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Power Couple

Donavon and Andrea Minnis are making serious headway with Salt Lake-based Engage Contracting, a general contracting firm poised for a bright future. 
By Brad Fullmer

So far during their 19-year marriage, Donavon and Andrea Minnis—CEO and Treasurer, respectively, of Salt Lake-based Engage Contracting—have built/remodeled six houses to date, becoming so adept at the process that friends just refer to them as the famous TV couple of the hit show “Fixer Upper.”

“Our friends call us ‘Chip and Joanna’ (Gaines),” laughed Donavon. “We’ve done a lot of homes together. They were our homes. Honestly, we were able to build up enough equity [flipping homes], which helped us start Engage.”

Their first house project was a complete gut and remodel in Salt Lake’s Rose Park neighborhood, which they bought for $89,000 and sold two years later for $169,000. They’ve also remodeled/sold homes in Woods Cross, Bluffdale, and Murray, where they live with their two children (13 and 12 years old). 

Andrea recalled a memory from a Mother’s Day several years ago when they were hanging insulation during a driving rainstorm while their children happily played on a dirt hill. 

“We both are really determined to get it done—we are not afraid to work,” said Andrea. “We just do crazy things.”

They started to work full-time building Engage Contracting in January 2019, based largely on Donavon’s 20-plus years of professional experience in construction and the contacts he made. A dozen of those years were spent working for a prominent Salt Lake-based general contractor, where he quickly proved himself and moved up the ranks from assistant superintendent to director. 

When he left in 2017 for another opportunity, he said it was a difficult decision, but highly values and appreciates the mentorship he received. It didn’t take long for the Minnises to realize Donavon’s career trajectory wasn’t meeting their aspirations, and together decided that going out on their own was worth the risk. 


Quickly Inseparable

Donavon grew up in Murray, the son of a painting contractor, Scott Minnis, who owned Master’s Touch Painting. He remembers doing homework in the bed of his dad’s truck and then joining crews on job sites from the age of 11. By 17, he was working full-time. 

Andrea’s father was in the military and her family moved a lot growing up, coming to Utah in 1999. She graduated from Dugway High in 2000. 

They met at a Christian ministry at the University of Utah at the beginning of 2002, and prior to their first official date on February 1. Donavon took Andrea to check out a job he was going to paint, a feature wall for Pier 1 Imports in Park City. 

“I didn’t know it was a date, I thought we were hanging out with other people,” said Andrea. “We went to the Mayan (restaurant) and saw ‘A Walk to Remember’. A year to the day later, we got married.”

“We quickly became inseparable,” said Donavon.
Andrea, who earned a Master of Therapy from the U of U, worked seven years at Primary Children’s Acute and Inpatient Rehab, and now serves as Treasurer of Engage, which encompasses a slew of administrative-related duties.

Donavon earned a Bachelor of Construction Management from Weber State University from 2006-10, a grueling period for the couple as they both worked full-time, raised their kids, and remodeled a couple of houses.

“You learn the value of a power nap,” said Donavon, citing 16- to 18-hour days. 

“It was a long five years,” Andrea agreed.


Poised for Growth

When the couple began working full-time at Engage three years ago, they immediately contacted people Donavon had worked for at USPS, which proved fortuitous. 

“They were issuing an emergency JOC contract when we called. We were able to bond the contract and that has propelled us,” he said, citing $20 million in USPS contracts in Washington and California alone. During the firm’s first three years in business, revenues have risen meteorically year over year. Donavon said his CFO asks him daily, “How big do you want to be?” Could Engage become a $100 million per year company?

“I don’t think it would be hard,” said Donavon, coolly. “I am shocked at how much we’ve been able to grow. We’ve doubled in size every year, if not tripled. It sets the stage to make us comparable to other general contractors in the valley. We don’t want to be seen as just a smaller [tenant improvement] company.” 

One of the firm’s current major projects is a remodel of a former Dick’s Sporting Goods in The Gateway in Salt Lake into an expanded office space for Recursion Pharmaceuticals. Other recent projects include a $550,000 remodel of the Columbia Care Pharmacy in Springville, a $2.2-million remodel of Edwards Lifesciences Cleanroom 5 in Draper, and a $5.2-million HVAC upgrade for USPS in Fresno, California. 

