U.S. Markets Construction
Overview and Industry Trends
Bryan Kucinski, PE
Presented to:
New Mexico NAIOP
February 24th, 2014
© 2013 FMI Corporation
1
General Agenda






FMI Introduction
Big Picture
Macro Trends
Micro Trends
Market Outlook
New Mexico / ABQ
© 2013 FMI Corporation
Who we are…
VUCA
Reality
Drivers
Metrics
Specifics
2
About FMI
Management
Consulting
Our History
Founded in 1953 by Dr. Emol A. Fails, FMI
provides management consulting, investment
banking and research services for the worldwide
construction industry.
Our Purpose
Investment Banking
Build a great future for the worldwide
construction industry and its leading
organizations.
Our Values
Principled associates. Greater opportunity and
impact as one firm than as individuals. The longterm success of our clients.
Research Services
Envisioned Future
To be the most respected firm in the construction
industry by 2020.
© 2013 FMI Corporation
3
FMI Markets Served
© 2013 FMI Corporation
Contractors
Manufacturers
and Suppliers
Construction
Materials
Architects
and Engineers
Owners
Associations and
Labor Organizations
Surety
Companies
FMI in Europe
Residential Building
Industry
Utilities
4
2014 Trends in the Construction Industry
 The changing nature of business in the construction industry
 Rethinking ownership transfer and leadership development
 Redefining leadership: strategic thinking in today’s VUCA world
 Globalization and how it impacts our industry
 Modularization and prefabrication: role development and evolution
 Recovering the lost generation for the construction industry’s future
 The science of efficiency and productivity: construction 2.0 in the new
normal
 Market factors shaping the construction trade unions of tomorrow
 Convergence of design/construction
 The federal construction sector: understanding a transforming market
© 2013 FMI Corporation
5
Understanding the Significance
U.S. Employment – December 2012
© 2013 FMI Corporation
6
Industry Trends and Challenges:
Construction Economy (1 of 2)
The Lost Decade
Total Construction Put in Place 2007, 2012 and 2017
(Millions Current $)
2007
2012
2017
Total Residential
500,468
280,844
485,650
Total Nonresidential
462,215
354,051
473,967
Total Nonbuilding
Structures
188,667
213,803
275,174
Total Put in Place
1,152,351
848,698
1,234,792
© 2013 FMI Corporation
7
Industry Trends and Challenges:
Construction Economy (2 of 2)
Constant Dollars
Total Residential
Total Nonbuilding Structures
1997 Level
1996
2015
1996
Total Put in Place
Total Nonresidential Buildings
2002 Level
1996
© 2013 FMI Corporation
2015
2000 Level
2015
1996
2015
8
20%
0%
Source: U.S. Department of Labor
1951
1952
1953
1954
1955
1956
1957
1958
1959
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Unemployment Rate
Jobs and Unemployment
Construction Unemployment Rates | 1951 - 2013
25%
Construction
National
15%
10%
5%
© 2013 FMI Corporation
9
NRCI First Quarter 2014 - FMI
1=Least Challenging
2
3
4
2%
9%
20%
36%
33%
2%
4%
28%
38%
27%
19%
17%
38%
18%
8%
Increasing productivity
1%
16%
46%
32%
6%
Rising cost of labor
7%
24%
46%
20%
3%
Rising cost of materials
6%
29%
46%
16%
3%
Potential for inflation
11%
39%
32%
15%
3%
65%
19%
9%
5%
3%
13%
25%
35%
21%
5%
19%
27%
24%
23%
7%
8%
19%
12%
20%
26%
31%
35%
18%
21%
8%
Hiring talented people
Finding profitable work in your
market(s)
Dealing with changes in healthcare
insurance coverage
Foreign competition entering your
market(s)
Domestic competition entering your
market(s)
Reduced construction/engineering
budgets for federal, state and local
municipalities
Uncertainty of the direction of
government, especially regarding
decisions directly affecting the
economy
Entering new markets
5=Most Challenging
Talent, Profit, Productivity and Government Insecurity challenge the non-res respondents…
© 2013 FMI Corporation
10
Contractor Profit Before Tax
Utilities
HVAC
Paving
Heavy Construction
Commercial
Electrical
8
7
Percent
6
5
4
3
2
1
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
1990
1989
1988
1987
1986
1985
0
Source: Risk Management Associates, Philadelphia, Pa.
