Raising the Bar

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Raising the Bar

The Cardon brothers are making a big splash in the local hospitality and entertainment market with the opening of Edison House, a posh new urban social club in Salt Lake.
By Brad Fullmer

The socioeconomic maturation of downtown Salt Lake City is evident in the types of projects currently being designed and constructed in Utah’s burgeoning capital, with the recent completion of Edison House the latest building to make waves in the hospitality and entertainment market.

Since its grand opening on December 5, the three-story, 30,000-SF urban social club is drawing rave reviews for its diversity—including scintillating modern aesthetics and posh interior design elements, client demographics, and program offerings.

The brainchild of co-founders (and brothers) George Cardon-Bystry and Charlie Cardon—8th generation Utahns who grew up in Salt Lake and graduated from Rowland Hall (2008) and Highland High (2012), respectively—Edison House aims to set a new standard for downtown social clubs.

“We wanted to do something that Salt Lake City doesn’t have,” said Emir Tursic, Principal-in-Charge for architectural firm HKS’s Salt Lake office, emphasizing that this project is one of his all-time favorites because of its unique design aesthetics, multi-program functionality, and potential for social impact. “We wanted to create a place for networking and socializing that is very different—a modern social club that is more diverse, more inclusive.”

“The first day we met Emir, we said, ‘The goal is that when people walk in this building, they go ‘Wow!’,” exclaimed George, 32, admitting the project scope was indeed “ambitious” but that anything designed and built to a lesser standard wouldn’t measure up to their lofty expectations while posing a riskier financial investment. “The business model, as we developed a better understanding of the economics, suggested the best way to go was to go big.”

“If we try to cut 15% out of the budget and the building ends up kind of tchotchke, the entire project is at risk at that point,” said Charlie, 28. “It’s a network effect business—it requires energy and sustained success.”

“There was a lot more existential risk if we were to spend, say, half the amount of money and build half the building, because it’s a lot harder to convince people they’re getting their money’s worth if we don’t have all of this,” added George.

Bringing a Vibrant, Next Level Club to SLC

The Cardon brothers both earned Bachelor of Finance degrees from Notre Dame before getting a taste of big city life—George went to Los Angeles to get an MBA from UCLA in 2018, while Charlie worked for Chicago-based investment firm Birchwood Healthcare Partners. They gained a deeper appreciation for the importance of developing and maintaining strong social networks and community connections and how challenging they can be to find in larger metropolitan areas.

George researched potential hospitality-related business ideas and initially considered something akin to what the TV show Bar Rescue does—renovating old, dilapidated dive bars, even coming up with the name Raising the Bar. That led them to consider higher-end social clubs like Soho House in London and The Battery in San Francisco and how a still socially fledgling city like Salt Lake could benefit from a private—yet inclusive—establishment rich with arts, culture, and social vibrancy.

“As we developed a better understanding of this industry, it became clear this was a much better route to take,” said George. “I liked the aspect of community building and providing space for people to come and spend their free time and adding something of value beyond just staring at a phone. We’ve lived in other cities and were exposed to what big city living is. We brought a lot of that sensibility to this project. This represents the next evolution of progress for Salt Lake.”

“Let’s bring something to Salt Lake that is not Salt Lake,” said Charlie. “Let’s be something different. No mountain motifs—it’s not that we don’t love the mountains, but it’s overdone. Hats off to Emir [Tursic] and his team and Avenue [Interior Design] for their work. People come here and say they feel like they’re in Paris.”

The business model of operating a hip, lively social club “seemed to be by far the strongest from a business perspective and also the most attractive from what I call a mission perspective, as opposed to just your average bar and restaurant,” added George. “We had an opportunity to create real impact in multiple ways […] and build a sense of belonging for people.”

The brothers both moved back to Salt Lake in early 2019 and with the blessing of their father (and silent partner), Jeff (former CEO of Wasatch Global Investors), entrenched themselves into the process, quickly becoming adept with the nuances of design and construction.

