USA Handbook 2018 Opening up a world of data for the American construction industry - linesight.com
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
USA Handbook 2018
USA Handbook 2018
Opening up a world of data for the
American construction industry.
linesight.com
Linesight | 1
Knowledge Center 2018 USA Handbook 2018 Strategy | Management | Consultancy Welcome to the Linesight USA Handbook 2018. Each year, we bring together all the important indices and trends in construction in the USA to give you the most comprehensive industry overview possible. The USA Handbook represents just part of our global Linesight Knowledge Center, which you can find at linesight.com/knowledge. linesight.com/knowledge 2 | Linesight Linesight | 3
Knowledge Center 2018 USA Handbook 2018
Contents
USA Market Review 3. Indices
3.1 Annual construction cost index 30
American construction review and outlook 9 3.2 US regional building cost index 31
Northeast Region Outlook and Snapshot 10
Midwest Region Outlook and Snapshot 12 4. Top US contractors and design firms
South Atlantic Region Outlook and Snapshot 14 4.1 Midwest Region 34
South Central Region Outlook and Snapshot 16 4.2 Northeast Region 35
West Region Outlook and Snapshot 18 4.3 South Atlantic Region 38
4.4 South Central Region 39
1. Macro indicators 22 4.5 Western Region 40
1.1. Value of construction output public/private 2007–2017 22
1.2 US construction by type of work 2017 22
Global Insights
1.3 Change in GDP by state Q2–Q3 2017 23
1.4 Construction GDP by state 23 Global market review 46
1.5 US earnings in construction 2017 25 Wellness certification 50
1.6 Employment in construction 2007–2017 25 Is efficiency eluding the construction industry? 52
1.7 Euro vs. dollar 2010–2018 28 Key steps in a successful NYC permitting strategy 54
Driving innovation in construction technology 56
2. Linesight average American construction costs 2018 29 What is driving high-rise? 58
Commercial fit-out trends 60
4 | Linesight Linesight | 5
Knowledge Center 2018 USA Handbook 2018
USA Market
Review
Intercept Pharmaceuticals HQ
Hudsons Yard New York
Architect:
Spector Group
Further regional market reviews available
Linesight services:
Project Management at linesight.com/knowledge
6 | Linesight Linesight | 7
Knowledge Center 2018 USA Handbook 2018
Value of
construction
$bn
1,400
USA Construction Market
output 1,200
Outlook 2018
1,000
800
600
Last year was a good year for Industrial construction is currently On the upside, the new tax reform,
construction, with spending projected to decline by almost including the proposed lowering of
7%, compared to a projected the corporate tax rate from 35% to
400
through the first nine months
modest increase six months ago. 20%, will create favorable business
200 of 2017 totaling US$917 An increase of 3.5% is now forecast conditions and should encourage
billion, representing a 4.3% for institutional, compared to the investments in construction. The
0
Source: US Census Bureau 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 increase over the same 5.7% figure at the beginning spate of natural disasters which hit
Public Private period in 2016. However, of 2017. the US in 2017 have also impacted
while most experts expect favorably, as rebuilding following
the damage caused by these
construction spending to Factors affecting the disasters will have a positive impact
remain strong in 2018, the
Annual 11,000 construction outlook on the construction industry in
level of growth forecast will 2018 and beyond.
construction be a bit more subdued. The recent slowdowns in
cost index 10,000 construction spending activity and
the scaled back forecasts for the
9,000 The American Institute of Architects next eighteen months are the
The Commercial market
(AIA) Consensus Construction result of a combination of several is expected to perform
Forecast Panel predicted slower factors, namely;
8,000
growth in the construction industry
largely as anticipated, with
• A slowdown in the US
for the latter part of 2017, and
economy, with the consensus
growth now forecast at
7,000
for that slow growth to continue
through 2018. Overall spending for
that growth in the 2% - 2.5% 8.8% for the year, up from
range will be seen through the
6,000 non-residential buildings in 2017 a projection of 8.3% at
Source: Engineering News record 2009 2010 2011 2012 2013 2014 2015 2016 2017 end of 2018
was projected at just below 4%,
the beginning of 2017.
compared to the 5.6% forecast at • Construction industry
the end of 2016, and its forecast concerns about rising
for non-residential buildings material costs are also
Employment in 8,000,000
construction shows spending impacting negatively
construction growing 3.6% in 2018. The spend
• Availability of labor - with
7,500,000 for Commercial construction is
limited options for attracting
expected to increase by 4% in 2018,
labor into the industry and
7,000,000 which is less than half the growth
the scale of immigrant workers
forecast for 2017.
who account for close to
6,500,000 The Commercial market is expected 30% of the construction labor
to perform largely as anticipated, force. These mostly Hispanic
6,000,000 with growth now forecast at 8.8% workers are a vital part of the
for the year, up from a projection industry, the current focus on
of 8.3% at the beginning of 2017. immigration could limit the
5,500,000
However, both the industrial and availability of this labor pool
institutional sectors have been and further exasperate the
5,000,000
marked down considerably. current shortage
Source: Bureau of Labor Statistics 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
8 | Linesight Linesight | 9
Knowledge Center 2018 USA Handbook 2018
Northeast Regional Northeast Regional Growth forecast for the States in the Northeast region
MSA Consensus 2017 Consensus 2018
Outlook Snapshot
NH Connecticut 19% 4%
VT ME
Rhode Island 17% 2%
MA
Maine 3% 6%
Vermont 3% 4%
NY
Massachusetts 3% 1%
RI
NH CT New Hampshire 0% 14%
PA
The Northeast region is That’s down significantly from the Data Center VT ME NJ
New Jersey 1% 5%
36,000 units built in 2015. With New York 1% -3%
expected to experience The New York and New Jersey
nowhere to live, we can expect Pennsylvania 10% 3%
