document

Comprehending

the 2009 Construction

Marketplace

Understand

Prepare

Grow

April 7, 2009 I Las Vegas

Strategic Briefing for

Rusty Sherwood I Vice President

http://www.graybar.com/index.html





http://guest.cvent.com/EVENTS/Info/Summary.aspx?e=f083588a-6dc0-4011-94c4-90c9e512d629

Things aren’t great, but

hang in there…

better days are ahead!

Understand

Prepare

Grow

April 7, 2009 I Las Vegas

Strategic Briefing for

Rusty Sherwood I Vice President






http://guest.cvent.com/EVENTS/Info/Summary.aspx?e=f083588a-6dc0-4011-94c4-90c9e512d629

Trends

US & Global

– Sustainability/Green Building

– Interoperability and BIM

– Workforce/Labor

– Innovation

– Materials

– Project Delivery Methods

4:3

$463B

$131B

< 2700 sec

Trends

US & Global



– Workforce/Labor

– Innovation

– Materials


Context

Stimulus

09/10 Impact

Trends

Resources

5 McGraw-Hill Construction Confidential. All information presented © McGraw-Hill Construction, 2008. All rights reserved.

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for ConstructionTechnology


Trends

US & Global



– Workforce/Labor

– Innovation

– Materials


Stimulusthe big picture


Economic Crisis = Opportunity?

Major component of recovery policies –federal and state

Key to job creation


The U.S. Economic Recession has Deepened

GDP Pattern:

History Forecast

2007 2008 2009 2010

+2.0% +1.3% -2.5% +2.0-2.5%

Change in Employment

-600

-400

-200

0

200

400

01 02 03 04 05 06 07 08 09 10

Thousands of Workers

Jan.'09

-598,000

Full Yr. 2008

3 million jobs lost

Real GDP Growth - Quarterly

-6

-4

-2

0

2

4

6

8

01 02 03 04 05 06 07 08 09 10

Annualized Percent Change '08 Q4

-3.8%

Three Part Recovery Plan

Stimulus Bill

Financial Rescue Package

Housing Rescue Package


Major Negative – Lending Standards Still Tight

-30

-15

0

15

30

45

60

75

90

90 92 94 96 98 00 02 04 06 08 10

Survey of Bank Lending Officers Percent Reporting Tighter Lending Standards --

Commercial Real Estate Loans

Financial rescue effort from Fall ’08

has not yet had positive impact.

Obama Administration’s financial

rescue effort – still waiting on

details.

Tight lending continues to

impact construction activity.

Chicago Spire

World Trade Ctr. Towers 2,3

-30

-15

0

15

30

45

60

75

90

90 92 94 96 98 00 02 04 06 08

Survey of Bank Lending Officers Percent Reporting Tighter Lending Standards --

Commercial and Industrial Loans


Another Constraint – State & Local Finances

State & Local Governments

0

2

4

6

8

10

12

90 92 94 96 98 00 02 04 06 08

Year-End Balance, Percent of Expenditures

.

Numerous states facing large budget

gaps for Fiscal Year 2009, including -

Shortfall $ bil.

California $35.9

Illinois 8.0

New York 6.4

Florida 5.7

New Jersey 3.7

Massachusetts 3.3

Arizona 2.7

Georgia 2.3

Pennsylvania 2.3

Virginia 2.3

Also –

20 states have implemented cuts to K-12

education, 6 states proposing cuts

28 states have implemented cuts to public

colleges and universities.

Source: Center on Budget and Policy Priorities

Source: National Association of State Budget Officers

Year-end Balance of State Governments


$787.2 BillionAmerican Recovery and Reinvestment Act of 2009

…the most sweeping

economic recovery

package in U.S.

history…

President Barack ObamaSigned Denver, CO

“

”


How the Construction Industry… benefits from the Stimulus

Will stimulate more construction activity in 2009-2011

Adding 7.6% to bring total construction in 2009 to $463 Billion

Adding 10.6% in 2010 to bring total construction to $509 Billion


Breaking down the numbers… American Recovery and Reinvestment Act of 2009

Enacted on February 17

Total: $787.2 billion (over 10 years)