“They may not have had a lot of experience in the development business, but they had a clear vision what they wanted,” said Tursic. “They created a club brand and articulated brand ethos before we ever started, and it became the foundation of the design. They gave us full artistic license and asked us to design a unique and cool building. In my 18-plus years, it’s one of the most fun projects I’ve ever been involved with. The scale of the project allowed us to get to the level of detail that architects enjoy. It’s like designing a four- or five-star hotel, minus the rooms.”

To put it mildly, the Edison House program packs a punch, with 13 distinct rooms/areas for members to get their social groove on.

1st Floor: Contemporary Restaurant & Bar; Private Dining; The Lounge; Boutique Fitness Center & Locker Rooms

2nd Floor: Speakeasy Bar & Performance Venue; Piano Parlor; The Atrium; Private Karaoke Room; The Billiards Room

3rd Floor: The Ballroom; Sky Lounge & Outdoor Theatre; Open Air Pool Deck & Terrace; Rooftop Bar

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Rich Diversity, High-End Aesthetics

Edison House comprises 30,000 SF of programming that maximizes its narrow site footprint by stacking assembly, wellness, and entertainment spaces on three levels. The ground level houses a general lounge, bar, and restaurant that flow seamlessly in an open floor plan. The entertainment program continues via a central, open stairway to level two—highlighted by a sports bar, karaoke room, billiard parlor, piano room, and a concealed speak-easy lounge with an intimate platform stage.

The entertainment program is balanced by a two-story wellness center with private lockers, showers, and saunas. Entertainment and wellness spaces merge at the rooftop terrace, where an outdoor pool and bar connect with a multi-purpose event space.

For the exterior, Tursic and his team “chose brick as the primary material to create a solid warehouse massing as a reference to the district’s history, and then dissected it to open it up and express the idea of breaking the traditional mold of what a social club used to be, and what it’s going to be now.”

The street façade balances the privacy and flexibility demanded by the club’s complex program with a mix of operable, perforated metal panel screens, ceramic-fritted glass, and interior shades.

The large, custom-made screens maintain a desired appearance and functionality as the perforation patterns vary in transparency, with their lightweight aluminum tube structure chosen for ease of operation. The screens act as a passive design strategy to address the environmental conditions of the west facade. In the summer months, closed screens will reduce undesirable solar heat gain; in the winter, screens can be opened to take advantage of solar energy. The large, operable lift and slide doors provide natural ventilation throughout the year, with a potential 25% energy savings.

The interior design, done by Los Angeles-based Avenue Interior Design, employs a unique material palette specifically designed for each space, giving the various rooms their own character.

MacKenzie Bergeron, Senior Project Designer for Avenue, praised the Cardon brothers for their “strong vision” and said the project is unique because “we’re dealing with all public spaces. We got to use more striking colors, more interesting patterns, and really lux fabrics that we wouldn’t get to do on a hotel. It was really an exciting experience and got us to think outside the box.”

Bergeron said each of the rooms within Edison House “are all so different. We spent a long time working through ideas and making each space its own unique entity. I really love the [jazz/piano parlor], with its velvet upholstered walls, vintage piano, floral patterns, custom floral carpet—it’s a very eye-catching room.”

Tursic appreciated the consistency of the interior design and how designers embraced the exterior brick by allowing it to resurface as an interior material in several strategic locations, unifying the exterior and interior material palette.

The execution of the design required a high level of quality and craftsmanship by the construction team, led by Salt Lake-based general contractor Okland Construction, which guided the project admirably through challenging pandemic conditions.

The Cardon’s said they have a solid membership base already and have a waiting list of 1,500, with the intent of gradually adding new members after analyzing how different spaces are utilized to preserve the desired clubhouse vibe. They are excited at what the club will ultimately become and the positive vibes it’s already sparking within the downtown community.

“There is a lot of research that shows loneliness is at an all-time high,” said George. “There is a real vacuum for a sense of belonging and purpose. A lot of institutions that traditionally provided that for people have disappeared or are not nearly as socially prevalent. There is this need for belonging, community and purpose—it’s ingrained in our DNA. That’s the underlying value proposition of what we’re doing.”