approximately 3% growth residents new and old to bid on data center market has begun to MA
overall in 2018. New resale stock, and that is expected stabilize, as leasing has gradually NY Growth forecast for the metro areas
absorbed vacant space. The region Strong > 8% in the Northeast region
Hampshire is projected to to keep home prices level. RI
has recently seen new entrants, Healthy 3 to 7.9% MSA Consensus 2017 Consensus 2018
have the strongest growth in PA CT
Commercial and some providers are seeing Stable 0 to 2.9% Baltimore, MD -6% 1%
the region at 14%. signs of a rebound. Users find the NJ Declining 8%
forecast. Washington, DC 0% 7%
predicted for 2018. The predicted of new construction is expected in the area. Healthy 3 to 7.9%
decline of 3% in New York is due for 2018 in New York. According
in part to the luxury residential to Cushman and Wakefield, the Stable 0 to 2.9%
Residential buildings
market slowing down the growth of new construction is predicted to Declining
NH
VT ME
Knowledge Center 2018 USA Handbook 2018
MA
NY
RI
PA CT
Midwest Regional Midwest Regional NJ Growth forecast for the States in the Midwest region
State Consensus 2017 Consensus 2018
Outlook Snapshot
Illinois, IL 9% 5%
Indiana, IN 4% 10%
Strong > 8%
Iowa, IA -4% 1%
Kansas, KS -8% 12%
Healthy 3 to 7.9%
Kentucky, KY -9% 13%
Stable 0 to 2.9%
Michigan, MI 3% 3%
Declining 8% Cincinnati, OH -4% 2%
to follow national trends in the
an increase of around 2% in the having become one of the top data Most active metropolitan statistical areas/ Cleveland, OH -3% 9%
residential market – multifamily construction GDP
Healthy 3 to 7.9%
industrial and warehousing/ center destinations nationwide. Columbus, OH 0% 3%
sector will dip and single-family Stable 0 to 2.9%
distribution markets. Multifamily This is down to its central location, Chicago remains the largest market in the region. After Detroit, MI 7% -1%
will drive an overall increase in the
starts will drop off, especially in competitive electricity prices consistently rapid growth over the last decade, aDeclining
slowdown
Knowledge Center 2018 USA Handbook 2018
NH
VT ME
South Atlantic Regional South Atlantic NY
MA
Growth forecast for the States in the
South Atlantic region
Regional Snapshot
State Consensus 2017 Consensus 2018
Outlook PA
NJ
CT
RI
Delaware, DE
Florida, FL
4%
10%
6%
3%
Georgia, GA 2% 7%
Maryland, MD -5% 8%
DE North Carolina, NC 1% 6%
WV MD South Carolina, SC 1% 5%
Taken as a group, the Retail hotels and motels, is expected to VA Strong > 8% West Virginia, WV 23% 16%
be down in 2018 after experiencing
states that make up the With the growth of online NC Healthy 3 to 7.9% Virginia, VA 3% 10%
growth in 2017. Several well-known
region would form the sixth companies taking more of the hotels were damaged during
Stable 0 to 2.9%
Growth forecast for the States in the
SC Declining
Knowledge Center 2018 USA Handbook 2018
South Central Regional South Central NH
ME
Growth forecast for the States in the South
Central region
Outlook Regional Snapshot
VT State Consensus 2017 Consensus 2018
New Mexico, NM 5% 14%
MA
Texas, TX 3% 10%
NY
Oklahoma, OK 9% 9%
RI Arkansas, AR 5% 5%
TN CT
NM OK PA
AR Louisiana, LA -6% 0%
NJ
Mississippi, MS 6% 13%
The South Central region Oil prices hit a two-year high amid homes. Overall, the forecasted MS
Tennessee, TN -1% 2%
decreased inventories and robust growth for residential starts in 2018
is predicted to experience TX LA
global demand, driving Texas crude is up by 12%, with single-family
significant growth of 6% oil production up 5%. The statewide housing accounting for the bulk of
Growth forecast for the States in the South
Central region
in 2018. unemployment rate fell to a record this growth.
Strong > 8%
State Consensus 2017 Consensus 2018
Healthy 3 to 7.9%
low of 3.8%, and should decline Austin, TX 2% 7%
Stable 0 to 2.9%
further as initial unemployment Dallas, TX 18% 10%
Texas is forecast to be the front Commercial & Manufacturing Declining
Knowledge Center 2018 USA Handbook 2018
NH
VT ME
West Regional West Regional
MA
Growth forecast for the States in the West region
NY
State Consensus 2017 Consensus 2018
Outlook Snapshot
RI
CT Alaska, AK 9% 1%
PA
Arizona, AZ 6% 9%
NJ
California, CA 14% 3%
Colorado, CO 8% 5%
WA Hawaii, HI -9% 30%
MT
Idaho, ID 4% 10%
The Western region is shaken by the devastation caused area also approved a US$3.5 billion OR Strong > 8% Montana, MT -5% 8%
by the fires. Repercussions of the measure to upgrade the region’s ID Nevada, NV -2% 16%
expected to be one of the Healthy 3 to 7.9%
Oregon, OR 5% 7%
wildfire disaster and increasing BART mass transit infrastructure. WY
Stable 0 to 2.9%
top performing regions market intensity are forecast to DecliningKnowledge Center 2018 USA Handbook 2018
What we do
Our services are tailored for your project,
delivering maximum efficiency from inception
to completion. We specialize in eight key areas
to provide faster project delivery, greater cost
efficiency, and maximum value for money.
Program Project
Project Controls Cost Management
Management Management
Supply Chain
Health and Safety Consultancy Procurement
Management
20 | Linesight Linesight | 21Knowledge Center 2018 USA Handbook 2018
1. Macro indicators 1.3. Change in GDP by state Q2–Q3 2017
WA NH
1.1. Value of construction output 4.3%
MT
ND VT
4.4%
ME
3.2%
2.0% 3.4%
public/private 2007–2017
1.7%
OR MN
3.8% 2.2% MA
ID NY 3.8%
2.8% SD WI
WY 0.5% 3.2% 4.0%
$bn MI
2.5% 3.5% RI 3.5%
IA PA CT 3.9%
1,400 NV NE 2.2% 3.2%
1.9% IN OH NJ 2.7%
3.3% IL
UT 2.7% 3.9% DE 5.7%
1,200 3.9 CO 3.5% WV VA
CA 3.7% KS MO 2.9% 2.3% MD 2.6%
3.4% KY
2.1% 3.6% 2.2% DC 2.5%
1,000
NC
TN 3.0% 3.0%
AZ OK
800 2.9 NM 2.8% AR SC
1.7% 2.0% 2.9%
MS AL GA
600 2.7% 2.7% 3.2%
TX LA
5.0% 1.1%
400
FL
200 3.0%
0 3.8% to 5.7%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
3.2% to 3.8%
Public Private 2.8% to 3.2%
2.2% to 2.8%
Source: US Census Bureau
0.5% to 2.2%
Ak
HI 2.0%
1.2. US construction by type of work 2017 1.3%
1 2 3
4
Source: US Bureau of Economic Analysis
8
7
6
5 Private 1
Public
5
1.4. Construction GDP by state 2017
7
4
State $m Q1 2017 $m Q2 2017 $m Q3 2017
2 6 United States total 815,191 818,560 827,505
Alabama 8,114 8,193 8,329
3
Alaska 1,913 1,867 1,933
Arizona 14,224 14,390 14,482
1. Residential 530,844 1. Residential 6,924 Arkansas 4,862 4,867 4,958