“We’ve picked up some massive projects recently,” he added.

These include: the North Gate project at Hill Air Force Base in Clearfield, a building that will conduct in-depth searches of trucks coming into the base; a sizable biotech industry project in downtown Salt Lake; the firm’s first two ground-up projects which are slated to break ground in Draper later this year. 

“It’s a little daunting and scary, right?” posed Andrea. 

“It’s absolutely scary,” replied Donavon, smiling. 


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Engage Contracting opened its new 15,000 SF office within the International Center in Salt Lake City in March, giving the firm a more professional presence and plenty of space for its 23 employees (project photos by Dana Sohm, Sohm Photografx).

Moving to New Digs
In March, the Minnises and their 21 other employees moved into the firm’s new headquarters at the International Center in Salt Lake City, going from a cramped 3,500-SF office to one with a robust 15,000 SF, with ample space for conference rooms and collaboration areas.
The couple worked with Atlas Architects of Salt Lake on the design of the building, which was originally built in 1979; Donavon laid out office spaces while Andrea focused on interior design elements.
Engage hired Salt Lake-based Red Rock Demolition to demolish and remove virtually everything down to structural members. Skylights were cut into the rooftop for maximum natural daylighting. All offices and conference rooms feature storefront glazing components, offering an open, transparent feel for all employees. 
Materials include raw laser-cut steel, open joists, stone, glass, polished concrete, walnut, and industrial office furniture. Moody, dark colors and raw, natural materials give a warm but industrial feel. 
As a tribute to the International Center and historic aviators, conference rooms are named for the likes of Amelia Earhart, Jimmy Doolittle, and Neil Armstrong.  
The office is decked out with hard-wired fiber optics in addition to Wi-Fi 6, the latest and greatest in wireless technology. Zoom/video conference calls go through with nary a glitch, which Donavon said helps the firm’s overall level of professionalism. 
"It‘s nice to have a [Zoom] meeting and not have glitchy issues, especially when you’re trying to impress clients,” he said. The new office is also a boon to potential new hires. 
“The labor market is tough right now,” he continued. “From a recruitment perspective, people see our building and see that we have our act together. We want to be seen as one of the best.”  

Looking Forward
Despite the success as a business, last year was challenging for the Minnis family as Donavon’s mother, Linda Hamby, died of lung cancer at age 56. 
“It was a hard year, but a beautiful year,” said Andrea, tearing up a bit. “We have amazing employees who were so supportive of us.”
“Our big focus is to do this right,” she added, “and take the knowledge and experience of the people who have gone before you. Whether you win or lose, you’re doing it the right way. We recognize each other strengths and where we can butt heads. I tend to be very detailed-oriented—it’s got to be this way. I’m good about taking care of back-end stuff. I like to be behind the scenes.”
She continued, “Donavon is innovative and willing to take chances. He’s grown up doing this his entire life and he’s physically done almost everything, just from his own experiences, so that makes him valuable when he’s communicating with clients. He can see the problem, identify it, and propose solutions.”
“I didn’t think we’d be as big as we are today,” said Donavon about the firm’s current size and revenue growth projections. “I just want it to be a good place to work for employees, where they don’t have to be run into the ground. I want it to be a place for a good career, a good family life.”
In January, Donavon was named to the Board of Directors for the Associated General Contractors (AGC) of Utah for 2022-2023. He is among the youngest to ever serve in that position.  
“We joined the AGC because it seemed like a good thing to do,” he said. “I didn’t think it would bring huge value, but I can’t tell you, through Covid, how valuable it was to be a part of that association. When [AGC President/CEO] Rich (Thorn) called me and asked if I would consider this, he said ‘Everybody knows who you are’.” 
Minnis hopes to implement a 100-mile bicycle ride—he called it a “century ride”—as one of the AGC’s many yearly activities.
“You’d be surprised how many architects and contractors have cycling teams. It’s the new golf.”
The passion is there from Donavon and Andrea to take risks and try new things—AGC board, home renovations, starting a new company. With Engage Contracting growing exponentially and providing great opportunities for new employees, it certainly has been a risk worth taking. 


