Two Locations

Knoxville

865-982-6452

Tri-Cities

423-975-9111

Operating Hours

Parts & Service

M-F 7am - 5pm

Sales & Rentals

M-F 8am - 5pm

Contact Us

865-982-6452

Sales: Blake Wilson

Parts/Service: Terry Nichols

Construction and manufacturing outlook for 2025.
Construction
December 1, 2024

Construction Outlook for 2025

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Contractors Machinery

2025 is looking like an improved environment for the construction and manufacturing sectors, thanks to moderating inflation, lower interest rates and steady growth in the nation’s overall economic activity.

Bernard Yaros, Jr., lead U.S. economist at Oxford Economics said, “We anticipate a federal funds interest rate of 2.75% by the end of 2025, down from the recent 4.75% rate. We also see an average inflation rate of 2.2% in Q4 of 2025, which will be within spitting distance of the Fed’s target of 2.0%.” Corporate profits are projected to wrap up 2024 with a 9.6% increase, and a 9.0% increase for 2025. Both of these are up from the 6.9% gain in 2023.

As Money Gets Cheaper, Construction Rebounds

Housing activity is a big driver for the U.S. economy, and economists are projecting a nationwide upsurge. Yaros says, “We forecast housing starts to increase by 6.2% in 2025, after a 2024 4.7% fall and 8.4% decline in 2023.” Lower mortgage rates and a decline in the cost of money will fuel this growth. Experts cite the fact that those currently holding onto 3%-4% mortgages will see it’s less painful to give them up, sell their current homes, and move up.

Industrial policymaking in America is having a reemergence, thanks to the Inflation Reduction Act, Chips and Science Act and the Infrastructure Investment and Jobs Act. Future prospects are looking quite positive for contractors who are able to participate in major public works, as manufacturers are receiving billions of dollars in subsidies for large-scale infrastructure projects, many in support of technological transformations, like the growth in AI and broadband expansion.

There is a darker side of this, however. For contractors dependent upon multi-family construction, hotels or existing office retrofits, the 2025 outlook is somewhat bleaker, due to high interest rates that have led to high financing costs. Partnered with general inflation, and increased regulatory oversight, certain contractors have become vulnerable to a lack of work and are concerned for the future. 2025 is looking to be a transitional year for them, with 2026 likely better as lower interest rates finally take root.

Employment Levels

Consumer confidence is projected to continue increasing in 2025, and that fuels optimism for the construction industry. Also powering this optimism is healthy employment levels. Economists peg unemployment rates of 3.5%-4.5% as the sweet spot that balances risks of inflationary wage escalation and economic recession. The Q4 2024 rate was at 4.1%. The magnitude of a lack of skilled labor, while still many contractor’s #1 challenge, is abating as hiring has slowed due to a slowing economy and the shrinkage of the number of available unskilled jobs. This reduction in available employment has also given workers less bargaining power, so there is some relief in the trendline of worker wages. That rate has been about 3.7% in 2024, down significantly from the 8-10% levels of the previous two years.

A Crystal Ball for the Road Ahead

Construction companies and their employees are advised to be vigilant in being aware of any changes in the following:

  • Interest Rates – The pace and amounts of cutting will be especially impactful, good or bad, for the construction industry.
  • Inflation – Many business plans could suffer as the consumer price index returns to positive territory.
  • Tariffs – These represent price increases to construction companies who must purchase materials abroad.
  • Geopolitics – It pays to be informed. Turmoil on the world’s stage can (and does) impact supply chains, which can quickly throw a monkey wrench into the economy.

The resilience of the U.S. economy has been remarkable. Economic experts don’t anticipate a recession, as the Fed will be dialing back monetary policy restrictiveness, and they are seeing no glaring economic imbalances.

At Contractor’s Machinery we too will be watching these trends in 2025 and looking forward to strengthening existing partnerships while also building new ones!

CMI December Blog Source Material – https://palletenterprise.com/construction-forecast-2025-a-welcome-economic-rebound/

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Help your business thrive despite labor shortages
Construction
September 1, 2023

How to Help your Business Thrive Despite Labor Shortages

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Contractors Machinery

Getting the contracts for the big jobs is the goal in construction, but it only yields profit if you have the manpower to handle those jobs. As our nation recovers from these pandemic years, there is no promise that labor shortage won’t get even worse before it gets better, and your company must be able to recruit and retain excellent employees. It’s critical that construction managers are proactive and strategic as they prepare for the employment years ahead.

Two essential components to this strategy are cross-training of employees and eliminating safety risks.  And the key to effectiveness in both is becoming abundantly apparent:  technology! Technology is fast becoming the answer to so many concerns; combatting labor shortages is just one:

Cross-training is essential to retain your workers. Infrastructure construction jobs are on the increase, and those employees will need to increase their skill sets so they can do the jobs well.  As technology in our industry improves, so must our training.