2. Commercial 60,450 2. Commercial 3,072 California 103,453 105,002 106,219
3. Office 28,174 3. Office 9,553 Colorado 20,274 20,261 20,464
4. Healthcare 85,003 4. Healthcare 9,670 Connecticut 8,062 8,213 8,202
5. Educational 32,160 5. Educational 78,811 Delaware 2,782 2,794 2,822
6. Miscellaneous 36,979 6. Miscellaneous 15,771 District of Columbia 1,610 1,613 1,621
7. Infrastructure 129,737 7. Infrastructure 167,078 Florida 51,529 52,011 52,779
8. Manufacturing 60,456
Georgia 23,457 23,495 23,466
Note: Millions of dollars Hawaii 5,389 5,388 5,403
Source: US Census Bureau Idaho 4,250 4,251 4,302
22 | Linesight Linesight | 23Knowledge Center 2018 USA Handbook 2018
1.4. Construction GDP by state 2017 1.5. US earnings in construction 2007–2017
State $m Q1 2017 $m Q2 2017 $m Q3 2017 $
Illinois 31,487 31,366 31,677
Indiana 14,137 14,332 14,541 30
Iowa 7,888 7,907 7,833 $28.85
$28.10
Kansas 6,377 6,375 6,494 $27.35
25 $26.12 $26.68
Kentucky 8,807 8,803 8,938 $25.42 $25.74
$24.83 $25.20
Louisiana 13,833 13,932 14,161 $23.96
$23.01
Maine 2,367 2,335 2,356 20
Maryland 18,701 18,765 19,100
Massachusetts 20,061 20,091 20,344
15
Michigan 20,955 21,059 21,268
Minnesota 15,119 15,188 15,425
Mississippi 4,464 4,442 4,522 10
Missouri 11,590 11,480 11,598
Montana 2,934 2,930 2,968
Nebraska 4,100 4,115 4,135 5
Nevada 7,965 8,287 8,543
New Hampshire 2,634 2,673 2,717
0
New Jersey 23,727 23,741 24,133 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
New Mexico 3,659 3,748 3,737
New York 49,850 49,579 49,937 Note: Average earnings per hour
North Carolina 20,639 20,613 20,754 Source: Bureau of Labor Statistics
North Dakota 3,707 3,742 3,719
Ohio 24,547 24,504 24,883
Oklahoma 7,576 7,604 7,826
Oregon 9,687 9,923 10,188
Pennsylvania 32,750 32,665 33,029 1.6. Employment in construction 2007–2017
Rhode Island 2,335 2,376 2,427
South Carolina 11,867 11,932 12,024
South Dakota 2,003 1,968 1,952 8,000,000
Tennessee 13,649 13,674 13,810
Texas 91,651 91,284 91,685
7,500,000
Utah 10,209 10,373 10,546
Vermont 1,160 1,158 1,171
Virginia 21,856 21,886 22,140
7,000,000
Washington 21,941 22,264 22,654
West Virginia 3,834 3,884 3,924
Wisconsin 13,230 13,253 13,397 6,500,000
Wyoming 1,977 1,963 1,969
New England 36,619 36,846 37,217
Mideast 129,421 129,156 130,643 6,000,000
Great Lakes 104,357 104,515 105,766
Plains 50,784 50,776 51,156
5,500,000
Southeast 186,909 187,731 189,805
Southwest 117,109 117,027 117,729
Rocky Mountain 39,643 39,778 40,250 5,000,000
Far West 150,348 152,732 154,940
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Source: US Bureau of Economic Analysis
Source: Bureau of Labor Statistics
24 | Linesight Linesight | 25Knowledge Center 2018 USA Handbook 2018 USA Handbook 2018
Our values, Over the years we have developed
a way of working that ensures quality
our people and consistency in how we operate.
Our five core values inform what we
do and how we do it:
Partnership Progress Integrity
We are focused on our We believe in always moving We are fair, open and ethical
clients’ goals and work things forward and finding in everything we do.
closely with them to achieve better ways of working. We’re We challenge things we
the best possible results. not just focused on what we believe to be wrong and are
We believe in collaboration. do but also on what we can open to being challenged
When we share our achieve. We are driven by by others. We take pride in
Our values reflect what we experiences and combine success – for our clients, our the quality, accuracy and
our expertise, we can achieve partners and each other. independence of our work.
believe in and how we behave great things.
when engaging with clients
and partners, and the society
in which we live.
Resourcefulness Long-term view
We work around the world, We believe in working
in diverse sectors and sustainably, and so we build
for clients with distinct enduring relationships with
ambitions. This requires us to our clients and partners. We
act effectively and creatively work together in a way that
in new and complicated is respectful and considerate
situations. We rely on our of each other and the wider
individual and collective society in which we live.
abilities to resolve any
challenges we may face.
26 | Linesight Linesight | 27Knowledge Center 2018 USA Handbook 2018
1.7. Euro vs dollar 2011–2018 2. Linesight average American construction
costs 2018
1.5
San Francisco Houston New York
USD/Sq.ft. High Low High Low High Low
1.4
Residential sector
Medium quality – Low rise apartments 285 205 230 125 270 210
1.3
Medium quality – High rise 410 210 300 155 375 205
apartments
1.2 Commercial/office sector
Average standard offices
Low rise – Medium rise 325 225 200 125 350 240
1.1
Medium rise – High rise 475 225 300 175 500 250
High standard offices
1.0
Low rise – Medium rise 540 220 465 175 575 225
2011 2012 2013 2014 2015 2016 2017 2018
MoMA, New York Tenant improvements
Architect:
Corporate offices
Source: European Central Bank Gensler Architecture
Linesight services: Low grade 85% open plan 105 70 75 45 110 75
Cost Management Medium grade 75% open plan 155 115 105 80 160 120
High grade 60% open plan 310 165 180 110 330 180
Retail space
High end high street retail less
than 10,000 ft2 775 575 480 380 800 600
Shopping mall big box retail greater
than 40,000 ft2 335 175 225 120 345 180
Manufacturing sector
Light industrial 150 125 100 65 150 125
Heavy industrial 200 125 150 95 210 130
Hotel and leisure/retail sector
Budget/3 star 350 225 325 160 325 215
5 Star 530 500 425 365 525 475
District shopping center 350 300 250 200 385 325
Regional shopping center 270 175 150 110 260 190
Education sector
Primary schools 375 225 305 225 365 240
Secondary schools 400 350 325 290 420 375
Data centers
Data centers ($/MW) 10,000MW 7,500MW 10,000MW 7,500MW 10,000MW 7,500MW
Notes:
1. All costs are hard costs with no deduction for Tenant 4. The costs do not allow for any Professional Fees, FF&E,
Improvement Allowances. AV+IT, Security, Moving, external works, landscaping
2. Costs based on January 2018 prices. works.
3. T he costs are representative of typical specifications 5. All costs include sales tax as appropriate.
for each type of building and do not account for any
site abnormal costs.