Engage Contracting Headquarters
Owner: Engage Contracting
Design Team
Architect: Atlas Architects 
Electrical: EDG Engineering 
Mechanical: Midwest Engineering 
Structural: ARW Engineers 
Construction Team
General Contractor: Engage Contracting Inc.
Concrete: Kim Bailey Construction 
Plumbing: Jim Miller Plumbing 
HVAC: Specialized Mechanical 
Electrical: Arco Electric 
Drywall/Acoustics: Wallboard Specialties
Painting: America Europe Painting 
Tile/Stone: Flor Styles
Carpentry: Clients Design
Roofing: Layton Roofing 
Glass/Curtain Wall: Prizm Glass 
Steel Fabrication: Daniels Welding 
Steel Erection: Daniels Welding
Demolition: Red Rock Demolition
Landscaping: Landscape Solutions 

By Brad Fullmer 01 Apr, 2024
It's not every day that an architect designs a project around a native flower, then again, the new Career and Technical Education (CTE) High School in St. George is far from your standard K-12 school. "Essentially, we patterned the floor plan around the Bear Claw Poppy," said Bryan Dyer, Director of Facilities for Washington County School District (WCSD), and one of the primary designers of CTE from 2018-20 while at St. George-based NWL Architects prior to joining the District. "The courtyard is the center of the poppy; the rooms represent flower petals. I think it turned out nice—the courtyard is heavily used and is a unique part of the project. The school board tasked us to do something unique to the District—it's the only building of its kind in the state where students have educational and vocational all in one." "It was kind of a philosophical departure for the District—they recognized the need to pick up the students that fall into a category of not being traditional students—they wanted something different and arrived at the need for a career and technical emphasis," added Terrance White, Principal-in-Charge for NWL. As the first standalone career and technical education facility in Utah, the revolutionary $29.6 million, 126,000 SF school offers eight pathways for the nearly 500 students enrolled at the school (capacity is 800), including: business, construction, culinary arts, engineering, education, graphic design, health science, and information technology. The two-level design prioritizes functionality, creating a dynamic environment where students can explore their chosen fields with purpose and passion. WCSD officials and architects from NWL were inspired by similar CTE schools they toured in Houston and Las Vegas and were able to successfully translate the vision inspired by those schools into a tangible space that fosters true collaboration between students and sets a new standard for a career-focused educational platform. "We toured a school in Houston [...] and recognized the architecture of that building took on more of a junior college feel—it felt like it was something more than a high school but not quite a university," said White. "It's great to see a school district recognize where they can take better care of their students."
By Brad Fullmer 01 Apr, 2024
It's been more than three decades—1993, to be exact—since the non-profit U.S. Green Building Council (USGBC) was co-founded by S. Richard (Rick) Fedrizzi, David Gottfried, and Michael Italiano, which ultimately spawned the revolutionary Leadership in Energy and Environmental Design (LEED) in 1998, a points-based rating system that offered legitimate third-party verification of green buildings. The goal of the fledgling association was simple: Increase overall sustainability of new construction projects including improved energy efficiency and creating a better, healthier environment for building occupants—all with the goal of reducing construction's carbon footprint. At the time, it was considered a bold initiative, with significant potential real-world benefits to the A/E/C industry. It took several years for the LEED initiative to get off the ground, but by the turn of the 21st Century, the phenomenon started taking root in the design community. "When LEED began in the late 90s/early 2000s, it was an incredible ambition to transform the building industry and to bring sustainability into the conversation," said Whitney Ward, Principal with Salt Lake-based VCBO Architecture and one of the firm's leading sustainable design experts. "[USGBC] had some big hurdles to overcome, including a general lack of knowledge about or mistrust of global warming and climate change." Ward said the U.S. Green Building Council and the LEED rating system had an immediate and profound effect on: —Creating more transparency in material manufacturing and getting manufacturers to care more about developing more sustainable/greener materials (carpet, flooring, paint, textiles, etc.) —Highlighting the true value of sustainable buildings through "incredible marketing efforts" and spurring owner demand. —Becoming the "go-to" third party certification agency for sustainable buildings. "The environmental consciousness of designers, builders, and