Columbus embraces role as ‘tech capital of the Midwest’

This story is the first in a series looking at the opportunities and challenges in construction markets in the US

As early as 15 years ago, Brett Meyer knew Columbus’ construction industry would have its moment.

Meyer, the head of the Providence, Ohio office of Rhode Island contractor Gilbane, recalled the year — 2008 — that marked the height of the national financial crisis.

Cities across the country were suffering, but Columbus?

“Columbus remained stable during the ’08-’09 market. We’ve certainly pulled back a bit. But it didn’t drop as significantly as in other parts of the country,” Meyer told Construction Dive.

It gave Meyer a sense that his city, home to Ohio State University and state government, had a bright future ahead of it, despite the nation’s ongoing economic struggles.

Columbus is a mid-sized city — the U.S. Census Bureau estimates its population at 900,000 in July 2022 — and Meyer said the key markets have historically been K-12 health care and construction. .

This is changing following the arrival of megaprojects like Intel’s $20 billion semiconductor manufacturing facility in New Albany, a short drive away. So much industrial and tech-related construction is coming to the area that Ohio Lt. Gov. Jon Husted called Central Ohio the “tech capital of the midwest,” following Google’s August announcement of its $1.7 billion investment in three facilities in the region.

“The last five years it was very evident that Columbus is going to be a long-term growth opportunity,” Meyer said.

The business difference

Part of what’s attractive about Columbus, Meyer said, is the market itself. It is a city with a small-town feel and an attractive location for both residents and businesses. Meyer also said state and local government agencies do a great job of attracting businesses to the area and have made it easier for global corporations, such as Intel and Amgen, to put down roots with their factories. The conglomerates join companies like Bath & Body Works, Big Lots and Nationwide, all based in Columbus.

Barton Hacker, the president of the central Ohio chapter of Associated Builders and Contractors in Columbus, agreed.

“Part of the growth in Columbus has been the result of a concerted effort by the city and its economic development,” Hacker told Construction Dive.

And that development has paid off: By 2022, in the semiconductor, electric vehicle and life sciences industries, companies started 75 projects, with 46 tracks for the future, according to regional economic development consortium One Columbus.

Columbus’s GDP has grown greatly over the past two decades

“Business is as good as it’s ever been,” Hacker said of the construction industry.

Meyer offered more optimism for area contractors. Large conglomerates in the area, such as Intel and Amgen, that is build a large biomanufacturing plant in New Albanythey are pouring money into new billion-dollar facilities, training workers and helping develop the region’s workforce.

“I think this will not only make changes now, but over the long term, it will have a significant impact on the Columbus market,” Meyer said.

Boots on the ground

Despite the success, both Hacker and Meyer pointed to the Achilles heel of this feverish level of construction activity: finding enough workers to work on the projects.

Labor problems are not unique to the Columbus region. Contractors across the country are struggling to adequately fill their jobs, even broader job market cools of a scorching summer. The July jobs report noted that construction has 363,000 job openings, down 23,000 jobs from June, but still up 10,000 from a year ago.

That leaves companies scrambling for the same skilled labor that other employers are looking for on their projects, and it’s a problem for both Meyer and Hacker.

“Everybody is struggling to get the job done with the limited manpower resources we have,” Hacker said.

Part of the problem, Hacker said, is the industry’s struggle to find instructors and inspectors. Hacker said not many tradesmen go for these positions because it is much more profitable to work in the field than to train.

The industry’s strategy is to invest in training and continuing education for workers, Meyer said.

But for now, everyone feels the squeezeincluding a sector that is experiencing record growth.

Meyer predicts that over the next decade, Columbus will continue to expand, although not at the breakneck pace of recent years, and believes that the Central Ohio market will remain very attractive.

“Right now, we don’t really see things slowing down,” Meyer said.