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FMI Releases 2013 U.S. Construction Industry Talent Development Report

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FMI, a leading provider of management consulting and investment banking* to the engineering and construction industry, announces the release of its 2013 U.S. Construction Industry Talent Development Report. The report is based on responses nationwide from a mix of general contractors and construction managers at firms of all sizes and specialties, including mechanical/plumbing and heavy/highway/civil.

More than half of respondents report a shortage in skilled labor. As a war for talent begins, construction experts must evolve their methodology of searching for the best and brightest employees. First, construction careers must be made more appealing to women and minorities. Second, there must be an appeal to today’s youth through career counselors, career fairs and utilization of social media channels.

In addition, as baby boomers retire, more than 75 percent of those surveyed said they were preparing for a leadership transition in three ways:

  1. Promoting internally
  2. Training to improve performance
  3. Providing internship and co/op programs

    4.  
    Also, more than half of those surveyed said they were:

  1. Identifying gaps in core competencies
  2. Increasing recruiting efforts at schools and universities
  3. Employing “best practices” to retain key talent

 
To download a copy of the full report, click here. For reprint permission or to schedule an interview with the author, please contact Mike Gauss at mike@articulon.com.

About FMI:
FMI is a leading 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 Benchmarking 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. For more information, visit www.fminet.com.

*Investment banking services provided by FMI Capital Advisors, Inc., a registered broker-dealer and wholly owned subsidiary of FMI.

Nonresidential Construction Index Drops in Fourth Quarter

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FMI, a leading provider of management consulting and investment banking* to the engineering and construction industry, announces the release of the 2013 Fourth Quarter Nonresidential Construction Index report. The NRCI shows a 2.9 point drop in the fourth quarter to 57.4. However, the score is still ahead of fourth quarter 2012 by 1.9 points. An NRCI of more than 50 indicates growth, therefore the fourth quarter score still indicates modest improvement in the industry.

One of the reasons cited for the slight decline is the political infighting and uncertainty. Proceeding with caution by investors seems to be the new norm.

Productivity continues to slide. The 48.6 score is at its lowest since the second quarter of 2008. Ultimately, attention to productivity and profit margins will be key to sustaining growth going forward.

Building construction continues to improve since 2012. However, growth is still unsteady as the numbers have slipped 7.5 points to 64.1 this quarter. Material and labor cost also continues to rise causing the overall NRCI to fall.

To download a copy of the full report, click here. For reprint permission or to schedule an interview with the author, please contact Mike Gauss at mike@articulon.com.

About FMI:
FMI is a leading 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 Benchmarking 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. For more information, visit www.fminet.com.

*Investment banking services provided by FMI Capital Advisors, Inc., a registered broker-dealer and wholly owned subsidiary of FMI.

FMI Predicts U.S. Construction Put in Place Will Reach $977 Billion in 2014

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FMI, a leading provider of management consulting and investment banking* to the engineering and construction industry, announces the release of its 2014 U.S. Markets Construction Overview. With construction put in place at the end of 2013 expected to be at $909.6 billion, researchers at FMI predict CPIP growth rates to be slightly ahead of the GDP in 2014.

Other predictions include:

  • Residential CPIP is anticipated to grow from $338.2 billion in 2013 to $379.6 billion in 2014.
  • Health care CPIP is expected to grow 6 percent in 2014 to $44 billion.
  • Transportation construction should finish 2013 with an 8 percent increase; 2014 predictions show a decrease to 7 percent growth.
  • Manufacturing construction is on the upturn, expected to grow 4 percent in 2014, after its 2 percent drop in 2013.
  • Sewage and waste CPIP should reach $21.3 billion in 2014.

