Executive search at the centre of the US construction boom
Those with their finger on the pulse of the executive recruitment market will know that the exponential growth witnessed in the US construction industries throughout 2020 has also driven the demand for senior-level hires significantly.
The US construction industry is recognised as one of the largest worldwide. Following on from the 2008 recession, expenditures within the sector have increased exponentially, reaching over 1,293 billion US dollars by the end of 2019.
In 2020, the massive demand for residential construction was the primary driver of overall construction growth in the US. With the market peaking at over 1.29 million newly built and privately-owned houses, the forecast value for 2023 is a staggering 586 billion US dollars for the residential sector alone. As a whole, the industry is following this positive growth trend and is expected to generate around 1.45 trillion US dollars in revenue by 2023.
Alongside increasing the need for housing and industrial development, the coronavirus pandemic has also encouraged significant growth in digital sectors. With more companies moving online than ever before, the need for larger and more secure data centers has never been more prevalent.
Coupled with the rapidly developing IoT and AI sectors, the increased investment and development into the US data center market has created a void in talent at c-suite level. It is this gap that G&E Partners have been hiring into, working with candidates and corporations alike to source the right talent for positions across the US.
Meeting demands: the G&E way
The success or failure of any expansive construction project often hinges on making the right hiring decisions, which is why our clients look to G&E to source candidates across the seniority spectrum who possess the qualities needed to drive their construction projects forward.
The past 12 months have been fraught with unprecedented challenges, brought on by the coronavirus pandemic, along with social distancing measures in an industry that requires a hands-on approach being one of many hurdles to overcome.
As such, construction officials have had to think outside the box when onboarding new talent, or turn to industry recruitment experts for their hires. As executive search specialists in construction and built environments, the G&E team have taken this challenge in their stride, focusing on sourcing individuals who can demonstrate appropriate skills and experience, as well as displaying an attitude aligned with the businesses needs.
How the US data center industry is part of the construction boom
The growth in the construction of US data centers over the last year is rooted in technological innovation, the necessity for development in specific locations and the demand for sustainability.
In the internet age, data is king. With the current number of internet-connected devices at around seven billion – a number which continues to grow at an impressive rate – the reliance on big data and data analytics is heavier than ever.
Tech manufacturers depend on our data to improve the efficiency, productivity, security, and cost-effectiveness of their products and services. However, managing data on a large scale in-house is proving increasingly more expensive, even for large corporations.
Back in August, Cisco Systems Inc. announced they were considering shutting down 30% of their own data centers within the next five years, moving data to public cloud services. The reason behind the move was fuelled by the company’s desire to reduce their energy consumption, and sharing space on public servers could well be a solution to this particular problem for many businesses in the same predicament.
With spending on data center systems worldwide estimated to reach 208 billion US dollars by the end of 2020, and rising to 219 billion in 2021 – the forecast for executive recruitment into data centre construction will undoubtedly be just as optimistic.
What the Biden administration means for construction in the US
After a neck and neck race to the finish, voting fraud allegations and a media storm to boot – the US electoral college recently confirmed Joe Biden’s victory over Donald Trump, marking a new era in American politics.
Under the Trump administration, the construction industries were promised an ambitious outline for infrastructure development over a ten year, or two-term period. Included was a proposed $1.5 trillion investment into rebuilding roads, bridges, waterways, energy projects, rural infrastructure and public lands.
President Trump sought to set his regime apart from Obama’s, professing to be more business-friendly than his Democratic predecessors. Determined to remove what he considered unnecessary boundaries to construction projects across the country, Trump waived several environmental regulations, as well as controversially pulling out of the Paris climate agreement.
But what will the Biden-Harris administration mean for construction industries in the US?
Initial statements from Biden have included the reversal of some of Trump’s more controversial policies, such as the border wall between Mexico and the US and the withdrawal from the Paris climate agreement, as mentioned above.
The challenges ahead of the US construction industry are wide-ranging, from immigration issues, taxes and regulations, to union support and infrastructure spending. In terms of the latter, construction officials should look to the pledges made during Biden’s campaign. The President-elect has stated that his administration will invest $2 trillion into the industry, with an aim to create millions of jobs in building construction, housing and infrastructure.
There will also be a reversal of Trump’s executive order to waive environmental regulations that were made earlier this year, further strengthening the suggestion that the next four years will focus on improving ecological statistics in US construction. Jay Hansen of the National Asphalt Pavement Association stated last month, “The Biden challenge for us is that you’re going to get more money, but then you’re going to have to measure your greenhouse gas emissions.”
So while there will undoubtedly be new challenges over Biden’s term, the outlook is decidedly positive for businesses already ahead of the curve on issues such as climate change and sustainability.
G&E Partners provide companies from SME startups to multinational conglomerates with world-class talent management and succession planning services. So if your construction company is looking to expand into the emerging markets developing from the burgeoning data center industry – don’t hesitate to speak with our team of executive search specialists today.