Source: Linesight
28 | Linesight Linesight | 29Knowledge Center 2018 USA Handbook 2018
3. Indices 3.2. US regional building cost index
3.1. Annual construction cost index 2009–2017 Birmingham 0.86
Cincinnati 0.93
11,000
New Orleans 0.93
10,000
Dallas 0.93
9,000 Cleveland 0.94
8,000 Detroit 0.94
Denver 0.94
7,000
Atlanta 0.94
Willis Towers Watson HQ
6,000
2009 2010 2011 2012 2013 2014 2015 2016 2017 New York
Minneapolis 0.96
Architect:
Source: Engineering News record HLW Architecture
Linesight services: Seattle 0.97
Project Management
Baltimore 0.97
Washington DC 1.00
Pittsburgh 1.01
Chicago 1.05
Boston 1.06
Philadelphia 1.06
Los Angeles 1.14
San Francisco 1.19
New York City 1.20
Source: Compass 17th Annual Edition
30 | Linesight Linesight | 31Knowledge Center 2018 USA Handbook 2018 Working with us Our people are the key to our success, and we continually seek out passionate, motivated individuals to join our team. We work with some of the best companies in the world on state-of-the-art projects, but what truly defines us is our people. With our ever-growing international presence, our teams have the opportunity to apply their expertise in new and exciting locations all over the world. Our dynamic work pace is balanced by a collaborative environment, where everyone is given the support they need to develop both professionally and personally. 32 | Linesight Linesight | 33
Knowledge Center 2018 USA Handbook 2018 4. Top US contractors and design firms 4.1 Midwest Region 4.2 Northeast Region Top Midwestern contractor firms Top Northeastern contractor firms (IL, IN, IA, KS, MI, MN, MO, NE, ND, OH, SD, WI) (CT, ME, MA, NH, NJ, NY, PA, RI, VT) Rank Firm Revenue ($ Mil) Rank Firm Revenue ($ Mil) 1 Walsh Construction 1,600 1 AECOM Tishman 3,339 2 Turner Construction 1,573 2 Turner Construction Co. 2,829 3 Barton Mallow 1,489 3 Structuretone 2,297 4 Mortensen Construction 1,483 4 Skanska USA Inc 2,056 5 JE Dunn Construction 1,313 5 Gilbane Building Co. 1,722 6 Pepper Construction 1,062 6 Lendlease 1,529 7 Kokosing 1,052 7 Suffolk 1,448 8 Power Construction 1,045 8 Hunter Roberts Const. Group Inc 1,143 9 Messer Construction 1,041 9 Consigli Construction Co. Inc 1,037 10 Kiewit Construction 1,022 10 China Construction America 976 Top Midwestern design firms Top Northeastern design firms (IL, IN, IA, KS, MI, MN, MO, NE, ND, OH, SD, WI) (CT, ME, MA, NH, NJ, NY, PA, RI, VT) Rank Firm Revenue ($ Mil) Rank Firm Revenue ($ Mil) 1 AECOM 554 1 AECOM 512 2 Burns McDonnell 430 2 WSP 317 3 Stantec 245 3 Arcadis North America 191 4 HNTB Cos 187 4 Greenman-Pederson Inc 177 5 WSP 173 5 STV Group 172 6 Arcadis North America 158 6 Gensler 170 7 Terracon Consultants Inc 143 7 Langan 139 8 DLZ Corp 101 8 Stantec 129 9 Ghafari Associates 94 9 HNTB Corp 124 10 Short-Elliott-Hendrickson Inc 93 10 HDR 114 Source: Engineering News Record Source: Engineering News Record 34 | Linesight Linesight | 35
Knowledge Center 2018 USA Handbook 2018
30 Broad Street, New York
Architect:
Woods Bagot Architecture
Linesight services:
Project Management
36 | Linesight Linesight | 37Knowledge Center 2018 USA Handbook 2018 4. Top US contractors and design firms 4.3 South Atlantic Region 4.4 South Central Region Top South Atlantic contractor firms Top South Central contractor firms (DE, DC, FL, GA, MD, NC, SC, VA, WV) (Texas and Louisiana only) Rank Firm Revenue ($ Mil) Rank Firm Revenue ($ Mil) 1 Clark Group 2,388 1 Zachry Group 2,958 2 Brasfield & Gorrie 1,923 2 Turner Industries Group LLC 2,324 3 Balfour Beatty 1,305 3 Kiewit Corp 1,395 4 Turner Construction Co. 1,280 4 Balfour Beatty US 1,342 5 Structuretone 1,241 5 Peformance Contractors 1,341 6 Skanska 1,091 6 Manhattan Constuction Group 1,169 7 Hitt Contracting Inc 990 7 Austin Industries 1,082 8 Choate Construction Co. 981 8 DE Harvey Builders 1,021 9 Archer Western Contractors 914 9 S&B Engineers & Constructors Ltd 829 10 The Yates Co 913 10 Primoris Services Corp 805 Top South Atlantic design firms Top South Central design firms (DE, DC, FL, GA, MD, NC, SC, VA, WV) (Texas and Louisiana only) Rank Firm Revenue ($ Mil) Rank Firm Revenue ($ Mil) 1 AECOM 1,194 1 Burns McDonnell 508 2 Stantec 382 2 S & B Engineers & Const. Ltd 446 3 Kimley-Horn 327 3 AECOM 436 4 HNTB Corp 306 4 Stantec 213 5 Arcadis North America 250 5 HDR 199 6 Atkins North America 248 6 Terracon Consultants Inc 155 7 Michael Baker 239 7 HNTB Corp 151 8 HDR 222 8 Zachry Group 149 9 WSP/Parsons Brinckerhoff 153 9 Kimley-Horn 145 10 Gannett Fleming 148 10 Gensler 141 Source: Engineering News Record Source: Engineering News Record 38 | Linesight Linesight | 39
Knowledge Center 2018 USA Handbook 2018
4. Top US contractors and design firms Bank of Ireland Connecticut
Architect:
MKDA – Corporate Interior
Design + Architecture
Linesight services:
4.5 Western Region Cost Management
Top Western contractor firms
(AK, AZ, CA, CO, HI, ID, MT, NV, NM, OR, UT, WA, WY)
Rank Firm Revenue ($ Mil)
1 Swinerton Inc 2,305
2 DPR Construction 1,926
3 Turner Construction Co. 1,860
4 Webcor Construction 1,557
5 Devcon Construction Inc 1,540
6 Kiewit Corp 1,521
7 Hathaway Dinwiddie Construction 1,470
8 Hensel Phelps 1,387
9 Rudolph & Sletten Inc 1,308
10 McCarthy 1,269
Top Western design firms
(AK, AZ, CA, CO, HI, ID, MT, NV, NM, OR, UT, WA, WY)
Rank Firm Revenue ($ Mil)
1 AECOM 1,064
2 HDR 625
3 Stantec Inc 546
4 WSP 353
5 Gensler 319
6 Burns & McDonnell 249
7 Arcadis North America 190
8 HNTB Corp 184
9 ARUP 129
10 Michael Baker International 120
Source: Engineering News Record
40 | Linesight Linesight | 41Knowledge Center 2018 USA Handbook 2018 USA Handbook 2018
“I joined Linesight in 2018 after relocating from Singapore
to the US last year. I was looking for a global firm where I
could contribute my Quantity Surveying experience gained
abroad, while learning and experiencing a different culture.
