Nearly half of the respondents (46.1%) to an exclusive Building Design+Construction survey of AEC professionals reported that revenues had increased this year compared to 2012, with another 24.2% saying cash flow had stayed the same.
The majority (56.8%) of respondents—architects, engineers, contractors, building owners, and others in the commercial, industrial, multifamily, and institutional field—said their firms will bump up revenues next year, with 31.4% saying business will stay the same and only 11.8% predicting it will decline. A majority (55.5%) rated the health of their firms as good (35.6%) or very good (19.9%).
As has been the case in recent years, the overwhelming majority (71.2%) rated “general economic conditions (i.e., recession)” as the most important concern their firms will face in 2014.
Competition from other firms went up as a factor for the third year in a row, to 47.6% (44.9% in 2012, 40.1% in 2011). Nearly four in five respondents (79.3%) described the current business climate for their firms as “very” to “intensely” competitive; that’s up somewhat from 73.4% in 2012 and 74.8% in 2011. But “having insufficient capital funding for projects” declined slightly, to 24.1% of respondents, down from 29.7% in 2012 and 34.5% in 2011.
AEC respondents to this third annual survey of BD+C subscribers were still worried about the economy. On the other hand, “avoiding layoffs” (17.6%), “avoiding benefit reductions” (16.4%), and “keeping staff motivated” (14.6%) were of less concern.
DATA CENTERS CONTINUE THEIR SURGE INTO 2014
Asked to rate their firms’ prospects in specific construction sectors on a five-point scale from “excellent” to “very weak,” respondents gave data centers high marks. (Note: Respondents who checked “Not applicable/No opinion/Don’t know” are not counted here.) Among the findings:
• Data centers and mission-critical facilities continued to show strength, with the majority (56.0%) of respondents in the good/excellent category, compared to 52.1% last year and 45.2% the year before.
• Healthcare continued its leadership as the most highly desirable sector, with more than three in five respondents (62.5%) giving it a good to excellent rating, up from 58.8% last year.
• The apartment boom registered with AEC professionals, who gave multifamily housing a 56.1% good/excellent rating.
• Industrial/warehouse facilities keep moving up in the AEC psyche, registering a 33.0% interest level on the good/excellent scale, a significant climb from last year’s 25.5%.
• Retail commercial construction also showed vitality. Nearly a third of respondents (31.4%) came out on the good/excellent side for the coming year, well up from last year’s 19.9% rating.
• Nearly two-thirds of those surveyed (66.0%) said senior and assisted-living facilities look like good/excellent prospects for their firms, significantly up from last year’s healthy 50.5%. Hello, baby boomers!
• College and university facilities got the nod from 44.8% of respondents on the good to excellent scale, up from 37.8% last year.
As for government/military projects, the survey was taken before the full impact of the sequestration was known. The sector was rated good to excellent by 33.7% of respondents, much along the lines of last year’s 36.1% of respondents, down slightly from the previous year’s 41.1%.
While the construction of new office buildings drew tepid response (26.9%) in the good/excellent scale, that was still up significantly from last year’s 15.6% rating. However, a solid majority (52.1%) of respondents said office fitouts and interior renovations look good to excellent for 2014. That was likely a statistically significant leap from last year’s 35.7% who said office interiors would be a strong sector.
Respondents said their firms will likely use multiple strategies to stay ahead of the game in 2014. Only a small percentage (3.2%) said they think their companies will open a new office in the U.S. or Canada, while 4.5% said their firms might open an international office.
In fact, reconstruction, historic preservation, and renovations accounted for at least 25% of work for more than a third (38.5%) of respondents, up slightly from the 34.6% of respondents’ firms in 2012 and roughly the same as in 2011 (36.3%).
K-12 schools perked up a bit, with 30.9% saying the sector looks good to excellent for 2014, compared with 22.9% last year and 23.2% the year before.
TAKING ON THE DEMANDS OF BIM/VDC TECHNOLOGY
What about BIM? Is its promise holding true? Somewhat surprisingly, more than one in five respondents (22.7%) said their firms do not use building information modeling, about what was recorded over the previous two years.
Remarkably, precisely the same percentage of respondents (26.8%) said their firms used BIM in the majority of projects based on dollar value as in the last two annual surveys. Nearly two in five (39.8%) said their firms’ use of BIM will rise in the coming year; similarly, two-fifths (42.2%) of respondents said their companies will be investing more in technology in 2014.
As for social media, LinkedIn remained the top choice of respondents, at 53.1%, but that was a steep decline from last year’s 85.1% for LinkedIn. Facebook also took a hit, dropping to 32.5% in popularity, versus 49.5% last year, while Twitter dropped from 21.1% last year to 13.4%. Once again, a big chunk of respondents (31.3%) said they did not use social media channels.
Of the 400 who gave their professional description, 45.0% were architects; 8.0%, engineers; 28.8%, contractors; 9.8%, building owners, developers, or facility managers; and 8.6%, consultants or “other.” The margin of error was 4.8% at the 95% confidence level.
Respondents overwhelmingly said they expect prices of materials to rise in the coming year, with no respondents saying they expect such prices to fall.
More than two-thirds of respondents (68.6%) said they expect bid prices to go up next year. Survey results have a margin of error of 4.8%.
For more on AEC firms' financial performance, see BD+C's 2013 Giants 300 Report.
Related Stories
| Aug 11, 2010
SAFTI FIRST hires Tim Nass as National Sales Manager
SAFTI FIRST, a leading USA manufacturer of fire rated glazing and framing systems, is pleased to announce the addition of Tim Nass as National Sales Manager. In his new role, Tim will be working closely with architects and contract glaziers in selecting the appropriate and most economical fire rated glazing solution for their project. He will also be coordinating SAFTI FIRST’s extensive network of architectural representatives throughout the United States.
| Aug 11, 2010
NCARB welcomes new board of directors
The National Council of Architectural Registration Boards (NCARB) introduces its Board of Directors for FY10, who were installed during the culmination of the Council’s 90th Annual Meeting and Conference in Chicago.
| Aug 11, 2010
Berkebile wins $100K award for commitment to environment
Robert Berkebile, the founding principal of BNIM Architects and a founding member of the U.S. Green Building Council, has been selected to receive a $100,000 Heinz Award. The award honors his role in promoting green building design and for his commitment and action toward restoring social, economic, and environmental vitality to America’s communities through sustainable architecture and planning.
| 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.
| Aug 11, 2010
University of Florida aiming for nation’s first LEED Platinum parking garage
If all goes as planned, the University of Florida’s new $20 million Southwest Parking Garage Complex in Gainesville will soon become the first parking facility in the country to earn LEED Platinum status. Designed by the Boca Raton office of PGAL to meet criteria for the highest LEED certification category, the garage complex includes a six-level, 313,000-sf parking garage (927 spaces) and an attached, 10,000-sf, two-story transportation and parking services office building.
| Aug 11, 2010
Draft NIST report on Cowboys practice facility collapse released for public comment
A fabric-covered, steel frame practice facility owned by the National Football League’s Dallas Cowboys collapsed under wind loads significantly less than those required under applicable design standards, according to a report released today for public comment by the Commerce Department's National Institute of Standards and Technology (NIST).
| Aug 11, 2010
Callison, MulvannyG2 among nation's largest retail design firms, according to BD+C's Giants 300 report
A ranking of the Top 75 Retail Design Firms based on Building Design+Construction's 2009 Giants 300 survey. For more Giants 300 rankings, visit http://www.BDCnetwork.com/Giants