Edison House

Owner: Lola Holdings, LLC

Architect: HKS

Interior Design: Avenue Interior Design

General Contractor: Okland Construction

Civil Engineer: Great Basin Engineering

Electrical & Mechanical Engineer: Blum Consulting Engineers

Structural Engineer: Reaveley Engineers

Geotech: GSH Geotechnical

Landscape Architect: MGB+A The Grassli Group

Plumbing & HVAC Subcontractor: MJ Mechanical

Electrical Subcontractor: STF Electrical Services

Masonry Subcontractor: IMS Masonry

Concrete: Okland Construction

Steel Fabrication & Erection: Sanpete Steel Corp.

Glass/Curtain Wall: Flynn-Noorda BEC

Tile/Stone: Metro Tile

Other Specialty Contractors: CSI, C5 Coating, Boswell Wasatch, Waterproofing West, Wind River Excavating, Sinc Constructors, Meta Designs, Intermark Steel

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Innovative Education

By Brad Fullmer • 01 Apr, 2024

It's not every day that an architect designs a project around a native flower, then again, the new Career and Technical Education (CTE) High School in St. George is far from your standard K-12 school. "Essentially, we patterned the floor plan around the Bear Claw Poppy," said Bryan Dyer, Director of Facilities for Washington County School District (WCSD), and one of the primary designers of CTE from 2018-20 while at St. George-based NWL Architects prior to joining the District. "The courtyard is the center of the poppy; the rooms represent flower petals. I think it turned out nice—the courtyard is heavily used and is a unique part of the project. The school board tasked us to do something unique to the District—it's the only building of its kind in the state where students have educational and vocational all in one." "It was kind of a philosophical departure for the District—they recognized the need to pick up the students that fall into a category of not being traditional students—they wanted something different and arrived at the need for a career and technical emphasis," added Terrance White, Principal-in-Charge for NWL. As the first standalone career and technical education facility in Utah, the revolutionary $29.6 million, 126,000 SF school offers eight pathways for the nearly 500 students enrolled at the school (capacity is 800), including: business, construction, culinary arts, engineering, education, graphic design, health science, and information technology. The two-level design prioritizes functionality, creating a dynamic environment where students can explore their chosen fields with purpose and passion. WCSD officials and architects from NWL were inspired by similar CTE schools they toured in Houston and Las Vegas and were able to successfully translate the vision inspired by those schools into a tangible space that fosters true collaboration between students and sets a new standard for a career-focused educational platform. "We toured a school in Houston [...] and recognized the architecture of that building took on more of a junior college feel—it felt like it was something more than a high school but not quite a university," said White. "It's great to see a school district recognize where they can take better care of their students."

A Quarter Century of Leed

By Brad Fullmer • 01 Apr, 2024

It's been more than three decades—1993, to be exact—since the non-profit U.S. Green Building Council (USGBC) was co-founded by S. Richard (Rick) Fedrizzi, David Gottfried, and Michael Italiano, which ultimately spawned the revolutionary Leadership in Energy and Environmental Design (LEED) in 1998, a points-based rating system that offered legitimate third-party verification of green buildings. The goal of the fledgling association was simple: Increase overall sustainability of new construction projects including improved energy efficiency and creating a better, healthier environment for building occupants—all with the goal of reducing construction's carbon footprint. At the time, it was considered a bold initiative, with significant potential real-world benefits to the A/E/C industry. It took several years for the LEED initiative to get off the ground, but by the turn of the 21st Century, the phenomenon started taking root in the design community. "When LEED began in the late 90s/early 2000s, it was an incredible ambition to transform the building industry and to bring sustainability into the conversation," said Whitney Ward, Principal with Salt Lake-based VCBO Architecture and one of the firm's leading sustainable design experts. "[USGBC] had some big hurdles to overcome, including a general lack of knowledge about or mistrust of global warming and climate change." Ward said the U.S. Green Building Council and the LEED rating system had an immediate and profound effect on: —Creating more transparency in material manufacturing and getting manufacturers to care more about developing more sustainable/greener materials (carpet, flooring, paint, textiles, etc.) —Highlighting the true value of sustainable buildings through "incredible marketing efforts" and spurring owner demand. —Becoming the "go-to" third party certification agency for sustainable buildings. "The environmental consciousness of designers, builders, and owners [...] has really evolved to (where we say) 'we're going to do the best we can'," said Ward. "LEED has been an incredible tool in reshaping the industry and helping manufacturers, contractors, architects, and other industry partners understand the impact that their decisions have on the environment and on energy use," said Peter McBride, Principal with Salt Lake-based Architectural Nexus. "The conversation 20-30 years ago used to be 'how much does this cost?' or 'what is the percent increase cost in doing (LEED) vs. the baseline?' As each version of LEED established itself as an industry standard, the answer has been that LEED Certified or LEED Silver costs no more—or slightly more—than a baseline design. With each subsequent version release, LEED continues to push the boundary—sustainable design is now the baseline." "LEED has increased awareness for sustainability and energy conservation in buildings," added Chris Cox, Building Performance Program Manager for the State of Utah Division of Facilities Construction and Management (DFCM). "As far as the biggest pro, LEED brought the integrated design process to the forefront—user groups, owners, maintenance teams, architects, engineers, and builders work together in achieving the best outcomes."

