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What’s Going on in the Construction Arena?

What’s Going on in the Construction Arena?. Overview & Review. Challenges Improving our product Trends - 2000. Top 5 Challenges in Next 5 Years*. Shortage of trained field hands - 2nd year Shortage of trained PM’s Sources of future work Litigation - 2nd year Changing technology.

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What’s Going on in the Construction Arena?

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  1. What’s Going on in the Construction Arena?

  2. Overview & Review • Challenges • Improving our product • Trends - 2000

  3. Top 5 Challenges in Next 5 Years* • Shortage of trained field hands - 2nd year • Shortage of trained PM’s • Sources of future work • Litigation - 2nd year • Changing technology *1999 CFMA survey results

  4. Labor Shortage • Adopt computer & communication technologies to improve management capacity, planning & coordination in field • Establish partnerships with trades • more stable employment • quick payment to subs • improve working conditions

  5. Labor Shortage • Work with trade contractors in teams - partnerships • Treat subs as professionals • Adopt innovative, prefab's products • Fund apprenticeship programs • Join trade associations • Volunteer - private & public

  6. Labor Shortage • Federal Reserve Board raised federal funds rate to 5.5% because construction industry drawing down the pool of available workers* *Nov 29 ENR

  7. Improving our product though* ... • 17% use TQM • 14% use CQI • 2% ISO 9000 certified *1999 CFMA survey results

  8. Improving our product through ... • Training • Safety • Information technology • Design/build • Offering related services

  9. Changes in corporate leadership • Style changes • Project Managers & Superintendents better educated

  10. Trends - 2000 - Increases • Hotels/motels • Religious market • Private Offices • Healthcare

  11. Trends - 2000 - Increases • Highways • Cement • Airports • Military • Prisons

  12. Trends - 2000 - Increases • Governmental • environmental • Brown Field cleanup • water/wastewater • design-build-operate

  13. Trends - 2000 - Increases • Power - • 500% over last year • Merchant Plants • Natural gas & pipelines • “Smart” environments

  14. Trends - 2000 - Concerns • Lead times for • Material • Insulation • Cement • Equipment • Gas turbines

  15. General Motors 4,397 Ford Motor 2,774 EI duPont 2,066 Merck 1,782 Southern Co. 1,782 Intel Corp 1,622 Sprint PCS 1,607 Nextel 1,220 Panamsat 1,089 Johnson & Johnson 1,068 Dow Chemical 1,010 Boeing 977 Pfizer 956 Unicom 858 Monsanto 819 Top Owners - 1999 (in $ millions of construction spending)

  16. QUESTIONS?

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