– $308.3 billion appropriations spending

– $211.8 billion tax cuts

– $267.0 billion direct federal spending

• State fiscal stabilization, unemployment insurance, etc

Construction Spending Share (included in appropriations)

– ENR estimate: $131 billion

• Note: some line items are for capital programs (equip’t as well as construction, eg, transit, airport baggage screening)

Surprises

– Pleasant - $8 billion for high-speed rail corridors

– Unpleasant – No line item for school construction



Distributing the stimulus money

– States: about $40 billion, including…

• Highways: $26.7 billion

• Transit: $7.8 billion

• EPA Clean Water SRF: $4 billion

• EPA Drinking Water SRF: $2 billion

• State energy offices: $3.1 billion

– Federal Agencies: about $90 billion, including…

• DOE: $27 billion (including $11 billion for Smart Grid)

• GSA: $5.55 billion (including $4.5 billion for green building upgrades)

– $750 million for courthouses, other federal buildings

– $300 million for border stations

• DOD: $6.6 billion (repairs, upgrades, energy improvements, barracks, medical buildings)

• VA: $1.25 billion (hospitals and other medical facilities)



Transportation

– Highways: $27.5 billion

– Transit: $8.4 billion

– Rail: $9.3 billion

• Includes $1.3 billion for Amtrak; $8 billion for high-speed rail

– Transportation Security Administration: $1 billion to buy, install explosive-detection, airport screening equipment

Environment

– EPA clean water and drinking water SRF’s: $6 billion

– Corps of Engineers: $4.6 billion

– DOW environmental cleanup: $6 billion

– EPA cleanup, including Superfund: $1.2 billion

Energy

– Electricity grid: $11 billion; “Smart-Grid” investment: $4.5 billion

– Renewable energy loan guarantees: $6 billion

– Tax credits for renewable energy projects extended• Wind energy extended through 2012

• Biomass and geothermal extended through 2013



Buildings

– GSA federal buildings, energy-efficiency upgrades: $4.5 billion

– Construction funding for such agencies as NSF, NIH

– DOD restoration, modernization of facilities: $4.2 billion

– Veterans Administration: $1.3 billion for hospital upgrades

– HUD public housing capital fund: $4 billion

– HUD redevelopment of abandoned, foreclosed properties: $2 billion

Schools

– No specific line item. ($20 billion in House and Senate version)

– Renovation funding could come from $39.6 billion in bill’s State Fiscal Stabilization Fund



Looking ahead…

– Federal reports (DOD, VA “expenditure plans) due 30 days after enactment.

– GSA “detailed plan by project”, due 45 days after enactment.

– Obligation deadlines:

• GSA, $5 billion obligated by Sept 30, 2010, other $550 million by Sept 30, 2011. No penalty in the act for missing deadlines

• VA construction funds, available until Sept 30, 2010.

• DOD/military construction funds, available until Sept 30, 2010

• DOD operation and maintenance funds (repairs, modernization available for obligation until Sept, 30, 2010.

• Army Corp of Engineers civil work funds, no expiration date for funding

• Highways, FHWA apportioned funds to states on March 2 releasing $26.7 billion for projects

– States must obligate 50% of funds 120 days from apportionment (about July 1). Obligate next 50% one year after apportionment

– Use it or lose it – unobligated money redistributed by US DOT

– State agencies file progress reports 90 days, 180 days, one year, two years, three years after enactment



“Buy American” provisions (section 1605 in the Act)

– No stimulus funds can be used for a project “unless all of the iron, steel, and manufactured goods used in the project are produced in the United States.

– But there are exceptions…

• If a federal agency head finds that the Buy American provision “would be inconsistent with the public interest”, or the US-produced iron, steel, or manufactured goods are not “in sufficient and reasonably available quantities and of a “satisfactory quality”, or they would increase the project cost by more than 25%.

• Act also says Buy American section “shall be applied in a manner consistent with the United States obligations under international agreements.”


Financial Stability Plan

Proposed February 10. “A work in progress.”.

Goal: inject as much as $2.5 trillion into banking system

Parts:

more funding for ailing banks

create mechanism for private investors to buy toxic securities

expansion of Federal Reserve program to encourage consumer lending

Housing Rescue Plan

Proposed February 18. Further details provided on March 4.

