Beehive State Buoyancy
More than a full year removed from the pandemic, labor remains the number one concern across the board for Utah’s construction and design industry. That said, commercial A/E/C firms remain as busy as ever and express “cautious optimism" at a robust 2023, despite continuing material volatility, rising interest rates, and a shaky housing market. By B. H. Wright
From March 2020 thru the last quarter of 2022, the pandemic altered normal day-to-day operations for businesses across the spectrum, which for A/E/C-related firms resulted in even more strict protocols and procedures designed to ensure healthy worksites.
A year later, it seems like a dream (nightmare at times) as the industry churns forward at a solid pace and with a collective sense of optimism that 2023 will be another profitable year. And forget about troubling economic signs on a national level. Time and time again, Utah has been buoyed by a “secret sauce” of positive factors (top five in economic growth, population growth, young average age) and this year again looks promising.
Local economic prognosticators—including Robert Spendlove, Jim Wood, and Natalie Gochnour—believe Utah’s design and construction industry is poised for another strong year overall, albeit softer than 2022.
“The U.S. is the strongest economy in the world, and Utah continues to be the strongest economy in the nation,” said Robert Spendlove last November at a Utah Ready-Mix Concrete Association meeting. Spendlove, Sr. VP/Chief Economist for Zions Bank and District 49 Representative in the Utah State Legislature and Chair of Revenue and Taxation Committee, continued, “We’ll see business activity and revenues go down, but we’re well-positioned.”
Despite two quarters of negative growth (-1.6% in Q1 and -0.6% in Q2) last year—one of the main indicators of a pending recession—the economy rebounded to post just under 3% growth in November 2022, capping off the year on a high note. Utah remains in the top five nationally in unemployment (2.1% average between the Wasatch Front and statewide), with a 3.7% jump in job growth, and continues to be among the best states for business development, overall economy, and quality of life.
“We’ve been below 3% [unemployment] for a long time—it’s almost like it’s normal,” said Gochnour, Director of the Kem C. Gardner Policy Institute at the University of Utah and Chief Economist for the Salt Lake Chamber. “Since 2000, Utah has annually ranked ahead of the national average [for job growth]. We have an amazing economy, diverse, growing, [and] stronger fundamentals than all states. That’s something we should take heart in. We’re the best state to head into (a recession).”
“Are we going into a recession?” Jim Wood asked as he spoke to attendees of the American Concrete Institute (ACI) of Utah’s Economic Forecast luncheon on January 10. Wood, Ivory-Boyer Senior Fellow at the Kem C. Gardner Policy Institute and a long-time forecaster of non-residential permit authorized construction in Utah, believes the state will have low, steady economic growth.
Of all the groups of business leaders Wood and his team meet with—including the Utah State Legislature and Governor’s Office of Economic Opportunity—the consensus was a 2% growth rate.
“I was more optimistic than that,” said Wood, who predicts that 2024 will see a marginal decline to 1% growth. “We have a very unique situation in terms of employment growth and unemployment rate. That’s why I’m optimistic that we won’t see [significant] job loss.”
Wood mentioned continuing work at the Salt Lake International Airport, a new downtown hospital by Intermountain Healthcare that will anchor 10 acres on the site of the former Sears building, and a still-sizzling multi-family market highlighted by five dazzling downtown high-rise buildings as just a few examples that illustrate his bullish outlook. The multi-family market peaked at 40,000 residential units in 2021 (up 30%) and is predicted to hit 29,000 in 2023, a bit of a market correction.
“In Salt Lake right now there are almost 5,200 units under construction,” said Wood, adding the city has increased its total number of rental units by 18,000 since 2010, to 55,000.
Single-family market woes will throw some cold water on the overall industry as Wood said three of Utah’s top homebuilders “overbuilt” and are “pulling back” in 2023 in an effort to liquidate inventory.
But unknowns remain, like the long-term effect of the government pumping $5 trillion into the economy via stimulus packages. Supply chain constraints, and how those impact schedules, delivery times, and budgets will also keep things in limbo. Then, of course, is the workforce.
Wood emphasized, “We have a skill shortage; it has driven prices up,” he said. “We haven’t had a labor shortage like this for decades.”