Annual Statement Studies 1985-2012
Recession Periods Are Shaded Red
© 2013 FMI Corporation
11
Industry Earnings Before Tax | 2007 vs. 2013
2007
Highway, Street & Bridge
5.0%
2.4%
6.0%
5.7%
5.8%
Structural Steel & Precast Concrete
Roofing
4.2%
Water & Sewer Line
5.0%
3.1%
Site Preparation
4.8%
3.9%
Residential
5.0%
1.0%
4.6%
Painting & Wall Covering
Poured Concrete
Commercial and Institutional
4.4%
2.2%
4.4%
0.8%
Drywall & Insulation
4.1%
1.7%
3.4%
3.3%
Residential Remodelers
Plumbing, Heating & Air-Conditioning
2.6%
Other Heavy and Civil Engineering
2.6%
Electrical
4.0%
7.0%
3.8%
2.9%
Industrial Building
1.7%
1.4%
Floor Laying
3.4%
2.5%
4.3%
Other Specialty Trade
4.9%
6.0%
Oil and Gas Pipeline
0.0%
© 2013 FMI Corporation
5.1%
4.4%
3.8%
Masonry
2013
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.6%
7.0%
8.0%
12
Industry Trends and Challenges:
Labor Shortages to Return
Forecast Change in Full-time Employment Demand (Year 2016 vs. 2012)
Carpet, Floor and Tile Installers and Finishers
Brickmasons, Blockmasons and Stonemasons
Sheet Metal Workers
General and Operations Managers
Cost Estimators
Roofers
Cement Masons, Concrete Finishers and Terrazzo Workers
Construction Managers
Drywall Installers, Tapers and Ceiling Tile Installers
Painters and Paperhangers
Construction Equipment Operators
Engineering and Design Occupations
Helpers, Construction Trades
Pipelayers, Plumbers, Pipefitters and Steamfitters
First-Line Supervisors/Managers
Electricians
Construction Laborers
Carpenters
17,700
19,500
21,400
22,800
23,100
24,200
28,800
33,600
33,800
46,200
48,800
49,700
© 2013 FMI Corporation
+22%
+24%
+23%
+22%
+25%
+20%
+23%
+30%
+29%
+20%
+23%
+25%
69,900
84,800
+25%
+27%
97,000
107,800
+27%
144,000
150,900
0
Source: US Bureau of Labor Statistics; FMI
+28%
+24%
+28%
25,000 50,000 75,000 100,000 125,000 150,000 175,000
Percentages to the right of bars represent the percent change in employment for each
labor category for the period of 2012 to 2016
13
Convergence of Trends – LABOR CHALLENGES
– Baby Bust
– Baby Boom
– Immigration / Hispanic
– Unsophisticated
– Volatility
– Mobility
– Ethics
– Fewer Technical/Science
– Lower Skills
– “Soft” Subjects
– Multiple Market Growth
- Attractiveness
It is more than retiring labor….
© 2013 FMI Corporation
14
Prices
•
•
No debate that costs will continue to rise.
This has a potentially positive effect to
margins for some but the cost of overall
building needs to be realized.
Expect to pay more – expect failures
© 2013 FMI Corporation
•
Cement, gypsum and wood products
continue to rise over-proportionally.
•
New Mexico is above average for material
prices (1-3% additional increases have been
noted)
15
Procurement and Risk Management Trends
Sophisticated procurement practices are being employed.
 Selecting contractors based solely on price is increasingly recognized as a poor-risk mitigation strategy.
