The global construction market has taken its lumps over the past two years, and many large international contractors are scrambling to maintain their size.
The recession that everyone hoped would end quickly has now lasted for two years, transforming the initial fear and concern in the construction industry to grit and determination to hold on until better times. While no one sees the current market as ready to take off, major firms are beginning to think that the market may soon hit bottom and begin slowly to pull itself back from the brink in 2011. The ENR Construction Industry Confidence Index (CICI) for the second quarter of 2010 shows that 555 executives from major construction and design firms believe that, while the market continues
The U.S. construction market remains mired in a recession, with few, if any, markets spared. In 2009, design firms looked for a turnaround this year, but so far there has been little relief. Industry companies now await a bounce back in 2011. However, leaders of the largest U.S. design firms, those on the cutting edge of any recovery, say there still are too many economic, political and financial uncertainties to predict when the marketplace will turn a corner.
The recession everyone hoped would end quickly has now lasted for two years, at first causing fear and concern that now has turned to grit and determination to hold on until better times. While no one sees the current market as ready to take off, major firms are beginning to think the market may soon hit bottom and slowly begin to pull itself back from the brink in 2011. Image Related Links: ECONOMICS: With Stimulus Spending Running Out Recession Will Keep Grip on Costs COMPENSATION: Recession Squeezes Salaries CEMENT: Weak Demand Undercuts Prices HIGHWAYS: Soaring Asphalt and Fuel Prices Spike
The market for professional services in the construction industry has taken a beating, just like every other aspect of the depressed industry. However, unlike contracting, design and project delivery, the need for professional services from such firms is not always tied directly to specific projects but can range from project and program development to staff augmentation and dispute resolution. Thus, the downturn in projects does not directly correlate to a downturn in the need for services. McKissack & McKissack is part of the team led by Clark Construction on the $435-million, 1.2-million-sq-ft U.S. Coast Guard Headquarters complex in Washington, D.C.,
...but it seems to be a start-stop-start pattern,” says Erickson. He says the financial woes in Europe may bleed over to the American lending markets and stifle project financing. Related Links: Rankings: Top 100 CM-for-Fee Firms Rankings: Top 50 Program Management Firms Complete Report with Data and Analysis Demographics may play a role in the increased need for CM services. “In the short term, the market for agency CM is bad, but in the long term, it is really good,” says Peck. He says the retirement of the baby-boom generation will cause a significant “brain drain” on an owner’s capacity
The U.S. construction market remains mired in a recession, with few, if any, markets spared. In 2009, design firms looked for a turnaround this year, but so far there has been little relief. Industry companies now await a bounce back in 2011. However, leaders of the largest U.S. design firms, those on the cutting edge of any recovery, say there still are too many economic, political and financial uncertainties to predict when the marketplace will turn a corner.
The construction industry has been suffering for two years through the toughest recession in 20 years, perhaps longer. The depth of the downturn has burned away the industry’s natural optimism, and major firms are taking a hard look at the market and at the U.S. economy. However, they now are starting to believe that a recovery should begin next year. Related Links: Economics: Despite Upturn in Steel, Lumber and Energy Prices Deflation Sweeps Cost Index Board Homebuilding: Lumber, Wallboard Prices Perk up With Modest Rebound Glass: Recession Shatters Prices, More Cuts Expected During 2010 Executive Pay: Key Players Dodge Salary
The construction industry has entered a recession that has affected virtually every region and market. The downturn has had its most immediate impact on the design professionals on the front end of projects. For the world’s largest engineers and architects, this means now is a good time to reexamine their services and strategies. Related Links: View more industry sectors from ENR's 2009 Global Sourcebook View complete Global Sourcebook with market data and analysis Only a short time ago, the world market was one of the hottest most large design firms had ever seen. Many firms worried market sectors were close
The industry downturn that started in early 2008 and blossomed during the financial collapse late last year has continued unabated throughout 2009 and shows little signs of changing. The optimistic attitude shared by many in the industry that an economic rebound is just around the corner slowly is giving way to the realization that the industry is in for a long recession. How Different Types Of Firms View The Overall Market Related Links: Forecast: Inflation Stalls As Recession Undercuts Nonresidential Building Markets International: Global Recession Pushes Down Inflation China: The New Driver Of International Costs Has Troubles Of Its Own
