The recession is weighing heavily on architects, engineers, and contractors, if the results of an exclusive BD+C survey of 504 AEC professionals are any measure of the commercial construction industry’s outlook on business prospects for 2012.
More than three-fourths of respondents (78.4%) rated “general economic conditions (i.e., recession)” as the most important concern their firms will face in the next year, followed by competition from other firms (40.1%) and lack of capital funding for their projects (34.5%).
Nearly three in four (74.8%) described the current business situation for their firms as “very” to “intensely” competitive—a strong verification of the dog-eat-dog climate that many in the AEC industry have reported anecdotally in the last couple of years.
On the brighter side, nearly half of respondents (49.7%) said their firms were in at least “good” financial health, and four-fifths (80.2%) said their companies would at least hold steady in revenue in 2012.
Layoffs over the last two years were reported by 44.8% of respondents, with another 37.3% saying that hours had been reduced, while more than half (51.0%) said their firms had eliminated or cut back on bonuses.
Looking toward 2012, nearly half of respondents (46.8%) said they thought their companies would be beefing up PR and marketing initiatives to revive their businesses.
More than a third (35.7%) said their firms would be pumping dollars into technology. However, more than one in five (20.6%) said their firms were not using building information modeling; of those who said BIM was used in their shops, a clear majority (58.4%) said BIM figured in less than 25% of projects, while only slightly more than one-fourth (26.8%) said BIM was being used most of the time (i.e., 50% or more of projects, based on dollar value).
Healthcare remains strongest sector
Respondents were asked to rate their firms’ prospects in specific construction sectors on a five-point scale from “excellent” to “very weak.” (Respondents who checked “Not applicable/No opinion/Don’t know” are not counted here.) Among the findings:
- Healthcare was the most highly rated sector, with a strong majority of respondents (54.6%) giving it a “good” to “excellent” rating.
- Data centers and mission-critical facilities were also given good marks, with 45.2% of respondents in the good/excellent category.
- Government and military work was rated good to excellent by more than two-fifths of respondents (41.1%).
- Senior and assisted-living facilities drew a fairly strong 37.8% of respondents in the good to excellent category.
- University/college facilities were rated good to excellent by nearly a third of respondents (32.3%).
Other sectors had much less optimistic support from respondents. Only one in nine (11.1%) said they thought retail commercial construction would have a good to excellent year. Less than 1% thought cultural/performing arts centers had a chance to have even a good year, and only 1.5% were sanguine about industrial and warehouse facilities.
The prospects for office buildings were bleak as well, with only 9.4% saying that market would be good to excellent—and nearly two-thirds (67.3%) predicting office buildings would be “weak” or “very weak.” However, office interiors and fitouts fared better, with 28.0% saying that sector would be good to excellent.
“Good to excellent” prospects for other sectors were mixed: 23.2% for K-12 schools and 24.0% for multifamily projects (condos and apartments, but most likely the latter).
In sum, hardly the cheeriest of prognostications for the 2012 commercial design and construction industry, according to respondents to our exclusive survey.
Note: Of the 494 who gave their professional description, 41.3% are architects; 19.0%, engineers; 18.8%, contractors; 10.7% building owners, developers, or facility/property managers; and 10.2%, consultants or “other.”
For more information visit www.BDCnetwork.com/forecast/2012. BD+C
Related Stories
BIM and Information Technology | Jun 21, 2015
11 tips for mastering 3D printing in the AEC world
Early adopters provide first-hand advice on the trials and tribulations of marrying 3D printing with the science of building technology.
Events Facilities | Jun 19, 2015
4 ways convention centers are revamping for the 21st century
Today's convention centers require more flexible spaces, the ability to blend virtual and in-person events, and meaningful sustainability, writes Skanska's Tom Tingle.
Engineers | Jun 18, 2015
Architecture and engineering profit margins deliver third consecutive year of growth
Operating profits of AE firms have reach their highest level since 2009, according to a new report by PSMJ Resources.
Architects | Jun 17, 2015
Starchitects' napkin sketches raise thousands for San Diego’s AIAS chapter
Prominent architects who submitted a total of 23 napkin doodles were Zaha Hadid, Cesar Pelli, Robert Venturi, Massimiliano Fuksas, Thom Mayne, and Bjarke Ingels.
BIM and Information Technology | Jun 16, 2015
What’s next for 3D printing in design and construction?
The 3D printer industry keeps making strides in technology and affordability. Machines can now print with all sorts of powderized materials, from concrete to chocolate.
Office Buildings | Jun 12, 2015
Houston's energy sector keeps office construction humming
Colliers International projects continued expansion this year in its quarterly report on national office market.
Smart Buildings | Jun 11, 2015
Google launches company to improve city living
The search engine giant is yet again diversifying its products. Google has co-created a startup, called Sidewalk Labs, that will focus on “developing innovative technologies to improve cities.”
Office Buildings | Jun 11, 2015
Pop-up tree-office opens in London borough of Hackney
London's Hackney borough welcomed a new kind of workspace to Hoxton Square—the TreexOffice.
Cultural Facilities | Jun 10, 2015
Artists turn oil tankers into architecture
Four Dutch artists propose transforming tankers into monuments with mixed-use space.
Office Buildings | Jun 9, 2015
Bjarke Ingels unveils stepped design for final WTC tower
The towering "staircase" will rise from St. Paul’s chapel to the skyline, leaning against One World Trade Center.
