It is no surprise that the economy has had a devastating impact upon the construction industry. I maintain that there are still a lot of opportunities out there but you definitely need to work smarter rather than harder.
As a new member in the construction industry; you need to keep abreast of the news and changes that are occurring in the market place.
One of the changes that I am aware of contains both good news and bad news. The bad news is that the government is reducing their budget for construction. The good news is that instead of doling out the projects in large amounts or bundles they will be breaking the project into smaller sizes that will offer more opportunities for the smaller construction companies.
In the past the government bundled the contracting projects in larger sizes that favored the larger contracting companies.
FMI, a management consulting and investment banking company for the engineering and construction industry, has released a report that gives their assessment of the future of the contracting industry.
Their report is titled
“The Federal Construction Sector: Understanding a Transforming Market.”
While I do not agree with everything in their report; it is interesting and I believe it is worth your time to review the complete document.
In one part FMI says “Last year, GSA received a record $1.7 billion in reimbursable funding for small projects. This is money that we receive from tenant agencies to perform the work. Given current budget trends, we anticipate more small projects, which are needed to keep our buildings operational and perform critical building repairs. This is good news for small businesses as GSA awards represent a very large percentage of the work to them.”
—The quickening pace of change will ensure that new leaders emerge from the field, and that former mainstays disappear. Tomorrow’s federal design/construction leaders will anticipate and adapt to this all-encompassing change. To get there, firms will have to ask themselves, ‘what makes us unique’ and then move beyond the value-cost tradeoff to create and fulfill new demand.”
I believe that you should get involved in the Federal Contracting along with maintaining your presence in the private sector. You need to keep a well rounded approach to your future plans in the construction industry!.
To read the complete report from FMI you need to click here!