Latest news with #Skanska
Yahoo
4 hours ago
- Business
- Yahoo
New steel, aluminum tariffs will push construction costs higher
This story was originally published on Construction Dive. To receive daily news and insights, subscribe to our free daily Construction Dive newsletter. New tariffs on foreign steel and aluminum will raise construction costs further, adding to price spikes triggered by an initial 25% tariff on the materials earlier this year, according to a June 3 industry webinar hosted by Skanska USA. President Donald Trump increased steel and aluminum tariffs from 25% to 50% on Wednesday, doubling down on a strategy that has reshaped construction supply chains since his administration took over. Only the United Kingdom is exempt from the hike until July 9, per the U.S.-U.K. Economic Prosperity Deal. The move will inflate material costs across a range of commercial building materials, at a time when many projects stand on shaky financial ground, according to panelists. 'We're still digesting the most recent announcement of the steel and aluminum tariffs doubling,' said Rob Cantando, national director of strategic supply chain at Sweden-based developer and builder Skanska. 'We're going to be working with our supply chain partners to assess that impact over the coming weeks.' In one case study shared by Skanska, the new tariffs could add around $22 million to a $375 million healthcare development. Nearly half of that jump is tied to derivative components that embed steel or aluminum in their assemblies, according to Skanska. Panelists added these cost increases could even jump as high as 8%. But other categories are showing resistance to price swings, said Cantando. Several manufacturers that announced price hikes earlier in the year, particularly of drywall, lumber and steel studs, have since scaled back further increases. 'Many of those markets that shot up early when the first round of tariffs were announced are giving back some of those gains as these new tariff policy changes are accounted for. In addition, manufacturers and suppliers are taking action to remain competitive,' said Cantando. 'Many of them are shifting sourcing and materials to minimize the impact of tariffs. In some cases, tariffs are being partially absorbed by the supply chain.' The result is an unpredictable pricing climate. For now, structural steel escalation is hovering around 5% to 8%, but that could rise quickly, said Cantando. Coil-based steel products, including hollow structural sections and bar grating, have already surged by as much as 50% since January. Midwest aluminum premiums jumped 54% following Trump's announcement last week of the new tariffs, he added. To stay ahead of volatility, suppliers have been reworking logistics. Kawneer, a Norcross, Georgia-based manufacturer of commercial construction products, has begun rerouting cross-border contracts and adjusting production footprints across North America to avoid tariff exposure, said Sarah Andreasen, director of North American sales at Kawneer. Kawneer's architectural aluminum product range includes windows, doors, framing systems, curtain wall systems and railings. The firm's products are used on nonresidential buildings such as stadiums, offices, schools, retail and healthcare construction, according to the company. 'For us, it's been all about rediverting our supply chain,' said Andreasen. 'We have had to do a lot of work, set up production capability in different plants so that we can mitigate those types of transactions from tariffs.' On the steel side, firms such as SteelFab, a Charlotte, North Carolina-based structural steel fabricator, are working directly with owners and general contractors to create bundled purchasing agreements, said Chris Gregory, executive vice president at SteelFab. Gregory recommended locking in pricing across multiple upcoming projects by combining expected orders into a single package. 'Package projects together. Say 'It's not just 1,000 tons we're buying, we'd like 15,000 tons. What kind of deal can you structure for us to lock in price and help us with the schedule?'' said Gregory. 'That has saved a tremendous amount of money this first quarter that goes directly to the owners.' However, risks still remain, said panelists. In certain cases, tariff impacts won't appear on an invoice at all, said Cantando. For instance, if the cost of a component rises due to reshuffled sourcing or overseas market constraints, there's rarely a clean paper trail. 'A component costs $100 but because of tariffs, it now costs $150. My supply chain team quickly gets to work to try to find an alternate source. Let's say they find a source that's $125,' said Cantando. 'You can argue that the $25 increase was a result of tariffs. But you're not going to have a document that shows that because there's no tariff that's applied to it.' Tariffs' impacts are further complicated by shifting domestic capacity. While U.S. steel mills are currently running below peak capability, at around 75%, certain segments have already seen stretched lead times, said Gregory. Aluminum smelting capacity, idled in recent years, will also be harder to ramp back up, said Andreasen. 'I do think it's something that we're going to have to watch pretty carefully,' said Andreasen. 'I think that's a challenge that we'll continue to watch on the horizon.' In the meantime, executives should continue to develop contingency planning and contract strategies. Panelists during the session advised clients to revisit contracts to help mitigate risk. 'You might want to consider establishing unit pricing, or index-based pricing, for products where the supply chain is suggesting that firm fixed pricing won't reflect future tariff policies,' said Sarah Vakili, senior director of business planning and strategy at Skanska. 'Of course, stay informed and be willing to adapt.' Recommended Reading Construction costs dip, but tariffs hike some materials' prices
Yahoo
7 days ago
- Business
- Yahoo
AI is taking a bite out of crime on Eastside construction project