Total Cost: $275 billion, could help 9 million homeowners

Parts: Remove limit on refinancing for “responsible homeowners.

Allow Fannie Mae and Freddie Mac to guarantee refinancing on mortgages valued at more than 80% of homes value.

Help renegotiate loan terms for “at-risk homeowners”, create a $75 billion program to subsidize loan modifications

Incentives for lender: $1,000 upfront payment for every loan modified.

$200 billion to back Fannie Mae and Freddie Mac (Purchases of stock, to reduce concerns about solvency.)

U.S. Macroeconomic Picture Two other keys to economic recovery…


Trends

US & Global



– Workforce/Labor

– Innovation

– Materials


Construction Impact

2009 - 2010


Total Construction Starts

Helped by Stimulus Bill in 2009-2010

- 11%+10%

- 14%

Total Construction Starts Including Stimulus Effect

(Billions of Dollars)

0

100

200

300

400

500

600

700

800

2005 2006 2007 2008 2009 2010

Total Stimulus

-15%+10%


Highway and Bridge Construction

Big Winners Under Stimulus

Highway and Bridge Construction


0

10

20

30

40

50

60

70

2005 2006 2007 2008 2009 2010

Stimulus

+15%

+10%

-2%


Environmental Public Works

Will See Big Boost from Stimulus

Environmental Public Works


0

10

20

30

40

50

2005 2006 2007 2008 2009 2010

Stimulus

+8%+10%

+2%


Other Public Works, Including Transit/Rail


0

5

10

15

20

25

30

35

2005 2006 2007 2008 2009 2010

Stimulus

Other Public Works Will Benefit

Significantly from More Transit/Rail Funds

+4%+5%

-9%


Electric Utilities Will Stay

at High Volume with Push from Stimulus

Electric Utilities, Including SmartGrid


0

5

10

15

20

25

30

2005 2006 2007 2008 2009 2010

Stimulus

- 25% - 3%

+ 65%


Public Buildings, While a Small Category,

Will Receive Large Stimulus Boost

Public Buildings


0

3

6

9

12

15

18

2005 2006 2007 2008 2009 2010

Stimulus

- 1%- 5%

+7%


Healthcare Construction Starts


0

5

10

15

20

25

30

35

2006 2007 2008 2009 2010

Stimulus

Healthcare Facilities Will Get Slight Benefit

from Stimulus After a Record 2008

- 14% - 3%

+27%


Educational Buildings Will Settle Back,

Diminished Prospects for Stimulus Boost

- 9%+5%+8%

Educational Buildings


0

10

20

30

40

50

60

2005 2006 2007 2008 2009 2010

Stimulus

- 9%+5%


Multifamily Housing Weaker in 2009,

Slight Benefit from Stimulus Expected in 2010

- 31%+18%

- 35%

Multifamily Housing


0

10

20

30

40

50

60

70

80

2005 2006 2007 2008 2009 2010

Stimulus

- 31%

+18%


Office Construction in Retreat,

Slight Stimulus Benefit (via Gov’t. Offices)

- 20%- 6%

- 6%

Office Construction Starts


0

5

10

15

20

25

30

35

2005 2006 2007 2008 2009 2010

Stimulus

- 20% - 6%


Store Construction in Sharp Correction,

No Expected Benefit from Stimulus

- 20%- 5%

- 28%

Stores and Shopping Centers


0

5

10

15

20

25

30

2005 2006 2007 2008 2009 2010

- 31% - 5%


Hotel Construction in Sharp Correction,

No Expected Benefit from Stimulus

- 27%- 12%

- 7%

Hotels and Motels


0

3

6

9

12

15

18

2005 2006 2007 2008 2009 2010

- 38%- 12%


U.S. Total Construction Starts for 2009-2010Billions of Dollars

2005 2006 2007 2008 2009 2010

Total Construction 670.3 689.6 639.2 548.1 463.1 509.3+13% +3% -7% -14% -15% +10%

Single Family Housing 315.5 272.4 201.2 122.4 85.1 115.0+12% -14% -26% -39% -30% +35%

