The latest CIRT Sentiment Index Report, covering the 3rdQuarter of 2024, was released today.  The report reflects the expectations, views, and predictions based on the vast experiences and information the CEO members of CIRT’s leading member firms are privy to in their roles.

In sum, the new report shows the Sentiment Index has declined in all aspects, with the overall index score dropping to 62.6 (from 67.0 in the second quarter).  Leading the way down, the “Design Index” element also retreated to 66.3 in the third quarter, from 71.1 in the prior quarter. 

In addition to the overall index, the report also provides insights in the “Current Trends” section related to: profit margin pressures, cost volatility factors over the next 6-18 months, labor productivity, labor cost over-runs on projects, and the impact of the Department of Labor’s rulemaking increasing the threshold salary for professional/administrative personnel to be exempt from overtime pay requirements.

The 2ndQ/’24 CIRT Sentiment Index Report’s overall index score rose to 67.0 from 64.9 in the first quarter, while the subset, Design Index portion, retreated somewhat falling to 71.1 from 74.3 – which may signal a potential slowing in the coming latter part of 2024.

CIRT members reported mixed sentiment across index components, with most anticipating rising labor and material costs in the coming months. This quarter, members were also asked about current issues questions regarding their firms’ adoption of a company-wide health and wellness culture as well as their top priorities for managing talent in 2024.

For details see, CIRT Sentiment Index Report (2Q/’24).

On the road to their national crown, a student mentor team from Northeast Florida was able to navigate a crowded course, to claim top honors in the 2024 CIRT National Design + Construction Competition. Three “Worthy Finalist” mentor teams competed in the final “in-person” round before a distinguished panel of five-judges vying for the top prize of $5,000 and bragging rights as the national champions. The eventual winner, in a closely contested three-way match, went to the ACE Mentor Program from the Jacksonville, Florida area for their entry solving a highway interchange congestion problem in Boston, MA. The overall competence and creativity in converting an existing tangle of lanes, off ramps, and side roads, into a safer more fluid interchange, that recaptured land for parks, bicycle paths, and walkways, won over the judges.  

The 18^th annual competition was part of the Construction Industry Round Table’s (CIRT) spring conference held in downtown Washington, D.C. The three finalist teams survived a grueling process emerging from three categories out of an overall record-tying 64 entries from 24 ACE Mentor Program of America Affiliates. Illinois led all states with a total of nine (9) submissions. Overall, the competition attracted more than 500 students and some 200 plus mentors to submit entries. The panel of judges was led by Thomas Gilbane, Jr. (Gilbane Building Co.) in the “Thorton Chair” (named in honor of Dr. Charles Thornton, founder of ACE Mentor of America), with: Dan Johnson (Mortenson); Karmyn Babcock (The Weitz Group); Ray Sedey (McCarthy Holdings); and Mara Johnston (Keystone Global/Amaracon Testing and Inspections) joining him.

The order of finish for the competition was:

• 1st Place and a prize of $5,000 went to: ACE Mentor Program of N.E. Florida, Creekside ACE National Team 1, for their Highway Interchange entry “North Star Interchange”  
• 2nd Place and a prize of $3,000 went to: ACE Mentor Program of Greater New York, NYC DDC/SCA Team 8, for their Olympic Stadium/Iconic Structure entry “Le Stade Eiffel – The Eiffel Stadium” and
• 3rd Place and a prize of $2,000 went to: ACE Mentor Program of New Jersey, Hawkitects Team, for their Shoreline Design entry “Duo.”

