Market Outlook Construction Forum Situation Report, October 2, 2020

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Session Presenters

  • Richard Vermeulen, Lead Economist, Vermeulens
  • Blair Tennant – Associate Principal, Vermeulens

COVID-19 6-month Recap, Vermeulens

  • March 2020 (the beginning)
    • Strategic pauses in construction
    • Using shiftwork for reduced contact
    • Contractors identify COVID cost premiums
    • Most vendors experience little to no delays
    • Contractors reported a 5%-7% reduction in productivity
  • Summary of Design Firm’s Insights
    • Jacobs: Discussion on the impact of reduced revenue streams for universities
    • University of Texas: Dealing with virtual transition and what the best communication software is (Microsoft Teams)
    • Gould Evans: Using technology for virtual observation
    • Vaughn Construction: Connectivity challenges and group dynamics for virtual observation
    • Sundt Construction: Strong subcontractor participation. Conceptual and SD projects slowing down, anticipating reduced revenues 2021, 2022
    • Vanderweil: Aerosols are the biggest challenge, utilizing return registers with oversized filter grilles
    • Texas Tech University: Analysis of COVID related delays and impacts
    • Gilbane: Vendor delays from imported products
    • Turner Construction: Longer hours- shorter weeks, paying in advance, etc.
    • TreanorHL: Early signs indicate a 20% reduction in higher education students in the coming years with International students having a large impact
    • SOM: Pandemic reveals wasteful and overbuilt higher education systems. Discuss campus of the future
    • Yale New Haven Health: Transition of large capital project funds to COVID readiness
    • EYP: Discussion on staffing challenges and their virtual solutions
    • Lord Aeck Sargent: Office space per employee trends past and future
    • Stantec: Survey result analysis indicate that employees will only be coming into the office 1-3 days a week
    • SmithGroup: Lab of the Future. Big increase in choice and mobility in workspace. Reductions in bench space
  • Economic Summary
    • Significant change in FED policy toward employment utilization and inflation averaging
    • Substantial drop in GDP and stock market in Q2, figures indicate a positive trend in Q3 (around 20% in GDP)
    • 3 trillion injected into economy, 0% interest rates
    • Unemployment rates have declined over the past few months (currently around 8%)
    • Construction employment market did not take a major hit compared to the rest of the market
    • AIA billing may indicate future decrease in volume in the Institutional Commercial Industrial construction sector
    • COVID timeline analysis points to extended slowdown
    • Healthcare rebounding, education sector slowing down, broad market working through backlog

Future Agenda

  • K12 Impacts
  • Home Construction and Real Estate Trends
  • Office Real Estate Trends
  • Flex Buildings and Systems

 

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Reports and Slide Decks

October 2020

Market Outlook Construction Forum Report with Slides - October 2, 2020

September 2020

Market Outlook Construction Forum Report with Slides - September 18, 2020

Market Outlook Construction Forum Report with Slides - September 4, 2020

August 2020

Market Outlook Construction Forum Report with Slides - August 21, 2020

Market Outlook Construction Forum Report with Slides - August 7, 2020

July 2020

Market Outlook Construction Forum Report with Slides - July 24, 2020

Market Outlook Construction Forum Report with Slides - July 10, 2020

June 2020

Market Outlook Construction Forum Report with Slides - June 26, 2020

Market Outlook Construction Forum Report with Slides - June 12, 2020

East Construction Round Table Situation Report and slides, June 3, 2020

May 2020

Market Outlook Construction Forum Report with Slides - May 29, 2020

East Construction Round Table Situation Report and slides, May 27, 2020

Market Outlook Construction Forum Report with Slides - May 22, 2020

East Construction Round Table Situation Report and slides, May 20, 2020

Market Outlook Construction Forum Report with Slides - May 15, 2020

East Design & Construction Round Table Situation Report and slides, May 13, 2020

Market Outlook Construction Forum Report with Slides - May 8, 2020

East Design & Construction Round Table Situation Report, May 6, 2020

Central/West Design & Construction Round Table Situation Report with Slides - May 1, 2020

April 2020

East Design & Construction Round Table Situation Report, April 29, 2020

Central/West Design & Construction Round Table Situation Report - April 24, 2020

East Construction Round Table Situation Report and Vaughn Virtual Inspections White Paper, April 22, 2020

Central/West Construction Round Table Situation Report and Vaughn Virtual Inspections White Paper - April 17, 2020

East Construction Round Table Situation Report, April 15, 2020

Central/West Construction Round Table Situation Report - April 10, 2020

East Construction Round Table Situation Report, April 8, 2020

Central/West Construction Round Table Situation Report - April 3, 2020

Northeast Construction Round Table Situation Report, April 1, 2020

March 2020

Texas Construction Round Table Situation Report March - 27, 2020

Northeast Construction Round Table Situation Report, March 25, 2020

Texas Construction Round Table Situation Report March - 20, 2020