 Project owner staff (e.g., facilities planning) are more familiar with design and construction practices.
Surety Losses Average 6-37% between 2008 - 2012. Contractor pressure forces changes…
 Sizable increase in SDI (Subcontractor Default Insurance)
 Rates up 10% for Worker Comp, 5% General Liability in 2013
 Increased use in GL Project Wrap-ups
Construction management (at risk) will become the preferred-delivery method.
 The benefits of collaboration are widely recognized.
 Preconstruction services directed at identifying project improvements and savings differentiate contractors, and
superior performance often results in an advantage during selection.
Many contractors are ill-prepared to make the transition to a professional services mindset.
 The general contractor mindset is pervasive, even among many construction managers.
 Business development efforts are often misdirected towards acquiring new clients/customers rather than keeping
existing ones.
© 2013 FMI Corporation
16
Micro Drivers
 Energy Market
 Public Private Partnerships
 Green Construction
 Technology
 Population / Demographics
 Seasonality Sensitivity
© 2013 FMI Corporation
17
U.S. Markets Construction Overview
Power
• The U.S. power industry is quickly shifting investment away from traditional fossil fuels.
• After 2015, when compliance goals are reached for foundational coal facilities, expect reduced spending on maintenance and rehabrelated work on existing coal facilities and increased spending in new natural gas construction.
Shale Basin Locations
20%
2011
• Shale basin locations will heavily influence new construction in
natural gas infrastructure across the country. The map below
indicates current shale play locations.
Coal
4%
Hydro
Natural Gas
48%
Nuclear
21%
Renewable
7%
IGCC Coal
11%
1%
21%
21%
6%
2035
40%
Source: Scott Madden, FMI, Black & Veatch (above); EIA, FMI (right)
© 2013 FMI Corporation
18
U.S. Major Oil and Shale Plays Overlaid with Concentrations
of Economic Activity
Sources: EIA, University of Utah’s Metropolitan Research Center and Brookings Mountain West
© 2013 FMI Corporation
19
Public Private Partnerships
Potential for P3 in the U.S.
Source: FMI Corporation
Six keys to successful P3
include:
© 2013 FMI Corporation
•
Conducive statutory
and political
environment
•
Adequately organized
public sector structure
•
Detailed business plan
and contract
•
Guaranteed revenue
stream
•
Strong stakeholder
support
•
Careful consideration
of partners
20
Public Private Partnerships – Legislation in States
Clear Drivers:
•
States with PPP
legislation driving big
infrastructure - spurs
growth
•
Robust in South and
West
•
Collaborative state
agencies with budget
shortfalls
“Public-private partnerships introduce significant efficiency and reliability, perhaps the most compelling
argument for their use. They are also intrinsically transparent. As such, they have earned a strong reputation
for the ability to deliver projects on time and without the typical cost overruns that plague many multiyear
infrastructure projects—especially when multiple administrations, each with their own priorities, come and go
during the lifespan of a project.” PWC
© 2013 FMI Corporation
21
Green Construction Trends
• Increased public awareness in energy efficiency will drive
green construction, including increased investment in
technology and building improvements across the industry.
• Green construction will support a spur in renovation and
retrofit construction over the next five to eight years.
• Related technologies (e.g., metering) will continue to be reinvented over the next five to eight years.
• Familiarity and expertise with alternative-energy
technologies are required.
LEED Certified and Registered Projects
Source: USGBC
Cum. LEED Reg. X10%
Green Construction Market Opportunity
Source: McGraw-Hill Construction
Lower Market Size
$150
$ in Billions
• Green building, energy efficiency and corporate
sustainability are becoming mainstream.