Q&A w Bryan Turner

By Brad Fullmer • 01 Apr, 2024

UC+D: How was it working with Gary Payne for so many years? Turner: His impact on the Davis School District will last many years due to the buildings that were constructed during his time. Rather than being satisfied with the status quo, we worked to develop school buildings that would accommodate innovate teaching styles and would be safe, economical, and exciting places where children would want to be. UC+D : It's been 10 years since Odyssey Elementary was completed. What is the analysis of how it has performed? Turner: It is not very hard to create a truly Net-Zero building. We can produce enough electricity to offset the electricity used, plus the natural gas usage—however, the power company will not give us credit for electricity generated above what we use. An energy model was used to estimate the Energy Use Index (EUI) of Odyssey Elementary. It predicted that our EUI would be 22. The first year it was actually 17. An ideal Net-Zero building would not have any natural gas usage. We elected to install a gas boiler in the building to help control the "demand" charges that would occur on cold days when all the heat pumps would start up in the building. For 2023, the PV array produced 213,066 kWh; we used 188,088 kWh in electricity. We used 421 decatherms of gas, giving us a cost of $0.33/sf for energy usage, compared to an average building in the district (about $1.25/sf). UC+D: What is the greatest success with Odyssey? What would you do differently? Turner: Odyssey Elementary, with all its energy-efficient features, provides an excellent educational experience that benefits both teachers and students. The building accommodates different learning styles, collaboration, and individual exploration. First and foremost, the building is a school, albeit one that is very maintainable. There is not anything I would do differently. Since this was the first of a series of prototypes, a lot of thought from a lot of people was put into it.

Literacy Level-up

By Talia Wolfe • 01 Apr, 2024

Before the Logan Library ribbon-cutting ceremony began, two children eagerly ran past the staff toward the children's section. Inside the children's area, two girls, with their arms linked, skipped past the shelves of books while a little boy raced along the cobblestone path that weaves through the bookshelves. A young girl in the reading nook called her mom over to see, and a little girl with pigtails used the miniature-sized door into the children's section to enter the playhouse. The ribbon-cutting began in the lobby and adjacent community room, which were filled with patrons of all ages despite the stormy weather outside. As they entered, a string quartet greeted people with lovely music, and cameras lined the walls for press coverage; even the local firefighters came to show their support. Before the library's opening, Mayor Holly Daines shared how the facility was designed and built with modern and historical intentions. The mayor and various library donors spoke excitedly about the new library before the giant scissors were used to cut the ribbon. Immediately after, patrons with arms full of books were perusing the bookshelves. Children read in the aisle, too excited to move to a table, while parents formed a line waiting to check out books for the family. Quiet laughter emanated from the "teen and tween" section, and Utah State University and the Logan Latter-day Saint Temple are visible from the third-floor windows. From 1985 to 2021, the previous library was in an old and converted Sears building. For the last 20 years, Logan City leaders have discussed providing residents with a modern library. "The library was old and dark, and the systems were failing. It never was a purpose-built library," said Daines.