Multifamily Housing 68.6 69.8 61.8 40.0 27.6 37.8+36% +2% -12% -35% -31% +18%

Commercial Bldgs. 72.2 93.0 100.9 84.1 61.3 58.2+7% +29% +8% -17% -27% -5%

Institutional Bldgs. 100.1 110.8 117.2 128.3 119.3 121.0+12% +11% +6% +9% -7% +1%

Manufacturing Bldgs. 10.1 13.5 19.8 27.3 17.8 16.0+26% +33% +47% +38% -35% -10%

Public Works 96.0 112.4 121.5 118.2 130.5 141.9 +9% +17% +8% -3% +10% +9%

Electric Utilities 7.9 17.7 16.8 27.7 20.7 20.0+6% +125% -5% +65% -25% -3%


Points of Perspective – U.S. Construction

85

100

115

130

145

160

175

190

T T+2 T+4 T+6 T+8 T+10 T+12 T+14 T+16 T+18

1982-1991

1991- 2005

1975-1982

Cyclical Trough (T) = 100, Based on Constant 2000 Dollars

Years from Cyclical Trough

Total Construction Activity by Cycle

1991-2009


Trends

US & Global



– Workforce/Labor

– Innovation

– Materials


Trendsshaping construction


Global Construction


Worldwide: Sharp Declines in 2009

Source: China, India, USA: International Monetary Fund World Economic Outlook Database,

January 28, 2009 Update. UAE figures: Oxford Economics, January 19 2009;

Real GDP Growth, Annual % Change

9.3

7.3

5.16.5

13.0

9.08.0

2.82.0

1.1

-1.6

1.61.8

4.5

9.8

6.7

11.6

7.07.4

9.4

-5.0

0.0

5.0

10.0

15.0

China

India

UAE

USA

2006 2007 2008 2009 2010


Dubai Today: The Bubble has Burst

Global Financial Crisis Has Reached UAE

– Tighter lending standards

– Property values spiraling 30-50%

Construction Grinding to a Halt

– “Wait and See”

– Developers citing significant profit losses

– Layoffs due to cancelled or halted projects

– Expats fleeing

Abu Dhabi & Rest of Region Holding Steady


India Market: Mixed Bag

Declines in private funding & foreign investment

– Drops in economic growth

– Residential, hospitality and retail particularly hard hit

– Increase in risk aversion

Indian Financial Institutions Hold Steady

– Historically conservative lending has kept banks afloat

– No major changes until new administration in late 2009

Construction Opportunities Persist

– Consistent demand for infrastructure projects (power, transport)

– Rebound expected in SEZs, hospitality and education projects


China: Construction Opportunities Persist

Export-Driven Economy Hit Hard by Global Crisis

– Manufacturing sector declining due to slowed global trade

– 4,000 factories closed in 2008, 20 million jobless migrant workers

– Falling property prices

Government Action Expected to Buoy Market

– $586bn stimulus package announced

– Interest Rate cuts

– Significant Investment in Infrastructure Projects

– Urbanization Leading to growing Consumer class; Retail sales up 21% in 2008


Green is a Silver Lining in the Down Economy


0%

20%

40%

60%

80%

100%

Total North

America

Australia/New

Zealand

Middle

East/North

Africa

Worldwide Market Growth

= 2008

= 2013

Europe South

America

Asia Sub-

Saharan

Africa

36%

73%

Percentage of Firms Largely Dedicated to Green

(on over 60% of projects) from 2008-2013

Doubling

29%

56%


0

20

40

60

80

100

120

140

Upper Market Size

Lower Market Size

Mark

et

Siz

e

$ (

bil

lio

ns)

2005 2008 2013

In the U.S.: Increasing Market Opportunity

Total Non-Res Residential Total Residential Total Non-Res ResidentialNon-Res

Triple

Double

TripleFive

Fold


Green Wins in Stimulus: Renovation Gets a Boost in Green

Much of Public Building $$ to Green Renovation Projects

– GSA $4.5 billion

– DOD $4.2 billion

– VA $1 billion

Tax breaks for ResidentialEnergy Efficiency expanded & extended


Green Wins in Stimulus: Big Focus on Renewable Energy

Investment in Renewable Energy & Conservation

– "Smart-Grid" activities $11B

– Energy efficiency grants $6.3B

– Renewable energy loan guarantees $6B

Incentives: Manufacture of Green Energy Products


Perceived Advantages of Building Green from AEC firms and Owners

Decreased Operating Costs: 8-9% 13.6%

Increased Building Values: 7.5% 10.9%

Improvement in ROI: 6.6% 9.9%

Increased Occupancy: 3.5% 6.4%

Rent Rise: 3.0% 6.1%

Increased revenue flows: 71% 77%

Increased profits: 59% 61%

Advantages are Increasing Over Time!

