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
| Apr 3, 2012
Blaine Brownell on innovative materials applications in architecture
Brownell, who was named a BD+C 40 Under 40 in 2006, provides insight regarding emerging material trends and the creative implementation of materials.
| Apr 3, 2012
AGC Glass to reopen shuttered plant
Shuttered since 2008, the plant produces clear and tinted float glass serving architectural glass markets.
| Apr 3, 2012
Luxury hotel 'groundscraper' planned in abandoned quarry
Would you spend $300 a night to sleep underground? You might, once you see the designs for China's latest hotel project.
| Apr 3, 2012
SSOE acquires MEP Firm CRS Engineering & Design Consultants
The acquisition will expand SSOE’s Southeastern U.S. presence, broaden CRS’s reach to international markets, and provide both firms’ clients access to enhanced services and resources.
| Apr 3, 2012
Suffolk completes phase one of Baystate Medical Center expansion
Construction management firm awarded emergency department project for successful build of $296 million MassMutual Wing and Davis Family Heart and Vascular Center.
| Apr 3, 2012
Meyer receives RCMA's Martin A. Davis Industry Leadership Award
The Martin A. Davis Industry Leadership Award is presented annually to an individual, selected by his or her peers, who has exemplified outstanding service and made significant contributions to the roof coatings industry.
| Apr 3, 2012
Johns Manville publishes 2011 Sustainability Report
Report covers JM’s long-time sustainability focus and progress towards goals.
| Apr 3, 2012
Educational facilities see long-term benefits of fiber cement cladding
Illumination Series panels made for a trouble-free, quick installation at a cost-effective price. The design for Red Hawk Elementary School stems from the desire to create a vibrant place for kids to learn. In an effort to achieve this design, RB+B Architects selected Nichiha USA to provide a durable yet modern, contemporary exterior finish.
| Apr 2, 2012
TGP launches new fire-rated glazing website
Website offers online continuing education courses registered with the American Institute of Architects (AIA), BIM 3D models, and rapid-response quoting, among other support tools.
| Apr 2, 2012
Gilbane honored for sustainability efforts in Indianapolis
Emmitt J. Bean Federal Center project team for their role in advancing sustainability in the city.