After carefully analyzing the presentations as well as the underlying entry’s design/construction approaches within the project’s objectives, the five-judge panel balanced the outcome on the basis of the two major elements: quality of presentation and competence of the overall entry. The winning team’s solution exhibited a very strong responsiveness to the criteria with particular attention to: (i) finding an ideal site that was in major need of reconfiguration and redesign; (ii) identifying additional intra-modal forms of transportation that could benefit from their proposal, in addition to (iii) reclaiming sufficient land to create a green space/park affording other activities and safe transit across the dense traffic areas that previously were too hazardous for pedestrians. Six other teams were also recognized in the 2024 competition as either First Runner-Up ($1,000 prize) or Second Runner-Up ($500 prize) in each of the tree different design challenges or options. Among this elite group were:

Highway Interchange (out of 4 entries): 1^st Runner-Up: ACE Mentor Program of Southeast Nevada, Team Traffic;  2nd Runner-Up: ACE Mentor Program of Southeast Nevada, LV Harmony Team;
Olympic Stadium/Iconic Structure (out of 23 entries): 1^st Runner-Up: ACE Mentor of Program of Los Angeles Metro Area, STEM Academy of Hollywood; 2nd Runner-Up: ACE Mentor Program of Illinois, ACE Chicago Team 5; and
Shoreline Design (out of 37 entries): 1^st Runner-Up: ACE of Program of Connecticut, ACE New Haven Team 1; 2nd Runner-Up: ACE Mentor Program of Southeast Nevada, MJDL Designs Team.

The CIRT National Design & Construction Competition is a collaborative effort with the ACE Mentor Program of America.

You can watch the Competition in its entirety HERE and see photos from the competition HERE.

The Construction Industry Round Table (CIRT), a national business trade association comprised exclusively of approximately 125 chief executives from the leading design and construction companies doing business in the United States and globally, today elected Deryl McKissack, President & CEO of McKissack & McKissack (Washington, DC) as 2024-2025 Chairwoman of the organization. She succeeds Henry Massman, CEO, Massman Construction.  McKissack was elected during CIRT’s Annual Spring Conference in Washington, D.C.

Deryl's dedication to CIRT is unwavering, viewing her membership as more than just a professional affiliation but as an opportunity to foster collaboration and progress within the industry. She remarks, "CIRT is a sanctuary where industry leaders convene to address pressing challenges, exchange best practices, and champion innovation. It's a platform where we confront issues head-on, from labor shortages to supply chain disruptions, with a shared commitment to improvement." Her vision for CIRT reflects a deep-seated belief in the power of collective action and dialogue to drive meaningful change. As she steps into the role of Chairwoman, Deryl is determined to propel both the organization and the industry forward, enriching the quality of life for generations to come.

In welcoming the new Chairwoman, CIRT President Mark A. Casso, Esq., NAC noted, “Deryl brings a unique perspective and vantage point to leading the CEOs that comprise CIRT, both from her life-experiences but also in succeeding in a male-dominated industry where her skills, personality, and strong team-oriented approach have established her firm as a successful player in the design-construction community.”

 BOARD ELECTIONS

The following members were also elected as Officers during the Round Table’s membership meeting:

• Tom Reilly, Executive Vice President, Turner Construction, (New York, NY) as Vice Chair;
•  Greg Kelly, CEO & President, STV Group (New York, NY) as Treasurer; and
• Henry Massman, CEO, Massman Construction (Kansas City, MO), will continue to serve on the Executive Committee as Immediate Past Chairman.

In addition to the executive committee elections, CIRT also welcomed the following four industry leaders as new directors who will serve on the board through 2026:

• Mike Choutka, CEO & President, Hensel Phelps (Greeley, CO)
• John Henderson, CEO, HDR, Inc. (Omaha, NE)
• Michael Squarzini, Co-CEO, Thornton Tomasetti (New York, NY)
• Rob Strobel, CEO, Lithko Contracting (West Chester, OH)

 “CIRT is fortunate to have a dedicated board of such highly regarded industry professionals. We offer congratulations to our new officers and directors; and thank all our current and outgoing directors for their service to CIRT and its members as well as the design / construction industry,” said Casso.