owners [...] has really evolved to (where we say) 'we're going to do the best we can'," said Ward. "LEED has been an incredible tool in reshaping the industry and helping manufacturers, contractors, architects, and other industry partners understand the impact that their decisions have on the environment and on energy use," said Peter McBride, Principal with Salt Lake-based Architectural Nexus. "The conversation 20-30 years ago used to be 'how much does this cost?' or 'what is the percent increase cost in doing (LEED) vs. the baseline?' As each version of LEED established itself as an industry standard, the answer has been that LEED Certified or LEED Silver costs no more—or slightly more—than a baseline design. With each subsequent version release, LEED continues to push the boundary—sustainable design is now the baseline." "LEED has increased awareness for sustainability and energy conservation in buildings," added Chris Cox, Building Performance Program Manager for the State of Utah Division of Facilities Construction and Management (DFCM). "As far as the biggest pro, LEED brought the integrated design process to the forefront—user groups, owners, maintenance teams, architects, engineers, and builders work together in achieving the best outcomes."
By Brad Fullmer 01 Apr, 2024
UC+D: How was it working with Gary Payne for so many years? Turner: His impact on the Davis School District will last many years due to the buildings that were constructed during his time. Rather than being satisfied with the status quo, we worked to develop school buildings that would accommodate innovate teaching styles and would be safe, economical, and exciting places where children would want to be. UC+D : It's been 10 years since Odyssey Elementary was completed. What is the analysis of how it has performed? Turner: It is not very hard to create a truly Net-Zero building. We can produce enough electricity to offset the electricity used, plus the natural gas usage—however, the power company will not give us credit for electricity generated above what we use. An energy model was used to estimate the Energy Use Index (EUI) of Odyssey Elementary. It predicted that our EUI would be 22. The first year it was actually 17. An ideal Net-Zero building would not have any natural gas usage. We elected to install a gas boiler in the building to help control the "demand" charges that would occur on cold days when all the heat pumps would start up in the building. For 2023, the PV array produced 213,066 kWh; we used 188,088 kWh in electricity. We used 421 decatherms of gas, giving us a cost of $0.33/sf for energy usage, compared to an average building in the district (about $1.25/sf). UC+D: What is the greatest success with Odyssey? What would you do differently? Turner: Odyssey Elementary, with all its energy-efficient features, provides an excellent educational experience that benefits both teachers and students. The building accommodates different learning styles, collaboration, and individual exploration. First and foremost, the building is a school, albeit one that is very maintainable. There is not anything I would do differently. Since this was the first of a series of prototypes, a lot of thought from a lot of people was put into it.
By Talia Wolfe 01 Apr, 2024
Before the Logan Library ribbon-cutting ceremony began, two children eagerly ran past the staff toward the children's section. Inside the children's area, two girls, with their arms linked, skipped past the shelves of books while a little boy raced along the cobblestone path that weaves through the bookshelves. A young girl in the reading nook called her mom over to see, and a little girl with pigtails used the miniature-sized door into the children's section to enter the playhouse. The ribbon-cutting began in the lobby and adjacent community room, which were filled with patrons of all ages despite the stormy weather outside. As they entered, a string quartet greeted people with lovely music, and cameras lined the walls for press coverage; even the local firefighters came to show their support. Before the library's opening, Mayor Holly Daines shared how the facility was designed and built with modern and historical intentions. The mayor and various library donors spoke excitedly about the new library before the giant scissors were used to cut the ribbon. Immediately after, patrons with arms full of books were perusing the bookshelves. Children read in the aisle, too excited to move to a table, while parents formed a line waiting to check out books for the family. Quiet laughter emanated from the "teen and tween" section, and Utah State University and the Logan Latter-day Saint Temple are visible from the third-floor windows. From 1985 to 2021, the previous library was in an old and converted Sears building. For the last 20 years, Logan City leaders have discussed providing residents with a modern library. "The library was old and dark, and the systems were failing. It never was a purpose-built library," said Daines.