Landmark Lehi Hospital

By LADD MARSHALL • 01 Apr, 2024

Since its inception more than a century ago in 1922, Primary Children's Hospital has set a standard for pediatric healthcare excellence by continuing to produce world-class facilities throughout the Beehive State. The latest cutting-edge offering is the Intermountain Primary Children's Hospital, Larry H. & Gail Miller Family Campus in Lehi (PCH Lehi), a project of significant importance to this burgeoning city, one that ranks among Utah's fastest-growing communities. Aided by a $50 million gift from the Miller Family Foundation, this landmark five-story, 486,000 SF, 66-bed project features the latest and greatest in medical technology in a building that is fun, playful, and energetic, with colorful design elements playing a vital aesthetic role throughout. The value of a project on this level is beyond measure, said Blake Court, Vice President of Salt Lake-based Jacobsen Construction. "Primary Children's really has a special place in my heart—they are a very special entity," said Court, a veteran healthcare professional with nearly 35 years of overall experience, including 19 years at Jacobsen along with stints at the State of Utah Division of Facilities Construction and Management and the Department of Veteran's Affairs. "It has been embraced by the community. Lehi and the surrounding areas are growing so fast. It's just amazing to see what's going on there." "It's a once-in-a-lifetime project," said Jeff Pinegar, Principal with Salt Lake-based VCBO Architecture, who partnered with Page Southerland Page of Houston on an exhaustive 19-month detailed planning and design process to create a comprehensive hospital and clinic in one congruous structure. "To see these kids have the spirit they have [...] it's a life-changing project. I'm so glad I had the chance to be part of it. I love the challenge of healthcare." As with most construction projects that originated during the pandemic, PCH Lehi kicked off in August 2020, which proved immensely challenging from the onset in regard to worker health and volatility of material cost and availability. "Everyone knows the story—people got sick, it spread to co-workers, and we would lose entire crews [of subcontractors]," said Court. "We would constantly be down manpower. And then [material] lead times just skyrocketed. Materials that we normally get off the shelf went to a year-and-a-half overnight because manufacturing plants were shutting down. Add in price escalations and it was just a trifecta."

Taking Another Shot

By Brad Fullmer • 01 Apr, 2024

At an age when most folks are kicking off their post-retirement "golden years", 66-year-old Cal Wadsworth is attacking this chapter of his life with the zest of a man reborn, having fired back up his general contractor firm in 2020 with a vision of eventually turning it over to the next generation. It speaks to his resolve as a businessman and construction lifer, as a parent who wants to do right by his children, but even more as a person who has rallied/is rallying back from a challenging period personally, which coincided with the great recession and led to him shuttering Cal Wadsworth Construction in 2010. "I'm realizing more with time that I'm not in control as much I thought," said Wadsworth. "There is the realization that you've got to give up control. You can't base all your happiness on the money that comes from this business. Learning to live with disappointments is something I'm getting better at. Learning to live with them and not let them ruin my confidence, or my ambition. I live by the 'Serenity Prayer'."

Robust Growth Fuels Lehi City's Development

By Brad Fullmer • 01 Mar, 2024

Adobe’s 680,000 SF Lehi Campus is an iconic project in Lehi that was completed in two phases, with the first phase opening at the beginning of 2013 and signaling a new era of development along the Silicon Slopes corridor. (photo by Dana Sohm) Inset: Aerial view showing an illustration of Texas Instruments’ new 300 mm semiconductor wafer manufacturing plant—referred to as “LFAB2”—which broke ground last November and marks the single largest investment (over $11 billion) in state history. (photo courtesy Texas Instruments)

