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August 14.2025
3 Minutes Read

Transforming Workforce Development: Walsh and Goodwill's Kentucky Job Training Initiative

Workforce development in construction: diverse team at site.

The Importance of Workforce Development in Construction

The construction industry is currently grappling with a significant shortage of skilled labor, a challenge that needs to be addressed if businesses are to thrive. As highlighted by the recent collaboration between the Walsh Group and Goodwill Kentucky, proactive measures are being taken at the local level to create a robust pathway for talent development. The innovative partnership aims to train new workers for the commercial construction sector while simultaneously aiding in the completion of the $781 million Cancer and Advanced Ambulatory Building project at the University of Kentucky.

A Proven Model for Success: Pre-Apprenticeship Programs

The Walsh Group has a long-standing history of utilizing pre-apprenticeship programs to promote construction training, having implemented such initiatives for over 25 years. By integrating local communities into their projects, they not only build critical infrastructure but also nurture the next generation of skilled workers. “We've kind of been leveraging our projects to advertise what's awesome about construction for the last 25 years,” states Muhummad Starks, project manager for Walsh. This strategy not only bridges the skills gap but also enhances the local economy by empowering residents.

Fostering Community Talent in Lexington

The program launched in August 2025 marks a vital step for both Walsh and Goodwill Kentucky, aiming to equip participants with necessary technical skills while providing vital exposure to larger industry standards. This partnership is especially significant in Lexington, where the project has the potential to uplift not just the healthcare facilities but also the workforce demographics of the area. The pre-apprenticeship initiative offers a pivotal transition towards registered apprenticeship opportunities, setting participants on a path toward long-term careers in the trades.

The Broader Implications for the Construction Sector

The success of this program could serve as a model for other regions facing similar labor shortages, advocating for the integration of community-focused workforce solutions as a priority in project planning. As a future trend, more construction firms will likely adopt this approach, linking educational institutes and workforce development organizations with hands-on training opportunities. It highlights a growing recognition within the industry that investing in human capital is crucial for sustaining growth.

Decisions You Can Make Based on These Insights

For business owners and property developers, the implications of such partnerships are profound. Engaging in programs that support local workforce development can lead to stronger project outcomes and workforce stability. Not only is it a socially responsible approach, but it can also enhance a company's reputation and contribute positively to community relations. Considering the experiences of firms like Walsh, aligning construction projects with educational opportunities can create a triple win: advancing local economies, empowering individuals, and ensuring the future availability of skilled labor.

As industry leaders, it's essential to foster an environment that nurtures skills development in the community. Explore collaborations with local training programs, consider how your projects can serve as a means to elevate the workforce, and actively participate in initiatives that develop and maintain a robust skills pipeline.

In light of these developments, it’s an opportune moment to engage with similar workforce initiatives and consider how your organization can contribute to shaping a sustainable future within the construction industry.

Construction Trends & Industry Insights

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01.15.2026

Key Manufacturing Construction Investments to Watch in 2026

Update Big Investments Shaping Manufacturing Landscape in 2026 The construction landscape is set to undergo significant transformation in 2026, driven by prominent players like TSMC, Micron, and Samsung announcing vital investments in new manufacturing facilities. As global competition intensifies, these multi-billion dollar construction projects not only signify technological advancements but serve as critical responses to governmental incentives aimed at bolstering domestic production capabilities. The Resilience of Major Players Amidst Challenges Despite a downturn in manufacturing construction spending following a peak in 2024, industry heavyweights are steering the ship in a different direction. Reports indicate substantial cancellations of clean energy projects in 2025, overshadowed by the investments from semiconductor giants. Micron's staggering $200 billion investment across Idaho, New York, and Virginia illustrates the ongoing commitment to grow capabilities in the U.S., significantly shaping the landscape for memory production. Alongside Micron, Samsung is set to cement its presence in Texas with an $17 billion semiconductor factory, a project that resumed after a temporary halt due to changing market demands. Such developments highlight how reevaluating strategic priorities amid market uncertainties is essential, as emphasized in Deloitte's Engineering and Construction Industry Outlook, which underscores firms embracing digital transformation to thrive. Technological Integration Driving Growth As the economic landscape shifts, so do the methodologies employed in construction and manufacturing. The integration of advanced technologies—ranging from AI-driven analytics to IoT devices—becomes imperative for firms seeking competitive advantages. Reference Article 2 notes that firms utilizing project management software efficiently realize a cost reduction of at least 5%, indicating a clear link between technology adoption and financial outcomes. The emphasis on digital transformation could pave the way for anticipating disruptions, improving productivity, and thus safeguarding profit margins, eventually providing an edge in competition against rivals. In light of persistent labor shortages, leveraging automation could address many staffing challenges faced by the construction industry. The Labor Market's Influence on Construction Projects As businesses ramp up construction efforts, they confront a tightening labor market that further complicates project timelines. The construction industry is projected to need an extra 499,000 workers by 2026. This deficit highlights the need for contractors to focus on strategic workforce development to avoid delays and budget overruns. Reports indicate that many contractors are now focusing on career advancement initiatives, aiming to attract and retain skilled workers amidst heightened demand for talent—an approach that echoes sentiments expressed by Deloitte. Moreover, as immigration policies tighten, a substantial portion of construction roles that rely on foreign talent faces uncertainty. Therefore, regional workforce strategies are becoming crucial in mitigating labor shortfalls. Long-Term Implications of Investment Strategies Looking into the future, the importance of careful planning and adaptability cannot be understated. Construction firms that successfully identify and align themselves with high-demand sectors, such as data centers and manufacturing, are likely to thrive. The growing reliance on new projects, particularly in energy infrastructure and technology-oriented manufacturing, implies a promising outlook for the coming year, despite the looming risks associated with increased tariffs and fluctuating material costs. In essence, the construction sector's evolution hinges on both technological advancements and strategic labor practices. Those who position themselves to embrace these trends will likely lead in driving the industry forward in 2026.

