Through the 2012 Owner Study, consultant FMI and the Construction Users Roundtable set out to understand how large capital program owners are coping with the current environment, as well as what challenges they believe the future environment holds and how prepared they feel to face these challenges. In general, survey and interview questions fell into these broad areas:
-
Identification of future issues impacting capital programs and the degree of preparedness toward addressing those issues.?
-
Level of staffing changes during the past four years and anticipated staffing trends going forward.
- Degree of project disruptions affecting capital programs resulting from delays, cancellations and funding challenges.
- Continued evolution of project delivery systems and procurement methods.
Based on survey responses, it is clear that many capital program owners have already begun the process of identifying future challenges and mitigating the impact of those issues on their capital programs. Other owners, however, anticipate many of these challenges to have a significant effect on their capital programs and are not confident in their responses to date. The ability of these owners to maintain the objectives of their capital programs in the face of these challenges will depend on the actions they take to identify and address these issues. How capital program owners respond to both the current and future environment will significantly influence their ability to plan, design, procure and manage capital projects effectively. As their ability to engage in these activities changes, so too will the expectations of owners for their planning, design and construction partners.
Survey responses reflect the fact that economic recovery has yet to begin for many, especially in the engineering and construction industry. At its peak in 2006, the construction industry represented more than $1 trillion of economic activity, roughly 9% of nominal GDP. The industry has contracted every year since then. The burst of the housing bubble, the credit crisis and the ensuing recession reduced the industry to roughly 70% of its 2006 size in 2012, and to only 5% of nominal GDP. The dark cloud, however, is clearing. according to FMI forecasts, construction put-in-place voluimes in 2012 are expected to end the year 5% higher than in 2011.
For a free download: http://www.fminet.com/fmi-curt-survey-of-owners-2012.html
Related Stories
Products and Materials | Oct 10, 2023
‘Works with WELL’ product licensing program launched by International WELL Building Institute
The International WELL Building Institute (IWBI) recently launched the Works with WELL product licensing program. Works with Well certification allows manufacturers to demonstrate that their products align with WELL strategies.
Mass Timber | Oct 10, 2023
New York City launches Mass Timber Studio to spur more wood construction
New York City Economic Development Corporation (NYCEDC) recently launched New York City Mass Timber Studio, “a technical assistance program to support active mass timber development projects in the early phases of project planning and design.”
Government Buildings | Oct 10, 2023
GSA names Elliot Doomes Public Buildings Service Commissioner
The U.S. General Services Administration (GSA) announced that the agency’s Public Buildings Service Commissioner Nina Albert will depart on Oct. 13 and that Elliot Doomes will succeed her.
Higher Education | Oct 10, 2023
Tracking the carbon footprint of higher education campuses in the era of online learning
With more effective use of their facilities, streamlining of administration, and thoughtful adoption of high-quality online learning, colleges and universities can raise enrollment by at least 30%, reducing their carbon footprint per student by 11% and lowering their cost per student by 15% with the same level of instruction and better student support.
MFPRO+ News | Oct 6, 2023
Announcing MultifamilyPro+
BD+C has served the multifamily design and construction sector for more than 60 years, and now we're introducing a central hub within BDCnetwork.com for all things multifamily.
Regulations | Oct 4, 2023
New York adopts emissions limits on concrete
New York State recently adopted emissions limits on concrete used for state-funded public building and transportation projects. It is the first state initiative in the U.S. to enact concrete emissions limits on projects undertaken by all agencies, according to a press release from the governor’s office.
Luxury Residential | Oct 2, 2023
Chicago's Belden-Stratford luxury apartments gets centennial facelift
The Belden-Stratford has reopened its doors following a renovation that blends the 100-year-old building’s original architecture with modern residences.
Market Data | Oct 2, 2023
Nonresidential construction spending rises 0.4% in August 2023, led by manufacturing and public works sectors
National nonresidential construction spending increased 0.4% in August, according to an Associated Builders and Contractors analysis of data published today by the U.S. Census Bureau. On a seasonally adjusted annualized basis, nonresidential spending totaled $1.09 trillion.
Construction Costs | Sep 28, 2023
U.S. construction market moves toward building material price stabilization
The newly released Quarterly Construction Cost Insights Report for Q3 2023 from Gordian reveals material costs remain high compared to prior years, but there is a move towards price stabilization for building and construction materials after years of significant fluctuations. In this report, top industry experts from Gordian, as well as from Gilbane, McCarthy Building Companies, and DPR Construction weigh in on the overall trends seen for construction material costs, and offer innovative solutions to navigate this terrain.
Resiliency | Sep 25, 2023
National Institute of Building Sciences, Fannie Mae release roadmap for resilience
The National Institute of Building Sciences and Fannie Mae have released the Resilience Incentivization Roadmap 2.0. The document is intended to guide mitigation investment to prepare for and respond to natural disasters.
