“It is the first time that a number of 100-plus-year-old construction firms are waking up in a cold sweat and saying, ‘We might get Uber’d.’ Instead of innovating to improve productivity, there is a sense of urgency and need to innovate to survive, let alone thrive.” — Darren Bechtel, Founder, Managing Director, Brick & Mortar Ventures (as told to BuiltWorlds)
“One of the biggest risks today is not leveraging technology, or refusing to be an early adopter of the ‘next big thing.’ There will be major technological disrupters in this market, and the company that’s slow to pick up on them is essentially diminishing its position in a very competitive industry.” — Patrick O’Connor, Vice President of Risk Management and Counsel, The Walsh Group (as told to FMI Corp.)
Declarations like these are not hyperbole, nor are they specific to the AEC industry. Leaders in almost all business sectors—if they are half-way competent—operate their organizations with a sense of angst and a healthy dose of paranoia, preparing for what’s around the corner.
Well, there is plenty around the corner these days, and AEC firms are scrambling to adjust to the coming “new normal” of commercial design and construction.
Are we ready for technological disruption? What tools and processes can we employ to gain efficiencies and eliminate waste? Who are our future leaders? What skills are required for the next generation of practitioners? What are the short- and long-term needs of our clients, and their building assets? Is Google going to take our jobs? (No joke. I’ve heard this one more than once.)
These are among the litany of considerations that AEC firms must address to future-proof their organizations.
But while talk of the disruptive nature of technology and innovation captures the headlines, what’s really keeping the leaders of the nation’s largest general contractor and construction management firms up at night is people.
In a new survey by FMI Corp. of C-suite and risk management professionals at GC and CM firms, 80% of respondents identified a “limited supply of skilled craftworkers” as a top risk for 2019, and 44% cited a “limited supply of experienced field supervisors” as a primary concern. Exacerbating the talent shortage is the coming mass exodus of baby boomers as they reach retirement age.
In response, firms are placing priority on bringing craftworkers and design professionals in-house; strengthening training and development programs; and bolstering talent recruitment efforts by giving HR managers a seat at the executive table. Is it enough? That remains to be seen, but it’s a good start.
Download the free report at: tinyurl.com/FMIrisk19.
Related Stories
| Aug 10, 2016
UNIVERSITY GIANTS: Facing money woes, the nation's colleges double down on innovative ideas
Budget constraints are compelling some public institutions to pursue alternative methods of financing their major building projects.
| Aug 9, 2016
Top 100 University Construction Firms
Turner Construction Co., The Whiting-Turner Contracting Co, and Skanska USA top Building Design+Construction’s annual ranking of the nation’s largest university sector construction and construction management firms, as reported in the 2016 Giants 300 Report.
Building Team | Aug 4, 2016
Thought leaders from architecture, engineering and construction to meet at 2016 Bluebeam eXtreme Conference
Bluebeam users inspire technological change through shared insights and training at three-day event.
| Aug 4, 2016
MULTIFAMILY BUILDING GIANTS: Rental complexes focus on affordability, accessibility, and specialty amenities
To address the affordability problem and attract tenants, owners and developers are experimenting with smaller and smaller units, amenity-rich environments, and “co-living” concepts.
| Aug 4, 2016
Top 80 Multifamily Construction Firms
Lendlease, Suffolk Construction Co., and Clark Group top Building Design+Construction’s annual ranking of the nation’s largest multifamily building sector construction and construction management firms, as reported in the 2016 Giants 300 Report.
| Aug 3, 2016
GREEN BUILDING GIANTS: Sustainability leaders turn to wellness and technology to get an edge
AEC leaders in green building are stepping up to a higher level of innovation and to be a green leader today, you have to dig deeper into data.
| Aug 3, 2016
Top 90 Green Building Construction Firms
Turner Construction Co., Clark Group, and Hensel Phelps top Building Design+Construction’s annual ranking of the nation’s largest green building sector construction and construction management firms, as reported in the 2016 Giants 300 Report.
| Aug 1, 2016
K-12 SCHOOL GIANTS: In a new era of K-12 education, flexibility is crucial to design
Space flexibility is critical to classroom design. Spaces have to be adaptable, even allowing for drastic changes such as a doubling of classroom size.
| Aug 1, 2016
Top 80 K-12 School Construction Firms
Gilbane, Balfour Beatty, and Core Construction head Building Design+Construction’s annual ranking of the nation’s largest K-12 school sector construction and construction management firms, as reported in the 2016 Giants 300 Report.
| Jul 29, 2016
AIRPORT FACILITIES GIANTS: Airports binge on construction during busy year for travel
Terminal construction will grow by nearly $1 billion this year, and it will keep increasing. Airports are expanding and modernizing their facilities to keep passengers moving.
