Uptick in Construction Activity Will Challenge You to Innovate
by Bob Miodonski
August 1, 2011
More than half of the nation’s largest plumbing and mechanical
contractors — 51.4% — expect their workload to increase this year. An even
larger number — 55% — predict their business will grow in 2012.
You may be experiencing this uptick in your business, since many of you design
the systems these contractors install. If nothing else, these numbers represent
positive signs the construction industry is heading in the right direction.
The upward-pointing arrows come from pme’s
sister publication, Plumbing & Mechanical (www.PMMag.com).
Each year, PM
and BNP Media’s research department send a Pipe Trades Giants survey to the
magazine’s largest subscribers to ask them about the volume of their work
coming from plumbing, piping, hydronics, fire protection and
water/wastewater treatment projects.
Construction spending in 2010 totaled $814.2 billion, a 10.3%
decrease from 2009 figures. Business from nonresidential projects was down
23.3%, with lodging and office construction the hardest hit — down 48.7% and
27%, respectively.
Even the numbers for so-called bright spots such as public buildings,
health-care facilities and schools had minus signs attached to them in 2010.
Public building projects declined 2.7% while health care decreased 2% and
education dropped 1.5%.
Showing positive growth, construction of power plants soared 73.3% last year
from 2009. Industry consultant FMI predicts a modest 2% gain in power plants in
2011.
“Power will continue to be a growing construction market as there is no sign
that our need for more of it will abate,” according to FMI’s “Construction
Outlook: Second Quarter 2011 Report.”
“We expect growth to accelerate over the next five years as more attention is
paid to renewable energy sources.”
Our survey supports this trend. About one-third of repondents installed solar
thermal (32.1%) and geothermal (34.9%) systems in 2010. Three-fourths (74.3%)
took part in building a LEED-certified structure last year.
In addition, 54% of respondents to PM’s survey say they actively discuss with their customers the advantages
of installing ENERGY Star-certified appliances, such as water heaters; 35%
discuss WaterSense-certified fixtures such as toilets with customers.
Contractors whose comments accompany PM’s survey findings
repeatedly mention energy and water efficiency.
“We have always focused on value of
return on projects,” one contractor tells us. “But with the new focus on energy
costs, we have developed our business model over the past several years to
focus on energy services projects with guaranteed energy
savings.”
Engineers are moving in the same direction. In a new feature this month — pme
Profile — Brad Hanson, P.E.,
states: “We are seeing owners investing in green technologies for energy
savings that can offer attractive paybacks. Incentives from the government and
programs such as Focus on Energy are becoming more prevalent in the projects we
design. We are being challenged to think outside the box even more to develop
systems that are cost-effective and energy-efficient.”
Expect the challenge to innovate to continue for the remainder of 2011, next
year and into the foreseeable future. You can help building owners use of our
natural resources more efficiently as you help them save money.
Bob Miodonski
miodonskib@bnpmedia.com
Bob Miodonski is the grouppublisher of the Plumbing Division of BNP Media. He can be reached at 847/405-4007, miodonskib@bnpmedia.com.
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