Dive Brief:
- PCL Construction has created a new collective that will help the company build large manufacturing projects across North America, in response to growing American and Canadian investments in reshoring production, according to a Jan. 27 news release.
- The group, dubbed its Manufacturing Center of Excellence, brings together manufacturing experts within PCL, the Edmonton, Alberta-based company with U.S. headquarters in Denver, per the release. The move aligns PCL’s manufacturing pros from different geographies under one fully integrated team.
- PCL claims the group will greatly streamline new plant facility planning, engineering, construction and production start-up. The company has previously performed advanced manufacturing work, and delivered over $25 billion of projects, according to its website.
Dive Insight:
The new center of excellence will operate in a diverse range of sectors, per the release. These include food and beverage, semiconductor, battery and electronics, life science and advanced manufacturing work according to the release.
Andrew Ahrendt, a PCL veteran with three decades of experience overseeing manufacturing projects, will lead the center of excellence, according to the release.
"Andrew is a proven leader both within PCL and externally in the community," said Deron Brown, PCL president and chief operating officer of U.S. operations, in the news release. "No doubt in his new position he will drive innovation in smart factories, while delivering an exceptional level of quality to our manufacturing clients."
PCL sees its Manufacturing Center of Excellence following a similar path to its solar division, which started as a COE and is now a full subsidiary of the contractor.
“As Solar grew from a desire to meet client’s balanced energy strategies, so too will the Manufacturing Center grow,” Ahrendt told Construction Dive in an email.
Trump and tariffs
Amid the backdrop of this decision are the looming threat of tariffs, a campaign promise by President Donald Trump which includes 25% tariffs on both Canada and Mexico. Experts told Construction Dive that the measures could result in price hikes for builders.
Despite the uncertainty, PCL remains positive. Ahrendt said the likely extension of the 2017 Tax Cuts and Jobs Act — which would allow manufacturers to continue to expense research and development and take the 100% bonus depreciation allowance — and probable slashes in permitting and general regulations, bore out well for builders.
“If President Trump follows through with his proposed tariffs, there could be some short-term disruptions; long-term however, we believe the outlook for Manufacturing is strong,” Ahrendt wrote.