Forging Ahead

By Brad Fullmer • 01 Mar, 2024

Work continues to grind forward on the mammoth new Salt Lake City Water Reclamation Facility (WRF)—a critical $850 million project being built by a joint venture of the Salt Lake regional offices of Sundt Construction and PCL Construction that will replace the current facility in North Salt Lake once it's turned over to SLC's Department of Utilities (SLCDPU) in July 2026. As it stands, this is the second-largest project in City history, trailing only the recent $2 billion-plus Salt Lake International Airport Redevelopment (Phases 3-4 ongoing), and one of the most technically challenging projects in the state. "We are up for the challenge every day—the magnitude of this thing is unreal," said Manny Diaz, Project Manager for Salt Lake-based Sundt, as he drove around the massive 30-acre site in late-January, a worksite teeming with 300 current employees (it will peak at 400 workers this summer) and myriad complicated structures being built simultaneously. Diaz is a long-time veteran of the water reclamation facility industry—this project marks plant No. 26 in his own personal history—and he was brought in a year ago by Sundt because of his expertise. When he arrived in Salt Lake at the beginning of last year, it was right smack dab in the middle of what proved to be a record-breaking year for snowfall. "It was quite a welcome to Utah!" Diaz chuckled. "We keep very close tabs on the weather." And while crews haven't been subjected to the same inclement weather this winter, site conditions are still generally wet and muddy, and the difficulties associated with building the various structures are constant. Crews are nearing the halfway mark, so certainly it's a milestone worth acknowledging, even though a mountain of construction is still left to climb. "It's such a huge accomplishment to be this far," said Jason Brown, Deputy Director of Public Utilities for SLC. "We've faced a lot of challenges, Covid, material shortages [...] it's amazing to be part of a team that works so well together. We still have a long way to go, but we'll get there. We've made a lot of progress and should be proud, but it's hard to celebrate success with so much work still ahead." Diaz, along with PCL Project Manager Shayne Waldron, said crews recently achieved a major milestone: one million hours worked, a notable accomplishment. “Achieving the ‘one million hours worked’ milestone is a testament to the coordination and collaboration required of a project this size," said Brown, adding that the new WRF project benefits from regular and ongoing staff collaboration, under the watch of Sundt/PCL, designers AECOM and Jacobs, and SLCDPU leadership. “This [milestone] is the culmination of many different efforts,” added Mauricio Ramos, District Manager for PCL’s Civil Infrastructure Division. “From local engineers to pipe layers, journeymen, construction trade workers, foremen, and general laborers, every team member has been instrumental in reaching this benchmark. The collaboration between PCL and Sundt has been a testament to our shared commitment to excellence and innovation.” "Our crews are working together seamlessly to ensure that the final product meets the goals and needs of the community," said Sam Reidy, Senior VP and District Manager for Sundt. "Celebrating this milestone recognizes the hard work and commitment each member of the project team has made to this project and the Sundt/PCL partnership." Diaz and Waldron said soil conditions challenged the team right out of the gate and took significant time to stabilize the site. "At the very beginning, the project was designed to be built on top of where the sludge beds were at, but it turns out the sludge beds were on shaky ground," said Diaz. "This whole area is young in age, so it's all soft clays and sands," added Waldron. "Soft clays are compressible, so the big issue is settling. It would have [cost] $80 million in piles to shore it up, and then in between buildings you have all the pipe and utility duct banks, so they would almost need to be built on piles." Waldron said the idea came up to pre-load the whole site, where crews built a flat pad, installed wick drains, then pre-loaded 30 ft. of dirt, with drains going down 125 feet and providing a way for water to be pushed out of the clay. "We had over seven feet of settlement," said Waldron. Crews also set up sophisticated monitoring equipment "to see where ground was settling and what layers were compressing the most. It was really scientific—a lot more than I've seen before." Diaz said it took six months to haul in the fill dirt where it remained in place for eight months, then took another six months to excavate out—close to one million yards of total material. It was an exhaustive process, with an average of 400 trucks per day and close to 500 trucks hauling 18,000 tons on the best day. Having a cohesive, highly collaborative team of designers and construction experts has been a boon to the project schedule. Once completed, Salt Lake City’s new WRF will serve over 200,000 residents as well as those who commute downtown to work or visit Utah's capital. It will replace the City’s current—and only—wastewater treatment facility, which is over 55 years old and near the end of its service life. Maintaining reliable operations at the existing facility while constructing the new WRF nearby has been critical for the project’s success. Since breaking ground in 2019, the project team has completed approximately 65% of structural concrete work as well as soil mitigation, deep foundation work, and the installation of underground utilities. In late January crews began excavating dual 63-in. diameter pipelines, along with a 78-in. effluent pipe that is being hauled one giant piece at a time from Canada, a new type of corrugated HDPE with welded joints that should provide greater durability. All in all, crews will ultimately pour 93,000 CY of concrete and install 22 million pounds of reinforcing steel, along with 89,000 LF of underground pipe ranging in diameter from 1.5-in. to 78-in. "The camaraderie among the team members allows for a very cohesive team," said Diaz. "The only way you can tell who works for who is by the color of the truck. We have a 'one project' mentality. The complexity of the job and being trusted to lead this effort [...] have been [important] for me. It's been a great job so far." Diaz, who said his first wastewater treatment plant was in North Miami Beach in the late 80s right after he graduated from college, hopes to remain in Utah once this job is completed and turned over to the client by mid-2026. “I plan on staying here and continue to work on treatment plants in Utah,” he said. “There’s a lot of work here. We have vast experience, and we have a lot of people who want to be in Utah—it’s a great place to live. Let’s do it!”