By LADD MARSHALL 01 Apr, 2024
Since its inception more than a century ago in 1922, Primary Children's Hospital has set a standard for pediatric healthcare excellence by continuing to produce world-class facilities throughout the Beehive State. The latest cutting-edge offering is the Intermountain Primary Children's Hospital, Larry H. & Gail Miller Family Campus in Lehi (PCH Lehi), a project of significant importance to this burgeoning city, one that ranks among Utah's fastest-growing communities. Aided by a $50 million gift from the Miller Family Foundation, this landmark five-story, 486,000 SF, 66-bed project features the latest and greatest in medical technology in a building that is fun, playful, and energetic, with colorful design elements playing a vital aesthetic role throughout. The value of a project on this level is beyond measure, said Blake Court, Vice President of Salt Lake-based Jacobsen Construction. "Primary Children's really has a special place in my heart—they are a very special entity," said Court, a veteran healthcare professional with nearly 35 years of overall experience, including 19 years at Jacobsen along with stints at the State of Utah Division of Facilities Construction and Management and the Department of Veteran's Affairs. "It has been embraced by the community. Lehi and the surrounding areas are growing so fast. It's just amazing to see what's going on there." "It's a once-in-a-lifetime project," said Jeff Pinegar, Principal with Salt Lake-based VCBO Architecture, who partnered with Page Southerland Page of Houston on an exhaustive 19-month detailed planning and design process to create a comprehensive hospital and clinic in one congruous structure. "To see these kids have the spirit they have [...] it's a life-changing project. I'm so glad I had the chance to be part of it. I love the challenge of healthcare." As with most construction projects that originated during the pandemic, PCH Lehi kicked off in August 2020, which proved immensely challenging from the onset in regard to worker health and volatility of material cost and availability. "Everyone knows the story—people got sick, it spread to co-workers, and we would lose entire crews [of subcontractors]," said Court. "We would constantly be down manpower. And then [material] lead times just skyrocketed. Materials that we normally get off the shelf went to a year-and-a-half overnight because manufacturing plants were shutting down. Add in price escalations and it was just a trifecta."
By Brad Fullmer 01 Apr, 2024
At an age when most folks are kicking off their post-retirement "golden years", 66-year-old Cal Wadsworth is attacking this chapter of his life with the zest of a man reborn, having fired back up his general contractor firm in 2020 with a vision of eventually turning it over to the next generation. It speaks to his resolve as a businessman and construction lifer, as a parent who wants to do right by his children, but even more as a person who has rallied/is rallying back from a challenging period personally, which coincided with the great recession and led to him shuttering Cal Wadsworth Construction in 2010. "I'm realizing more with time that I'm not in control as much I thought," said Wadsworth. "There is the realization that you've got to give up control. You can't base all your happiness on the money that comes from this business. Learning to live with disappointments is something I'm getting better at. Learning to live with them and not let them ruin my confidence, or my ambition. I live by the 'Serenity Prayer'."
By Brad Fullmer 01 Mar, 2024
Adobe’s 680,000 SF Lehi Campus is an iconic project in Lehi that was completed in two phases, with the first phase opening at the beginning of 2013 and signaling a new era of development along the Silicon Slopes corridor. (photo by Dana Sohm) Inset: Aerial view showing an illustration of Texas Instruments’ new 300 mm semiconductor wafer manufacturing plant—referred to as “LFAB2”—which broke ground last November and marks the single largest investment (over $11 billion) in state history. (photo courtesy Texas Instruments)
By Brad Fullmer 01 Mar, 2024
Work continues to grind forward on the mammoth new Salt Lake City Water Reclamation Facility (WRF)—a critical $850 million project being built by a joint venture of the Salt Lake regional offices of Sundt Construction and PCL Construction that will replace the current facility in North Salt Lake once it's turned over to SLC's Department of Utilities (SLCDPU) in July 2026. As it stands, this is the second-largest project in City history, trailing only the recent $2 billion-plus Salt Lake International Airport Redevelopment (Phases 3-4 ongoing), and one of the most technically challenging projects in the state. "We are up for the challenge every day—the magnitude of this thing is unreal," said Manny Diaz, Project Manager for Salt Lake-based Sundt, as