Upper Market Size
$140
$100
$49
$50
$10
$2005
2008
2013
Green Construction Intensity Index
Source: FMI Corporation
Cum. LEED v.2 Cert's
Cum. LEED area, MMSF
3,500
3,000
Count
2,500
2,000
1,500
1,000
500
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
© 2013 FMI Corporation
22
Impact of Social Media
Social networking site use by age group, 2005 - 2011
100%
18-29
80%
30-49
60%
50-64
40%
65+
20%
0%
2005
2011
• Three out of four
Americans use social
technology
(Forrester, The Growth of Social
Technology Adoption, 2008)
• Social sites – 4th most
popular online activity,
ahead of personal email
(Nielsen, Global Faces & Networked
Places, 2009)
• Time spent on social
networks growing at 3x
overall internet rate
Sources: Pew Research Center’s Internet & American Life Project surveys
© 2013 FMI Corporation
23
BIM and Prefabrication/Modular Building Methods
Increasing use of Building Information Modeling
Prefabrication and Modular Building Methods
Source: NBS
Source: McGraw-Hill
100%
80%
60%
84%
40%
20%
90%
99%
98%
Contractors
Engineers
0%
We currently In one year's In three year's In five year's
use BIM … time we will time we will time we will
use BIM …
use BIM …
use BIM …
For all projects
% of users, 2009
% of users, 2013
For the majority of projects
For a minority of projects
76%
% of non-users, 2009
98%
% of non-users, 2013
Architects
© 2013 FMI Corporation
24
Availability of Mid-Management:
The Problem Is Demographics
 Between 2005 and 2010, Census Bureau data indicates that:
 15 to 24 year-old age group increased by one million
 25 to 44 year-old age group decreased by 436,000
 45 to 64 year-old age group increased by 8.2 million
© 2013 FMI Corporation
Source: National Center for Health Statistics, Center for Disease Control and Prevention
25
Smaller Families
Household size, Percent of all U.S. households
1960:
3.65
100%
2009:
2.05
80%
60%
3 or more persons
Average number of children per
household has fallen below the
replacement rate.
40%
20%
2 persons
1 person
0%
1790
2006
Source: U.S. Census Bureau
© 2013 FMI Corporation
26
Concentrations of Population and Economic Activity
Sources: University of Utah’s Metropolitan Research Center and Brookings Mountain West
Cascadia
Puget Sound
New
England
Twin Cities
Mountain
Willamette
Sierra Pacific
Twin
Cities
Wasatch
Range
Las
Vegas
Front
Range
Ohio
Valley
Great Lakes
Texas Triangle
Megalopolis
Chesapeake
Atlanta
Carolina
Dallas/
Fort Worth
Sun
Corridor
Southwest
New York/
Philadelphia
Chicago
Sierra
Pacific
Southern
California
Michigan
Corridor Steel
Corridor
Central
Texas
Houston
Piedmont
Central
Florida
Florida
Atlantic
Florida
They are staying, growing and coming….but NM stagnant or losing
© 2013 FMI Corporation
27
© 2013 FMI Corporation
NRCI
8/24/2013
6/23/2013
4/21/2013
2/21/2013
12/21/2012
10/26/2012
8/21/2012
6/21/2012
4/21/2012
2/24/2012
12/31/2011
10/30/2011
8/31/2011
6/30/2011
4/30/2011
2/28/2011
12/31/2010
10/30/2010
8/31/2010
6/30/2010
4/30/2010
2/28/2010
12/31/2009
10/30/2009
8/31/2009
6/30/2009
4/30/2009
2/28/2009
12/31/2008
10/30/2008
8/31/2008
6/30/2008
4/30/2008
2/29/2008
12/31/2007
NRCI-ABI Comparison Third Quarter 2013
NRCI and ABI Compared
Short Term Sensitivity…post recession
80.0
70.0
60.0
50.0
40.0
30.0
20.0
ABI
28
Market Outlook
 US Outlook
 New Mexico Outlook
FMI Construction Put in Place, Estimated for the United States
700,000
Millions of Current Dollars
600,000
500,000
400,000
300,000
200,000
100,000
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Total Residential
© 2013 FMI Corporation
Total Nonresidential Buildings
Total Nonbuilding Structures
29
Single Family
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
$500
$450
$400
$350
$300
$250
$200
$150
$100
$50
$
2000
Billions
Note on Residential….
