Gordian released the 9th edition of the State of Facilities in Higher Education report, which confirms a growing backlog of capital needs and reveals a downturn in operating budgets. Preliminary fiscal year 2021 data shows a year-over-year investment reduction of 19 percent, as major capital projects were slowed or halted, and recurring stewardship expenditures dipped further.
“Across higher education, focused facilities stewardship and capital planning are more critical than ever. The findings from this year’s report further invigorate our mission to help institutions prioritize investments and drive meaningful outcomes within their communities,” says Mark Schiff, President of Gordian.
Throughout the report, Gordian’s database research and its expert insights affirm the following trends that are shifting the higher education landscape:
- Preliminary data warns that the facilities investment shortfall to anticipated demands is approaching 40 percent, accelerating the deferral of projects necessary to steward the campus.
- Gordian’s database shows an average need of $105/GSF at the end of FY20.
- 30 percent of buildings in the Gordian database are in the 10-25-year age group, and the major systems of many of them will soon reach the end of their lives. A convergence of anticipated lifecycle needs for a large portfolio of campus facilities and the well-documented enrollment cliff on the horizon is expected to bear down on higher ed over the next 10-15 years.
- Operating budgets have plunged 9 percent since FY19, and preliminary data for FY21 shows an average workforce reduction of 8 percent.
- Survey results through a partnership with APPA revealed a silver lining — 56 percent of facilities leaders indicated they have greater influence on campus since the pandemic.
This year, data from Gordian’s database of 52,000+ higher ed facilities representing about 300 campuses across North America shows the continuation of familiar trends and some expected changes in response to the pandemic environment. To complement our facilities data with perspectives from the frontline, we partnered with APPA to survey nearly 700 facilities leaders concerning the current pressures they are under and captured the responses in this report.
“Facilities leaders continue to talk about the extent to which their voice has been heard and continues to be heard,” said Pete Zuraw, Vice President of Market Strategy and Development for Gordian. “We want to keep championing your use of that voice to make a difference on your campuses.”
Facilities strategies are at the forefront of the industry’s race to confront its greatest challenge in generations. The report also points to successful case studies and solution frameworks to help institutions plan coherently, leverage technology and invest creatively. These examples and best practices can be fundamental to helping institutions unified around change adapt to today’s problems and create a richer and more viable future.
Download the 9th edition of the State of Facilities in Higher Education report (short registration required).
Related Stories
| Aug 11, 2010
Perkins+Will master plans Vedanta University teaching hospital in India
Working together with the Anil Agarwal Foundation, Perkins+Will developed the master plan for the Medical Precinct of a new teaching hospital in a remote section of Puri, Orissa, India. The hospital is part of an ambitious plan to develop this rural area into a global center of education and healthcare that would be on par with Harvard, Stanford, and Oxford.
| Aug 11, 2010
Burt Hill, HOK top BD+C's ranking of the nation's 100 largest university design firms
A ranking of the Top 100 University Design Firms based on Building Design+Construction's 2009 Giants 300 survey. For more Giants 300 rankings, visit http://www.BDCnetwork.com/Giants
| Aug 11, 2010
Turner Building Cost Index dips nearly 4% in second quarter 2009
Turner Construction Company announced that the second quarter 2009 Turner Building Cost Index, which measures nonresidential building construction costs in the U.S., has decreased 3.35% from the first quarter 2009 and is 8.92% lower than its peak in the second quarter of 2008. The Turner Building Cost Index number for second quarter 2009 is 837.
| Aug 11, 2010
AGC unveils comprehensive plan to revive the construction industry
The Associated General Contractors of America unveiled a new plan today designed to revive the nation’s construction industry. The plan, “Build Now for the Future: A Blueprint for Economic Growth,” is designed to reverse predictions that construction activity will continue to shrink through 2010, crippling broader economic growth.
| Aug 11, 2010
PCL Construction, HITT Contracting among nation's largest commercial building contractors, according to BD+C's Giants 300 report
A ranking of the Top 50 Commercial 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
Webcor, Hunt Construction lead the way in mixed-use construction, according to BD+C's Giants 300 report
A ranking of the Top 30 Mixed-Use 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
Report: Fraud levels fall for construction industry, but companies still losing $6.4 million on average
The global construction, engineering and infrastructure industry saw a significant decline in fraud activity with companies losing an average of $6.4 million over the last three years, according to the latest edition of the Kroll Annual Global Fraud Report, released today at the Association of Corporate Counsel’s 2009 Annual Meeting in Boston. This new figure represents less than half of last year’s amount of $14.2 million.
| Aug 11, 2010
Jacobs, HDR top BD+C's ranking of the nation's 100 largest institutional building design firms
A ranking of the Top 100 Institutional Design Firms based on Building Design+Construction's 2009 Giants 300 survey. For more Giants 300 rankings, visit http://www.BDCnetwork.com/Giants
| Aug 11, 2010
Polshek Partnership unveils design for University of North Texas business building
New York-based architect Polshek Partnership today unveiled its design scheme for the $70 million Business Leadership Building at the University of North Texas in Denton. Designed to provide UNT’s 5,400-plus business majors the highest level of academic instruction and professional training, the 180,000-sf facility will include an open atrium, an internet café, and numerous study and tutoring rooms—all designed to help develop a spirit of collaboration and team-oriented focus.