he drove around the massive 30-acre site in late-January, a worksite teeming with 300 current employees (it will peak at 400 workers this summer) and myriad complicated structures being built simultaneously. Diaz is a long-time veteran of the water reclamation facility industry—this project marks plant No. 26 in his own personal history—and he was brought in a year ago by Sundt because of his expertise. When he arrived in Salt Lake at the beginning of last year, it was right smack dab in the middle of what proved to be a record-breaking year for snowfall. "It was quite a welcome to Utah!" Diaz chuckled. "We keep very close tabs on the weather." And while crews haven't been subjected to the same inclement weather this winter, site conditions are still generally wet and muddy, and the difficulties associated with building the various structures are constant. Crews are nearing the halfway mark, so certainly it's a milestone worth acknowledging, even though a mountain of construction is still left to climb. "It's such a huge accomplishment to be this far," said Jason Brown, Deputy Director of Public Utilities for SLC. "We've faced a lot of challenges, Covid, material shortages [...] it's amazing to be part of a team that works so well together. We still have a long way to go, but we'll get there. We've made a lot of progress and should be proud, but it's hard to celebrate success with so much work still ahead." Diaz, along with PCL Project Manager Shayne Waldron, said crews recently achieved a major milestone: one million hours worked, a notable accomplishment. “Achieving the ‘one million hours worked’ milestone is a testament to the coordination and collaboration required of a project this size," said Brown, adding that the new WRF project benefits from regular and ongoing staff collaboration, under the watch of Sundt/PCL, designers AECOM and Jacobs, and SLCDPU leadership. “This [milestone] is the culmination of many different efforts,” added Mauricio Ramos, District Manager for PCL’s Civil Infrastructure Division. “From local engineers to pipe layers, journeymen, construction trade workers, foremen, and general laborers, every team member has been instrumental in reaching this benchmark. The collaboration between PCL and Sundt has been a testament to our shared commitment to excellence and innovation.” "Our crews are working together seamlessly to ensure that the final product meets the goals and needs of the community," said Sam Reidy, Senior VP and District Manager for Sundt. "Celebrating this milestone recognizes the hard work and commitment each member of the project team has made to this project and the Sundt/PCL partnership." Diaz and Waldron said soil conditions challenged the team right out of the gate and took significant time to stabilize the site. "At the very beginning, the project was designed to be built on top of where the sludge beds were at, but it turns out the sludge beds were on shaky ground," said Diaz. "This whole area is young in age, so it's all soft clays and sands," added Waldron. "Soft clays are compressible, so the big issue is settling. It would have [cost] $80 million in piles to shore it up, and then in between buildings you have all the pipe and utility duct banks, so they would almost need to be built on piles." Waldron said the idea came up to pre-load the whole site, where crews built a flat pad, installed wick drains, then pre-loaded 30 ft. of dirt, with drains going down 125 feet and providing a way for water to be pushed out of the clay. "We had over seven feet of settlement," said Waldron. Crews also set up sophisticated monitoring equipment "to see where ground was settling and what layers were compressing the most. It was really scientific—a lot more than I've seen before." Diaz said it took six months to haul in the fill dirt where it remained in place for eight months, then took another six months to excavate out—close to one million yards of total material. It was an exhaustive process, with an average of 400 trucks per day and close to 500 trucks hauling 18,000 tons on the best day. Having a cohesive, highly collaborative team of designers and construction experts has been a boon to the project schedule. Once completed, Salt Lake City’s new WRF will serve over 200,000 residents as well as those who commute downtown to work or visit Utah's capital. It will replace the City’s current—and only—wastewater treatment facility, which is over 55 years old and near the end of its service life. Maintaining reliable operations at the existing facility while constructing the new WRF nearby has been critical for the project’s success. Since breaking ground in 2019, the project team has completed approximately 65% of structural concrete work as well as soil mitigation, deep foundation work, and the installation of underground utilities. In late January crews began excavating dual 63-in. diameter pipelines, along with a 78-in. effluent pipe that is being hauled