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
| Aug 19, 2022
Future sea rise could expose 720,000 more people on East Coast to flooding
An analysis by NPR based on modeling from the National Hurricane Center for New York City, Washington, D.C., and Miami-Dade County found future sea rise could expose about 720,000 more people to damaging floods later this century.
| Aug 19, 2022
Manassas Museum renovated to reimagine a civic design & engage the community
Manassas, VA has recently added to its historic Manassas Museum.
| Aug 18, 2022
U.S. Treasury moves to boost affordable housing
The Department of the Treasury recently announced new guidance to “increase the ability of state, local, and tribal governments to use American Rescue Plan (ARP) funds to boost the supply of affordable housing in their communities,” according to a news release.
Daylighting | Aug 18, 2022
Lisa Heschong on 'Thermal and Visual Delight in Architecture'
Lisa Heschong, FIES, discusses her books, "Thermal Delight in Architecture" and "Visual Delight in Architecture," with BD+C's Rob Cassidy.
| Aug 18, 2022
The Illinois Institute of Technology restores three Mies van der Rohe buildings
With Dirk Denison Architects and Gilbane Building Company, the Illinois Institute of Technology has recently completed a $70 million housing project that has restored three Ludwig Mies van der Rohe buildings.
Multifamily Housing | Aug 17, 2022
California strip mall goes multifamily residential
Tiny Tim Plaza started out as a gas station and a dozen or so stores. Now it’s a thriving mixed-use community, minus the gas station.
| Aug 17, 2022
Focusing on building envelope design and commissioning
Building envelope design is constantly evolving as new products and assemblies are developed.
| Aug 17, 2022
New York to deploy 30,000 window-sized electric heat pumps in city-owned apartments
New York officials recently announced the state and the city will invest $70 million to roll out 30,000 window-sized electric heat pumps in city-owned apartments.
| Aug 17, 2022
IBM’s former office buildings in Boca Raton turn into a modern tech campus
Built in 1968, the Boca Raton Innovation Campus (BRiC), at 1.7 million square feet, is the largest office campus in Florida.
| Aug 16, 2022
DOE funds 18 projects developing tech to enable buildings to store carbon
The Department of Energy announced $39 million in awards for 18 projects that are developing technologies to transform buildings into net carbon storage structures.