At Linesight, I am working with a talented project team in
San Francisco, and have already learned so much from their
vast project experience. I’m really enjoying being part of
an amazing team, learning every day and feeling that my
contribution really matters.”
Nwe Ni Win
Cost Manger,
San Francisco Office
“I began my career as an Electrical Engineer and migrated into
Project Controls. After 10 years working in various countries,
I returned to Dublin to begin my career with Linesight.
Linesight’s global reach and Irish roots appealed to me and
my career goals. After working in Ireland the opportunity
to join the New York team to lead planning and scheduling
arose, and I jumped on it. Now, I lead scheduling services
across the US and liaise with our global teams to implement
scheduling, earned value and risk management best practices
for Linesight’s global standard. Linesight USA is growing at a
phenomenal rate and it’s truly exciting to work in such a fast
paced, innovative environment.”
Bill O’Brien
Senior Planning Manager,
New York Office
42 | Linesight Linesight
Linesight || 43
43Knowledge Center 2018 USA Handbook 2018 USA Handbook 2018
Global
RagingWire Datacenter
Sacramento, California
Architect:
RagingWire Engineering
Insights
Department
Linesight services:
Cost Management
Further regional market reviews available
at linesight.com/knowledge
44 | Linesight Linesight | 45Knowledge Center 2018 USA Handbook 2018
Global Market Review
living standards in many countries presidential elections coming up from the depreciation of sterling
in the past. However, the current in 2018. However, there is concern after the Brexit vote and higher
economic growth provides an ideal amongst companies on the stock import prices. High inflation and
opportunity for reform. market whose profits are closely stagnancy in wage levels are eating
tied to the NAFTA. into real household incomes, and
discouraging consumer spending.
Above trend performance The main risk to the US economy is
The UK economy continues to
for the US economy the divisive political environment,
function under the cloud of
The global economy ten years after the
and in particular, the mid-term
The US economy is experiencing Brexit, and while negotiations
elections, which are to be held
above-trend growth, with the are continuing to dominate the
in November. There are also
financial crisis currently low inflation levels
expected to rise in 2018. The
significant changes taking place
horizon, the full implications of
Brexit are not yet known.
in terms of the senior fiscal
Federal Reserve policy is expected
policymakers, with Jerome Powell Italy and Spain are still
Many commentators, including the World Bank, the World Economic to continue gradual interest rate
increases. Although inflation levels
taking over from Janet Yellen in experiencing slow growth and
February 2018, as Chair of the continue to have high levels
Forum and the International Monetary Fund (IMF), are in agreement that are below target, the government
Federal Reserve. Ms. Yellen was of unemployment, with Spain
is keeping a close eye on the labor
for the first time since the global financial crisis, all major regions of the market, where unemployment is
not afforded the opportunity of a continuing to struggle with
second term, as is the norm, and tensions relating to Catalonia.
declining to unsustainable levels.
world are experiencing an upturn in economic growth. This global growth while this new appointment is not Meanwhile Ireland is expected to
The recently enacted US tax expected to cause major change have the fastest growing economy
is broad based across both advanced and emerging economies. reform is expected to cut tax by in policy, it may bring about some in Europe for the fourth year in a
US$1.5 trillion over the next ten uncertainty. US policy makers row, showing an increase in tax
by Kim Hegarty, Associate Director years. It is generally accepted will need to maintain the focus revenues and retail sales, alongside
that corporations and the wealthy on securing steady growth in falling unemployment.
will benefit most from the reform, the economy.
In the coming year it is Commentators are referring to portfolio in Q4 2017, the ECB halved
with a significant reduction in the
As the largest economy in Europe,
Germany continues to grow,
a ‘Goldilocks’ global economy, its monthly bond buying stimulus
corporation tax rate from 35% to
expected that inflation whereby conditions are “neither from January 2018, while the Bank
21% . It is expected that the lower
Varying growth across hitting a six-year high in 2017.
Europe’s economies With rising wages, historically
will gradually rise, too hot nor too cold”; that is not
too hot to drive up inflation nor so
of England has yet to announce a
reduction in its bond buying.
rate will result in greater economic
low unemployment and modest
activity, which will not only boost Europe’s economy is experiencing
and as this happens cold that it triggers a recession.
the economy, but in turn will result its best growth in a decade; steady
inflation growth, Germany now
While the current, broad-based faces key decisions on how best to
The rise in productivity results in
central banks and limited spare capacity, and this
growth acceleration in the global in an increase in wages, resulting growth with continued momentum
manage its economy to continue
in greater real household incomes. is generally expected. Drivers
governments will will need to be balanced with the
economy is a welcome trend,
If Apple’s announcement that it of this are the continuing revival
its positive performance into the
growth in investment and total future. Some commentators note
rise in inflation in order to maintain
have to take action to this equilibrium. Inflation remains
factor productivity (TFP) has been would pay US$38 billion in taxes as of the global economy, and the
that wage growth is being kept
declining over the past number of it repatriates its cash to the US is positive consumer and business
prevent overheating. relatively low, given the sizeable
years. Due to demographic trends, any indication, it looks like a win for sentiment in the euro area. Despite
in check as a result of an influx
gap in pricing to be made up since of central European workers,
labor force growth has also been the US economy. this strong growth, rapid erosion
the global financial crisis. However, which is keeping a cap on wages,
slowing in many parts of the world, of economic slack and reduction
in the coming year it is expected President Trump’s position on while the threat of international
meaning that potential output (the in unemployment, inflation is
that inflation will gradually rise, the North American Free Trade price competition is forcing
amount the economy can produce set to remain low generally, with
and as this happens central banks Agreement (NAFTA) seems to manufacturers to curtail cost
if labor and capital were fully persistent easing of monetary
and governments will have to take have mellowed recently. While the inflation. Political unrest is the
employed) will grow at a slower policy and the ECB expected to
action to prevent overheating. US, Canada and Mexico continue biggest threat to the economy
rate in the future, and the current keep rates at low levels until the
talks to renegotiate the Fair Trade at present, with the failure to
This continued global growth has demand-led recovery is likely to second half of 2019.
agreement, President Trump has form a coalition following last
resulted in central banks beginning run up against supply constraints. year’s elections.