Multifamily
Source: FMI Fourth Quarter Outlook 2013
We are watching this market closely as some indicators are fluctuating. Growth in
2013 for Single Family of 28% but will flatten to 18% in 2014 and beyond. Multifamily will flatten in 2014 from 18% to 11%.
© 2013 FMI Corporation
30
U.S. Markets Construction Overview
Residential’s Loss is Nonresidential and Nonbuilding’s Gain
Annual spending by market sector
Sector share of spending
Construction put in place (millions of current dollars)
Indication of shifting priorities …
needs vs. wants?
Residential
Nonresidential Building
Nonbuilding Structures
2005
2017
Residential
56%
42%
Nonresidential
31%
37%
Nonbuilding
13%
21%
$1,400,000
$1,200,000
$1,000,000
$800,000
$600,000
$400,000
$200,000
© 2013 FMI Corporation
2017
2015
2013
2011
2009
2007
2005
2003
2001
1999
1997
1995
1993
$-
31
US Market Outlook
Millions of current dollars, Q4 2013
2011
2012
2013
2014
2015
2016
2017
Single Family
Multi Family
Improvements*
Total Residential
Percent Change YoY
109,620
17,821
125,217
252,658
1%
131,380
26,293
128,850
286,523
13%
168,395
36,227
133,648
338,270
18%
198,469
46,713
137,129
382,310
13%
231,368
52,350
143,192
426,910
12%
263,814
57,353
149,472
470,640
10%
294,415
60,869
155,814
511,099
9%
Lodging
Office
Commercial
Health Care
Educational
Religious
Public Safety
Amusement and Recreation
Transportation
Communication
Manufacturing
Total Nonresidential Buildings
Percent Change YoY
9,129
36,011
43,386
40,204
84,985
4,239
10,407
15,995
34,737
17,685
39,660
336,438
-3%
11,423
38,433
46,303
41,797
84,618
3,768
10,295
14,977
38,210
17,528
46,850
354,202
5%
13,430
38,749
48,508
41,726
81,325
3,421
9,752
15,310
42,791
16,305
48,722
360,038
2%
14,739
39,927
50,720
43,370
84,344
3,505
10,049
15,704
45,556
16,553
51,867
376,335
5%
16,160
41,841
54,753
45,770
88,522
3,618
10,417
16,686
47,866
17,434
55,337
398,405
6%
17,102
44,677
58,505
49,611
94,023
3,774
11,005
18,085
49,809
18,256
59,379
424,225
6%
17,986
47,104
62,284
54,120
100,510
3,972
11,446
19,512
51,755
19,069
63,602
451,360
6%
Power
Highway and Street
Sewage and Waste Disposal
Water Supply
Conservation and Development
Total Nonbuilding Structures
Percent Change YoY
75,185
79,322
22,710
14,163
7,538
198,918
-5%
94,068
80,517
22,066
13,227
6,350
216,228
9%
96,920
79,653
21,485
14,207
6,281
218,546
1%
101,415
80,080
21,859
14,702
6,347
224,403
3%
108,531
81,148
22,410
15,179
6,454
233,721
4%
118,761
83,066
23,417
15,824
6,667
247,735
6%
129,032
84,916
24,492
16,272
6,876
261,588
6%
Total Put in Place
Percent Change YoY
© 2013 FMI Corporation
$788,014
-2%
$856,953
9%
$916,854
7%
$983,049
7%
$1,059,037
8%
$1,142,600
8%
$1,224,047
7%
32
US Market Outlook
…History
$1,400
Residential
Nonresidential
Forecast…
Nonbuilding
Billion, Current Dollars
$1,200
$1,000
$357.7
$253.9
$800
$600
$470.6
$249.1
$499.7
$346.5
$338.3
$426.9
$360.0
$398.4
$336.4
$354.2
$376.3
$424.2
$432.2
$400
$200
$252.7
$286.5
$382.3
$511.1
$451.4
$210.1
$217.1
$209.0
$198.9
$216.2
$218.5
$224.4
$233.7
$247.7
$261.6
