Trends in the Heavy/Highway Construction Industry - The State of the Infrastructure -- How Do We Keep Up?

RALEIGH, N.C., June 27, 2008

FMI, management consultants and investment bankers to the construction industry, confront “Trends in the Highway/Heavy Construction Industry” and discuss the state of the infrastructure going forward. In the linked webinar below, Senior Consultant, Brian Moore sheds light on the major issues that will shape the future of the heavy/highway construction industry and discusses the quickening pace of change and larger magnitude of change in the industry. 

There are four major themes the industry will face in the coming decade:

1.         We can expect to see significant changes in the funding for infrastructure. Current funding will not meet expected needs. The Highway Transit Fund will have a $4.3B deficit by FY 2009, resulting in a $27.3B highway program. The primary funding vehicle (gas tax) is losing purchasing power. Highway construction materials prices are currently up 43% from 2003 and total highway costs, labor and overhead are up 27%.

2.         Demand will be driven by demographics. Growth and congestion are becoming issues of national priority. The cost of travel delays and wasted fuel is currently estimated at more than $67 billion annually. System capacity is considered imperative to remain competitive in the global marketplace – China and India are making tremendous investment in their transportation infrastructure.

3.         Competition for scarce resources will create “hyper-competitive” markets. Topping the list of scarce resources is labor shortages. The pool of skilled labor/field management/project managers is shrinking. This is the top issue identified by contractors. In 2008 alone, there were 6 million more jobs than employees and this number is expected to exceed 10 million by 2012. Basic materials such as cement, aggregates, hot mixed asphalt and ready mixed concrete are becoming scarce commodities as well. 

4.         Technology will continue to infiltrate construction in ways that matter to contractors. How will this look? Technology will play a larger role in mitigating workforce shortages, attracting “techno-wonks” to the industry, solving interoperability, construction conflicts, flattening hierarchical organization and changing management from art to science.

Brian drills down into each of these themes to help business owners prepare themselves, and their businesses, for the inevitable changes so they are better prepared to compete and win in the coming decade.

According to Brian, there is little doubt that change is occurring rapidly in the heavy/highway construction industry. These changes mean that building a great company in today's environment requires more diligent planning and greater insight into emerging trends. Brian’s webinar discussion helps stimulate leadership team thinking around these trends (http://www.computerguidance.com/webcasts/).

Brian Moore focuses on consulting with contractors and construction materials producers on various strategic, financial and operational issues. Specifically, his work at FMI involves in-depth market analysis, strategic and business planning and market planning for clients throughout the nation. 

For more information about FMI’s “Trends in the Heavy/Highway Construction Industry - The State of the Infrastructure,” or to schedule an interview with Mr. Moore, please contact Kathryn Robinson at FMI Corporation at 919-785-9211 or krobinson@fminet.com.