stated in recent interviews that The UK is experiencing moderate
to withdraw their economic The decline in productivity growth
he is in no hurry to renegotiate, growth from below-trend rates; it
stimuli. The US Federal Reserve is particularly worrying, since this
particularly as Mexico has struggles with high inflation arising
commenced reducing its bond is seen as a key source of improved
46 | Linesight Linesight | 47Knowledge Center 2018 USA Handbook 2018
Advanced economies
Percentage of the Global
particlarly optimistic for India, given government has announced a
recently implemented reforms, budget that introduces VAT and
need to use the current aimed at stimulating growth. prioritizes capital expenditure. The
Economy by GDP
period of growth to China’s economy is also benefitting
planned floatation of a 5% stake
in its national oil company, Saudi
build buffers into their from strong global demand. Aramco has received widespread
However, its economy is expected publicity for being the largest
economies in order to to decelerate due to a cooling IPO in history and is set to yield in
be better prepared for housing market, following the excess of US$10 billion. A number
potential housing bubble that of mega projects, including the
the next downturn. loomed last year. This is further US$ 500billion NEOM Project
compounded by policymakers’ are initiatives seeking to reduce Asia Europe North America
desire to address environmental the country’s dependence on oil.
The year 2017 marked the French
issues, which may result in
economy’s best performance since However, it is not expected that the China 14.84% Germany 4.54% United States
a slowdown in infrastructure budget will balance until 2023.
2011. The reform program being
investment. This deceleration in of America 24.32%
rolled out by President Macron
growth could spill over into other The United Arab Emirates (UAE) is Japan 5.91% United
to improve competitiveness and
countries in the region. currently experiencing subdued Kingdom 3.85% Canada 2.09%
productivity, as well as a more
India 2.83%
positive outlook from both business
employment and wage growth, Mexico 1.54%
and personal consumers, resulted The GCC introduces VAT which is likely to impact on private France 3.26%
consumption in 2018. The UAE South Korea 1.86%
in increased spending, all of which
The GCC’s general economic government has published a Italy 2.46% South America
are pointing to continued growth.
outlook remains strong, with higher budget which includes significant Indonesia 1.16%
Inflation rises in Asia
oil prices, strong global growth increases in infrastructure spending Spain 1.62% Brazil 2.39%
and positive financial conditions. in preparation for the 2020 World Russia 1.80%
Particular concerns arise from Expo, so it is expected that growth Argentina 0.79%
Looking to Asia, the geopolitical Netherlands 1.01%
security threats, political unrest will pick up in 2018 on the back of
situation in the region, and in Turkey 0.97% Venezuela 0.50%
and the oil production cuts that government policy, and as the oil
particular the Korean Peninusla, is Switzerland 0.90%
an area for concern. Inflation is set
continue to weigh on oil-producing sector slowly recovers.
Saudi Arabia 0.87% Colombia 0.39%
economies. Interestingly, VAT has
to rise, pushing many central banks
been introduced in the region, with Ultimately, advanced economies Sweden 0.67%
to raise interest rates. This is not
Saudi Arabia and the UAE recently need to use the current period of Iran 0.57% Africa
expected to be a problem in 2018,
implementing the tax in order to growth to build buffers into their Poland 0.64%
as the positive outlook for growth
broaden their collection base, and economies, develop defenses Thailand 0.53%
coupled with the interest rate rise Nigeria 0.65%
are set to slow growth to a steady
Bahrain, Kuwait, Oman and Qatar against financial instability and Belgium 0.61%
pace in the region. Taiwan, Korea
pledging to do the same in the invest in structural reforms in order UAE 0.50% Egypt 0.45%
to be better prepared for the
coming years. Norway 0.52%
and Thailand, which are export- next downturn. South Africa 0.42%
led economies, are experiencing Singapore 0.39%
Qatar’s GDP continues to grow,
continued growth on the back of Emerging markets and developing Austria 0.51%
the strength of the global economy.
despite the economic blockade
economies need to accelerate Rest of the World
enforced by its neighbors. Australia
Australia
However, inflation is expected to Despite the impact of the reduced investment in both physical Denmark 0.40%
rise as a result of policymakers oil output, Bahrain has seen and human capital, including Rest of
increasing interest rates. Large growth, primarily due to strong investment in infrastructure and Australia 1.81% Ireland 0.38% the World 9.41%
domestic and lower income infrastructure spending. education, health, and other human
economies like India, Indonesia and skills and well-being, as well as
Phillipines have young populations, Saudi Arabia contracted on initiatives to promote economic
and hold the potential for very the back of the oil production diversification and liberalize trade.
high growth. This potential has not cut and reduced government Investment in these areas will boost * Source: World Development Indicators database, World Bank, 1 February 2017
always been realised, due to poor support. In an effort to diversify long-term growth prospects and
structural reform, but the outlook is the economy away from oil, the improve standards of living.
48 | Linesight Linesight | 49Knowledge Center 2018 USA Handbook 2018
Why WELL Certification is
the workplace for human consumption must be This level of exposure offers several measurable
tested quarterly. Once the project team agree the components including increased recognition, media
preconditions and achievable optimizations are impressions, increased social followers and cross
transforming the workspace
met an onsite inspection is arranged with the promotional connections related to health.
IWBI (International WELL Building Institute) to
ensure compliance. The potential gains on marketing value can also be
quantified on perusing a WELL Certification; there
of the future
A study conducted by the IWBI determined that 90% can also be a positive media response on perusing
of our time is spent indoors, with these results it is no something as innovative as WELL certification.
surprise that companies are focusing on the health
and wellness of employees with a majority of industry Linesight’s experience indicates that typical costs in
leaders now perusing WELL certification. Employers pursuing and implementing WELL certification will be
who tailor their wellness programmes to specific in the region of 1-2% of the total project budget with no
Linesight’s experience indicates that typical costs in pursuing and by Shane Kearney,
employee needs and make them accessible may enjoy
Project Manager certification process exceeding 5% to date.
implementing WELL certification will be in the region of 1-2% of the total a competitive advantage in terms of attracting and
retaining talent. WELL is also a tool used to maximize WELL Advanced Professionals (known as WELL AP’s),
project budget with no certification process exceeding 5% to date.
employee performance, another study utilized by the are WELL leaders in the industry and committed to
IWBI showed that by doubling the ventilation rate (a placing health and wellness at the centre of building
pre-condition in all three project types) improved the design and performance. As workspaces of the future
performance of workers by 8%, reduced absenteeism continue to focus more on environmental sustainability,
and improved employee health. we anticipate the WELL Certification accreditation to
Focused on human health and wellness, the WELL As with the LEED Certification process each category
be a key element in best practice guidelines related
Building Standard (wellcertified.com) combines within the WELL Certification process includes WELL is an opportunity to engage an entire people to the building design and management of work
medical and scientific research which is focused prerequisites known as “preconditions” and credits chain from shareholders and investors to customers environments of the future.
on the health and well-being of building occupants. known as “optimizations”. All preconditions need to about how health is a priority of your companies’
The evaluation criteria linked to the process be achieved to meet WELL Certification with a silver, mission. WELL is a platform that allows you to easily
endeavours to address the health and well-being of gold or platinum certification achieved based on the communicate that commitment to those stake holders.
building occupants which in turn positively impacts on quantity of optimizations passed. Again Similar to
productively, and satisfaction levels of workers, LEED, different types of projects will result in different
an increasingly important consideration for most preconditions and optimizations, for example a new
clients today. shell and core building will not require the nourishment
or fitness criteria that a new or existing interiors project
The guidelines which reference existing standards and will require.
best practice in building design and management are
administered by GBCI (Green Business Certification There are three different project types in the WELL
Inc.) who also administer the LEED system; so many US building standard;
based consultants will be familiar with the process.