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Total CPiP
$1,068
$903
$805
$788
$857
$917
$983
$1,059
$1,143
$1,224
YoY Change
-7.4%
-15.4%
-10.9%
-2.1%
8.7%
7.0%
7.2%
7.7%
7.9%
7.1%
$0
© 2013 FMI Corporation
33
New Mexico Construction Outlook
Millions of current dollars, Q4 2013
2011
2012
2013
2014
2015
2016
2017
Single Family
Multi Family
Improvements*
Total Residential
Percent Change YoY
604
94
580
1,278
-
640
113
567
1,320
3%
688
130
584
1,403
6%
780
160
610
1,549
10%
967
190
640
1,798
16%
1,125
213
682
2,020
12%
1,277
230
723
2,229
10%
Lodging
Office
Commercial
Health Care
Educational
Religious
Public Safety
Amusement and Recreation
Transportation
Communication
Manufacturing
Total Nonresidential Buildings
Percent Change YoY
51
200
240
223
471
23
65
89
192
98
220
1,871
-
55
207
249
225
455
21
62
81
200
94
226
1,874
0%
67
205
257
221
439
20
64
87
210
86
233
1,890
1%
75
214
272
233
462
21
72
93
218
89
247
1,996
6%
83
226
295
247
488
22
89
85
226
94
262
2,117
6%
89
240
314
266
515
23
72
91
234
98
277
2,219
5%
94
252
334
290
550
24
75
98
243
102
291
2,354
6%
Power
Highway and Street
Sewage and Waste Disposal
Water Supply
Conservation and Development
Total Nonbuilding Structures
Percent Change YoY
538
568
163
101
54
1,424
-
618
552
151
91
44
1,456
2%
627
565
146
89
41
1,468
1%
654
571
150
93
44
1,512
3%
680
576
157
98
47
1,558
3%
709
588
165
104
49
1,615
4%
745
597
175
112
51
1,680
4%
Total Put in Place
Percent Change YoY
$4,573
-
$4,650
2%
$4,760
2%
$5,058
6%
$5,473
8%
$5,855
7%
$6,263
7%
© 2013 FMI Corporation
34
New Mexico Construction Outlook
…History
$7
Billion, Current Dollars
$6
Residential
$2.1
Nonbuilding
$1.8
$5
$4
Nonresidential
$1.5
$2.8
Forecast…
$1.3
$1.3
$1.4
$1.5
$1.8
$2.4
$2.0
$3
$1.9
$1.9
$1.9
$2.0
$2.1
$2.0
$2.2
$2.2
$2.4
$2
$1.7
$1.6
$1.4
$1.5
$1.5
$1.5
$1.6
$1.6
$1.7
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Total CPiP
$6.4
$6.0
$5.1
$4.6
$4.7
$4.8
$5.1
$5.5
$5.9
$6.3
YoY - NM
-
-6%
-15%
-10%
2%
2%
6%
8%
7%
7%
-27%
-17%
-4%
9%
8%
11%
10%
8%
8%
$1
$1.5
$0
YoY Mtn West
© 2013 FMI Corporation
35
New Mexico / Albuquerque Metric Comparison
A few to pay attention to….areas of improvement that drive the industry
Grow
Diversify
Compete
Overall Job Growth 2014
Public / Federal Jobs as % of Total
Average Hourly Construction Wage
Source: Pew Research Charitable Trust, FMI, ENR, BLS
Source: UNM Bureau of Business and Economic Research
Source: BLS
AREA
AREA
AREA (Rank)
Overall
Construction
New Mexico (40)
1.25%
2.1%
New Mexico
32%
NM / ABQ
Arizona (2)
3.08%
4.7%
Arizona
22%
Phoenix
$19.30
Texas (3)
2.75%
3.5%
Texas
19%
Dallas
$17.54
Colorado (4)
3.67%
3.8%
Colorado
21%
Denver
$21.31
States above 2% overall generally have favorable construction
economies…construction growth can add 1-3% to the overall %
% of Total Jobs
Typically follows the construction spending for public
versus private money – NM relies heavily on public $
Fill
2013 Avg Wage ($)
$18.71 / $18.61
Higher wage MAY attract in the short term. But
stability, opportunity and culture are major issues now.