Invest now in cross-training of your valued workers to ensure that they remain “tech savvy” in an industry that is steadily becoming so; otherwise, you will find yourself constantly looking to hire as the industry progresses. Do your workers understand performance metrics via dashboards?  Training them in this technology will give your employees more ownership of jobs and help them to play a more integral role with the back office. The more adaptable your “team” is, the longer your team will work efficiently.

Perhaps surprisingly, job safety is another critical area that ultimately fights the labor shortage. When injuries occur, you find yourself scrambling to replace competent workers. Doing everything you can to mitigate safety risks now will prevent a potential hiring panic in the future, and technology is vastly aiding the construction industry in this arena. Do your workers have digitized protective gear? Items like hats and vests that measure air quality and GPS watches that limit falls and on-the-job accidents are proving remarkable as they ensure the safety of our workers.

Utilizing software in the safety and quality assurance process has transformed the construction industry, as it is applied to risk management, commissioning, and inspection. Through such technologies as drones and BIM (Building Information Modeling) the issue of safety on the construction site has transitioned from response to prevention. In this technological age, construction equipment is tracked electronically and potential concerns are eliminated before they become actual problems, but only if today’s construction worker knows how to use it.

The best tool we have in the construction industry is technology. As we train our employees in its use and use it to invest in our employees, we will be taking critical steps to keep our good workers and fight labor shortages. As our employees become more versatile in this tech-savvy industry, they will be more effective in your business and the construction industry as a whole.

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Construction
April 10, 2023

A Look Back at CONEXPO 2023

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Contractors Machinery

CONEXPO is North America’s largest construction trade show, and it happens every three years in Las Vegas, NV. The most recent event was March 14-18th and Blake Wilson, VP/General Manager of Contractors Machinery Inc., attended this year’s show. We caught up with Blake and talked all about his experience.

CONEXPO 2023 is in the books from Las Vegas. Reports are the show broke attendance records, with over 139,000 people from over 30 countries. What did you think of this year’s CONEXPO overall?

Wilson: My feet hurt from trying to walk 3.5 million sq/ft of Convention Center. I have attended CONEXPO several times over the last 35 years and my biggest takeaway is that Technology is everywhere in the Construction Equipment Industry. Electric-powered equipment, Artificial Intelligence, Machine Controls, real-time machine maintenance and much more…

CASE Construction Equipment promised “You’ll see the difference” at CONEXPO, as they highlighted ‘The New CASE. What did you see?

Wilson: CASE Construction Equipment division’s biggest difference is a commitment to and investment in its dealer network, manufacturing quality products, as well as committing to being a leader in developing new products and getting them to market. This began with CASE DL550 Minotaur Compact Track Loader/Dozer and continues with their EV Series of Electric Mini-Excavators, Compact Track Utility Loaders and more.

The CASE Booth touted over 30 new machines, attachments and technology. What new products from CASE are you excited about and why?

Wilson: Obviously, the Minotaur is front and center as THE new product…we are expecting delivery of new units within the next 30 days at Contractors Machinery (CMI). Other new products such as mini-wheel loaders, wheeled excavators and the new SV utility backhoe will be additional products that CMI will inventory and provide to our clients

People are excited about the Minotaur DL550 compact dozer loader, what kind of game changer is this for your customers?

CASE Minotaur DL550

Wilson: The Minotaur has been thoroughly tested and creates a completely new product segment in the equipment industry. The ability to have a machine-controlled crawler dozer that easily becomes a loader is ideal for those in the dirt moving business.

Why is it important for CMI to be present at CONEXPO?

Wilson: It enables us to see the latest innovations in our industry from throughout the world. Additionally, it is an opportunity to look at potential other equipment lines that CMI may want to carry for our East TN customer base. We picked up Toro at the last CONEXPO in 2020 and it has been an excellent addition to our line-up.

CONEXPO gives a good indication of what’s happening in the construction industry as a whole. How is it feeling to you?

Wilson: The old school construction industry stereotype is changing rapidly. The industry is strong, but the future needs, and requires, young people to get involved. The take-away from CONEXPO is, if you want to be part of a dynamic, fun, high-tech industry, male or female, this is a great place.

The construction industry is evolving and advancing in many ways. What new technologies or equipment did you see that impressed you?

Wilson: Machine controls are amazing for most of the heavy equipment manufacturers. Video game players will be the operators of the future. CASE Construction’s acquisition of Raven Technologies will be a game changer for both the Agricultural and Construction sides of CASE in the very near future.

What innovations are you seeing in hydrogen-powered or electric-powered construction equipment?

Wilson: Nearly every manufacturer had electric-powered equipment on display at CONEXPO. Electric will have a place in certain segments of our industry, but battery life, universal charging stations, etc., remain a question. The CASE Concept “Tetra” Wheel Loader has a methane engine and, on paper, seems like a great potential use of resources and an efficient machine for the waste management industry.

