The early effect of the recession on the nonresidential construction sector included significant productivity improvement, FMI said in a new survey, “The 2012 U.S. Construction Industry FMI Productivity Report.” “Downsizing has resulted in retaining the most experienced and best-trained personnel who are the most capable of working more efficiently and harder,” FMI said. FMI warned, however, that the initial productivity spike has begun to wear off. While productivity continues to improve, FMI reports, the rate of improvement is slowing. FMI surveyed chief executive officers, chief financial officers, chief operating officers, presidents, executive vice presidents and vice presidents of larger contractors, including trade contractors and general contractors. One of the largest areas for improvement is planning at the field manager level, FMI said. Eighty percent of respondents reported they could save at least 5 percent of their annual field labor cost through better management.
The survey noted that the industry is undergoing significant changes in procedures, roles and responsibilities. “Emerging technologies, methodologies and practices, such as Building Information Modeling (BIM), Integrated Project Delivery (IPD), lean construction, and prefabrication, create opportunities for increased productivity,” FMI said. “Forty-two percent of respondents who have used prefabrication on projects have experienced improved productivity by 10 percent or more. Additionally, although only 35 percent of all respondents have employed integrated project delivery, 19 percent of them are reporting significant improvements in productivity.” FMI is the largest provider of management consulting and investment banking to the engineering and construction industry. Download a copy of the full report.
To learn more about this report or other matters impacting the construction industry, please contact the construction professionals of McKonly and Asbury, LLP.