Factors Leading the Head/Tail Winds
Gochnour, in a meeting with members of the Associated General Contractors in November, rattled off a list of factors that determine economic headwinds and tailwinds, including inflation, interest rates, all-time high corporate profits, supply chain woes, housing volatility, and federal fiscal support programs that pumped more than trillions of dollars into the economy, forcing the Fed to raise rates, projected to hit 5.25% by March or April.
“Construction is a leading sector,” she said. “Hang on to your employees. Even if you’re seeing some headwinds, it won’t be long-lived. Find a way to get through this high inflation, high interest rate environment. Come late summer, we’ll all feel better. It’s a gutsy thing to say because it could be long.”
She continued, “One of the reasons I’m more bullish on Utah is we’re an energy state,” checking off the oil, gas, and renewable energy industries. “By and large, you’ll see our state doing more oil and gas exploration. The pressure for renewables will continue on their trajectory.” Utah has diverse options going forward including geothermal, solar, wind, coal, oil, and natural gas. “We have a strong portfolio of (energy) assets.”
Spendlove said the current economic climate and possibility of an actual recession is tough to read both nationally and locally. “Professional economists who do this every day don’t know. The difficulty in understanding the economy is unprecedented.” He pointed to the pandemic primarily and the “ripple effects” it has caused. From December 2021 to September 2022 the U.S. GDP expanded by 7%, with a growth of 2.6% from September-December.
Pressure to Expand Labor Pools
“Workforce development is number one in our mind,” said Troy Thompson, AGC of Utah Chair, at the opening session of the AGC of Utah’s 101st Convention on January 20, listing primary goals for the year. “We’re down 1.5 million construction workers prior to the big recession and we’ve never made that up. Training for craft people is [critical] We’re committed as a board and staff on workforce services.” Specific items include workforce development, education and training, apprenticeship/craft training, advocacy and government relations, and networking activities.
Representatives from the Utah Department of Workforce Services ran a breakout session during AGC’s convention, highlighting its program and overall clout, with a staff of 2,100 people committed to hiring people across the state, including rural communities. Getting prospective employees into a construction apprenticeship program is vital to securing committed, long-term workers.
Melisa Stark, Commissioner of Apprenticeship for DWS, said “With apprenticeships, it’s a strategy for recruitment for current employees. If you invest in employees, they will invest in you,” she said. “It affects compensation, culture, [and] retention. 93% of apprentices remain with employers after completion of an apprenticeship program.”
Thompson added that more than 40% of the currently employed workforce is looking for opportunities beyond their present job. It’s up to individual firms to work together to get the word out that construction is a top-shelf industry with copious benefits.
“It’s hard to get good people into the construction industry,” he said. “We have a lot of work ahead of us to recruit young people. We’re proud of our workforce services and our partnership with the state. We’ve got to get into high school and junior high [schools]. We have to work together on solving this problem.”
Recession-Proof Factors
The single-family housing market is expected to soften, despite modest declines in home prices. The multi-family market remains strong, with dozens of apartment projects continuing to sprout up from Ogden to Provo. Gochnour listed several factors that keep Utah insulated from negative outside economic forces.
Utah has a demographic cushion, given it was the fastest-growing state from 2010-20. That underbelly of growth feeds all businesses in Utah’s diverse economy. According to Gochnour, Utah is one of a handful of states that has an economic structure similar to the U.S. “It makes us have less wild swings, we have industries that keep us stable,” she said, listing energy, life sciences, agriculture, warehouse/distribution, healthcare, tech, tourism.
She also highlighted that Utah’s leadership is respected, and the state is well-known outside its boundaries as one where problems are quickly solved, and trust remains high. Utah also has a peaceable election environment with a high level of trust in public institutions. “Social capital is really high,” she added. “We end up with balanced budgets, a surplus of funds, and an ability to get through economic challenges. It’s the best state to do business.”

