“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
| Mar 16, 2012
Temporary fix to CityCenter's Harmon would cost $2 million, contractor says
By contrast, CityCenter half-owner and developer MGM Resorts International determined last year that the Harmon would collapse in a strong quake and can't be fixed in an economical way. It favors implosion at a cost of $30 million.
| Mar 16, 2012
Work on Oxnard, Calif. shopping center resumes after a three-year hiatus
Stalled since 2009, developers of the Collection at RiverPark decided to restart construction on the outdoor mall.
| Mar 16, 2012
Stego embarks on HPD Pilot Program
Vapor barrier manufacturer strives to provide better green choices to designers and builders.
| Mar 16, 2012
Marvin Windows and Doors accepting entries for fourth-annual myMarvin Architect’s Challenge
Architects in U.S. and abroad offered the chance to showcase their very best work.
| Mar 14, 2012
Hearing to decide fate of unfinished Harmon in Las Vegas under way
The testimony began with CityCenter consulting engineer Chukwuma Ekwueme methodically showing photo after photo of parts of the Harmon, where he and his team had chipped away the concrete pillars and beams to examine the steel reinforcing bars inside.
| Mar 14, 2012
Firestone names 2012 Master Contractor Award Winners
Annual award acknowledges industry’s top roofing professionals.
| Mar 14, 2012
Plans for San Francisco's tallest building revamped
The glassy white high-rise would be 60 stories and 1,070 feet tall with an entrance at First and Mission streets.
| Mar 14, 2012
Hyatt joins Thornton Tomasetti as VP in Chicago
A forensic specialist, Hyatt has more than 10 years of experience performing investigations of structural failures throughout the U.S.
| Mar 14, 2012
Tsoi/Kobus and Centerbrook to design Jackson Laboratory facility in Farmington, Conn.
Building will house research into personalized, gene-based cancer screening and treatment.
| Mar 13, 2012
China's high-speed building boom
A 30-story hotel in Changsha went up in two weeks. Some question the safety in that, but the builder defends its methods.