Page 93 - Built Expressions - Online Construction Magazine - November 2014 Issue

Master Stroke ConStruCtion trendS Construction Industry Mega Trends Emerging from the Recession: What Every CFM Needs to Know by Timothy R. Sznewajs & Brian A. Moore The engineering and construction sectors are now on the upswing. Multi- year growth for the nonresidential and nonbuilding construction markets he past fve years have been among the toughest the construction industry has experienced: From appears to be stabilizing Ta peak of almost $500 billion in revenue in 2008, at 5% – higher than nonresidential building construction fell to a low of less U.S. Gross Domestic than $350 billion in just two years, and then improved only Product growth. marginally through 2012, according to FMI’s Third Quarter Construction Outlook, 2013. construction. These integral The engineering and construction sectors are now on shifts open new doors the upswing. Multi-year growth for the nonresidential and for market participants nonbuilding construction markets appears to be stabilizing and ultimately impact competitive responses at 5% – higher than U.S. Gross Domestic Product growth. the construction services that will position their Many contractors are hiring again, and margins – albeit business model. companies to thrive in the slimmer than optimal – have begun to return. Bid lists are All construction frms construction industry of the getting a bit shorter, backlogs a little longer. – civil and commercial, 21 century. st As the construction industry picks itself up and shakes general and specialty – are itself off, it confronts a host of challenges and opportunities. impacted by these four Mega Trend #1: Low-Bid The four trends altering the industry, most likely for the trends in some capacity. Squeeze Play long term, are: a low-bid commodifcation mentality, The challenge for CFMs is Although some construction technological innovation, plentiful and affordable domestic to understand them and procurement is taking place energy resources, and the integration of design with adopt strategically sound, over the Internet on reverse Vol: 3 Issue: 11 November 2014 Built Expressions PG93