Commercial office is not dead. The market is alive and well, according to the design pros at HB Workplaces team. Their new office and showroom in Draper, and what it has done for employees and clients, is a case in point. All it took was a change in scenery. Transitioning from the B'Nai Israel Temple, built in 1890, to a new space was a welcome change for the team. "I just remember working between 2015 and 2020, and it was just," Keilian Meyer trailed off as he described the former office, a historic religious building converted into an office and showroom in 1987. Minimal natural lighting, rooms and layouts misaligned for team needs—their space wasn't bringing out anyone's best work. Meyer, Marketing Director for HB Workplaces, said going to work didn't engender a sense of engagement. "It was kind of punch in and punch out." But everything coalesced with their move. "The timing aligned perfectly," Meyer said of the June 2024 move and their rebrand from the year before from Henriksen/Butler to HB Workplaces. Dual Purposes Come to Life It aligned with every real estate broker's favorite word: location. Planting the HB Workplaces flag in the award-winning Baltic Pointe made perfect sense, especially with its epicenter locale between the booming economies of Salt Lake and Utah counties. HB Workplaces CEO Dave Colling summed it all up succinctly: "Our new headquarters is not just another building; it's a statement of our appreciation and stewardship of design, built upon decades-long heritage of our own, along with MillerKnoll, underscoring our commitment to excellence." The mass timber ceilings in HB Workplaces' first-floor office in Baltic Pointe—the first of their kind for a commercial building in Utah—are part of that commitment. Everything seems warmer, healthier, and better under the all-lumber ceiling. "We've always been drawn to inspiring architecture, and the natural warmth and intentionality of this structure made it a natural fit," said Meyer. HB Workplaces sought to make their mass timber home a showpiece for the beautiful and wide-ranging possibilities of today's commercial interiors, serving as an office for the HB Workplaces team and a showroom for interior designers and architects looking to envision their next project. That dual nature comes through perfectly across the space, with the showroom piece especially highlighted in the "Living Room" and its 382 SF of mid-century modern glory. The unforgettable Eames Lounge chair catches the eye, but closer inspection reveals some nods to the B'Nai Israel Temple's stained glass windows and other homages to the deep histories of the Herman Miller and Knoll brands. The room's mid-century-style lounge chairs, couches, ottomans, and side tables—all MillerKnoll line, of course—combine with gentle lighting to create the perfect spot for hosting. Brit Badger, HB Workplaces' VP of Client Development, explained how the Living Room is ideal for getting to know their design partners and clients, especially for a first meeting. "It's not all the same seating everywhere, like it would be at a conference room," she explained of how the varied seating choices—the Nelson Coconut Lounge Chair is often first dibs—help to create a relaxed and comfortable environment. "It's cool to see who chooses what. It's a fun way to start."

Bragging about a “C+” might seem gauche, but Utah is one of only four states to earn that high a grade, according to the May 28 release by the Utah Section of the American Society of Civil Engineers (ASCE) of the 2025 Report Card for Utah’s Infrastructure. The cumulative “C+” for the Beehive State is the highest mark ever given by ASCE to any individual state—the report card itself spans 12 categories of infrastructure and is virtually unchanged from 2020 (ASCE issues report cards every four years). Utah's grade is also one step higher than the national infrastructure average grade of “C” in the ASCE 2025 Report Card for America’s Infrastructure, which dropped in March. Roads (B+) and Bridges (B) remain the stars of the class, as the Utah Department of Transportation (UDOT) continues to receive consistent state funding in furthering its aggressive program of building new projects to meet ongoing demand, while diligently maintaining existing infrastructure. “Our transit and transportation are doing fabulous," said Anna Lisonbee, President of ASCE Utah and an Engineer-in-Training at South Jordan-based Hansen, Allen & Luce. “UDOT and UTA are lauded as some of the most efficient [organizations] nationwide, so we’re doing very well in that category.” Aviation infrastructure was the only category to see a grade increase—somewhat predictable given the sheer amount of capital investment made over the past decade at Salt Lake International Airport, Provo Airport, and other regional airports statewide. Three categories—bridges, s tormwater, and transit—saw grade decreases. The remaining eight categories held steady from 2020. "Utah is one of the fastest-growing states in the country, and state leaders have taken steps to ensure the reliability of infrastructure systems as more people move here to enjoy Utah's thriving communities, amazing outdoors, and high quality of life," said Craig Friant, Utah Civil Practice Lead for South Jordan-based Wilson & Company and Chair of the 2025 Report Card for Utah's Infrastructure. Utah grades per category: Roads: B+ Bridges: B Drinking Water, Solid Waste, Transit: B- Aviation, Dams, Hazardous Waste: C+ Stormwater, Wastewater: C Canals: D+ Levees: D-

