Archive for category: Articulon Announcements

With the Elections Over, it is Time for America to Get Back to Work

RALEIGH, N.C., (November 13, 2012) – “Contrary to election-year rhetoric, the economy is inching its way to improvement, and the construction industry has not stopped working,” according to the third quarter 2012 Construction Outlook report by FMI, the largest provider of management consulting and investment banking to the engineering and construction industry. Released today, the industry forecast is calling for an 8 percent increase in total construction put in place for 2013. Contributing to this positive forecast is more robust growth in residential construction, as well as a few strong markets in nonresidential and non-building construction.

The focus for 2013 will be on the movement of private money back into the markets. For the economy to grow at a faster rate with the fiscal cliff looming and state and municipal budgets still in repair mode, it will be the private markets that must lead the way. Total construction put in place for 2013 is forecast to be $892 billion, a solid improvement over the last few years, but still just edging out 2003 levels of construction activity.

Residential Construction Housing starts rose to 603,000 units a year as of September 2012. Single-family permits also rose to a 545,000-unit pace, or 6.7 percent, returning to levels not seen since July 2008.

Nonresidential Construction Trends and Forecasts by Sector:

• Lodging — Hotel developers will renovate before building new properties. Bank loans will be hard to justify until occupancy and room rates remain consistently high.
• Office — Through the first two quarters of 2012, the U.S. office sector has now absorbed 10.4 million square feet, 100,000 square feet less of net absorption than was generated over the first six months of 2011. (Jones Lang LaSalle, “Office Outlook United States, Q2 2012). This is not yet enough activity to compare with prerecession highs, but we expect CPIP to improve 4 percent in 2013.
• Commercial — Expect more rethinking of commercial construction space to accommodate smaller stores and combining in-store sales with online shopping. Look for increasing multiuse projects.
• Health care — New health care construction will include a growing number of renovation projects to update current facilities for modern hospital design, using more technology in the rooms as well as for improving air quality and reducing energy usage.
• Education — Significantly less funding from states for K-12 schools.
• Religious — The lending environment continues to be a challenge for many congregations.
• Public safety — Despite overcrowding in prisons, we expect public safety construction to remain slow for the next couple of years, at least with only 1 percent growth in 2013 to $10.2 billion.
• Amusement and recreation —Money for sports stadiums will be hard to find from local government investment, and banks will be reluctant to lend to anyone who couldn’t already pay for the project from cash flow.
• Transportation — This remains a strong sector for construction. CPIP is expected to grow 6 percent in 2013 to a total of $38.2 billion for the year. This is due in part to The FAA Modernization and Reform Act will provide $63.6 billion for the agency’s programs between 2012-2015.
• Communications — Growth in communication construction is being powered by an insatiable need for speed and to send and store large amounts of multimedia files over the Internet. One trend that might slow the growth in construction dollars is the trend to use mini cell “towers,” which are small, easily installed boxes that help to maxi­mize spectrum.
• Manufacturing — Manufacturing construction is starting to make a comeback with both new growth in manufacturing output and with some companies repatriating their manufacturing capacity.
• Power-related — Power construction will continue to be one of the strongest growth sectors for construction. Worthy to note is U.S. Army Corps of Engineers has a proposal out for $7 billion in locally generated renewable energy through power purchase agreements.
• Highway — State budgets will continue to be strained and it will be difficult to get larger projects off the ground. Therefore, funds from the MAP-21 and TIGER grants make up a large percentage of construction put in place included in FMI’s 2013 forecast of $84.7 billion for highways and streets.
• Sewage and waste disposal — Waste-to-energy may be one of the best bets for future work in this sector if more municipalities can find ways to work with private investors.
• Water supply — Expect this sector to struggle to find funds for necessary remediation and construction. Strength in water supply construction will be found in pockets for industrial projects like the mining sector, power and industrial plants.
• Conservation and Development — The 2012 annual budget for the Department of Agriculture eliminates funding for the Resource Conservation and Development (RC&D) and Wa­tershed and Flood Prevention Operations programs. New projects in this sector, like water system projects, will more likely come from cleanup for the mining and energy sector to comply with regulations.

To download a copy of the full report, click here. For reprint permission or to schedule an interview with the author, please contact Sarah Avallone at 919.785.9221 or savallone@fminet.com.

About FMI
FMI is the largest provider of management consulting, investment banking and research to the engineering and construction industry. We work in all segments of the industry providing clients with value-added business solutions, including:

• Strategic Advisory
• Market Research and Business Development
• Leadership and Talent Development
• Project and Process Improvement
• Mergers, Acquisitions and Financial Consulting
• Compensation Data and Consulting
• Risk Management Consulting

Founded by Dr. Emol A. Fails in 1953, FMI has professionals in offices across the U.S. FMI delivers innovative, customized solutions to contractors; construction materials producers; manufacturers and suppliers of building materials and equipment; owners and developers; engineers and architects; utilities; and construction industry trade associations. FMI is an advisor you can count on to build and maintain a successful business, from your leadership to your site managers. Visit www.fminet.com.

GREENSBORO, N.C. (November 12, 2012) — What can be achieved when 328 associates are challenged to volunteer one hour of time for each year their employer has been in business? The associates at Brady, a provider of high-efficiency HVAC systems and comprehensive building solutions for commercial and industrial facilities across North Carolina, are about to find out.

The family owned and operated business formed a committee of 16 associates and tasked them with planning a year of celebration activities. Chaired by Phil Kirk, director of Brady Energy Services, the committee decided to issue a challenge to all associates to volunteer 50 hours with charities of their choice. For associates that are unable to make the volunteering commitment, the committee has also arranged a Red Cross Blood Drive and an annual food drive. From January through September, 70 associates have logged volunteer time totaling more than 4,100 hours. Some highlights include:

• Serving as a volunteer fire fighter
• Providing wildlife rehabilitation services
• Participating in 5K runs and volunteering at fundraising events
• Chaperoning, coaching and teaching with youth programs
• Helping people in need with yard work, meals, and transportation
• Providing care for people with medical issues
• Participating in church programs

“I am impressed with the outpouring of support for our 50 for 50 volunteer program,” said Jim Brady, president. “Giving back to our communities is fundamental value for the Brady family. To see our associates giving some of their own time and resources to need in their communities makes our whole family proud.”

To show their appreciation for the associates’ hard work over the past 50 years, Brady owners Don, Jim and Joe Brady have supported five outings for associates and their families throughout the year. In addition to an anniversary kick-off celebration at the Greensboro Country Club, the committee arranged Brady Night at the Greensboro Grasshoppers, Durham Bulls and Winston Salem Dash games. Employees also enjoyed family day at the N.C. Zoo in Asheboro.

About Brady:
Celebrating its 50th year, Brady is headquartered in Greensboro, North Carolina with locations in Raleigh, Durham, Fayetteville, Wilmington and Charlotte. Founded in 1962 by Chairman Don Brady, the company remains a family owned enterprise, today employing 328 associates. The company works with building owners, facility managers, developers, architects, engineers and contractors providing sustainable, comprehensive building solutions for commercial and industrial facilities. Brady provides customers with a diverse range of HVAC and building solutions including building automation, energy conservation, green design, performance contracts, access controls, security, mechanical systems, parts and supplies, as well as world-class technical support. For more information, visit www.bradyservices.com or call (800) 849-1915.