Strategy in a Shifting Market
Yet another study on the growing trends and challenges in the construction industry, FMI’s report, New Day, New Strategy: Repositioning After the Great Recession, provides a brief design and construction industry outlook for the next 12 months. The report focuses on challenges, opportunities and market drivers in the new market environment.
According to the research, state budgetary shortfalls of $180 billion are estimated for 2011; a sign that constricted capital will continue to hamper growth in the nonresidential sector. At the same time, a predicted improvement in the next 12 to 18 months in the design and construction industry is driving change at the company level.
As altered market conditions affect revenues across the construction market, firms are re-evaluating their strategy, and applying resources in such a way to position them for an eventual uptick. Firms are targeting new geographies, offering new services and broadening their network.
It is critical for executives to evaluate what FMI terms “the four C’s” – climate, customers, competitors and company – when strategizing and implementing a new direction for the company.
FMI spoke with six architecture, engineering and construction firms about their post-recession strategies, challenges and outlooks. Executives from these firms offer their thoughts on evolving client needs, the value of alliances and ways to differentiate themselves in a competitive field.
Pamela Anderson-Brulé, president of Anderson Brulé Architects, Inc., discusses how the firm is now evolving with its clients to meet their needs. “We really have to know our clients’ business models – business planning, financial planning, culture and vision,” notes Anderson-Brulé. “No one can do anything without money, and money is no longer available in its usual forms and fashions, so we’re going to have to re-strategize with our clients how they will access funding.”
Recommendations for adapting to the climate, company, competitors and client of tomorrow are presented, with a focus on how the existing culture of a firm must be leveraged.
In New Day, New Strategy: Repositioning After the Great Recession, FMI presents:
• Residential and nonresidential projections for 2010
• Strategies for geographic and market expansion
• Theory around cultural shift and the value proposition
• Ideas and recommendations on how to build strong relationships with clients in the new economic environment
• Six company spotlights illustrating how to stand out from the crowd
Along with Anderson Brulé Architects, Inc. ISEC, Inc., Suffolk Construction, Lucchesi Galati Architects, Inc., RJM Construction and Nitsch Engineering provided valuable insight on how they are overcoming the challenges the market faces.