This story was originally published on Artificial intelligence (AI) is everywhere these days; it's even being used to provide security on one of the biggest job sites in Western Washington. So, how is 'Big Brother' being used to combat theft, vandalism, and damage in construction zones? Boots on the ground weren't cutting it anymore for global construction and development firm Skanska, especially when it had a seven-mile-long construction zone at I-405 and State Route 522 (SR 522) in Bothell/Woodinville. Skanska's project superintendent, Scott Turner, told me that a traditional security guard for a project this big didn't make sense. 'We have found that that is not very helpful these days,' he said. 'Usually our security guard is asleep, or doesn't show up, or isn't actually monitoring the site, as they're being paid to do.' Construction sites and companies have become prime targets for thieves and vandals. They can slip into job sites unnoticed and make off with just about anything. 'We've had trucks show up missing,' Turner said. 'They will also break into our conex boxes and steal whatever tools they can carry.' Wiring. Supplies. Vandalism. Turner said the company has looked for other ways to monitor their site and deter crime. That's when he found Sam Joseph, the co-founder and CEO of Hakimo, a remote security firm in Silicon Valley, who uses AI to augment or replace traditional guards. Hakimo sets up the cameras, and AI watches for anomalies. 'Cameras are like eyes, and then AI is like a brain for those eyes,' Joseph said. 'AI now enables cameras to understand what's happening in front of them.' Hakimo's cameras can detect someone in the yard or climbing a fence, and the AI will respond. It can give a recorded voice to that intruder to scare them away. It can send an alert to the company or a monitoring facility for more action. 'The AI detects that and then escalates it to a real human operator, who can then call Scott or someone on site, or if it's something really serious, call law enforcement directly,' Joseph said. AI can be faster and more efficient than security guards. 'That's why we call our offering remote guarding,' Joseph said. 'It's providing what a guard can provide, but remotely at a fraction of the cost.' For Turner and Skanska, the 15-camera system being used at this eastside project is working so far. 'It has seemed to work,' he said. 'We haven't caught anybody because I don't think there's been anybody to catch. The cameras themselves are quite a good deterrent.' Just a reminder of what Skanska and the Washington Department of Transportation (WSDOT) are doing at this location, it is widening the freeway to add a second express toll lane from where it ends at SR 522 to Canyon Park at State Route 527 (SR 527). There are new ramps and new access to support bus rapid transit. The project is scheduled for completion in 2028. Chris Sullivan is a traffic reporter for KIRO Newsradio. Read more of his stories here. Follow KIRO Newsradio traffic on X.
Yahoo
29-05-2025
- Business
- Yahoo
Skanska wins $167m contract for Skoyen metro station in Norway
Swedish construction company Skanska has received a contract worth Nkr1.7bn ($167.1m) from Fornebubanen for the construction of the Skoyen metro station in Oslo, Norway. The deal will be recorded in the Nordic order bookings for the second quarter of 2025. The project entails the development of an underground metro station featuring two tracks and dual access points located on either side of Hoffsveien at Skoyen. The construction phase is set to commence in September this year, with an anticipated completion date in 2029. The scope of work includes the creation of a station hall situated around 45m below ground level, along with concrete works, shafts, and various technical installations such as ventilation systems, electrical setups, elevators, and escalators. Additionally, the project encompasses the development of outdoor areas and access buildings, along with finishing works within pre-excavated tunnels. Further construction activities will also take place at Madserud, Bestum, and along the tunnel leading to Majorstuen. Skoyen serves as a significant public transport hub in Oslo, and the new station aims to enhance capacity and improve connections between the subway, train, and bus services, thereby supporting urban development in the city, according to the company. In 2022, Skanska secured an additional £78m ($105.1m) contract for work on the High Speed 2 (HS2) railway line in the UK. In April 2020, Skanska, as part of a joint venture, signed a contract with HS2 for the detailed design and construction of major tunnels leading to the London terminus at Euston station. In 2022, Rio Grande Pacific Corporation (RGPC) selected firms for the final engineering and construction of the Uinta Basin Railway project in Utah. Aecom was responsible for the final design, while the Skanska-WW Clyde Joint Venture (JV) was tasked with construction. "Skanska wins $167m contract for Skoyen metro station in Norway" was originally created and published by Railway Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
28-05-2025
- Business
- Yahoo
Why veterans make good construction leaders
This story was originally published on Construction Dive. To receive daily news and insights, subscribe to our free daily Construction Dive newsletter. Military veterans bring leadership and adaptability skills that make them strong candidates for a number of construction roles, panelists said during a Skanska and the Society of American Military Engineers event last week, moderated by Construction Dive Editor Zach Phillips. Panelists agreed veterans are well-suited for roles such as superintendent, project engineer and safety manager. Their operational skills also allow these candidates to ultimately advance quickly in their careers despite little prior construction experience, according to retired Capt. Patrick Jones, managing director of Fort Worth, Texas-based Proteus Recruiting. That's especially critical in the face of a persistent labor shortage. The event built on the industry's ongoing search for skilled labor, particularly how veterans can help bridge construction's talent gap through leadership and operational experience gained in service. The conversation highlighted growing efforts by construction firms to formalize veteran pipelines through mentorship, tailored onboarding and internal support networks. Panelists said veterans thrive in construction because the environment echoes the military with mission-driven tasks amid a constantly changing environment. 