2005 2008


2005 2006 2007 2008 2009

Market is Growing Despite Declining New Building Construction

$182 Billion

$3 Billion

$29 Billion

$245 Billion

= Commercial & Institutional Market

= Green Market

Source: Commercial & Institutional Market Size: McGraw-Hill Construction, as of January 27, 2009. MHC Housing Starts data is similar to the Census Bureau, except that MHC defines single family housing as detached housing only. MHC includes townhomes in its multifamily data.Green Market Size: Commercial & Institutional Green Building: Green Trends Driving Market Change, McGraw-Hill Construction, 2008

$208 Billion


2005 2006 2007 2008 2009

Residential Green: Upward Growth as Total Home Market Falls

$384

Billion

$7

Billion

$133

Billion

$20

Billion

= Residential Market

= Green Market

Source:

Residential Market Size: McGraw-Hill Construction, as of January 16, 2009. MHC Housing Starts data is similar to the Census Bureau,

except that MHC defines single family housing as detached housing only. MHC includes townhomes in its multifamily data.

Green Home Market Size: Green Outlook 2009: Trends Driving Change, McGraw-Hill Construction, 2008


Rapid Growth of LEED in Specs


Labor Force: Increases from Stimulus, especially Green Jobs

Stimulus Bill Labor Specifics

–$3.95 billion training and employment services

–$500 million for job training in energy efficiency (out of above $$)

–$250 million toward creation of Job Corps Centers

Stimulus Package Funding Creating Opportunities for Green Jobs

–Federal Facilities Retrofit: Energy Efficiency

–Renewable Energy: SmartGrid Investment Green Jobs


Other Industry Trends– Interoperability/BIM

– Climate Change

– New Materials Trends

– Prefabrication & Modularization

– PPP

– Stimulus Influence on Products/Trades


Interoperability: Eliminating Waste & Increasing Productivity

StructuralEngineer

HVACEngineer

City

Constr.Manager

FacilitiesManager

BuildingOwner

CivilEngineer

Architect

StructuralEngineer

HVACEngineer

City

Constr.Manager

FacilitiesManager

BuildingOwner

CivilEngineer

Architect

StructuralEngineer

HVACEngineer

City

Constr.Manager

FacilitiesManager

BuildingOwner

CivilEngineer

Architect

BuildingInformation

Model(BIM)

Traditional Information Exchange Interoperable Exchange

Source: International Alliance for Interoperability, 2007


Litigation

Phase

Making the Case:Shift to Digital Design

Design Design Devel Const Docs Construction

Eff

ort

Time

Traditional

DesignDigital

Design

Digital Design shifts the bulk of project work to the

Design phase to help coordinate building systems

and the project and manage project costs



Adoption of BIM Increasing Over 2009

% of Total Projects

2008

38%

17%10%

35%

Expected % of Total Projects

2009 18%

20%

17%

45%

1-15%

16-30%

31-59%

>60%

33%41%

12%

45%

21%12%

32%

10%

14%

11%

12%

16%

8%

22%

11%

36%

35%

20%

20%

21%

10%

12%

8%15%

46%41%38%35%54%43%

23%

43%

20092008200920082009200820092008

60%+

31-59%

16-30%

1-15%

Architects Engineers Contractors Owners


Measuring BIM ROI:Factors Considered

Top 4 most important factors:

– Improved project outcomes

– Better communication through 3-D visualization

– Positive impact of winning projects

– Higher productivity of personnel


Climate Change Transforming Construction

Increased frequency of natural disasters

Rising water level

*************** Increase in tracking carbon footprints

– Emergence of carbon credit exchanges (Chicago, Northeast, West)

