Construction to grow in 2008

FMI publishes its U.S. Construction Overview and predicts that green building, employee ownership, productivity improvement, and the Hispanic workforce will positively impact the 2008 construction industry.

01/30/2008


FMI , Raleigh, N.C., forecasts a 5.8% growth of construction for 2008, despite results that the industry was down 3.7% in 2007.

FMI’s 2008 U.S. Construction Overview, published annually, gives a comprehensive report on construction trends. The report says that construction put in place will total $1.21 trillion in 2008, about 9% gross of domestic product, contributing to the overall economic health of the country.

In addition, the 2008 Overview discusses standout trends in the construction industry, such as:

  • Green building. Green, nonresidential construction put in place was $13.4 billion in 2006. By 2008, FMI projects $21.2 billion of all new nonresidential construction will employ the use of green-building principles—a 58% increase. This sizable growth in green construction has created a shift in perception among owners and the architectural and engineering communities over the past few years—the industry is increasingly recognizing green building capabilities as a necessary part of a firm’s best practices.

 

  • Employee ownership. Dramatic ownership turnover within the construction industry will bring significant change and challenge over the next decade. Family ownership is declining while broad-based employee ownership is increasing.

 

  • Productivity improvement. Productivity improvement is approaching safety in importance for self-performers. Firms have begun to identify productivity as a critical strategic issue to provide sustained return on investment as well as an opportunity to gain competitive advantage. Using planning tools and job cost systems to manage projects are just some of the ways contractors can focus on productivity.

 

  • Hispanic workforce. Of the 11.8 million workers in the construction industry work force in 2006, 2.9 million were Hispanic—25% of the total. This trend has not slowed, despite the housing market slowdown and increasingly stringent immigration rules. Many construction employers recognize that language barriers seriously affect job site communication and productivity, as well as adherence to and understanding of safety regulations. More Hispanics are injured and killed on construction sites today than any other ethnic or racial group.

The 2008 construction forecast is generally positive and many sectors of the construction industry will remain healthy, despite the continuing drag of the housing downturn,” said Heather Jones, construction economist for FMI’s Research Services. "In terms of trends, the aging of the population, immigration, and deteriorating infrastructure will drive much of this growth. The health care, public safety, office, and transportation segments will see the strongest growth in 2008.”





No comments
The Top Plant program honors outstanding manufacturing facilities in North America. View the 2015 Top Plant.
The Product of the Year program recognizes products newly released in the manufacturing industries.
The Engineering Leaders Under 40 program identifies and gives recognition to young engineers who...
World-class manufacturing: A recipe for success: Finding the right mix for a salad dressing line; 2015 Salary Survey: Manufacturing slump dims enthusiasm
2015 Top Plant: Phoenix Contact, Middletown, Pa.; 2015 Best Practices: Automation, Electrical Safety, Electrical Systems, Pneumatics, Material Handling, Mechanical Systems
A cool solution: Collaboration, chemistry leads to foundry coat product development; See the 2015 Product of the Year Finalists
Digital oilfields: Integrated HMI/SCADA systems enable smarter data acquisition; Real-world impact of simulation; Electric actuator technology prospers in production fields
Special report: U.S. natural gas; LNG transport technologies evolve to meet market demand; Understanding new methane regulations; Predictive maintenance for gas pipeline compressors
Cyber security cost-efficient for industrial control systems; Extracting full value from operational data; Managing cyber security risks
Getting ready for industrial IoT; Visualizing the (applied) automation continuum; Preventing VFD faults and failures; Using wireless for closed-loop applications
Migrating industrial networks; Tracking HMI advances; Making the right automation changes
Understanding transfer switch operation; Coordinating protective devices; Analyzing NEC 2014 changes; Cooling data centers

Annual Salary Survey

After almost a decade of uncertainty, the confidence of plant floor managers is soaring. Even with a number of challenges and while implementing new technologies, there is a renewed sense of optimism among plant managers about their business and their future.

The respondents to the 2014 Plant Engineering Salary Survey come from throughout the U.S. and serve a variety of industries, but they are uniform in their optimism about manufacturing. This year’s survey found 79% consider manufacturing a secure career. That’s up from 75% in 2013 and significantly higher than the 63% figure when Plant Engineering first started asking that question a decade ago.

Read more: 2014 Salary Survey: Confidence rises amid the challenges

Maintenance and reliability tips and best practices from the maintenance and reliability coaches at Allied Reliability Group.
The One Voice for Manufacturing blog reports on federal public policy issues impacting the manufacturing sector. One Voice is a joint effort by the National Tooling and Machining...
The Society for Maintenance and Reliability Professionals an organization devoted...
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.
Maintenance is not optional in manufacturing. It’s a profit center, driving productivity and uptime while reducing overall repair costs.
The Lachance on CMMS blog is about current maintenance topics. Blogger Paul Lachance is president and chief technology officer for Smartware Group.
This article collection contains several articles on the vital role that compressed air plays in manufacturing plants.