Innovate
Future
Vacancy Rates – Office / Commercial
LEED Certifications Through 2013
Millennial’s (Ages 20-34)
Source: CBRE, FMI
Source: NGBC
Source: PWC Emerging Trends in Real Estate
AREA
2012
2013
AREA
Albuquerque
19%
19%
New Mexico
26
Albuquerque (46)
-1.4%
Phoenix
27%
21%
Arizona
17
Phoenix (25)
11.3%
Dallas
19%
15%
Texas
10
Dallas (5)
8.7%
Denver
16%
14%
Colorado
8
Denver (11)
7.3%
Magic number is below 15% - building traditionally picks up speed
and need. US is ~ 17% currently.
© 2013 FMI Corporation
Ranking
ABQ is in top 50 and NM schools ranked 10th! Increase
intensity of the green / LEED market.
AREA (Rank)
5-Year Growth
Reverse the trend to positive growth – attract
opportunity for the next generation
36
Bright Spots – Looking Forward
Growth in the
Energy Segment
and Related
Effects
Housing Market
Rebound and
Related Effect
US
Market
Commercial
Growth and
Manufacturing
Reshoring
Positive
Investment
Outlook for
many
Stakeholders
Keep up
Technology,
Healthcare and
Federal Work
Tourism and
Consumer
Spending is UP
New
Mexico
Keep focus and
grow energy
the segment
Diversify and
take advantage
of location
BOTTOM LINE – The outlook is positive, opportunity exists, inflation is under control
and investing is growing….but issues exist that challenge the industry and
“cautiously optimistic” is still the tone.
© 2013 FMI Corporation
37
Thank You!
Bryan S. Kucinski, PE
Consultant – Manager of Strategic Accounts
At FMI, Bryan works within the building and construction products community as well as the private
equity segment. Bryan’s utilizes various FMI services to passionately build these organizations,
associations and related stakeholders within these stakeholder segments. He focuses on strategic
research, market strategy, organizational development, training and leadership improvements.
Bryan’s entire career has been spent in the construction and engineering industry. Working as a private
AEC consultant, he gained experience as a project engineer, project manager and construction manager.
His experience ranged across a wide variety of projects within the Infrastructure, Commercial, Private
and Federal sectors.
Bryan progressed from AEC engineering practices to the building and construction product industry just
prior to joining FMI. He has worked for Contech Construction Products, Hilti North America and Tensar
International. Spanning these organizations, Bryan held roles and responsibilities that include technical
field sales, sales management, marketing management, business development, sales training,
leadership training, project leadership, team leadership and strategy development. Within these roles,
Bryan was credited for over proportional sales growth, multi-million dollar marketing strategies,
numerous product launches, authored training programs, structured and lead sales teams as well as
organizational development projects. Through this experience, Bryan gained a passion for strong
strategic direction, the development of people and successful growth based on creativity, process,
leadership and vision.
Bryan is a member of various industry organizations having also served as committee member and an
officer. Passionate about non-profit service, Bryan has been a board member for organizations such as
ManeGait Therapeutic Horsemanship and Children’s Relief International. He has travelled globally for
both work and personal non-profit projects. He holds a Bachelor’s Degree in Civil Engineering from
Texas Tech University and is a Registered Professional Engineer.
© 2013 FMI Corporation
Bryan Kucinski, PE
FMI Corporation
210 University Blvd.
Suite 800
Denver, CO 80206
Tel: 303-398-7225
Cell: 720-425-9896
Email: bkucinski@fminet.com
Website: www.fminet.com
38