Let the Good Times Roll

By Brad Fullmer • 01 Mar, 2024

It's been more than 45 years (1978) since The Cars released their debut album highlighted by the wildly popular song Good Times Roll, but if there was ever a tune to sum up the general sentiment of local A/E/C professionals regarding Utah's 2024 Economic Outlook, Good Times Roll would be up there. "Our members are expecting another good year," said Joey Gilbert, President/CEO of the 650-member Associated General Contractors (AGC) of Utah. "For our contractors in both the building and highway markets, the outlook is good. Many still have decent backlogs to keep them busy through 2024 and in some cases, even 2025. The public sector is strong, and on the private side, owners are still investing in some big projects." Robert Spendlove, Chief Economist for Salt Lake-based Zions Bank, reported at the AGC's Economic Outlook meeting last November that commercial construction was up 1.6%, while Utah as a whole reported 2.5% growth overall, and believes both will continue to fare well in 2024. "Utah also has one of the lowest unemployment rates in the U.S. [2.5%]; when it gets too low, you get real struggles of labor shortages," he said. "It prevents companies from growing and is one of those defining economic characteristics of this past cycle. If we get above 4-5% we get nervous that it's a sign of a recessionary environment." Spendlove said tailwinds include strong consumer spending, a strong labor market, and an overall robust economic Intermountain West region, while headwinds could include a lack of new workers, government shutdowns, energy prices, and international uncertainty. Another bonus is that Utah remains one of the strongest states economically, regardless of what is happening nationally. "I would say uncomfortably optimistic," countered Dejan Eskic, Senior Research Fellow for the Kem Gardner Policy Institute at the University of Utah, citing a number of factors potentially slowing down the design and construction industry such as housing, labor, and material price fluctuations—basically the same post-Covid headwinds Utah-based firms have been battling the past couple of years. "On paper, we should have a decent economic year in Utah. Because it's an election year, it brings more optimism generally. Stock performance does better in an election year, jobs do better. You have to stick to those basics. Eskic has been with the Gardner Institute for eight years, including the past five in his current role, explained that some of the uncomfortableness facing the local economy stems from having virtually no labor pool in certain segments, including construction—which continues to face a dearth of skilled craftsmen in virtually all subcontractor trades. "We still have red flags," he said, noting concerns with still-high housing costs. "Maybe it's too early to call if we've cracked inflation. 2023 ended up way better than anybody expected—it was supposed to be a recession year, but the recession never came, and the labor market exceeded expectations. "I'm bullish on Utah," he added. "I look at the numbers and how we're going, and we're in a very strong growth pattern with the economy. Things will continue to expand." Indeed, despite nasty rising interest rates that put the brakes on some speculative development projects, Utah-based owners continued to plow ahead on projects, and by-and-large most market segments continued to see a healthy amount of activity as firms set about tackling healthy project backlogs.

Building Blocks

By Reuben Wright • 01 Mar, 2024

Crews working on bridge sections of the project did the majority of heavy-lifting—as seen with these giant cranes lifting heavy girders—during the wee hours of the night, part of UDOT’s expectations of keeping traffic moving by limiting road closures. (night photos by Kjell Gerber, BuildWitt)