Protecting wood framing during construction provides peace of mind

Posted on | by Savannah Sokol

As we move into the rainy season, it’s important to revisit best practices of protecting wood from the elements during construction. Previously, we used to rely on just-in-time deliveries which would limit the amount of time our framing materials were subject to the weather prior to being covered up. With today’s market environment, we find ourselves ordering materials early and storing them on site so that we can be productive as we start building and not run out of material along the way. This has led to lumber being stored for longer periods than we are used to.  It’s important that this is taken into consideration as we construct our projects and that we don’t allow deterioration of our building products to occur. 

First, develop a plan early to deal with these issues in order to reduce the risk of mold and product deterioration. Ensure that your storage area is well...

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The Douglas Company begins ninth construction project with Kaplan Development

Posted on | by Savannah Sokol

Holland, OH, May 5, 2022 – General Contractor, The Douglas Company, is proud to announce the beginning of construction on its ninth project with owner, Kaplan Development Group, LLC. The $15.9 million, All American at Tinton Falls is a 58,000 square-foot, 58 unit assisted living and memory care community in Tinton Falls, New Jersey.

Designed by EGA Architects, All American of Tinton Falls will offer quality senior living with a vast array of amenities including an interior courtyard, double-sided fireplace, salon, beauty parlor, bistro, and media room. Construction completion is scheduled for June 2023.

“The Douglas Company is honored to once again work with the professional team at Kaplan Development,” said Dylan Lewis, assistant project manager for The Douglas Company. “The All American communities are uniquely designed with senior independence in mind and we are proud to deliver this distinctive project to Tinton Falls.”

The Douglas Company

The Douglas Company is headquartered in Holland,...

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Good News!

Posted on | by Savannah Sokol

I thought I’d write a blog about some good news, at least for multi-family developers.  No, costs aren’t coming down, nor are interest rates.  But rents for multifamily are going up!  According to rent.com through April 2022 apartment rents nationwide for two bedroom apartments are up 22.8% in a twelve month period.  In some areas that are close to us they are up even more.  Orlando rents are up 38.2%.  Cincinnati is 37.8%.

So while costs are up and interest rates are threatening to rise, rents in many areas more than make up for this, creating opportunity.  Rent.com goes on to say that the shortage of supply coupled with increasing demand and increasing inability of people to purchase homes is causing this phenomenon.

Good news for multifamily developers.  

Peter Douglas

President

...

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“IT’S TOUGH TO MAKE PREDICTIONS, ESPECIALLY ABOUT THE FUTURE”
– Yogi Berra

Posted on | by Bob Ritter

Everywhere I go people are asking what’s going to happen with construction prices, and they are right to ask.  I visited with a prospective client this month and he told me that construction prices on his prototype increased 46% in two years, which was shocking to him and a little surprising to me.  We are tracking prices in our Florida office and our records indicate costs are up 30% in 14 months, 2% per month, so I guess I shouldn’t have been surprised.  Everywhere we look subcontractors are backing out of quotes and/or raising prices, and even once under contract don’t always honor prices.  Materials and labor availability is a whole other issue.  It’s hard to believe these increases can continue, but I don’t see any signs of relief. 

The above doesn’t make our jobs any easier or more enjoyable.  We hate giving bad news to our clients on costs, but...

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Driving Rents With Amenities

Posted on | by Bob Ritter

The multi-family market has certainly evolved over the last several years. From the types of amenities renters demand, to an influx of new single family build to rent communities.  Not to mention the changing renter demographic.  While millennials make up one of the largest rental cohorts, the age 55+ Baby Boomers are selling their homes and opting for a more convenient lifestyle.

According to Forbes, in the last decade, the multifamily market has experienced hyper growth. Even during the pandemic, 2020 saw a 50% increase in multifamily units, compared to that of 2019. Rents in multifamily housing markets have continued to climb.  Yardi Matrix reported in February that year over year rent growth increased 15.4% and occupancy rates of 96.9%, surpassing the previous record of 96.5% in 2000. 

Today’s renters are demanding more and different amenities.  This includes everything from storage areas or lockers for packages, trash valet services, community dog parks...

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The Douglas Company Announces the Completion of Construction on Maumee Pointe!

Posted on | by Bob Ritter

Holland, OH, April 5, 2022 – The Douglas Company proudly announces the completion of Maumee Pointe, a new assisted living and memory care community developed by Sage Real Estate Development of Rochester, New York. The Douglas Company served as the general contractor for the $13.6 million community conveniently located at Side Cut Crossings in Maumee, Ohio.