 # # #

 About Deryl McKissack

Deryl McKissack brings a wealth of experience and a storied family legacy to her role as founder, chairwoman, and CEO of McKissack & McKissack (McKissack), a nationally renowned architecture, engineering, program, and construction-management firm. With over $15 billion in projects under management across various sectors, Deryl has demonstrated exceptional leadership in steering McKissack's growth and success. As a fifth-generation professional in the design and construction field, she inherits a rich heritage, tracing back to Moses McKissack, a master builder who defied odds as a slave. Deryl's journey began early, apprenticing under her father and later honing her skills at prominent firms like Turner Construction and Dames & Moore. In 1990, fueled by determination and a shoestring budget, she founded McKissack, which has since garnered accolades from publications like Engineering News-Record and the Washington Business Journal. Noteworthy projects under her stewardship include the Museum of African American History and Culture, the Lincoln and Jefferson Memorials, and the Obama Presidential Center. Last year, Deryl expanded her impact by launching AEC Unites, an organization dedicated to fostering opportunities for Black talent and businesses in the architecture, engineering, and construction industry, further cementing her commitment to equity and inclusion in the field.

About McKissack & McKissack

McKissack & McKissack (McKissack) is a national architectural, engineering and construction management services firm that has earned a strong reputation for consistently delivering results on time-sensitive, complex, high-profile projects. With over 100 employees, the firm is large and diverse enough to have the full range of technical capabilities to manage our clients’ projects, yet small enough that each project receives the attention it deserves. McKissack is managing $15 billion in construction and is ranked by Engineering News-Record as one of the top 50 construction management-for-fee firms in the United States. McKissack is a leader, enhancing people's lives by advancing the design and construction industry.

McKissack’s diversified services allow us to manage successfully clients’ projects from conception through completion, whether the project is new construction, renovation, reconstruction, environmental design or transportation. Additionally, we provide our services to a diverse and demanding client base, including federal, state and local governments; developers; corporations; healthcare institutions; colleges and universities; K-12 schools; and municipal entities.

Guided by corporate values of integrity, teamwork, and best-in-class performance, McKissack’s professionals provide outstanding technical expertise and are especially responsive to client needs, budgets and schedules.

The three Worthy National Finalists student mentor teams competing in the 2024 CIRT National Design+ Construction Competition have been announced.  Upon receiving a record-tying total of 64 entries from across the country; the preliminary round judges have narrowed the field to participate in the coveted live presentation round. The finalists will be contending not just for “bragging rights,” but also a top award of $5,000 for the winner.   

The Worthy National Finalists that will participate in the presentation round at the Construction Industry Round Table (CIRT) Spring Conference on Monday afternoon April 29, 2024, at the Willard Intercontinental Hotel, Washington, D.C. are:

Highway Interchange: ACE Mentor Program of Northeast Florida, Creekside ACE National Team 1, for “North Star Interchange”
Olympic Stadium/Iconic Structure: ACE Mentor Program of Greater New York, NYC DDC/SCA Team 8, for “Le Stade Eiffel – The Eiffel Stadium”
Shoreline Design:  ACE Mentor Program of New Jersey, Hawkiitects Team, for “Duo”

In addition, CIRT is also very pleased to announce another six teams garnering recognition, either as the 1st ($1000 each) and/or 2nd ($500 each) Runners-Up for each challenge categories for the 2024 competition; are:
Highway Interchange: 1^st Runner-Up, ACE Mentor Program of Southeast Nevada, Team Traffic, for “I-15 & Flamingo Road Interchange” and 2^nd Runner-Up, ACE Mentor Program of Southeast Nevada, LV Harmony Team, for “The Sahara Sky Project.”
Olympic Stadium/Iconic Structure: 1^st Runner-Up, ACE Mentor Program of Los Angeles Metro Area, STEM Academy of Hollywood, for “Le Fleur de Seine” and 2^nd Runner-Up, ACE Mentor Program of Illinois, ACE Chicago Team 5, for “Chateau de Lumiere – Le Stade Olympique sur la Seine.”  
Shoreline Design:  1^st Runner-Up, ACE Mentor Program of Connecticut, ACE New Haven Team 1, for “The Long Wharf Renewal” and 2^nd Runner-Up, ACE Mentor Program of Southeast Nevada, MJDL Designs Team, for “Project Lotus.”