– EPA programs like Climate Leaders

– Tracking and reporting footprint in GreenSource case studies

USGBC’s LEED 2009: Emphasizing credits impacting climate change

https://w1.buysub.com/pubs/MG/GNS/GNS_subscription.jsp?cds_page_id=32865&cds_mag_code=GNS&id=1206999229962&lsid=80911631000033900&vid=8&cds_misc_1=http%3A//greensource.construction.com/images/subscribe_cover_cdc.gif&cds_mag_code=GNS


New Materials: Smarter, Greener


Creating New Materials through Science:

–Nanotechnology

–Biomimetics

–Radio frequency identification (RFID)


Materials Example:HOK Embraces Biomimcry

HOK has partnered with the Biomimicry Guild to enhance sustainable design.

Designed “skin cells” for buildings, which absorb sunlight, water and CO2 to produce oxygen and collect water.

New project in India –mimics root structures of indigenous trees and plants to help anchor houses along steep mountain slope.


Prefabrication & Modularization

Examples

SG Blocks

– Code-engineered cargo shipping containers and site-ready modularized blocks

– New Applications: “Home in a Box” & Hurricane-resistant temporary structures

– Reuse = Sustainability

Dubai’s DaVinci Tower

– World’s first prefabricated skyscraper

– 90% built as modules in a factory

– Minimize on-site labor costs, risk & time

Market demand and activity growing

New study: Use of prefabricated materials in the UK to surpass $1.4 billion by 2010.

Moving beyond the residential market


PPP Coming to the Forefront

PPPs Will Be Different Today: More Government Involvement

2009 New Transportation Bill Will Be Important for PPPs as SAFETEA-LU Expires

Proposed Federal Infrastructure BankCould Expand PPPs

Tentative Insights from Ongoing MHC Survey of Government Decision-Makers

–40% expect PPP work in next 3 years

–A third have high opinion of PPPs

–Most important financial aspects: guarantees and default provisions

–Congestion has the highest priority in decision to use a PPP

–Lack of funding the primary reason to use a PPP

–Biggest concern with PPP: unacceptable private profits


Trends

US & Global



– Workforce/Labor

– Innovation

– Materials


So whatImplications to consider


Assume pending or proposed projects are

NOT safe if financed through conventional

construction financing

– What’s the “real” health of our opportunity pipeline?

Stay close to existing clients & keep an eye

on fiscal health of key trade and supply

partners

– How can we serve our existing client-base better?

– How can we help our clients better connect with their key

partners?

Expect “Green” to become de facto market

expectation, particularly for public works,

institutional and office

– Green construction and digital design & construction are

interconnected trends

– Does our technology aid in sustainable design and

construction and visa versa? Does our brand / market

position communicate this?

Implications

http://images.google.com/imgres?imgurl=http://www.telegraph.co.uk/telegraph/multimedia/archive/00999/washington-mutual_999407c.jpg&imgrefurl=http://www.telegraph.co.uk/finance/financetopics/financialcrisis/3087076/Washington-Mutual-becomes-biggest-victim-of-credit-crisis.html&usg=__eApZOciBadrfw6MgSwBFKRVSZtI=&h=288&w=460&sz=24&hl=en&start=37&tbnid=OJi5SQyZ5HloIM:&tbnh=80&tbnw=128&prev=/images%3Fq%3Dcredit%2Bcrisis%26start%3D20%26gbv%3D2%26ndsp%3D20%26hl%3Den%26sa%3DN

http://images.google.com/imgres?imgurl=http://ecx.images-amazon.com/images/I/518RSW0B0HL._SL500_.jpg&imgrefurl=https://www.betterworld.com/Customers-For-Life-id-0385504454.aspx&usg=__eopusKYHgZdKoJSJKQyXw9YDxCc=&h=475&w=314&sz=44&hl=en&start=17&tbnid=6hEOsxQ2yKs5PM:&tbnh=129&tbnw=85&prev=/images%3Fq%3Dcustomers%2Bfor%2Blife%26gbv%3D2%26hl%3Den

