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

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.

40 Years of “Personal Touch”

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Pictured from left: Grant Hendricks, Vice Chairman, Suffolk IDA; Hon. Ed Wehrheim, Supervisor, Town of Smithtown; Terri Alessi-Miceli, President & CEO, HIA-LI; Jack Kulka, President & Founder, The Kulka Group and HIA-LI Lifetime Board Member; Sophia Serlis-McPhillips, Director, Middle Country Public Library; and, Joe Campolo, HIA-LI Board Chair and Managing Partner, Campolo, Middleton & McCormick, LLP

I’ve said it before: One special attribute of HIA-LI is that we bring “a personal touch” to our work.

This pleasing dimension of our operations was evident at last week’s 40th Anniversary Gala at Stonebridge in Hauppauge.

We were able to have some fun, interact socially, honor some great friends, and reflect on HIA-LI’s many accomplishments over four decades.

It’s nice that HIA-LI doesn’t default into clinical-style, by-the-book networking. Instead, we enjoy each other’s company. We engage each other as people, not just business prospects.

It calls to mind my initial encounters with the group about 30 years ago. As an executive with Dale Carnegie Training, I was a rank-and-file member of HIA-LI, hoping to drum up some local business.

But what treatment I received! Marcy Tublisky introduced me to virtually every CEO in the organization.

My first reaction was, “This group is different. Sure, they’re all aiming for business success. But these people bring ‘a personal touch’ to the whole enterprise!”

And it was a personal thrill for me last week when we recognized four honorees:

We applauded an HIA-LI founding father and development icon Jack Kulka — President and Founder of The Kulka Group — who was there on Day One in 1978.

We recognized the Miller Business Center of Centereach, represented by Middle Country Public Library Director Sophia Serlis-McPhillips. Few know that HIA-LI had been poised to launch our own business library years ago when we realized that the nearby Miller Business Center was an ideal partner to fulfill our needs.

Attendees also praised the Suffolk County Industrial Development Agency – represented by Vice Chair Grant Hendricks – which aggressively promotes the growth of our business park.

Supervisor Edward Wehrheim spoke for the Town of Smithtown, our final honoree. He’s already begun building upon the legacy of former Supervisor Pat Vecchio in facilitating the enrichment of our complex.

And I was truly surprised and humbled to be given an award by the HIA-LI board. It is my honor to serve as president and C.E.O., and I share this honor with the outstanding staff at HIA-LI who work hard every day in order to make my job look easy.

We also recounted some of HIA-LI’s achievements over four decades, including our growth from 350 to nearly 1,000 member companies.

HIA-LI remains an effective agent of regional economic growth, while maintaining the “personal touch” that facilitates relationship building among members. And HIA-LI keeps advocating for the Hauppauge Industrial Park, whose 1,350 businesses and 55,000 employees make it America’s most job-rich industrial park east of the Mississippi River.

We’ve leveraged dozens of assets for the Park and its member firms, such as a Northern State Parkway exit ramp, a dedicated COPE car in cooperation with the Suffolk County Police Department, one of the country’s first-ever industrial park-based childcare centers, dozens of sewage, lighting, and road improvements, and a truly lengthy list of other deliverables.

Click here to check out our 40th Anniversary Report for a more complete list of accomplishments, current initiatives, and along with the history of HIA-LI.

So, bravo to you, HIA-LI! And congratulations on 40 proud years of successful business advocacy – all carried out in a way that maintains a warmly appreciated “personal touch.”

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