reading: Fire Weather: A True Story from a Hotter World (Knopf). John Vaillant's book is a timely read chronicling the changing character of wildfires and the increasingly volatile conditions where the built environment and wilderness converge.
>> What's happening soon: Cutting Carbon: A Contractor’s Guide to Embodied Carbon (Jan. 23). This Construction Management Association of America webinar will deliver practical tips for addressing embodied carbon to reduce your projects' carbon footprints.
>> Just for fun: Try "noise colors" to change your mood. Writer Becca Caddy explains how we hear colors and how they impact the way we feel and think.
Climate Connection: Extreme weather threatens industry
Last week’s weather ran the gamut from wildfires and severe Santa Ana winds in the West to extreme cold and blizzards across the Midwest, North and South. Conditions endangered lives, disrupted supply chains and tanked productivity. It’s too early to know the total impact and the downstream effects.
These extreme weather events came close on the heels of new research on the impacts of climate change on business, including construction.
New data from the World Economic Forum confirms the effects these extremes and other aspects of climate change have on the bottom line. As reported in Forbes , “Extreme heat and other climate hazards are expected to cause between $560 billion and $610 billion in fixed assets losses each year for publicly traded companies by 2035."
A December report from the U.S. Congressional Budget Office provides a deeper look into potential impacts for the national economy and specific industries and regions. Key findings from "The Risks of Climate Change to the United States in the 21st Century" highlight the impact of rising global temperatures.
Why it matters: According to the Forbes article, the research shows how significant the bottom-line impact is: "Companies that fail to adapt to climate hazards like extreme heat stand to lose up to 7% of earnings each year by 2035. That’s the equivalent of a COVID 19-scale financial hit every two years”. (Forbes)
>> Female-founded: $3 million raised for embodied carbon reduction tech
>> Cars cancelled: A community designed to be auto-free
>> Architecture archived: DC buildings by Black architects
>> Steel scaffolded: American production in jeopardy?
Noise Nuisance: Protecting workers' hearing
Among people exposed to noise, construction employees experience hearing loss more than workers in any other field, according to a recently published study from the National Institute for Occupational Safety and Health (NIOSH). Insights from "Prevalence of Hearing Loss among Noise-Exposed U.S. Workers within the Construction Sector, 2010-2019" show hearing loss is highest in these sub-sectors:
- Highway, street and bridge construction
- Site preparation
- New single-family housing construction (except operative builders)
- Oil and gas pipeline and related structures
- Other building finishing contractors
The researchers also found four ways to better protect crew members' hearing:
- Provide quieter equipment
- Keep moving parts oiled and well-maintained so they produce less noise
- Enclose or dampen noise sources
- Enforce practices and policies that reduce crew size and time in noisy areas
Why it matters: "Construction consistently rates among the top industries for the prevalence and risk of hearing loss — hearing loss that is severe enough that it affects workers' daily lives," says research epidemiologist Elizabeth Masterson, PhD, the study's lead author. (EHS Today)
1099 Time: Don't miss a deadline
The two most commonly used 1099s for construction companies are the Form 1099-MISC, Miscellaneous Information, and Form 1099-NEC, Nonemployee Compensation. According to the IRS, you must prepare these forms if "in the course of a business” you made payments of $600 or more:
- In other income, rent or for other specified purposes, such as gross proceeds paid to an attorney (Form 1099-MISC)
- To a non-employee for services, including payments to an attorney (Form 1099-NEC)
There are other circumstances in which a 1099 may be required.
Always check with your tax professional or the IRS for a definitive determination. For questions about information reporting, call the IRS at 866-455-7438, 304-263-8700 (charges may apply) or 304-579-4827 (TTY/TDD, not toll-free).
Why it matters: 1099s must be filed by January 31, 2025. The only exception, according to the IRS, is if 1099-MISC amounts are reported in boxes 8 or 10. Then the filing deadline is February 17, 2025. (IRS)
- Find out if you qualify for tax relief Get a break from the IRS if you meet these disaster-related criteria.
- Get ready for tax season Review this handy checklist from NerdWallet to make sure you have all the documents you need before engaging a tax preparer.
- Improve your PM chops Boost your skills and effectiveness by enrolling in the FMI Project Manager Academy.
Thanks for reading today's edition! You can reach the newsletter team at thelevel@mynewsletter.co. We enjoy hearing from you.
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The Level is written by Margot Lester and edited by Katie Parsons.