Designed by Davison Smith Certo Architects, Inc., the new Maumee Pointe is a 69,310 square-foot assisted living and memory care community consisting of a single-story building including 22 memory care units for individuals with dementia-related conditions and a two-story assisted living building offering 58 one-bedroom suites for those needing assisted living services. The new community boasts numerous upscale amenities, including an arts and crafts area, spa, chapel, bistro and dining area, wellness center, sunroom, and lounges, two exterior courtyards, a fire pit, and a greenhouse.

“As The Douglas Company continues to fulfill the demand for senior...

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March Madness!

Posted on | by Bob Ritter

Usually March is good for two things in the North, March Madness and spring weather. This spring is a little slower than years past as construction material pricing has been surging for some time and now oil pricing is also surging which is only adding more fuel to the fire.  So just like my March Madness bracket, I am sure everyone’s budgets are busted right now which is leading to some project starts sliding.

While we have been dealing with the pricing fluctuations to the best of our ability for the past year, once we get past that hurdle we then have to overcome the supply chain issues. This is taking a lot more pre-project planning as some materials are simply just not available in the time frame in which we need them to meet the schedule. With being a traveling GC, we have been able to foster relationships in many...

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Spanning the Truss Shortage

Posted on | by Bob Ritter

There have been many challenges in the construction industry over the past 24 months, but one that has surprised many developers and builders is the unavailability of wood trusses. A problem that seemingly started to appear at the very end of 2021 has now shockingly escalated into lead times measured in months and even years.  I’ve had truss and lumber vendors provide insights into how this situation came to be, and two reasons have been mentioned consistently.  One cause was a shortage of truss gusset plates that caused a bottleneck to the production lines.  The other, and likely the bigger contributor to the shortage, is that many truss manufacturers presold their production capacity to the homebuilders, who all have voluminous production targets for 2022.  I have been advised that the truss vendors have configured their production lines to quickly and efficiently crank out single-family and townhome trusses and have little...

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We are Tired of Bad News Too!

Posted on | by Bob Ritter

M.A. Mortenson (a very large construction company) says construction prices increased 19.2% last year. ROMAC (a very large building product supplier in Florida) says that on average, materials for a house from mid-December to mid-January went up 12%. Already subcontractors are telling us that they are booked for the year. Truss suppliers, who traditionally have had 2 to 4 weeks fab and deliver times, are out to October, making projects challenging to start and maintain continuous construction. The price of Ready-mix is up by $10 - $20 a cubic yard in the last couple of months, and drywall has been going up approximately 10% a month. 

I am tired of delivering bad news. Everyone knows prices are going up, but it is shocking the extent they are going up. Our clients seem to be getting numb to increases, and they are no longer even asking what I expect in...

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Adapting to New Challenges in the Construction Market

Posted on | by Bob Ritter

Herbert Spencer coined the phrase “survival of the fittest” to describe and broaden Charles Darwin’s famous evolution and natural selection theories. The term could undoubtedly be applied to today’s construction and development industries as the challenges of material and labor shortages, increased lead times, rising costs, and the likelihood of increased interest rates continue to take hold. How builders and developers deal with these challenges will likely determine their success and potential survival in the coming years.

There are several approaches that companies are exploring to leverage against the current supply chain challenges that include; developing strategic partnerships with material suppliers, committing multiple projects under a single agreement, pre-purchasing materials, and purchasing production slots months in anticipation of future demand. These approaches will certainly assist firms in ensuring materials are available when needed, but not without a significant investment and the associated financial risks.

Transitioning from 2021 into 2022, material prices have...

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The Douglas Company Strengthens its Leadership Team with Two Key Promotions

Posted on | by Bob Ritter

The Douglas Company, General Contractor, announced two internal promotions that will advance the company's strategic position within the market. Through hard work, dedication, and demonstration of The Douglas Company Core Values, the following individual promotions have been awarded:  Bruce Douglas will now serve as Executive Vice President, Midwest, and Micah Hoskinson has been promoted to Senior Project Manager within our Orlando, Florida office.

"I am proud to announce these promotions today. Identifying and developing those within our organization who can help shape our future is vital to our long-term growth. Bruce and Micah have each advanced to become key leaders within The Douglas Company, and I am pleased to recognize their significant contributions to the company and our ongoing success," said Peter Douglas, President of The Douglas Company.

Bruce Douglas
Executive Vice President, Midwest

Mr. Douglas began his career with The Douglas Company in 2011. Since then, he has taken on various roles...

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Hoarding, Cost Increases, and Risk; OH MY!

Posted on | by Bob Ritter

Remember when the pandemic hit, and everybody collected toilet paper? It’s happening today with subcontractors and vendors throughout the trades (not TP; material like rigid insulation, ductile iron pipe, copper pipe, drywall, lumber, metal studs, coiled steel, etc., etc.). Material price surges, a continuing supply chain roller coaster, and the omicron variant have us all guessing how long to receive and how much material will cost when it is finally installed on the job site. An extended construction duration and price increase pass through are deal breakers for us at The Douglas Company, so we are tested to come up with alternate methods to deal with the aforementioned challenges.

