A SUPPLEMENT TO LEHIGH VALLEY BUSINESS | SPRING 2021 CONSTRUCTION &REAL ESTATE Challenges & Opportunies 2020 is receding into history, but its impact on the construction and real estate industries is here to stay. MORE INSIDE Xxxx 65 E. Elizabeth Ave., Suite 400 EDITOR’S LETTER Bethlehem, PA 18018 610-807-9619 • [email protected] Group Publisher SPECIAL PRODUCTS EDITORS Suzanne Fischer-Huettner • shuettner@bridgetowermedia. Dick Moss • [email protected] s they say, the more com Patrick Brannan • [email protected] Business Manager EVENTS things change, the Maria Kelly • [email protected] Event Manager Kara Barmoy • [email protected] more they stay the Audience Development Manager A Tracy Bumba • [email protected] ADVERTISING same. SENIOR ACCOUNT MANAGERS EDITORIAL Gail Clough • [email protected] Th is time last year we Managing Editor Michele Engle • [email protected] Garry Lenton • [email protected] Carley Lucas • [email protected] were just starting to realize Digital Content Specialist Jennifer Rush • [email protected] Trevor Fitzpatrick • tfi [email protected] INSIDE SALES/OPERATIONS COORDINATOR that nature was throwing STAFF WRITERS Anthony Miranda • [email protected] us what may prove to be Ioannis Pashakis • [email protected] Stacy Wescoe • [email protected] the biggest challenge of Copyright 2020 by BridgeTower Media. All rights reserved. Lehigh, Northampton, Carbon, Schuylkill, Monroe, northern Bucks Volume 31, Number 1. Lehigh Valley Business is protected under and northern Montgomery counties. our lifetimes – at least, the federal Copyright Act. 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Periodicals postage paid at Harrisburg, PA or otherwise), and Lehigh Valley Business assumes no liability line, there’s hope we may be returning to normal and at additional mailing offi ces. POSTMASTER: Electronic ACS for actions taken by any group or individual based upon such Service requested. Send address changes to: Subscription material. soon. Services, PO Box 1051, Williamsport PA 17703-9940. We welcome your opinion on issues. Write to Lehigh Valley Lehigh Valley Business services business owners, managers Business at the address listed above, c/o Editor. You also can Th e construction and real estate industries, and professionals in an eight-county region comprising Berks, email your comments to [email protected] Published by BridgeTower Media after an early stumble, have largely recovered. Pent up demand for homes has been a boon for contractors and Realtors. But an old challenge remains: fi nding workers. In this issue of Lehigh Valley Business Construction and Real Estate, contributor Melinda Rizzo reports on the con- tinuing struggle contractors face fi nding the SUBSCRIBE workers they need. & PROFIT TODAY! Also, while home construction and remodeling CPBJ are riding high, contributor Paula Wolf reports CALL 888-506-5770 OR VISIT PREMIUM LVB.com/subscribe that the pandemic and the growth of the work- from-home army are putting a dent in the de- mand for offi ce space. And, looking to the future, Brett Calabretta, PRINT & DIGITAL DATA a vice principal at Warfel, writes about the “net SUBSCRIPTION+ zero” goal for new con struction. I hope you enjoy this Lehigh Valley Business special report. & + • Over 3,600 company records Garry W. Lenton As a premium subscriber, receive all the benefi ts • Unlimited downloads of a Print & Digital subscription, plus total access Managing Editor • PDFs of printed lists to LVBs regional database, the engine that drives • Sortable Excel files our award-winning lists. • Unpublished data Already a Print • Additional contact worksheet • Custom searches & Digital Subscriber? Call to upgrade and have it all — NOW! 888-506-5770 TABLE OF CONTENTS 4 Calling All Subcontractors 7 A Shallow Pool 10 A Chaotic Year 12 Rehabbing a brownfield 16 Nothing But Net-Zero At home or at work, we’ve got you covered. RCN gives you the tools and services you need to make meaningful connections. For Your Home: For Your Business: 800.RING.RCN 877.726.7000 rcn.com rcn.com/business WWW.LVB.COM CONSTRUCTION & REAL ESTATE ● SPRING 2021 3 3 PHOTOS / GETTY IMAGES CALLING ALL SUBCONTRACTORS As construction demand races back, finding a company to do the work could be tough. BY MELINDA RIZZO | Contributing Writer ill a shortage of con- worse,” said David Sload of demand for construction proj- or cancelled altogether. struction subcontractors the CEO and president of ects would widen the already “If you were working in Whinder the region’s post ABC Keystone [Associated gaping gulf between the num- hospitality or retail, it all came pandemic recovery? Builders and Contractors] ber of available subcontracting to a grinding halt,” he said. With few layoffs or fur- which covers an 11-coun- companies and the proposed Big box distribution, some loughs and ongoing projects, ty area includes Berks and or active jobs needing them. health care projects and the dam bursting on pent-up Schuylkill counties. Sload said the pandemic new facility additions often demand in the construction “Pent-up demand is rele- was a “mixed bag” for some remained active in 2020, he sector could be both a blessing vant to the workforce,” said ABC Keystone members. said, but the non-profit orga- and a curse. Daniel E. Durden, CEO of While some subcontracting nization is still hearing “mixed “If pent up demand breaks Pennsylvania Builders Associa- companies had a good 2020, signals” from the sector. [open] it will make it [the tion in Camp Hill. others were hard hit because After being deemed an subcontractor shortage] Durden said a greater projects were placed on hold essential industry many 4 4 CONSTRUCTION & REAL ESTATE ● SPRING 2021 LEHIGH VALLEY BUSINESS construction crews were able industries, like hospitality or to work through much of the entertainment, or be forced pandemic during 2020. But to choose other options to early inconsistencies during get jobs done, according to the year regarding who was Durden. an essential business and how Supply chain problems have to apply for waivers, made an been a factor since the pan- already challenging time more demic hit. confusing. With material costs esca- “Th e greatest impact in 2020 lating for softwood lumber was that this industry was not used for building framing, the considered ‘essential,’” said National Association of Home- Chuck Hamilton, executive di- builders recently reported the rector of Lehigh Valley Builders price of a new single-family Association in Allentown. home could jump to off set “Inconsistencies” in the higher materials costs by about waiver process caused problems $16,000. for many small subcontracting Th e pandemic forced small business owners. As small com- subcontracting companies to panies were already grappling choose between keeping their with managing an economic businesses open without any slump prior to COVID, some revenue coming in or clos- were forced “to trim back to ing their doors, according to survive,” Hamilton said. Hamilton. As more job opportunities “We are not seeing suffi cient MORE CONSTRUCTIVE IDEAS open up, the already belea- numbers of young people to e Benne Toyota facility was built using the Toyota Image USA II concept featuring guered sector may have trouble sustainable constructiona practice that reduces the impact on our environment. scaling new talent from other please see CONTRACTORS, page 6 FEATURING: • Low VOC paints and sealers throughout improves the indoor air quality • A vestibule preventing loss of conditioned air, reducingMORE A/C CONSTRUCTIVEcosts IDEAS e Benne Toyota facility was built using the Toyota Image USA II concept featuring • Recycled aluminum wall panels sustainableMORE constructiona CONSTRUCTIVE practice that reduces the impact on our IDEAS environment. • Site soil remediation FEATURING: e Benne Toyota facility was built using the Toyota Image USA II concept featuring • Large storefront glass sustainable • Low VOC constructiona paints and sealers practice throughout that reduces improves the the impact indoor on airour quality environment. allowing for more FEATURING: • A vestibule preventing loss of conditioned air, reducing A/C costs natural light • LowRecycled VOC aluminum paints and wall sealers panels throughout improves the indoor air quality • ASite vestibule soil remediation preventing loss of conditioned air, reducing A/C costs • RecycledLarge storefront aluminum glass wall panels SERVICES INCLUDE: allowing for more • Site soil remediation WATER FACILITIES ENGINEERING • Largenatural