One last question Blake: Did you win or lose at the tables?  

Wilson: There were moments of success but as usual the House came out ahead.

The next CONEXPO event is scheduled for March 3-7, 2026, in Las Vegas.

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Construction
January 24, 2023

Improve the Comfort of Your Machinery Cab

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Contractors Machinery

You spend a lot of time each day maneuvering your machinery, and to ensure a long and healthy career, you deserve the most comfortable ride available! Your physical comfort is all about how much you can control your environment. Take the time to be comfortable, and you will find your bottom line improving along with your health and job satisfaction:

Control the NOISE!

Do you know that cabs of machines are now designed to create a quieter environment? You can listen to music or podcasts and actually hear them over the sound of the engine!  Ask your local CASE dealer about installing a four-channel Bluetooth amplifier. Not only will this increase the volume but the quality of sound. You never have to dive under the seat for a phone again…just hook up your phone or tablet and relish a full audio experience.

Control the RIDE!

Ergonomics are everything when it comes to a luxurious ride. Upgrade your seat so that it provides a smooth ride at every jobsite. Adjustable design, settings, and cushion are critical when it comes to a day of maneuvering on rough terrain. In addition, think about your air temperature. Efficient heat and air conditioning is essential to a comfortable day in your cab.

Now look outside the cab, and you’ll see a host of other comforts to consider! Make sure you have enough cushion in your tires; deep aperture holes will provide a smoother ride and be much more merciful on the lower back. If your machine has tracks instead of tires, inspect and upgrade if necessary. (For help with track selection, click here.) A premium rubber will significantly reduce the amount of wear and tear on your machine and its driver. Less vibration means increased comfort, and it’s critical to improve inside the cab and out.

Control the CONTROLS!   

The vast majority of back and neck injuries actually occur for no known reason. Through our daily lives, we reach or strain or pick up something without thought…then suddenly we’re on medical leave without a great story to tell! It’s imperative that the control system in your cab is easy to reach. If it is not installed in a convenient place, check out the technology helps available at  RAM Mount products.  There is a huge variety of products to help shorten your reach and put controls at your fingertips.

CASE products are available to meet all the comfort needs of you, the large machinery operator. Contact Contractor’s Machinery today and ensure your “office” is as profitable and comfortable as you deserve it to be!

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Construction
December 27, 2022

Great News for Women in Construction

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Contractors Machinery

Women are making huge strides in the construction industry, with their numbers increasing over 50% in the last ten years! Serving as engineers, executives, team members or construction managers…there are good reasons that women are entering the building workforce:

Pay equity! Of all industries reported by the US Bureau of Labor Statistics, construction shows the lowest pay gap between men and women at 94.3%!  Currently women make up only 10-15% of the building workforce. However, companies are seeing women apply like never before, as they are pursuing industry education and taking advantage of companies that are intentionally hiring more women.

The equity in job opportunities and pay is due in part to the focused outreach of organizations like the NAWIC (National Association of Women in Construction). All women are eligible to receive professional development and career opportunities, as the NAWIC is committed to growing up the capability and numbers of women in their construction careers. (Click here for more information.)

Training opportunities! Colleges and universities across America are offering accredited degree programs and are equipping employees with necessary training to not only start their careers, but advance them. More Associate, Bachelor’s, and Master’s are available now than ever before. If you’re considering a career, explore your local university and endless online opportunities to obtain the specific construction certification necessary for you.

A hot job market! We are still feeling the effects of a worldwide pandemic. “Now hiring” signs have popped up everywhere, and this is extraordinarily true in the building industry. This increase of job availability covers all aspects of the field, from welders and electricians to project managers and marketing specialists.

With increased pay and opportunity, the industry should steadily see numbers of women consistently rise as well. The construction arena is more than ready for what women bring to the job site and executive boardroom!

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Construction
December 9, 2022

Winter Preparedness for Workers

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Contractors Machinery

It means far more than just wearing hats and gloves!

Winter is well upon us, so the construction industry is slowing up a bit. It’s just one of the necessary evils of this industry; if we don’t allow a little extra time for our projects, the cold temperatures can destroy their quality quickly. In addition to allowing extra time, it is important to know the specifics of how cold affects each step in the building process to best address some of the challenges:

Foundations – Grading and pouring foundations is tricky to say the least when working with frozen ground. It is imperative to excavate the land wisely with someone who is experienced with subgrade ice. Allow extra time to pour and address any issues that may arise with freezing temperatures. If subgrade ice forms at this critical time, there will be ongoing moisture problems in the foundation of the site and the building will be seriously compromised.

Concrete – Concrete needs warmer temperatures to cure correctly and maintain its optimal strength. The American Concrete Institute encourages the use of concrete blankets to slow the drying process during winter months. Far too many in this industry have seen concrete freeze before it dries. Digging it up and repouring is a construction lesson no one ever wants to experience.

