Supply Chain

Charting the Future of Long Island’s Construction and A&E Industries

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Over 200 leaders from Long Island’s construction, architecture, and engineering sectors gathered on Thursday, December 12, 2025 for a breakfast event that was as insightful as it was impactful. Hosted by HIA-LI in collaboration with the Long Island Builders Institute and the Long Island Contractors Association, the event spotlighted the findings of the Grassi 2024 Construction and Architecture & Engineering (A&E) Industry Survey Report. It was a morning of thoughtful discussion, led by highly respected voices in our community.

The program began with opening remarks from Marc Herbst, Executive Director of the Long Island Contractors Association, who set the tone by emphasizing the critical role these sectors play in the bi-county region’s economic vitality. Carl Oliveri, Partner and Construction Practice Leader at Grassi, skillfully moderated the panel, which included Robert Brewer, Partner and A&E Practice Leader at Grassi; Jimmy Coughlan, Executive Vice President and Partner at TRITEC; Rich Humann, President & CEO of H2M architects + engineers; and Devin Kulka, CEO of The Kulka Group. Each speaker brought unique perspectives on the survey’s findings, and together, they painted a comprehensive picture of where we stand — and where we’re headed.

Insights and Challenges from the Survey

The survey provided an honest assessment of the current landscape for construction and A&E firms, capturing feedback from 248 industry leaders. While optimism about revenue growth in 2024 is strong — 56% anticipate an increase — there’s no denying the headwinds our region faces.

The Challenges:

  1. Labor Shortages
    Labor shortages remain a top concern, with over half of respondents citing this as the most significant challenge. The scarcity of skilled workers isn’t just a business problem; it’s a community issue. It impacts the pace of development and the ability to meet growing housing and infrastructure needs.
  2. Inflation and Rising Costs
    Inflation, coupled with escalating material and overhead costs, continues to squeeze margins. Eighty-three percent of firms reported increased overhead costs, with many facing double-digit hikes. This reality forces companies to make tough choices and adapt to maintain profitability.
  3. Supply Chain Disruptions
    While supply chain issues have eased somewhat, they remain a persistent challenge. Many firms are turning to innovative solutions such as diversifying suppliers and locking in prices through agreements to mitigate volatility.

The Opportunities:

  1. Technological Investments
    Companies across the sector are embracing advancements like project management software, artificial intelligence, and building information modeling. These tools are enhancing efficiency and helping firms stay competitive in a rapidly evolving market.
  2. Cybersecurity Leadership
    Long Island’s A&E firms are leading the way in cybersecurity, with 96% implementing robust protocols, including dual-factor authentication. This commitment to protecting sensitive data is a model for other industries.
  3. Optimism in Residential Construction
    Despite challenges, there is cautious optimism about residential construction, particularly here in Nassau and Suffolk counties. This is a positive indicator of the region’s resilience and its ability to adapt to market demands.

What This Means for Long Island

The findings of this survey are a mirror reflecting both the promise and the pressures of doing business in our region. As we look to 2025, it’s clear that collaboration will be key to addressing these challenges. Workforce development must take center stage. HIA-LI is committed to working with local schools, trade groups, organized labor, and government agencies to cultivate a pipeline of skilled workers who can sustain this vital industry.

At the same time, our businesses must continue to innovate. Investments in technology and strategic partnerships will not only help firms weather economic uncertainties but also position Long Island as a hub for cutting-edge construction and engineering practices.

Finally, we must celebrate our strengths. The construction and A&E industries are pillars of our economy, contributing to the development of homes, offices, schools, and infrastructure that enhance our quality of life. By supporting these sectors, we are investing in the future of our entire community.

A Call to Action

To the leaders in attendance last week: Thank you for your insights, your dedication, and your vision. Let’s continue to work together to strengthen Long Island’s position as a leader in innovation and growth. And to those who couldn’t attend, I encourage you to engage with the findings of this report. The challenges are real, but so are the opportunities.

Together, we can rise to meet them.

Navigating the Future: Insights from the 30th Annual Long Island Economic Summit

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Pictured: A view from the dais at the February 15, 2024 30th Annual HIA-LI Long Island Economic Summit.

