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
| May 26, 2014
New Jersey data centers will manage loads with pods
The two data center facilities totaling almost 430,000 sf for owner Digital Realty Trust will use the company's TK-Flex planning module, allowing for 24 pods.
| May 23, 2014
Big design, small package: AIA Chicago names 2014 Small Project Awards winners
Winning projects include an events center for Mies van der Rohe's landmark Farnsworth House and a new boathouse along the Chicago river.
| May 23, 2014
Top interior design trends: Gensler, HOK, FXFOWLE, Mancini Duffy weigh in
Tech-friendly furniture, “live walls,” sit-stand desks, and circadian lighting are among the emerging trends identified by leading interior designers.
| May 22, 2014
How to measure what matters
Measuring what matters is essential for professional services firms, says author and consultant Tim Williams, particularly as firms continue to experiment with the concept of outcome-based compensation agreements.
| May 22, 2014
BIM-driven prototype turns data centers into a kit of parts
Data center design specialist SPARCH creates a modular scheme for solutions provider Digital Realty.
| May 22, 2014
7 ways it pays to use BIM for data centers
Here’s where AEC firms and owners are getting the most bang for the buck when using BIM/VDC to coordinate data center projects.
| May 22, 2014
No time for a trip to Dubai? Team BlackSheep's drone flyover gives a bird's eye view [video]
Team BlackSheep—devotees of filmmaking with drones—has posted a fun video that takes viewers high over the city for spectacular vistas of a modern architectural showcase.
| May 22, 2014
NYC's High Line connects string of high-profile condo projects
The High Line, New York City's elevated park created from a conversion of rail lines, is the organizing principle for a series of luxury condo buildings designed by big names in architecture.
| May 22, 2014
Just two years after opening, $60 million high school stadium will close for repairs
The 18,000-seat Eagle Stadium in Allen, Texas, opened in 2012 to much fanfare. But cracks recently began to appear throughout the structure, causing to the school district to close the facility.
| May 22, 2014
Senate kills bipartisan energy efficiency bill over Keystone pipeline amendment
The legislation focused on energy efficiency standards such as water heaters with smart meters and cheaper heating and cooling systems for office buildings.
