The attached recent owners study (view pdf), released by FMI/CMAA, has been a significant success and had more participants than ever this year, strong international flavor, and a host of very interesting feedback.
Once you have a chance to review the results, you should see how impactful they can be for all participants in the construction supply chain. The first presentation of the study results was made last week to the CMAA National Conference and an audience of more than 1000 sat on the edge of their seats for 1 hour and 15 minutes while the study results and implications were discussed by a panel of large owners or buyers of construction services. We believe that understanding the degree of disruption owners have experienced and where value added solutions may fit or get traction will be critical to business development efforts over the next two years.
CMAA was the first site for a discussion of the results. Engineering New Record (ENR) has already run a short article hitting some of the highlights and a more detailed discussion is expected in their upcoming Top Owners issue. In addition, presentations of the study results are currently planned at the following venues:
- e-builder Users Conference – 10/21/10
- Health Facility Institute Annual Conference – 10/25/10
- Construction Users Roundtable (CURT) – 11/9/10
A couple of the critical conclusions from the 11th Annual Survey of Owners include the following:
- More than 50 percent of owners dramatically cut their head count in the last two years – Eighteen percent of them cut by more than 20 percent.
- Owners that cut staff used attrition (38 percent), layoffs (32 percent), early retirements (19 percent) and mandated unpaid time off (11 percent)
- Nearly 60 percent of responding owners say they are not hiring – official hiring freeze (30 percent) or a de facto freeze dictated by nonexistent funds (28 percent)
- More than half of all owners say they expect to resume hiring in 2012 or beyond – 2012 (10 percent), 2013 or later (14 percent), or never (28 percent)
- A shift back toward more traditional and price based selection has occurred in the last two years
- Future hiring by owners will look different due to shifts in landscape – Fifteen percent expect to fill their future staff needs by hiring from design, CM or construction firms. Ten percent expect to hire less expensive staff. Eight percent say they will hire retirees to work part time, and 7 percent say they will retain current staff beyond their expected retirement dates.
- Program management use has doubled since 2007
- Pockets of prosperity exist – Fifteen percent of owners have increased staff by more than 5 percent in the previous 24 months.
- Owners’ staff augmentation and improvement in hiring quality or expertise options abound