Ken Schultz, President, Shannon Construction
Ken Schultz, president of Shannon Construction, sat down with Invest: to discuss the current state of the construction industry, technological advancements that Shannon Construction has integrated to improve operations and client satisfaction, and how the company has expanded its operations in recent years. “Continuing to diversify will allow us to more easily withstand changes in the economy and remain viable,” said Schultz.
What changes over the past year have impacted Shannon Construction and in what ways?
We have expanded our marketplace to include construction management agency services, along with our commercial, retail, education, and healthcare groups. We are working on projects for a cyber school in Pennsylvania and have made an effort to dive deeper into higher education. We’ve also begun several healthcare projects. Additionally, we’re expanding in the DMV (District of Columbia, Maryland, and Virginia) with concrete repairs on both federal and private projects.
Recently, we have seen a consolidation of smaller universities in the region. Larger universities are also beginning to look at their branch campuses and reevaluate their viability. Across the board, smaller universities are shutting down while larger universities are growing. We have seen a 9% increase in the size of larger state schools and a 21% decrease in enrollment at smaller institutions. Over the next decade, I anticipate a shift in the number of universities, which can be both positive and negative. I think we may begin to see more people looking into the trades, which is an industry that needs more people.
How do you view the current state of the construction industry?
In the office sector, we have seen a reduction in work post-COVID. A lot of companies are asking their employees to return to the office. In an effort to encourage them, our clients are requesting upgraded spaces with more amenities, such as conference centers, fitness centers, wellness rooms, and outdoor spaces. However, getting people back into the office has come with some pushback from employees. Job hopping has become more challenging in the current market conditions, so employers now have a bit more leverage.
On the retail side, there is still a lot of activity. When e-commerce first began taking off, many thought retail would disappear — but we’ve found that’s not the case. In fact, finding tenants for retail facilities has actually been quite easy.
Would you share insights into the Chitwood Hall project’s significance and its impact on your team’s future endeavors?
Chitwood Hall is a 100-year-old building at West Virginia University. As expected with such an old building, we performed quite a few renovations. We worked closely with WVU’s staff to resolve any issues that came up, ensuring the project was completed in a timely manner. Working on campus while students are present creates a unique set of circumstances—including the movement of materials, managing site access, and putting up enough barriers to keep students from entering the work zone. We enjoy working on historic structures because they connect us to the past.
How have new technologies and integration improved your operations?
We use a number of tools, such as Procore, to manage projects and ensure smooth information flow. We take pictures daily at each job and upload them so clients can see real-time progress. We also use a product called OpenSpace, which provides a view similar to Google Street View and creates a timelapse of how the project is completed. Additionally, we are incorporating information modeling so the client can visualize how the project is progressing, as well as what it will look like when finished.
What motivates your involvement in community programs, and what outcomes have you observed?
We are a union shop and currently have union carpenters, laborers, and drywall finishers. We enjoy bringing new people into the trades. When you go to a traditional university, you pay for four years of schooling. As an apprentice, you get paid and trained at the same time. The majority of our long-term employees started as apprentices. We continue to use this model because starting with individuals early allows us to show them the best way to execute the work. Many people have started with Shannon Construction as apprentices and retired with us years later.
How is Shannon Construction developing talent in the construction industry?
We look for staff who are eager to learn and want to grow their skill sets. We’ve brought on individuals who had little construction experience. Several of our female project managers did not start out in construction. We’re working to make the field more inclusive, though that remains challenging due to the physical demands of the job.
What are your key goals and priorities for Shannon Construction for the upcoming years?
One of our key goals is to continue diversifying our work and the markets we serve. Twenty years ago, 85% of our work was commercial—today, that number is 35%. This diversification allows us to better weather economic changes and stay viable. We also want to continue integrating technology into both the office and the field—whether to improve project information flow or enhance safety. Fostering new talent remains a major priority for us as well.