1. Shell and core buildings
The WELL building standard encompasses seven health
2. New and existing buildings
and wellness evaluation categories, commonly referred
to as concepts, these include; 3. New and existing Interiors
• Air
To achieve or meet a precondition and optimization
• Water there can be a number of different steps involved.
These can range from an on-site performance test,
• Nourishment
a letter of assurance from a registered architect
• Light or engineer, to an operation schedule developed
to meet the guidelines outlined in the checklists.
• Fitness
Some categories will also require quarterly / annual
• Comfort inspections or reports to ensure the project is
• Mind consistently compliant for example, air samples
are tested annually and all water delivered to
50 | Linesight Linesight | 51Knowledge Center 2018 USA Handbook 2018
Is efficiency eluding the
Why? Ways in which to improve industry
As mentioned above, due to the cyclical nature of productivity
construction, key stakeholders and contractors
construction industry?
There are, however, a number of ways which
are fearful of making large capital investments in the industry can address the productivity issue.
machinery or production lines given the constant fear These would include:
of the ‘next recession’. Other factors that can have a
bearing on productivity include; inadequate planning
• Investment in quality machinery that can be
that accounts for the short, medium and long term,
controlled remotely, such as cranes.
ineffective communication between project team
With construction productivity remaining stagnant over the last by Wesley Jesson,
Associate Director
members and inconsistencies in reporting (and the • Strict implementation of BIM and other IT-
25 years, the cost of the lost opportunity is estimated to stand at interpretation of reporting), poor organization and supported modelling on all projects to mitigate
US$1.6 trillion per year. project governance, and insufficient risk management. the inefficiencies arising from a lack of planning.
Another significant cause of low productivity is the • Embracing the future through modular forms
lack of consolidation across the industry. With the of construction. An example of this option,
bespoke nature of construction projects across as identified by The Economist, is BoKlok, a
different sectors, it is difficult for contractors to scale spin-off from Swedish flat-pack seller, IKEA.
to a size that can facilitate the levels of productivity BoKlok carries out only one-fifth of its
growth needed to achieve a par with other industries. construction work on-site; the rest is done in
The USA, for example, has 730,000 registered building factories. Parts can be standardized and costs
contractors, with an average of ten workers. The cut as a result, with BoKlok stating that it builds
statistics in Europe are worse still, with 3.3 million twice as quickly as the industry norm.
registered contractors and an average workforce of
• The industry as a whole embracing change,
4 people.
and working with the systems and technologies
available to help streamline processes
Lastly, the skills gap is undoubtedly having a and reduce cost (and as a result, reduce
profoundly negative effect on the industry. inefficiencies). This needs to be supported by
Construction is labor-intensive, and so a shortage sufficient capital to implement the technology,
in skilled professionals drives up the cost of projects and train staff adequately.
(via higher pay rates) and can cause disruption to
the project schedule.
Case in point
It is difficult for
An extreme example of this problem is the Berlin contractors to scale
Brandenburg airport. The Economist magazine recently
Many industries have transformed themselves and What does this mean? published an article on the project, which underlines to a size that can
improved sector productivity over recent years,
particularly in relation to the increased digitization Productivity has remained stagnant over the last
that, “Nine years ago the first concrete was poured
facilitate the levels of
for Berlin Brandenburg airport. It was expected to
25 years, with research estimating that 98% of
of processes and consumer intelligence. Although
megaprojects are over budget by 30% and 77%
open in 2012, to cost €1.2 billion and to welcome productivity growth
construction constitutes a major sector for the global 34m passengers each year. Today the only people in
economy, with an estimated market value of US$10 overrunning their schedule by 40%*. A 2017 report by needed to achieve a par
its terminals are those with hard hats. Six times over
the McKinsey Global Institute found that if construction
trillion and employing 7% of the global labor force*,
productivity were to match that of the total economy,
budget, the project has had 66,500 building errors in with other industries.
the question remains as to whether efficiency is, in need of fixing.”
fact, eluding the industry. This is a critically important it would bring an added value of US$1.6 trillion to
question for our industry, and one that is often the industry each year, which would add about 2% to
overlooked, but can be put down to, for the most the global economy. In other words, the cost of the
part, the perceived cyclical nature of construction lost opportunity that arises from the low productivity
(going from boom to bust). associated with the construction industry amounts to
a considerable US$1.6 trillion annually.
* Source: McKinsey Global Institute
52 | Linesight Linesight | 53Knowledge Center 2018 USA Handbook 2018
Key steps in a successful
NYC permitting strategy
Although New York’s Department of Buildings is making significant by Shane Kearney,
Project Manager
efforts to streamline the approval process, filing a Work Permit still
presents considerable challenges.
New York’s Department of Buildings (DOB) recently Identify the permit type Finalize the design before Certification of Occupancy
began implementing updated safety laws, forming starting construction
new inspection units and incorporating state-of- There are many permit types, such as construction, An integral milestone of any construction project is
the-art technology. This is at the same time as being boiler, signage, elevator and plumbing, and they While this is always achievable in an ideal world, it may receiving the CO (Certificate of Occupancy). A CO
focused on streamlining the approval process, in will differ for each construction project. A New be difficult in the ever-changing construction industry. is the key document used to certify the legal use
order to facilitate builders breaking ground faster than Building (NB) permit is used for new structures, while Strong architectural and MEP teams, along with and occupancy of a building, and describes how a
ever. However, the process of filing a Work Permit in an Alterations Type 1 (ALT1) are defined as “major solid client representation, will help to achieve this. building may be occupied. A Temporary Certificate
New York City can still be time consuming, while also alterations” and result in a change (or changes) to Developing clearly defined construction documents of Occupancy (TCO) can also be achieved during the
increasing costs on the conventional construction use, egress and / or occupancy. Ultimately in order that can be reviewed and approved by the client will construction process. It indicates that the property
budget. Below, we outline the key steps in a successful to occupy and close out the application, you need a help to finalize the construction. or partial property is safe for occupancy and allows
permitting strategy, which will not only assist in revised Certificate of Occupancy. clients to move into their new or renovated space.