CONGRATULATIONS to every team for your quality entries, and to those receiving recognition for your outstanding efforts. 

To learn more about judging results and the Finalists go to www.cirt.org/competition

While most index components were close to last quarter’s readings, decreased optimism about the U.S. economy, the economy where members operate, and members’ construction businesses all fell sharply going into the fourth quarter of 2023.  Of these factors, CIRT members’ sentiment toward “the U.S. economy” recorded the largest decline, falling to 36.1 from 45.5 in the 3rdQ/’23 report.  In addition to the market/economic conditions, members also provided insights and views on current issues questions, focused on use of technology and planned technology investments; as well as follow-up on how labor resources were sourced to meet staff shortfalls to complete projects safely and on time.

For more details see: “CIRT Sentiment Index Report, 4thQ 20’23”

The Third Quarter/2023 CIRT Sentiment Index Report indicates a more optimistic view overall, at 59.7 score (up 6.9 points from the 2ndQ/23), but the Design element remained the same at 68.5 for the latest period.  As a result, the overall score has closed the gap with the design element -- which had opened-up over the first half of 2023.

In addition to the overall sentiment the report also delves into economic and business performance, market segments, as well as key inputs like labor and materials.  Moreover, there are insights in the CIRT members views on labor productivity, project staffing requirements, and cost overruns at the project level.

For detail see, CIRT Sentiment Index (3rdQ 2023).

The most recent CIRT Sentiment Index Report for 2ndQtr./2023 shows a growing divergence of view between the overall index, down slightly at 52.8, and the Design segment of the report that is much more optimistic at 68.5 for the quarter.  It could be a good sign for expanding construction needs in the future, however the full impact of the slowing economy and bank turmoil – are not fully factored in for the most recent report levels.

In addition to the market segments, economic views, and overall firm health the Sentiment Report also obtained feedback on a number of “Current Issues” that may be of interest to the members.  This quarter’s report focused on expectations around lending standards, experience with subcontractor defaults, employment policies (related to hiring, promotion, etc. and the threat of EEOC investigations), and new norms with respect to remote work schedules.

For more information/details see, CIRT Sentiment Index Report (2ndQ/2023).

Coming off of one of CIRT’s most successful and well attended spring conferences on record, the organization’s members seemed to be energized and enthused.  Highlight of the event was a visit by the Secretary of Commerce, the Honorable Gina Raimondo, who regaled the audience on a variety of key issues from supply chain challenges to promoting more women in the construction industry trades so as to find good career well-paying jobs while meeting workforce shortages.  Human resources and the many challenges facing its companies in this area was a reoccurring theme during the conference sessions that included a frank discussion on wellness and mental health concerns, along with a wide-ranging panel discussion covering a myriad of regulatory and legal matters affecting the complex relationships, while firms reach out to try to broaden and diversify their personnel.

The three Worthy National Finalists student ACE mentor teams competing in the 2023 CIRT National Design+ Construction Competition have been announced.  After receiving a total of 48 entries from across the country; the preliminary round judges have narrowed the field to participate in the coveted live presentation round. The finalists will be contending not just for “bragging rights,” but also a top award of $5,000 for the winner. 

In addition, CIRT is also very pleased to announce the other six teams garnering recognition, either as the 1st and/or 2nd Runners-Up for each challenge categories for the 2023 competition.

CONGRATULATIONS to every team for your quality entries, and to those receiving recognition for your outstanding efforts. 

To learn more about judging results and the Finalists go to: cirt.org/competition-winners!