Our advanced procurement of construction materials and equipment soon after a contract is executed and well before the equipment or material is needed, is a sensible practice which assures that specified materials and equipment are available for installation or use in accordance...

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The Douglas Company Completes Construction on The Grove at Trelago

Posted on | by Bob Ritter

The Douglas Company has announced the completion of construction on The Grove at Trelago, a new assisted living and memory care community located in Maitland, Florida, along Maitland Boulevard, east of I-4, with the elegant backdrop of Lake Charity. Developed by The Vestcor Companies, The Douglas Company served as the general contractor for the $21.7 million community.

 

Designed by PQH Group Design Inc., The Grove at Trelago is a 113,989 square-foot assisted living and memory care community comprised of 96 assisted living and 20 specialized memory care studios for residents with Alzheimer's, dementia, and...

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Material Cost Increases Abound

Posted on | by Bob Ritter

The turn of the calendar has brought about an unfortunate turn for material pricing. At this point, it seems like nearly all materials have seen major increases. All of this is in line with some of the largest inflation increases ever. What’s going on?

While each material has its own nuances, the primary driving cause behind all of them is the same condition we’ve been dealing with for years: High demand supported by low-interest rates means a lot of construction is happening right now. Costs are up quite simply because projects continue to be built in spite of them. Subcontractor backlogs have been surveyed as being at some of the highest levels in recent history. And there doesn’t seem to be an end in sight. 

The message now is to stay the course in spite of material cost increases. We...

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The Rule of the 5 P’s

Posted on | by Bob Ritter

Reflecting on this year, it sure has been one of the more chaotic and challenging years that I can recall in my career. Just this year, the construction industry has battled everything from record-high lumber prices, rapidly changing material price increases, supply chain issues, increase in labor shortages, and many other challenges. The old adage of Proper Planning Prevents Poor Performance, or the 5 P’s as they were introduced to me early in life, has been at the foundation of our successes for the year. Ben Franklin said it well “By failing to prepare, you are preparing to fail.”

Planning is woven into our DNA at The Douglas Company, many of our Associates have been through a form of personal productivity, where we learned to plan for the day, week, and month. In both our preconstruction and operations groups, our main planning tool...

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Is Inflation Here to Stay?

Posted on | by Bob Ritter

Everyone knows that inflation right now is the highest it’s been in 30 years, which is shocking.  Nearly all of my friends who run businesses can’t find workers, and they are paying dramatically more for those they find.  The Toledo Blade picked up a story that showed one in five workers expect raises of 10% or more the first of the year, which is also shocking.

So what’s going on?  We dealt with this with a wood pricing surge last year, but those prices came down significantly.  But now it seems we are dealing with material shortages and price increases on nearly everything.  Associated General Contractors reported that contractor costs rose 26.3% overall from June 2020 to June 2021, an astounding number.  Mortenson reported that costs jumped 7.1% from September to October of 2021.  Our clients are surprised and distressed at the price increases, and we don’t like them...

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Finally, Some Encouraging Trends in Senior Living

Posted on | by Bob Ritter

Earlier this month several of us from The Douglas Company attended the annual NIC Fall Conference, held this year in Houston, Texas.  It was encouraging to see more than 2,500 senior living professionals in attendance (in person) and optimistic about the future of the Senior Living Industry post-COVID.

NIC has also released the 3rd Quarter 2021 NIC MAP Data, which shows that demand in the 3rd quarter rebounded with the strongest quarterly increase since NIC began reporting the data in 2005.  Overall seniors housing occupancy increased to 80.1%.  Still 7.3% below pre-pandemic occupancy, but finally trending in the right direction.  Additionally, one statistic we heard is that the age cohort for senior living will double every 5 years between 2020 and 2040.  That is a lot of new seniors who will need some type of senior housing!

One topic that seems to be on everyone’s mind is “Active Adult”. ...

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Where Are The Workers?

Posted on | by Bob Ritter

It's a topic we seem to be answering daily, "Where are all the workers?". While it's an issue that spans more than just the construction industry, unlike those other industries, we've been trying to answer this question for decades. For those answers, we have to look at more than just the last 18 months.

 

Staffing issues in the trades can be traced back to the 1970s when college students increased nearly 25% from 1969-1979. That phenomenon would again repeat itself in the 1990s when that decade saw an increase of over 15%. (Source: Nation Center for Education Statistics). The nation's focus on higher education and white-collar professions set the trades up for inevitable challenges...

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