http://images.google.com/imgres?imgurl=http://www.longwood.edu/greencampus/images/p_greenbuildings.jpg&imgrefurl=http://www.longwood.edu/greencampus/areas/greenbuildings/gbuildings.html&usg=__-Nt6QcPg0aY9Pbf_tPM3Lre7ASY=&h=272&w=437&sz=21&hl=en&start=7&tbnid=JGed-XzlvfF5iM:&tbnh=78&tbnw=126&prev=/images%3Fq%3Dgreen%2Bbuildings%26gbv%3D2%26hl%3Den

http://images.google.com/imgres?imgurl=http://www.horizonmagazine.com.au/wp-content/uploads/2008/06/green-business.jpg&imgrefurl=http://www.horizonmagazine.com.au/%3Fcat%3D11&usg=__NdK4noCXR7z8XGX8opAyiV7Fr3Q=&h=378&w=400&sz=15&hl=en&start=16&tbnid=5atMdq9W45DkGM:&tbnh=117&tbnw=124&prev=/images%3Fq%3Dgreen%2Bbusiness%26gbv%3D2%26hl%3Den


Infrastructure, Education, Healthcare,

Alternative Energy & Transmission are all

good bets over the long term…

– Do we have access to the firms involved?

– Does our technology address their specific needs?

Alternative delivery ie: IPD becomes

increasingly attractive as owners look for

greater efficiencies and risk sharing

– BIM is one of many critical enablers in emergence of

IPD/other project management efficiencies. How do we

support these emerging delivery methods?

– Can we quantify our technology’s impact on waste

elimination, greater productivity, greater transparency?

Implications

http://images.google.com/imgres?imgurl=http://www.ceceurope.com/images/Framework%2520project%2520management.gif&imgrefurl=http://www.ceceurope.com/projectlifecycle.html&usg=__-3v0Bmjzl24TmKJ88pDP4IsPLe8=&h=1030&w=1331&sz=220&hl=en&start=65&tbnid=17lRVVuJd2SrAM:&tbnh=116&tbnw=150&prev=/images%3Fq%3Dintegrated%2Bproject%2Bdelivery%26start%3D60%26gbv%3D2%26ndsp%3D20%26hl%3Den%26sa%3DN

http://images.google.com/imgres?imgurl=http://www.treehugger.com/barack-obama-for-president.jpg&imgrefurl=http://www.treehugger.com/files/2008/04/obama-goes-for-public-transportation-vote.php&usg=__TbseFrUIPTp76GQA_xcqz76NTWE=&h=305&w=341&sz=36&hl=en&start=15&tbnid=6l2KNIe7cTWX5M:&tbnh=107&tbnw=120&prev=/images%3Fq%3Dobama%26gbv%3D2%26hl%3Den

http://images.google.com/imgres?imgurl=http://www.tabira.ro/Rolido/drumuri1.jpg&imgrefurl=http://www.rolido.ro/index.php%3Fid%3D35&usg=__gYCOEot1CZsyFhYQ29pJibawNH4=&h=306&w=505&sz=25&hl=en&start=1&tbnid=wu38U785G9abUM:&tbnh=79&tbnw=130&prev=/images%3Fq%3Droads%2Band%2Bbridges%26gbv%3D2%26hl%3Den

http://images.google.com/imgres?imgurl=http://cctaylor.files.wordpress.com/2008/07/windpower.jpg&imgrefurl=http://cctaylor.wordpress.com/2008/07/17/texas-is-moving-toward-wind-power/&usg=__T9ZenBZjFrDBIujs8r3kF4iO4Js=&h=1125&w=1687&sz=763&hl=en&start=2&tbnid=M76VcBLTLUGYXM:&tbnh=100&tbnw=150&prev=/images%3Fq%3Dwind%2Bpower%26gbv%3D2%26hl%3Den

http://money.cnn.com/2008/11/26/news/economy/obama_infrastructure/index.htm?postversion=2008112608


Alternative financing like PPP has renewed

appeal as state /local govt’s balance

infrastructure needs and budget shortfalls

– Do we play a role in facilitating, adding transparency to

public private partnered projects?

It’s a great time to recruit future users

– Are we educating today, tomorrow’s digital construction

influencers / users?