one giant piece at a time from Canada, a new type of corrugated HDPE with welded joints that should provide greater durability. All in all, crews will ultimately pour 93,000 CY of concrete and install 22 million pounds of reinforcing steel, along with 89,000 LF of underground pipe ranging in diameter from 1.5-in. to 78-in. "The camaraderie among the team members allows for a very cohesive team," said Diaz. "The only way you can tell who works for who is by the color of the truck. We have a 'one project' mentality. The complexity of the job and being trusted to lead this effort [...] have been [important] for me. It's been a great job so far." Diaz, who said his first wastewater treatment plant was in North Miami Beach in the late 80s right after he graduated from college, hopes to remain in Utah once this job is completed and turned over to the client by mid-2026. “I plan on staying here and continue to work on treatment plants in Utah,” he said. “There’s a lot of work here. We have vast experience, and we have a lot of people who want to be in Utah—it’s a great place to live. Let’s do it!”
By Brad Fullmer 01 Mar, 2024
It's been more than 45 years (1978) since The Cars released their debut album highlighted by the wildly popular song Good Times Roll, but if there was ever a tune to sum up the general sentiment of local A/E/C professionals regarding Utah's 2024 Economic Outlook, Good Times Roll would be up there. "Our members are expecting another good year," said Joey Gilbert, President/CEO of the 650-member Associated General Contractors (AGC) of Utah. "For our contractors in both the building and highway markets, the outlook is good. Many still have decent backlogs to keep them busy through 2024 and in some cases, even 2025. The public sector is strong, and on the private side, owners are still investing in some big projects." Robert Spendlove, Chief Economist for Salt Lake-based Zions Bank, reported at the AGC's Economic Outlook meeting last November that commercial construction was up 1.6%, while Utah as a whole reported 2.5% growth overall, and believes both will continue to fare well in 2024. "Utah also has one of the lowest unemployment rates in the U.S. [2.5%]; when it gets too low, you get real struggles of labor shortages," he said. "It prevents companies from growing and is one of those defining economic characteristics of this past cycle. If we get above 4-5% we get nervous that it's a sign of a recessionary environment." Spendlove said tailwinds include strong consumer spending, a strong labor market, and an overall robust economic Intermountain West region, while headwinds could include a lack of new workers, government shutdowns, energy prices, and international uncertainty. Another bonus is that Utah remains one of the strongest states economically, regardless of what is happening nationally. "I would say uncomfortably optimistic," countered Dejan Eskic, Senior Research Fellow for the Kem Gardner Policy Institute at the University of Utah, citing a number of factors potentially slowing down the design and construction industry such as housing, labor, and material price fluctuations—basically the same post-Covid headwinds Utah-based firms have been battling the past couple of years. "On paper, we should have a decent economic year in Utah. Because it's an election year, it brings more optimism generally. Stock performance does better in an election year, jobs do better. You have to stick to those basics. Eskic has been with the Gardner Institute for eight years, including the past five in his current role, explained that some of the uncomfortableness facing the local economy stems from having virtually no labor pool in certain segments, including construction—which continues to face a dearth of skilled craftsmen in virtually all subcontractor trades. "We still have red flags," he said, noting concerns with still-high housing costs. "Maybe it's too early to call if we've cracked inflation. 2023 ended up way better than anybody expected—it was supposed to be a recession year, but the recession never came, and the labor market exceeded expectations. "I'm bullish on Utah," he added. "I look at the numbers and how we're going, and we're in a very strong growth pattern with the economy. Things will continue to expand." Indeed, despite nasty rising interest rates that put the brakes on some speculative development projects, Utah-based owners continued to plow ahead on projects, and by-and-large most market segments continued to see a healthy amount of activity as firms set about tackling healthy project backlogs.
By Reuben Wright 01 Mar, 2024
Crews working on bridge sections of the project did the majority of heavy-lifting—as seen with these giant cranes lifting heavy girders—during the wee hours of the night, part of UDOT’s expectations of keeping traffic moving by limiting road closures. (night photos by Kjell Gerber, BuildWitt)
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