Mortar and grout – These, in addition to many adhesives, need temperatures of 50 degrees or more for several days to ensure correct strength. If using them in an enclosed building, be sure to implement portable heaters to ensure adequate warmth in drying time. If this isn’t possible,

consider heating the building material before applying bonding or adding polymer to your bonding agent to increase the temperature of the agent and decrease its drying time.

Drywall – If walls are not mudded in warm enough temperatures, the strength of walls is compromised, causing gaps, cracks, and endless aesthetic issues when walls are being finished and painted. Be sure to maintain room temps of at least 50 degrees during this step of the construction process as well.

No industry can afford to simply shut down during the coldest months of the year. Creative scheduling and careful precautions through every step of the building process will allow your construction business to thrive, despite the addition of seasonal challenges!

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Construction workers are in a group that is at high-risk for suicide
Construction
October 5, 2022

Mental Health a Grave Concern in the Construction Industry

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Emily Bieger

According to The Center for Disease Control (CDC), construction workers are among some of the highest at-risk population for suicide, and employers are encouraged to take mental health of their employees very seriously.

Due to the alarming truth that suicide was the leading cause of American deaths in 2021, in-depth studies on the mental health of employees has been a priority that often was neglected in the past. And now that studies reveal construction workers rank unusually high in those numbers, researchers are exploring some of the reasons why:

  • Heavy alcohol and drug use. Not only is it a prevalent concern in the construction trade, but men statistically delay seeking help to address these problems. Because this industry remains predominantly male, it is uniquely affected by addiction concerns.
  • Musculoskeletal issues. Much of the drug dependence that prevails among construction workers comes from the injuries that are commonly attributed to hard physical labor. Once individuals find relief appropriately from needed pain medications, there is a temptation by many to develop a dependency on those drugs.
  • Personality types. Self-reliant and stoic personalities are statistically more prone to suicide than others. Look around! The construction industry is full of these! The qualities that bring tremendous success to the job site are also those that increase the risk of not seeking help when needed.

Knowing the mental health risks of the construction trade is the first huge step in addressing the underlying concerns. Employers are encouraged to evaluate their businesses very carefully and make necessary adjustments whenever possible to boost morale and increase mental health among their workers.

In an industry that is challenged with frequent travel and long periods away from family or friends, it is imperative that businesses invest in necessary support programs. Providing a safe emotional environment will make huge strides in attacking the suicide rate among construction workers.

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Control precision is transforming the construction game.
Construction
June 7, 2022

Control Precision is Transforming the Construction Game

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Contractors Machinery

To the casual observer, a construction site is simply about a lot of huge machinery being moved back and forth until the land is cleared and level. To the large equipment operator, that scenario just described a massive loss of time and money. Construction is all about control and precision, and precision technology has completely changed the game of this industry! New technology innovations are making the heavy and light equipment industry “smarter” than ever, and customers have increased efficiency at their fingertips.

Precision in earthmoving means the job is completed more efficiently, ultimately causing less strain on the equipment and less error in the work. Needing to clear and grade your property? Consider shaping the land with CASE M Series Crawler Dozers equipped with SiteControl CoPilot, which is an easy-to-use system that allows operators to set desired slope/grade reference, and automatically holds that slope/grade without the need for lasers, masts or GPS. SiteControl CoPilot enables operators to get it right the first time and achieve a smooth surface, slope, or grade without the need for additional passes.

For enhanced leveling performance, M Series dozers can be factory equipped with the most popular GPS and laser guidance systems such as Topcon, Leica, and Trimble. added automatic grade control to the blade. Operators no longer must wait for surveyors and engineers to arrive and manually plant grade stakes on the property.

Smart technology guides the operator to optimum precision which reduces wear and tear on equipment. Even underwater these machines can grade with blind precision, as technology serves as the “eyes” of the operator! Various sensors and electronic controls work together to automate the project, thus eliminating or at least limiting any human error.

With several screens or even split screens to choose from, this precision is saving time and fuel, and enabling operators to get the jobs done right the first time. Less wear and tear on equipment means greater profits. Less time on the job overall means much greater profits!

Skilled workers are increasingly hard to find in the construction industry, and all projections look like this may be true for some years to come. CASE provides intelligent construction with their SiteControl technology, which is one of the obvious solutions to this problem. It is, no doubt, setting a high bar for Original Equipment Manufacturing in the future, and Contractor’s Machinery along with CASE is determined to provide the highest industry standard!

For details on CASE SiteControl technology please click here.

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Knoxville
865-982-6452		 Tri-Cities
423-975-9111
Parts & Service
M-F 7am-5pm
M-F 8am-5pm
Sales
blake@cmicase.com
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eric@cmicase.com