"What gets you out of Egypt doesn't take you to the promised land." The quote, as I first heard it, came from Ron Dunn, Founder of Salt Lake structural engineering firm Dunn Associates. While he was talking about the differences between founding and growing a company, the same principle holds true in developing a robust transportation infrastructure. In other words: "What got us here will not take us there." What has taken us here has been development dedicated to personal vehicles and last-mile freight—a stellar network of roads and highways from massive investments in horizontal construction. But what will get us "there" to the promised land? What will bring us to a future where Utahns can have the freedom to move without a car? Unified Plan for a Connected Utah? We'll certainly wander in the West Desert without a plan. Lucky us, we have hundreds of agreed-upon proposals across metropolitan planning organizations, cities and towns, counties, and even the Utah Department of Transportation. The Beehive State's guiding document toward long-term transportation plans, whether for cars or not, is found in the Utah Unified Transportation Plan, also known as the Unified Plan. The visionary document aims to prioritize funding across multiple transportation options and give residents choices, ranging from personal vehicles to mass transit and active transportation. Residents and metropolitan planning organizations across the state have added their input to further unify the state's trajectory. Key in Utah's Unified Plan, as documented, is analyzing and ultimately determining how transportation projects in Utah should be funded between 2023 - 2050. With projected needs across that timeline estimated at $153 billion in today's dollars, current revenue sources generating just under a projected $95 billion, and future revenue streams projected to generate just over $18 billion, we're going to be short. But where is that money going? Most often, it's funding roads. According to the Unified Plan, transportation needs from road capacity, maintenance, preservation, and operations project at a whopping $110 billion between 2023 - 2050, with a $29 billion funding gap in revenue. Funding future mass transit capacity ($14.8 billion) and operations ($19.8 billion) over the next 25 years costs a fraction of the projected costs for roads and highways. It's an apples-to-oranges comparison, admittedly, as massive funding for highways and freeways has created so much, but where do state priorities lead? Budget at a Glance Utah continues to tread the asphalt and concrete highway to prioritize highway funding. UDOT's FY2026 funding document shows $2.5 billion in funding. Estimated Transportation Investment Fund (TIF) expenditures, primarily used for improving or optimizing capacity, are projected at $1.2 billion. Within the TIF, Class B & Class C Roads, county roads and city streets, respectively, will receive $261 million, Highway Systems Construction $205 million, and Operations/Maintenance $254 million. It makes sense when $883 million in projected revenue for FY2026 comes from user-based fees, permits, and gas tax revenues (set to be 40 cents per gallon in 2026). On the other hand, UDOT-funded mass transit receives a bulk of its budget from the above-mentioned Transportation Investment Fund—35% of the index fuel tax sales tax goes into the Transit Transportation Investment Fund. For FY2026, transit and commuter rail projects will receive $103 million. John Gleason, UDOT's Sr. Public Information Officer, said there is a major shift happening within UDOT over the last decade-plus to give some "gas" to other forms of transportation. "All transportation is important to us. For every project we undertake, we are looking at the different components across all modes—cars, transit, bikes, trails," Gleason said. "We need to keep an eye on how the entire transportation system can function across the state." The words and shift in priorities are welcome, but what "Keeps Utah Moving", will not be more highway lanes or highway construction that receives the lion's share of transportation funding. Utah highways, like those in so many other states, are the victims of induced demand. The phenomenon is a matter of economics. For vehicle transportation, each lane added, highway developed, or road widened helps to expand capacity on these newly modified transportation corridors. However, expanding capacity does not mean solving traffic concerns. While capacity expands, more people are "induced" to use these freshly expanded corridors, lanes fill back to capacity, and commutes return to their sluggish nature. This never-ending quest to meet our transportation needs is set to play out again on I-15. UDOT is set to add another lane on I-15 from Farmington to Salt Lake, and do so at a multi-billion-dollar price tag. Surely this lane will be "The One" that fixes the traffic problem on Utah's busiest transit corridor? Utah may still be adjusting to roundabouts, but will we ever get out of this circle?

