FMI’s 2011 U.S. Markets Construction Overview

FMI, one of the largest provider of management consulting and investment banking to the engineering and construction industry, released its 2011 U.S. Markets Construction Overview, offering insight into some of the engineering and construction industry’s most complex business challenges.

This year’s Overview consists of three major pieces: a compilation of trends in the current environment, important issues facing nine client groups served by FMI and the fourth quarter 2010 economic forecast.

A few of the more interesting tidbits included a section on Social Marketing. Facebook, Twitter, YouTube, etc. have all been name dropped in the past year in the construction business — and with good reason. FMI’s report states that, “Companies from all industries with high social media activity averaged an 18 percent increase in revenue last year, according to the American Marketing Association. The construction industry as a whole has been slow to use social media. However, plenty of firms have started to embrace it and gain success from its use. Architects and engineers have been quicker to adapt and utilize social media than contractors. However, a large number of project owners are already utilizing social media, making it imperative that contractors stay ahead of the curve by also adapting to some forms of social media in their strategic marketing plans.”

In the “Construction Outlook” section, FMI states that, “The construction industry should prepare for another year of decline in nonresidential construction.” Similarly, the nonresidential sector is projected to decline only 2 percent in 2011, following its 15 percent drop in 2010. Transportation construction (up 4 percent) and amusement and recreation (up 5 percent) were the only segments to experience growth, according to the report.

For more information about FMI’s report, contact Kelley Chisholm at (919) 785-9215 or kchisholm@fminet.com.