“It is the first time that a number of 100-plus-year-old construction firms are waking up in a cold sweat and saying, ‘We might get Uber’d.’ Instead of innovating to improve productivity, there is a sense of urgency and need to innovate to survive, let alone thrive.” — Darren Bechtel, Founder, Managing Director, Brick & Mortar Ventures (as told to BuiltWorlds)
“One of the biggest risks today is not leveraging technology, or refusing to be an early adopter of the ‘next big thing.’ There will be major technological disrupters in this market, and the company that’s slow to pick up on them is essentially diminishing its position in a very competitive industry.” — Patrick O’Connor, Vice President of Risk Management and Counsel, The Walsh Group (as told to FMI Corp.)
Declarations like these are not hyperbole, nor are they specific to the AEC industry. Leaders in almost all business sectors—if they are half-way competent—operate their organizations with a sense of angst and a healthy dose of paranoia, preparing for what’s around the corner.
Well, there is plenty around the corner these days, and AEC firms are scrambling to adjust to the coming “new normal” of commercial design and construction.
Are we ready for technological disruption? What tools and processes can we employ to gain efficiencies and eliminate waste? Who are our future leaders? What skills are required for the next generation of practitioners? What are the short- and long-term needs of our clients, and their building assets? Is Google going to take our jobs? (No joke. I’ve heard this one more than once.)
These are among the litany of considerations that AEC firms must address to future-proof their organizations.
But while talk of the disruptive nature of technology and innovation captures the headlines, what’s really keeping the leaders of the nation’s largest general contractor and construction management firms up at night is people.
In a new survey by FMI Corp. of C-suite and risk management professionals at GC and CM firms, 80% of respondents identified a “limited supply of skilled craftworkers” as a top risk for 2019, and 44% cited a “limited supply of experienced field supervisors” as a primary concern. Exacerbating the talent shortage is the coming mass exodus of baby boomers as they reach retirement age.
In response, firms are placing priority on bringing craftworkers and design professionals in-house; strengthening training and development programs; and bolstering talent recruitment efforts by giving HR managers a seat at the executive table. Is it enough? That remains to be seen, but it’s a good start.
Download the free report at: tinyurl.com/FMIrisk19.
Related Stories
| Aug 11, 2010
Structure Tone, Turner among the nation's busiest reconstruction contractors, according to BD+C's Giants 300 report
A ranking of the Top 75 Reconstruction Contractors based on Building Design+Construction's 2009 Giants 300 survey. For more Giants 300 rankings, visit http://www.BDCnetwork.com/Giants
| Aug 11, 2010
Populous selected to design 'crystalline skin' stadium for 2014 Winter Olympics
Russian officials have selected global architect Populous to design the main stadium for the 2014 Winter Olympic and Paralympic Games in Sochi, Russia. The 40,000-seat stadium will feature a crystalline skin that "engages with its surroundings by day and provides an iconic representation of the color and spectacle of the games when illuminated at night," said Populous senior principal John Barrow.
| Aug 11, 2010
Three Opus Corporation companies file for bankruptcy
Opus Corporation, a developer headquartered in Minnetonka, Minn., filed for bankruptcy in three of its five regional operating companies: Opus East, Opus South, and Opus West. CEO Mark Rauenhorst said sharp declines in commercial real estate values and tight credit markets caused difficulties in refinancing assets and restructuring lending agreements.
| Aug 11, 2010
Best AEC Firms of 2011/12
Later this year, we will launch Best AEC Firms 2012. We’re looking for firms that create truly positive workplaces for their AEC professionals and support staff. Keep an eye on this page for entry information. +
| Aug 11, 2010
Clark Group, Mortenson among nation's busiest state/local government contractors, according to BD+C's Giants 300 report
A ranking of the Top 40 State/Local Government Contractors based on Building Design+Construction's 2009 Giants 300 survey. For more Giants 300 rankings, visit /giants
| Aug 11, 2010
Report: Building codes and regulations impede progress toward uber-green buildings
The enthusiasm for super green Living Buildings continues unabated, but a key stumbling block to the growth of this highest level of green building performance is an existing set of codes and regulations. A new report by the Cascadia Region Green Building Council entitled "Code, Regulatory and Systemic Barriers Affecting Living Building Projects" presents a case for fundamental reassessment of building codes.
| Aug 11, 2010
Call for entries: Building enclosure design awards
The Boston Society of Architects and the Boston chapter of the Building Enclosure Council (BEC-Boston) have announced a High Performance Building award that will assess building enclosure innovation through the demonstrated design, construction, and operation of the building enclosure.
| Aug 11, 2010
Portland Cement Association offers blast resistant design guide for reinforced concrete structures
Developed for designers and engineers, "Blast Resistant Design Guide for Reinforced Concrete Structures" provides a practical treatment of the design of cast-in-place reinforced concrete structures to resist the effects of blast loads. It explains the principles of blast-resistant design, and how to determine the kind and degree of resistance a structure needs as well as how to specify the required materials and details.