Construction challenges

FMI, provider of management consulting and investment banking to the engineering and construction industry, released its 2012 U.S. Markets Construction Overview, offering insight into some of the engineering and construction industry’s most complex business challenges.

The publication focuses primarily on the U.S. domestic construction market, which is also a lagging reflection of the country’s economic health. The broad picture is not dramatically different from last year, FMI notes.

A few highlights include:

• The move to a greater use of P3 (public-private partnerships) project funding will be slow, but will begin to gain traction in the United States.
• Demographics continue to drive demand for healthcare, education and improving infrastructure.
• Spending for government construction is expected to decline as budget battles continue to rage in Washington and spill over to every state in the nation.
• Sustainable or green construction will drive demand for LEED-certified buildings.
• Innovation is driving efficiencies in multi-trade prefabrication and modularization construction.
• As the baby boomers age out of the work force, many firms will face succession and transition challenges.