Use of prefabrication and modularization will

accelerate

– Owner expectations driving job productivity improvements,

reduced waste and better cost management

– Companies in favorable cash position are investing in

innovation to secure profitable competitive advantage

– How does our technology enhance / accelerate this

emerging productivity trend?

Implications

http://images.google.com/imgres?imgurl=http://www.rtd-fastracks.com/images/uploads/main/T-Rex_LRT_TRACK_WORK_9-17-03.jpg&imgrefurl=http://www.rtd-fastracks.com/main_91&usg=__B9OnxWPEAGUrvKgCXbo645tvtKo=&h=292&w=448&sz=112&hl=en&start=21&tbnid=cNLv9HqcsKFUGM:&tbnh=83&tbnw=127&prev=/images%3Fq%3Dpublic%2Bprivate%2Bpartnerships%26start%3D20%26gbv%3D2%26ndsp%3D20%26hl%3Den%26sa%3DN

http://images.google.com/imgres?imgurl=http://www.wizbit.net/theme_images/40_r_recruitment.jpg&imgrefurl=http://www.wizbit.net/recruitment.htm&usg=__U-J7UYLolyuu-qnfIwnGqRwYGnE=&h=264&w=334&sz=23&hl=en&start=54&tbnid=4J85UZeuXzoQWM:&tbnh=94&tbnw=119&prev=/images%3Fq%3Drecruitment%26start%3D40%26gbv%3D2%26ndsp%3D20%26hl%3Den%26sa%3DN

http://images.google.com/imgres?imgurl=http://www.fulcro.co.uk/HTML/ourskills/prefab/projectsupport.jpg&imgrefurl=http://www.fulcro.co.uk/HTML/ourskills/prefab/index.html&usg=__AzAHt6fGfCQNhP7qdrELU4QRDtU=&h=245&w=346&sz=41&hl=en&start=2&tbnid=PS2Ztz26NjmuGM:&tbnh=85&tbnw=120&prev=/images%3Fq%3Dprefabrication%26gbv%3D2%26hl%3Den


Trends

US & Global



– Workforce/Labor

– Innovation

– Materials


Resourceseducate your team / grow your business


Resources to educate your team and customers

• Free access to breaking news on ENR.com• 140,000 unique visitors• 1.2MM page views

Insight considerations…


http://construction.com/stimulus/Free access to news & analysishttp://construction.com

Insight considerations…Resources to educate your team and customers


Market Dynamics E-Newsletter

Free access to latest analysis and forecasts from MHC Analytics group

Distributed monthly to 20,000 industry professionals

Sign-up available at construction.com under Market Research tab (http://www.construction.com/market_research/)

Sign up by email to [email protected]

Insight considerations…Resources to educate your team and customers


Easy access to stimulus

projects via key word search

Stimulus opportunity attributes…

– “Shovel Ready” – projects in

consideration for ARRA financial

support

– “ARRA Stimulus” – projects

verified to receive ARRA funding

McGraw-Hill Construction Network

Making it work for you… Finding Stimulus Construction

Business development considerations…


McGraw-Hill Construction Network

Present Opportunities on Stimulus Construction Shovel Ready

– Proposed

– 11,094 projects

– $94.3B

ARRA Stimulus

– Funded!!

– 949 projects

– 626 Hwy

– 53 Transit

– 21 Utilities

– $5.3B

Growing daily!!

Business development considerations…


Leading provider of construction information

Founded over 100

years ago

• Key industry alliances

Over 1,000,000 customers

Serving private sector, government, financial community

serving business needs four ways.

Get Smarter Get Seen & Selected Find Opportunity Sell & Market Smarter

Increase Efficiency of Business

Processes, and Build Project

and Employee Productivity

Identify Key Project

Opportunities, and Increase

Your Company’s Backlog

Build Your Company’s Market

Presence & Identity

Analyze, Identify and

Evaluate Market Conditions

and Opportunities

MHC Integrated Media:

Print, Online, Events

MHC

Research & Analytics

MHC Network®

& Dodge Database

MHC Network® Express

& Performance Tracking


Trends

US & Global



– Workforce/Labor

– Innovation

– Materials


“Luck favors the prepared mind.”- Louis Pasteur -

Thank you!Questions or comments??

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[email protected]

mailto:[email protected]






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