Standing atop the now-tallest building in Utah—the dynamic 451-foot, 680,000-SF Astra Tower in downtown Salt Lake City—Lance Shields was succinct in describing the otherworldly, 360-degree views available from the 41st-floor rooftop patio. “Pretty amazing, isn’t it?” mused Shields, a Principal with Salt Lake-based HKS Architects and one of a half-dozen architects on HKS’ team who contributed to the design of Astra Tower, which features 377 total units, two levels of penthouse suites, and more than 40,000-SF of top-shelf amenity space. Peering southeast to majestic views of the Wasatch Mountains, Shields referenced the striking cantilever structure gracing the building’s southeast corner—a concession that preserved the breathtaking view by eliminating what would have been a structural column. Adding this approximately $2 million change to the bottom line only further illustrated the owner’s desire for a world-class luxury apartment tower. “The uninterrupted views of the valley are really breathtaking at the top floor and is the one thing that visitors I have taken through the project consistently comment on as the best experience they have had,” said Shields, adding that it would have been easy to justify a column in that corner. “I have to hand it to the vision of our team and the owner to see the value of the views and taking steps to preserve it.” Indeed, Boston-headquartered Kensington Investment Company (KIC) had been eyeing the Salt Lake market since 2017, ready to make a splash. In 2018, it purchased the site once home to Carl’s Jr. and hired HKS in 2019 to get the ball rolling on the design side. The pandemic forced KIC to pause its timeline, with construction formally kicking off in January 2022, led by Salt Lake-based Jacobsen Construction. “We were taking an enormous risk and writing a massive check while making sure we had as many people with experience on our team as we practically could,” said Ed Lewis, CEO of KIC. “We asked ourselves if Salt Lake City was ready for this kind of product—with no [like-building comparisons] to look to—while making the project financially successful. Putting together the capital stack with no comps in the state, and ensuring the team knew what they were doing, was challenging.” Engagement with the community was a priority from the start, said Shane Rensmon, President of Real Estate Development for KIC, as was finding local A/E/C firms with the moxie to take on a unique hybrid design-build project of this magnitude, a delivery method “not common in Salt Lake City, but common across major markets,” he said. “Ownership wanted to utilize local consultants and vendors as much as possible to get the community involved and engaged with the project, which presented new challenges in designing and constructing Astra Tower,” said Rensmon. “We leveraged [KIC’s] skills and experiences to help guide the design and construction teams on issues that they have not seen before or had little to no experience in.” Hotel-like Vibe with Unmatched Amenities Emir Tursic is no stranger to massive projects, having cut his teeth in the hospitality realm as a draftsman-turned-project architect for HKS on Block A of the enormous $10 billion MGM City Center project in Las Vegas from 2007-2008, which included the 61-story, 600,000-SF Aria Hotel. “It was a project I grew up very quickly with,” recalled Tursic, Office Director for HKS’ Salt Lake office, who ended up managing part of the project before it ended. “After this, I could go to the moon and not be scared of anything.” Even amidst the challenges for Tursic and his team, Astra Tower proved to be one of the most exciting, generational opportunities in the realm of world-class residential high-rise design that—ho-hum—also sets a record as the state’s tallest-ever building. “We wanted to create a sustainable urban community that focuses on wellness and sustainability,” said Tursic. “Sustainability is not just about energy and carbon footprint, it’s also [about] health and wellness and the environment. We have this huge amenity program—40,000 SF of indoor and outdoor amenities space focused on physical and mental health.” Tursic said dispersing major amenities across three building levels was a key functional design consideration. Level 8 kicks things off with an expansive club lounge that includes a demonstration kitchen and entertainment area, a state-of-the-art fitness center where views overlook Gallivan Plaza, a remote office space with a conference room and meeting rooms, and what Tursic calls “The bonus space”—an expansive 10,000 SF outdoor urban park. “Instead of a roof on top of the eight-story parking structure, we created a space with an outdoor lawn, hammocks, fire pits, grills—it’s a great social space for Astra’s residential community,” he said. Level 23 includes the outdoor pool and indoor spa, highlighted by a wellness center, steam room, sauna, recovery spas, treatment rooms, and private locker rooms. The pool deck overlook offers excellent views of the Oquirrh Mountains to the west. Level 41 tops the amenity spaces—literally—with an outdoor kitchen, entertainment area, and a spacious outdoor viewing deck that looks down on Salt Lake’s adjacent tallest buildings. “We wanted to provide a variety of experiences,” said Tursic. “The 41st floor is meant for quiet and solitude.” ROAM Interior Design of Los Angeles provided interior design on every level. "With Astra Tower, we set out to design interiors that reflect both the soul and natural beauty of Utah, infused with the energy of modern city living," said Deanne Teeter, Design Director at ROAM. “Every amenity—from the tranquil spa on the 23rd floor to the rooftop lounge with panoramic views—is intentionally crafted to foster wellness through biophilic connection and a true sense of home in the sky." “Astra Tower was purposefully designed to exemplify KIC's commitment to o perating market-leading apartment buildings, featuring state-of-the-art amenities and an unwavering dedication to service excellence,” said Joe Bird, Vice President of Real Estate Development for KIC. “This intentional design ensures an unparalleled living experience, blending sophisticated facilities with exceptional resident-focused service to set a new standard for urban residential excellence in Utah.”

