Monthly Archives: September 2012
Posted on September 20, 2012 by FMI CorporationThe Future of the A/E/C Industry By Phil Warner On October 29, 2009, FMI hosted a one-day workshop in Chicago, attended by more than 60 industry leaders, to present the research results from several months of discussions and interviews with an advisory panel of A/E/C industry leaders concerning the possible future of the A/E/C industry. According to a subsequent report from our findings, “Discussions were framed around the idea that “the dialogue is just beginning … an effective industrywide strategy can only succeed with the input of all stakeholders. FMI anticipates repeated workshops in a similar format to continue into the future.” Our purposes in this long-range study and workshop were to:
- *Look ahead at the possible futures of the industry beyond the normal one to five-year planning horizon.
- *Learn how leaders of the industry were looking at their futures
- *Introduce clients and prospective clients to the benefits of scenario planning, especially in an uncertain political and economic climate.
This post was posted in Consulting, Research, Center for Strategic Leadership and was tagged with A/E/C blog, FMI Corporation, Talent development construction industry, leadership in A/E/C industry, A/E/C future
Posted on September 13, 2012 by FMI CorporationBeware the Upturn: Nonresidential Construction Index (NRCI), Third Quarter, 2012 By Randy Giggard Beware the upturn. According to a number of comments and results we received when we asked about profit margins and contractor failure rates this quarter, the recovery we have all been waiting for could be the downfall of more marginally surviving contractors. With the NRCI reading this quarter five points lower than last quarter at 54.8, it appears the upturn will not be very steep in the near term. While we cannot call that a good thing, panelists have raised their concerns that too many contractors have been taking on too much low-bid work just to keep their backlogs full, and now it is beginning to show up as businesses become unable to finance ongoing losses. This potential outcome was predictable, and many panelists note they have been surprised it has not happened sooner. It is time to think about what happens if this slow recovery really sticks.
Posted on September 6, 2012 by FMI CorporationWhat’s Ahead for the Construction Industry? By Phil Warner FMI recently was honored with a surprise guest speaker at its monthly staff meeting in Raleigh. Congressman Heath Shuler, 11th District, N.C., was asked to say a few words about what is going on in Congress these days, such as the passing of the highway trust fund bill, aka H.R. 4348, the Moving Ahead for Progress in the 21st Century Act (MAP-21). Readers likely know by now that, after a long squabble in Congress, MAP-21 replaced the SAFETEA-LU transportation bill. It provides about $100 billion for federal highway programs, which is great news for the construction industry and for jobs. However, the celebration will be short lived as it expires in just two years. This may save some stalled, vital projects. However, with the political atmosphere in flux, there is no sense as to whether MAP-21 will be renewed enough times to make a lasting impact. Congressman Shuler’s short presentation turned into a discussion lasting nearly an hour, not because one expects politicians to be long-winded, but because of the discussion that ensued between the Congressman and FMI’s consulting staff.
This post was posted in Consulting and was tagged with construction industry blog, A/E/C blog, FMI Corporation, construction industry future, MAP-21, Congressman Heath Shuler, Infrastructure construction