 
With moderate growth predicted marketwide, there are key trends to watch that will likely affect various sectors and regions in the U.S. Presenting both threats and opportunities are:

  • The shift from shale-gas to shale-oil production has led to projections that the U.S. will produce more oil than it imports by late 2014.
  • The federal government’s fiscal difficulties continue to create business uncertainty. Many are worried about the federal debt and the government’s solution to address the problem.
  • Implementation of the Affordable Health Act is causing concern, as repercussions are anticipated.
  • With baby boomers continuing to retire, succession planning and a search for talent remains one of the industry’s primary challenges.
  • Modularization and prefabrication is expected to play an increasingly vital role in improving the productivity of the entire construction value chain.
  • As a result of the expansion of the Panama Canal, U.S. coastal infrastructure opportunities will create significant corridors of construction activity starting as early as 2014.

 
FMI publishes the U.S. Markets Construction Overview annually. To purchase a copy visit www.fminet.com/resources. Members of the media may request a complimentary PDF file of the Overview by clicking here.

About FMI:
FMI is a leading 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 Benchmarking 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. For more information, visit www.fminet.com.

*Investment banking services provided by FMI Capital Advisors, Inc., a registered broker-dealer and wholly owned subsidiary of FMI.

Smarter Buildings Require Smarter Building

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View article online at North Carolina Construction News

More than 190 commercial architects, engineers, building owners and facility managers from across North Carolina spent the day at the Brady Earthwise Expos in late April. Focusing on where the commercial construction industry is heading, attendees explored more than 30 booths featuring the latest in building technologies for improved energy efficiency.

Driven primarily by new code requirements to reduce energy consumption, software, systems integration and dashboard discussions were as prevalent as talk about construction materials and mechanical equipment. John Roberts, senior mechanical engineer at Dewberry and North Carolina Energy Ad Hoc Committee member presented an analysis of the 2012 energy conservation code governing new construction in the Tarheel state. The code is designed to save energy, reduce pollution and decrease energy costs by requiring new buildings to be 30 percent more efficient that those built under the 2009 code. Along with reducing lighting wattage and increasing insulation, the code is requiring buildings to be smarter with occupancy sensors and demand controls.

Although the new requirements can save the building owner money in utility costs over the life of the building, it is adding expense lines to the construction budget that did not exist five years ago. To help manage the new requirements with tight budgets for new construction, many, including the Wake County Public School System are turning to technology for solution.

“Growing school systems, like Wake County, are facing a heightened challenge with the 2012 Energy Conservation Code,” says Jim Brady, president, Brady, a company that provides energy systems and comprehensive HVAC building solutions for commercial and industrial facilities. “Finding the right balance of where to invest in best-in-class building components and where to cut costs with lower-priced options will increase reliance on building information modeling (BIM) software. This means the school system will need to make a choice between purchasing the technology, keeping it up to date and training staff, or paying for the assistance of private-sector construction and engineering experts that provide BIM services.”

WCPSS is just starting to look at how to maximize the application value of BIM according to Greg Clark, senior director of maintenance and operations for WCPSS. “We are beginning to discuss how construction managers are using BIM on WCPSS projects and what portions of the intellectual property generated by these systems is owned by the school system,” says Clark. “Beyond the direct benefit of managing construction costs, I see a future where BIM will be able to integrate with our asset management system. This could eliminate manually populating each building’s parts and components inventory, which would save hundreds of labor hours. It could also expedite the competitive-product comparison process when buildings need repairs.” Clark sees a future where BIM and the transfer of the systems IP will be an important consideration in awarding construction contracts.

Dr. Michael Walden, N.C. State economist notes, “The fiscal situation in North Carolina is improving.” This combined with commercial building vacancy rates on the decline and the need for additional classrooms means the construction industry is poised for an influx of new projects. However, budgets are still tight. Therefore, the A/E/C firms that will be the most successful in winning new business will be the ones that are tech savvy, both in how they build and in how the building will operate in use for many years to come. Whether by architects, engineers or contractors, it all comes down to smarter buildings requiring smarter building.

For more information, check out some of the great videos from the 2013 Earthwise Expo