engineer sector trends 2013 affecting it spend
DESCRIPTION
AEC EPC trends to impact information technology spending in 2013. The presentation looks at regional and economic trends in 2013 that will affect IT investment in engineering projects.TRANSCRIPT
AEC 2013 global trends affecting IT
• To remain a global energy power
• Cooling housing market expected to slow economic growth
• Mining industry has been breaking records, and will continue to be strong
• Government belt-tightening could slow GDP growth through 2013
• Modest growth up 1% from 2012
• Fiscal cliff - a worrying risk to industry prospects
• 6% growth for construction-starts to be fueled by private investment and housing market expansion
• Mining/energy sector slowing but still share healthy 2013 outlook
US 2013 Canada 2013
AEC global industry outlook 2013
• Many countries will be up-grading infrastructure & housing
• China is still the largest construction market followed by India & Vietnam
• China is open to foreign players if they partner with local ventures
• China & India to pick up pace 2013-17• Market-ready regions for AEC IT
investment in 2013: Singapore, Hong Kong & Australia
• Construction forecasts from 2012 to 2013 have been downgraded from -0.3% to -2.1% in 2012
• In 2013 from; +1.8% to +0.4%• Most countries reached or passed
the bottom of their AEC cycle • Nordic and CEE countries – better
off than the rest of Europe• Civil engineering is the biggest drag
on overall construction
Asia Pacific 2013Europe 2013
AEC global industry outlook 2013
US AEC market outlook by sector
The great balancing act
US AEC market outlook by sector
Public works construction to slide 1% as federal cuts environment projects
• Expiration of federal loan guarantees for renewable energy projects to dampen 2013
• Manufacturing - greatly improving & expected to positively affect AEC sector
Institutional building to level off after 13% drop in 2012
Multi-housing to grow to 16%, commercial to grow by 12%
Single residential construction to grow 24%
Manufacturing building to grow 8%, showing improvement after 2012 drop
Healthcare facilities set for modest rebound
Educational facilities; K-12 construction to drop, college/university to stabilize
• US Construction spend predicted to rise
• Debt dropping from record highs
• AEC / EPC growth predicted mostly for commercial construction & a gradual reduction in industry and education
US AEC market outlook
Europe AEC outlook
Slow drag ahead
1. Denmark / Norway to grow by 2%
2. Austria, France, Germany, Hungary, Poland Slovakia, Sweden, Switzerland, UK - modest growth of 0.1% & 2% a year
*UK industry expected to keep slowing until end of 2013, with prices rising slightly
3. Belgium, Czech Republic, Finland, Italy, Netherlands - moderate decline (0% to -3)
4. Ireland, Portugal, Spain - construction activity is still in deep recession
*Spain - debt more than double from 2008
Europe AEC outlook by region, sector & period
Europe AEC status by sector
2013 outlook Slight recovery to materialize • Less construction demand is the
major problem
• Many investments aiming to “green” infrastructure network development
European construction outlook to 2014, Obele Vries
Status quo - Business climate deteriorating• Spain & Italy faced more decreases in 1st half• Scandinavia, Baltic zone & Turkey faced a rise in
demand • Germany, France, recently showed a slowdown• Falling in AEC equipment orders all over
• Global engineer firms finding more opportunities in Asia /Latin America
• Firms deeply concerned about Europe
• US project funding in public sector – a worry for market in early 2013
• Sustainability building lost some of its luster due partly to costly certification
• Mining and metals – still a robust market worldwide but moderating
• One of the biggest trends - consolidation among firms
Overall AEC global trends
Engineering industry trends & IT directions 2013
Many AEC firms still lack standardized and consistent processes for managing projects
Standardization & regulatory compliance is in greater demand
.
Engineer firms strategic IT approach
Overall AEC / Engineer firms are increasingly adopting a more strategic IT approach as projects become more complex, mobile & cloud dependent
Top engineering sector technology trends - based on Gartner’s 2012 report
AEC project trends influencing need for digital signatures 2013
Construction projects to continue to grow in complexity
Many projects ROI –only reaching 2 – 5% due to cost overruns & schedule delays
A loss on one project can wipe out gains from others for the entire year.
Firms cite low profit margins as the #1 business pressure.
At least 23% of projects failing to meet required return threshold
Re-shoring trend:
Economic pressures forcing AECs to work globally - increasing documentation time and costs
Owners demand turning over of all documents in digital format at the end of projects including digital contracts & approvals
Project teams increasingly frustrated by manual efforts involved in filling out forms, reports…
US AEC IT Trends leveraging digital signatures
Tablet devices are becoming an increasingly popular tool for field site project work
Mobile & cloud services adoption growth with the globalization of projects, more onsite reporting & data sharing
Software services moving increasingly to the field & cloud
Many project managers & site-based employees are becoming integral data managers
US AEC IT Trends influencing digital signatures
Project document collaboration, management & tracking needs are rising
A growing need for lifecycle data management in projects
2012
2013
Engineering projects trends
Auto-workflow tools are increasingly adopted & standardized
Thank you
CoSign® by ARX is the most widely-used standard digital signature solution exercised by millions of signers, including AEC, EPC and manufacturing enterprises worldwide.CoSign enables engineers and project team members to meet a growing need to reduce reliance on paper, increase automated processes, deliver document integrity and comply with standards.
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