obtaining permits, but will also minimize the number TCOs typically expire every 90 days, but this period
Define a strategy and key milestones may be shorter, based on Building Code or inspection
of amendments being filed to the DOB. There are 2 types of ALT2 applications – Directive 14
or Directive 2. ALT2 Directive 14 applies to alterations unit approval. It is important to ensure that all
In today’s regulatory climate, obtaining permits
where there is no change to use, egress or occupancy requirements for TCO are in place in advance of
Engage an expediter requires a clearly defined strategy in order to keep
they may be major multimillion dollar renovations but the inspection.
a project on time and within budget. Implementing
To obtain a work permit for even the simplest of they are not defined as a ‘major alteration’. The special/ project milestones is fundamental to obtaining permits
renovations, a New York State Registered Architect progress inspections for this type of application are in a timely fashion. It is imperative that the project
(R.A.) or Professional Engineer (P.E.) will need to completed by licensed professionals and a Letter of manager drives the project team to achieve these
prepare drawings of the existing conditions and Completion is issued for close out (not a Temporary milestones in order to maintain the overall project.
proposed renovation. The services of an expediter are Certificate of Occupancy/Certificate of Occupancy).
typically engaged early on during the permit process,
For ALT2 Directive 2, there is no change to use or
Maintain records to track changes
to assist in filing the documents and pulling the
permits that allow projects to go forward. occupancy, but egress can be changed under this After the DOB approves an application and plans,
application. The final inspection is completed by the changes are common as the job progresses. There
DOB in lieu of a licensed professional, because of may be a minor change in the work, or the need to
Define a strategy and key milestones the change in egress. The close-out document is still correct an error in the initial filing may be discovered.
In today’s regulatory climate, obtaining permits a Letter of Completion (as opposed to a Temporary The DOB requires applicants to maintain a current and
requires a clearly defined strategy in order to keep Certificate Occupancy/Certificate of Occupancy). accurate record of their jobs by filing Post-Approval
a project on time and within budget. Implementing Amendments (PAAs) for these changes.
project milestones is fundamental to obtaining permits
in a timely fashion. It is imperative that the project
manager drives the project team to achieve these
milestones in order to maintain the overall project.
54 | Linesight Linesight | 55Knowledge Center 2018 USA Handbook 2018
Driving innovation in
McKinsey identified 5D BIM as being a future The application of the Internet of Things (IoT)
transformative innovation that would greatly benefit
the sector. However, for Linesight, it isn’t in the future – The IoT is a major topic within the tech industry, and
was covered in our recent ‘Hyperactive Hyperscale’
construction technology
we have been developing and using 5D for a number
of years. It is being applied across both Cost and white paper. It offers applications across multiple
Project Management, and the capabilities are industries with Gartner estimating that the number of
considerable, resulting in increased productivity connected devices will reach 26 billion by 2020. The
with regards to quantity extraction, estimation and application of IoT in the construction industry offers
change management. huge benefits, enabling site equipment and machinery
Construction is ranked amongst the least digitized sectors by Shay Dahan, Director to communicate with a centralized platform, which
One of the most significant benefits we have seen would help to measure performance parameters.
globally, but the industry is now at the cusp of a new era in terms This in turn could assist in addressing the productivity
to date is the project/data analysis, which can now
of technological innovation. be carried out and applied in areas such as model decline mentioned above.
development tracking, clash analysis and area analysis.
In addition, the use of 3D information allows for the Alternative and innovative materials
application of data to future projects, and can assist
clients with future projects. According to Global Industry Analysts Inc., building
materials are a US€1 trillion global industry, and
The world of construction is ranked amongst the across the full project lifecycle. Research conducted with sustainability and cost typically at the forefront
least digitized sectors globally, and yet, spending by McKinsey has indicated that although it is still in its Collaboration and productivity in terms of considerations when approaching a
on technology and R&D both typically account for early stages, investors have demonstrated interest in construction project, it is not surprising that the use
With the industry’s productivity having declined in
less than 1% of revenues*. Belatedly, however, the the construction tech area, with construction of alternative materials is on the rise. The industry is
some markets since the 1990s, and research by the
construction industry is now at the cusp of a new tech firms raising US$10 billion of capital from 2011 increasingly looking towards materials and processes
Global Projects Database revealing that large projects
era in terms of technological innovation. to early 2017*. that are more environmentally friendly, and those
typically take 20% longer to complete than scheduled,
it is evident that there is significant opportunity for which offer distinct benefits in terms of cost, durability
Applying new technologies, processes and innovations Thus far, the majority of innovation has been around technology and digitization to offer improvements. and buildability. These include composite sheet piles
can have a significant impact on the construction tools for digital collaboration and back-office use, The lack of real-time information sharing can cause and fiberglass reinforcements, as well as a whole host
industry, in areas such as efficiency, the reduction of with the implementation of tools and new materials considerable delays and make the analysis of project of new and innovative materials, and applications
project durations, the improvement and reduction of at scale proving a challenge. data more difficult. Digitizing workflows can boost of materials.
defects correction processes, automated robotics, productivity, enable more seamless collaboration and
mechanics, and much more. Below, we review some of the key areas in which communication and offer significant time savings. With It is evident that construction technology is evolving
construction can benefit from technology the proliferation of mobile devices, we are seeing the at a considerable pace, and catching up with the
Innovation and technology application in the and innovation: emergence of cloud-based technologies facilitating digitisation of other industries. As such an important
construction of critical infrastructure is undeniably real-time document and information sharing, on-site industry to the global economy, the implementation
prioritized on the public agenda. Complex projects, collaboration and issue tracking. We expect to see this of key technologies into construction is of
More advanced techniques and processes
tight schedules and increasing demand for large-scale evolve rapidly over the coming years. fundamental importance.
construction all necessitate the application of the When early survey estimates and ground conditions
latest technologies and innovations. differ considerably, it can cause both time and budget
implications for projects. Advanced techniques that
This in turn creates enormous opportunities around offer high-quality visualization can be integrated with
the world for those who are creating software solutions tools such as BIM (Building Information Modelling)
for site optimization, project organization processes, to improve upon existing surveying tools. Lidar is
schedule shortening mechanisms and innovative one such technology, which uses drone or similar
Construction tech firms have
materials and tools. unobtrusive technologies to survey in challenging raised US$10 billion of capital
environments (dense, environmentally sensitive or
Construction technology can be applied to the historic sites).
from 2011 to early 2017.
different aspects of the construction process
(materials, equipment and services), and can extend
* Source: McKinsey Global Institute
56 | Linesight Linesight | 57You can also read