'You just replace the map with a set of plans and it's the same type of challenge,' said retired Col. Aaron Reisinger, president of construction and government services at Sevan Multi-Site Solutions, a Downers Grove, Illinois-based construction company. 'How do you integrate a whole bunch of people from different skill sets, different backgrounds, to achieve whatever it is right in front of you?' Unlike conventional entry-level hires, veterans often arrive with field-tested soft skills such as problem solving, small-unit leadership and logistical coordination. Those skills are often more difficult to teach than technical construction skills, said Jones. That's why rather than relying solely on college recruiting, he recommends firms should consider veterans as a parallel pipeline for field leadership roles. 'The majority of candidates that we place in the construction industry don't come from construction backgrounds,' said Jones. 'They're oftentimes just strong field leaders with strong integrity, work ethic, drive that want to build their next career.' But challenges still remain, especially around unfocused transitions, said 1st Lt. Neil Moloney, environment, health and safety manager at Skanska. That's why a progression plan is needed to provide structure for the service member in the civilian career after they've left the very structured military, he said. 'For me, one of the reasons why I came back to Skanska following deployment was because of everything that Skanska provided me during the deployment,' said Moloney. 'In conjunction with the office and the veterans working group, they sent me 16 boxes of treats from home, which came in at a great time, because we had just returned from a mission that we were gone for two weeks.' Capt. Sharon Douglas, owner and president of Potere Construction, a Fort Worth-based construction company, said she faced barriers breaking into the industry as a woman and now tries to open doors for others, including veterans. 'The invitation to be in this type of field was not there,' said Douglas. 'As far as being flexible, the military talks a lot about that, we became stronger mentally to endure changes. And if you guys have ever been on a design-build project, there's always things that are changing. It may say one thing on their drawing, but it may not fit the field.' Panelists added that while leadership and flexibility often carry over, the lack of familiarity with businesses-side concepts can still leave veterans at a disadvantage. That gap can be addressed through upfront training and mentors who understand both worlds. 'Those all types of things are things you have to reground yourself in. It's going back to digging foxholes,' said Reisinger. 'But as long as you bring those hard, strong, well developed work ethic, trust and commitment to that technical skill development, that stuff happens real fast.' Veterans may not know industry terminology, project workflows or how to operate within a profit-and-loss environment. A short crash course or jobsite exposure before hiring can make a big difference, said Moloney, as well as providing a blueprint for career advancement. '[Veterans] want to know what the next step is, where do I see my progression in a year to three years?' said Maloney. To improve retention, firms need structured support, including defined promotion pathways and mentorship. In other words, panelists agreed firms must take a proactive approach. 'Doing 30-, 60-, 90-day check-ins with new veteran hires is really helpful, you don't want a veteran that comes in without background to feel like they're on an island to themselves,' said Jones. 'It's easier to teach construction than it is to teach someone to be a leader.' Recommended Reading Construction hiring slows to lowest rate ever recorded
Yahoo
27-05-2025
- Business
- Yahoo
Skanska builds underground metro station in Oslo, Norway, for NOK 1.7 billion, about SEK 1.6 billion
STOCKHOLM, May 27, 2025 /PRNewswire/ -- Skanska has signed a contract with Fornebubanen to build the new Skøyen metro station in Oslo, Norway. The contract is worth NOK 1.7 billion, about SEK 1.6 billion, which will be included in the Nordic order bookings for the second quarter of 2025. The contract includes the construction of a new underground metro station with two tracks and two access points, one on each side of Hoffsveien at Skøyen. The project also involves construction of a station hall located about 45 meters below ground, concrete works, shafts, technical installations such as ventilation, electrical installations, elevators and escalators, outdoor areas, access buildings, and finalization works in pre-excavated tunnels. Additional building works will be carried out at Madserud, Bestum and in the tunnel towards Majorstuen. Skøyen is one of Oslo's busiest public transport hubs. The new station will increase capacity and improve connectivity between subway, train, and bus, contributing to positive urban development in the Norwegian capital. The project will be carried out with a strong focus on energy efficiency and reduced climate impact. Construction is scheduled to start in September 2025, with completion expected in 2029. For further information please contact:Audun Lågøyr, EVP Communications, Skanska Norway, tel +47 93 45 25 31Andreas Joons, Press Officer, Skanska Group, tel +46 (0)10 449 04 94Direct line for media, tel +46 (0)10 448 88 99 This and previous releases can also be found at This information was brought to you by Cision The following files are available for download: 20250527 NO underground metro station Image - Metro station Oslo View original content: SOURCE Skanska Sign in to access your portfolio
