Run Aground
How the global supply chain breakdown impacts Utah's economic shores. By Emma Penrod
For better or worse, economic trends in Utah have always lagged a few months or even years behind the U.S. as a whole. The supply chain disruptions triggered by Covid-19 and perpetuated by one global calamity after another have been no exception. Utah’s response to the virus may have been relatively lenient, but like the coming of the Transcontinental Railroad, we all watched and waited as the aftermath of the virus approached from both coasts.
The bulk of the supply chain disruptions finally arrived in Utah about halfway through last year, Josh Van Orden, President of VO Brothers Mechanical, recalled. Everything from natural materials to parts and equipment such as chillers, boilers, and pumps suddenly cost more, and shipping times multiplied—if those materials could be had at all.
“Items that have multiple components have enormous lead times, and sometimes come with an undefined delivery time,” Van Orden said. “We’ve had equipment come with a 24-week scheduled delivery. Stainless pipe vendors have indicated a 98% price increase mid-March due to nickel sourcing out of Russia stressing other suppliers.”
Even with a second wave of shortages on its way, Utah is likely positioned to fare better than other states when it comes to access to construction materials, according to Tim White, Director of Marketing for Utah-based wholesaler Mountainland Supply. But it won’t necessarily be immune, he said.
“There are logistical issues in terms of being landlocked—in one way that’s what has protected Utah for years and years and years,” White said. “But as we are entering into a global economy as a state, as Silicon Slopes is happening … getting product here that you need just takes a while.”
Waves at the Ports
Associated Builders and Contractors (ABC) estimates that total construction input costs rose 23.6% over the last year. But the rate of increase depends on the product. This past January—which saw overall prices increase about 3.5% compared to January 2021—softwood lumber, plumbing fixtures, concrete, and crude petroleum had the fastest-growing price increases, according to Chris DeHerrera, ABC Utah president and CEO, while metals including iron and steel finally experienced some price relief.
Metals including copper, aluminum, platinum, and especially palladium and nickel are expected to rise again on account of the Ukrainian-Russian conflict, DeHerrera said. About 10% of the world’s nickel, a key component of stainless steel, is produced in Russia, as is 40% of the world’s palladium, which is used to make catalytic converters and microchips.
A year before this latest crisis began, White said, the lack of available resin to make pipes and other products represented the major pain point. Severe storms in early 2021 hit the three largest resin plants in the U.S—all located in Texas—and for the better part of the year, it was difficult to even find available resin pipe, no matter the price.
The impact of these unrelated catastrophes may seem outsized, but it all began in 2020 with Covid-19’s global outbreak, according to Tom Berry, CEO of the Institute for Supply Management, a nonprofit dedicated to professional education.
While there was a span in late 2020 and early 2021 where manufacturing in nearly every economic sector ground to a halt, production has, for the most part, returned to pre-Covid levels, Berry said. The problem now is resolving the wave-like activity that has developed in global shipping chains.
Ports, like factories, shut down during the initial Covid-19 outbreak. Shipments already in transit couldn’t just freeze where they were, so products began to back up at the ports. When the ports opened again, they moved the backlogged products all at once.
The release of this backlog created that wave-like effect in global supply chains, Berry explains, because of the imbalanced distribution of manufacturing versus consumption around the globe—in general, wealthy countries consume more than they produce compared with other countries with lower labor costs that often produce more than they consume. As the first waves of ships arrived at, say, European ports, there wasn’t enough product to fill them up and send them back. This resulted in a shortage of shipping containers when the empty ships backed up at one set of ports and product once again backed up at the others. Similar dynamics have impacted overland shipping, whether by rail or truck.
The world has been trying to break the cycle ever since, but every time a crisis disrupts the production side of the equation, the cycle starts anew. Meanwhile, ongoing labor shortages and generally good business policies—it doesn’t make sense to build a bunch of expensive new ships in response to a temporary problem—have further entrenched the wave-like shipping trend.