The 30th Annual Long Island Economic Summit, held on February 15, 2024, began with a clear message: Long Island “is a good place to do business.”

This year’s summit, drawing on the findings of the 2024 Long Island Economic Survey conducted by Adelphi University and Citrin Cooperman, brought to light the resilience and adaptability of our local business community. Business leaders across both counties – who were surveyed between November 1, 2023, and January 15, 2024 – made it quite evident that despite some hurdles, there’s a strong sense of optimism about doing business here. The event served not only as a platform for analysis and discussion but also as a beacon of positive expectations for the region’s economic landscape.

I’d like to summarize the findings and share some of the analysis from the summit’s distinguished panelists.

Survey Highlights

  • Taxes, retention of young talent, and inflation are a major concern for most businesses.
  • Long Island businesses seem hesitant to explore the benefits of AI compared to the rest of the country.
  • Supply chain issues, though not as extreme as years past, continue to linger.
  • Compensation, human resource issues, and workforce development remain a high concern.
  • Confidence in government’s role continues to deteriorate, however Long Island continues to be perceived as a good place to do business.

The Role of AI

Panel moderator John Fitzgerald, Managing Partner at Citrin Cooperman, noted the mixed feelings surrounding AI, pointing out that “Long Island businesses seem hesitant to fully explore the benefits of AI compared to the rest of the country.” This underscores a crucial area for potential growth and innovation.

To help meet that need, HIA-LI will be partnering with the LIA in an April 3 Long Island Artificial Intelligence Conference. The goal of the conference is to bring businesses, entrepreneurs, academia, not-for-profit organizations, and government officials together to discuss how our region can play a leading role in the development and implementation of AI technologies.

For more information, go to www.LI-AI.eventbrite.com.

Government Support

Dr. Lawrence Eisenstein, VP and Chief Public and Community Health Officer at Catholic Health, stressed the importance of government support, especially when it comes to healthcare reimbursements. “We need more help in terms of increased Medicaid and Medicare revenue,” he said. “Nobody would go into one of your businesses and say I want services, but I’m only going to pay you 60 percent.”

Food Insecurity

Paule Pachter, President and CEO of Long Island Cares, and an HIA-LI board member, emphasized the critical challenge of food insecurity on Long Island, stating, “A family of four who’s earning $60,000 or $70,000 a year are finding themselves going to food pantries or going to food banks to ask for some assistance. They don’t need everything. But they need some things in order to stretch their budget.”

Economic Outlook

Jeffrey Barber, Executive Vice President of Dime Community Bank, provided an insightful perspective on the economic outlook, highlighting the financial landscape’s strengths and potential growth areas. He noted, “There’s a tremendous amount of liquidity in the market. Many companies sat on those funds during COVID and didn’t know where things were headed.” He added some good news, “They’re now at a point where they’re comfortable spending and creating jobs.”

Talent Retention

Rich Humann, President and CEO of H2M architects + engineers, and an HIA-LI board member, discussed the ongoing challenge of retaining young professionals, underscoring the importance of creating connections, opportunities, and a compelling work environment to encourage talent to stay on Long Island. “Our responsibility as business owners is to provide the kind of environment and opportunity that would keep people with companies like ours.”

Higher Education

MaryAnne Hyland, Dean of the School of Business at Adelphi University, added to the discussion on talent retention by emphasizing the need for higher education institutions to adapt and innovate in preparing the workforce. “We need to make sure that we are providing students with programs that provide cutting-edge knowledge and skills that focus on the demands of the workforce of today and tomorrow,” she stated, highlighting the critical role of education in workforce development.

Moving Forward: A Collaborative Vision for Growth

The 2024 Economic Survey, coupled with the insights from the Economic Summit, paints a picture of a region at the threshold of significant growth, buoyed by optimism, yet mindful of the hurdles that lie ahead. The collective wisdom of the panelists, alongside the statistical data, underscores the need for collaborative efforts in innovation, government support, and talent retention strategies.

As we look to the future, the path for Long Island is clear: leveraging the insights and optimism shared at the summit to foster an environment where businesses and communities can thrive. With a commitment to addressing the highlighted challenges head-on, Long Island is poised to navigate its economic journey with resilience and vision.

You can read the full 2024 Long Island Economic Survey here.