First. Best. Leader. These are some of the many positive ways people described the late Marshall White, the civic hero and namesake of Ogden's past and future community centers. Marshall White is remembered as the first black police officer in Utah killed in the line of duty after being fatally shot in 1963. Equally important was his dedication to other causes outside of police work: the loving father of seven children; veteran and military doctor who helped establish a clinic at Hill Air Force Base post-WWII; youth mentor who partnered with the Elk's Club to establish the Wall Avenue Recreation Center; President of the Ogden chapter of the National Association for the Advancement of Colored People. Marshall White embodied community, and the original Marshall White Community Center, constructed five years after he died in 1968, was its physical manifestation. The building became a safe haven for youth, especially those with darker skin and different ethnicities from those of Utah "pioneer" ancestry, to learn to swim, take art classes, and participate in sports. But as time passed, the building fell into disrepair as Ogden's population shrank from the 1970s through the 1980s. Structural issues in the building appeared before a crack in the pool grew into a metaphorical chasm as COVID and its effects further disconnected society. Ogden needed champions who would follow in White's footsteps to bring people together, and create a space that would continue his community-building legacy. New Center; Relit Community Beacon Salt Lake-based VCBO was hired in 2020 to evaluate the old facility and propose future alternatives. It began, as VCBO Principal Brent Tippets described, "to replace a failing pool and building. […] It quickly became apparent that this community revolved around the Marshall N. White Community Center as both a gathering space and a historical icon for all minorities and people of humble circumstances." "Budget is always a challenge, but perhaps meeting all the affected parties' expectations was more so," said Tippets. "What was originally a pool and gymnasium replacement became a versatile destination with a plethora of participation options. He and the VCBO team worked with an Ogden City-appointed steering committee of passionate residents who provided valuable input on the importance and utilization of recreation and community spaces. "The Mayor, City Council, and City administration were committed to funding the project at the required level to achieve the grander vision for the facility," said Tippets. The Ogden City Council initially set aside $18 million and later increased the budget to $32 million for a new, 68,900-SF community building, doubling the size of the previous structure. Construction Challenges But challenges arose as soon as excavation commenced. Construction teams led by Vernal-based BHI encountered a dark, organic-looking soil that was previously undiscovered in geotechnical test borings. The surprise soil raised immediate concerns due to its lack of stability and reliability in compaction. BHI's history as an industrial contractor, where safety and lightning-fast communication are treasured, escalated the soil problems immediately. They collaborated and aligned with ownership, geotechnical engineers, and designers amidst evolving conditions to create a plan. Instead of utilizing native soils as initially planned, excavation teams removed the unsuitable material and imported structural fill from Ogden and nearby Plain City to meet compaction and bearing requirements, all while maintaining oh-so-important project momentum. "Working with Ogden City involved a different set of communication and coordination protocols than our typical projects," said BHI Superintendent Scot Marrot. "There was a greater emphasis on public transparency and adherence to specific city regulations. However, it was incredibly fulfilling to collaborate with the city officials who were passionate about providing a valuable resource for their community. The partnership fostered a strong sense of shared purpose and pride in the final outcome."