What’s Going on in the Construction Arena?

Overview & Review

ChallengesImproving our productTrends - 2000

Top 5 Challenges in Next 5 Years*

Shortage of trained field hands - 2nd year

Shortage of trained PM’sSources of future workLitigation - 2nd year

Changing technology

*1999 CFMA survey results

Labor Shortage

Adopt computer & communication technologies to improve management capacity, planning & coordination in field

Establish partnerships with trades more stable employment quick payment to subs improve working conditions

Labor Shortage

Work with trade contractors in teams - partnerships

Treat subs as professionalsAdopt innovative, prefab's

productsFund apprenticeship programsJoin trade associationsVolunteer - private & public

Labor Shortage

Federal Reserve Board raised federal funds rate to 5.5% because construction industry drawing down the pool of available workers*

*Nov 29 ENR

Improving our product though* ...

17% use TQM14% use CQI2% ISO 9000

certified

*1999 CFMA survey results

Improving our product through ...

TrainingSafety Information

technologyDesign/buildOffering related

services

Changes in corporate leadership

Style changesProject

Managers & Superintendents better educated

Trends - 2000 - Increases

Hotels/motelsReligious marketPrivate OfficesHealthcare

Trends - 2000 - Increases

Highways Cement

AirportsMilitaryPrisons

Trends - 2000 - Increases

Governmental environmental

Brown Field cleanup

water/wastewater design-build-

operate

Trends - 2000 - Increases

Power - 500% over

last year Merchant

Plants Natural gas

& pipelines

“Smart” environments

Trends - 2000 - Concerns

Lead times for Material

InsulationCement

Equipment Gas turbines

Top Owners - 1999 (in $ millions of construction spending)

General Motors 4,397Ford Motor 2,774EI duPont 2,066Merck 1,782Southern Co. 1,782 Intel Corp 1,622Sprint PCS 1,607Nextel 1,220

Panamsat 1,089 Johnson & Johnson

1,068Dow Chemical 1,010Boeing 977Pfizer 956Unicom 858Monsanto 819

QUESTIONS?