01.14.2026

Data Centers Create Uneven Backlogs: What It Means for Small Contractors

Update The Growing Divide: How Data Centers Are Reshaping Construction BacklogsThe construction industry is witnessing a pronounced divide in backlog gains, predominantly driven by the booming data center sector. While larger construction firms are experiencing a robust increase in project pipelines, smaller contractors are struggling to keep pace due to a significant dependence on non-residential construction activities, which are now largely concentrated within the data center market. This landscape creates a challenging environment for smaller companies and highlights the need for diversification in project portfolios.The Impact of Data Center Growth on Construction ContractorsAccording to a recent Associated Builders and Contractors (ABC) survey, the overall construction backlog rose to 8.2 months in December, reflecting a minor uptick from the previous month. However, this growth is unevenly distributed. Firms with annual revenues exceeding $100 million reported their highest backlogs since 2021, whereas businesses earning less than $30 million encountered declining backlogs—now at their lowest since 2021. This stark contrast is attributed to the data center construction boom, driven by massive tech companies investing in hyperscale facilities to support Artificial Intelligence (AI) initiatives and the expanding digital economy.Future Predictions: The Continued Demand for Data CentersThe data center market is expected to flourish further into 2026, with contractors signaling a forecast of heightened activity amongst hyperscale clients. A report highlighted that around 13% of ABC's members were engaged in data center projects, which correlated to a significantly higher average backlog of approximately 11 months for companies serving this niche versus merely 7.8 months for those without such commitments. This trend not only enhances the construction backlogs of participating firms but also poses a strategic imperative for others to consider involvement in the data center segment.Challenges Facing Smaller ContractorsDespite the robust demand for data centers, smaller contractors may find themselves sidelined. The landscape indicates that involvement in non-residential construction, primarily dominated by large contractors, is crucial. Those firms that do not engage in data center projects see a constriction in their backlogs. As noted by Anirban Basu, chief economist at ABC, smaller contractors witnessed a sharp backlog decline due predominantly to missed opportunities in the significant data center initiatives. Thus, it is essential for smaller firms to either pivot towards data center opportunities or diversify into other growing sectors such as healthcare or infrastructure to mitigate risks associated with overreliance on specific project types.Conclusion: Adapting to New Market RealitiesIn a time marked by significant technological advancement and shifting construction demands, both large and smaller contractors must adapt their strategies. While the data center boom presents considerable growth possibilities, there remains a cautionary note; reliance solely on this sector could leave many firms vulnerable. Strategically diversifying portfolios, exploring partnerships, and seeking alternative markets will become essential for smaller contractors fighting against economic downturns and labor shortages that may accompany fluctuations in the data center pipeline. The construction sector has a resilient spirit, and adjusting to these new realities will be critical for sustained success in the coming years.

01.12.2026

Kansas DOT's Record Contract: What It Means for Local Businesses and Infrastructure

Update The Record-Setting Contract and Its Significance The Kansas Department of Transportation (KDOT) has recently taken a formidable step in infrastructure development by awarding a historic $287.97 million contract—the largest ever in the department's history. Implemented through a collaboration between Wichita-based Dondlinger & Sons Construction and Wildcat Construction, the undertaking promises to modernize essential highways including U.S. 54 and K-96, ultimately enhancing regional traffic flow. As economic pressures mount, such substantial investments reflect KDOT's commitment to long-term mobility and infrastructure resilience. Strategic Investments in Infrastructure Education Across the United States, states are feeling pressure to upgrade and expand aging transportation systems. The Eisenhower Legacy Transportation Program, under which this project falls, signals a proactive approach to maintain competitiveness and accessibility in a rapidly evolving economic landscape. As urban areas expand, it becomes paramount to address congestion through broader corridors and enhanced interchanges. Bridging the Gaps: Local Business Accessibility The scope of the U.S. 54 reconstruction includes critical additions like 26 bridge replacements and 32 new retaining walls. These developments do more than just modernize infrastructure; they are designed to bolster local economic growth by improving access for businesses. For property owners and facility managers, understanding the impact of these changes could inform future investment strategies in the area, making accessibility a crucial consideration moving forward. A Paradigm Shift in Project Financing As KDOT navigates financing for such large projects, executives in the construction and real estate sectors must be attuned to the evolving funding landscape. The landmark $288M contract not only reflects KDOT's confidence in local contractors but also sets a benchmark for integrative financing approaches seen in state-sponsored developments. Spotting trends like this can help owners and developers make strategic decisions that align with public transportation goals. Looking Ahead: What This Means for Kansas Scheduled to commence construction in Spring 2026, the U.S. 54 improvement project underscores Kansas's commitment to modern transportation efficiency. It also resonates with stakeholders who rely on efficient infrastructure for their businesses. As the project progresses, business owners and community developers should keep a close watch on its impacts, both immediate and long-term. The ripple effects of this contract will likely translate into heightened local investment and improved commercial viability. With this substantial contract awarded, the Kansas DOT has set a precedent for future projects, emphasizing the importance of thoughtful integration between local businesses and state-funded infrastructure improvements. A well-planned infrastructure project not only enhances commute times but also opens up a myriad of opportunities for economic development, making it a significant focus for executives statewide.

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