Inland Insulation
Utah’s landlocked nature kept it relatively insulated when the first shipping waves hit the ports. But that isn’t the only reason why Utah was spared the initial impacts of global shortages—the state’s vibrant construction industry can also take some of the credit, White said.
When manufacturers realized they faced production and shipping backlogs that could take years to resolve, they started to prioritize, White said. As a business, if you have two orders and the ability to fill one of them, you’re going to go with the customer you believe has the greatest potential to place orders in the future. In the case of the last few years, suppliers have been betting on Utah, White said.
“That’s a roundabout way of saying our economy is so good that manufacturers have made allocations to us appropriate to the growth we are having,” White explained.
However, being landlocked isn’t always an asset—even with supply chains running smoothly, it takes longer to get materials to Utah than it does to coastal areas. As we know, the shipping waves eventually hit Utah, too.
Some products were spared the supply shocks entirely. Mountainland was able to continue providing certain bathtubs, for example, without significant delays because it just so happens that the company that makes them is located in Utah, White said. But manufacturing in Utah is generally limited. This means that even though Utah produces sizable quantities of natural materials such as copper and gas, the state was still subject to shortages of copper pipe and wire because it lacks the facilities to take these homegrown materials and turn them into products. As in many other cases, copper mined in Utah is shipped elsewhere for fabrication, which subjects it to the wave-like action of current shipping lines on the way out and on the way back.
“The more [manufacturing] capability we have, the less we will be impacted by these supply chain issues,” White said. And disruptions, he said, happen every year, if on a smaller scale than in the recent past. “If we’re going to continue to have these hurricanes and weather conditions that shut these places down, it might be a good idea to diversify where these things are located.”
Building Local Supplies
Utah, like most of the U.S., has lost much of its manufacturing since the 1970s, and the current trajectory doesn’t seem likely to make locating industrial operations here any easier, White said. Geography counts against the state twice—Utah’s location not only means lengthier supply lines for anything fabricated in the state, but the mountainous terrain means homes and businesses are squeezed together. And as the population grows and increases in wealth, the acceptability of industry has declined.
“Our cities are getting to the point where they don’t want a huge manufacturing plant in their backyard,” White said.
It’s unlikely that a state like Utah—or any state in today’s global economy—can stand up to all the manufacturing capacity required to support itself. What the state really needs to ensure more resilient supply chains in the future, White said, is innovation to find new solutions for modern problems, and for builders and contractors to get more involved in government processes to ensure the conversation about the state’s future growth includes support for the trades, manufacturing, and entrepreneurship.
“It’s just recognizing the fact that maybe what was good for us was like candy—cheap prices from China taste good for a while, until they start giving you diabetes,” White said. “It’s great and everybody is making money until they’re not. You have to look at the whole chain and say, ‘Maybe this doesn’t work anymore.’”
Because if the last four years have a lesson for the state, he said, it’s that growth must be balanced—you can’t concentrate all your growth and wealth on one side of the planet and expect all the supplies and labor to come from the other.
Nathan Goodrich
Paul founded Paulsen Construction in 1925 after immigrating from Norway 16 years prior. Sprague Library in Sugar House was originally built by Paul, and then restored nearly 100 years later, led by current President John Paulsen.
West Valley City Veteran’s Memorial Expansion Owner: West Valley City Architect: EDA Architects GC: Okland Construction Estimated Completion Date: September 2025
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.”
Ralph L. Wadsworth watches demolition activity on the I-80/1300 East Bridge Slide in August 2023 with granddaughter, Bradynn Wadsworth (Tod’s daughter), illustrating his genuine passion for construction. (all photos courtesy RLW Construction)
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."
Thoughtful consideration on Oquirrh Lake transformed the initial idea for the water feature into a community and ecological asset. The 67-acre lake weaves around the 130-acre recreation space, residential area, and wildlife habitat. (Main rendering and photo pictured courtesy LHM)
