Dec
20
2011 – The year we get our jobs back?
That’s what we’re all hoping. I have to admit this whole situation has been rougher than I anticipated back in 2008 but in the past couple of months I’ve seen many positive indicators for 2011. It has fundamentals and structure that we just haven’t seen in 3 years. According to a few of our sources through KPMG and McGraw-Hill we find the following:
“After two of the most difficult economic years in memory, many global engineering and construction companies appear to be somewhat optimistic about their immediate prospects. Around half (48 percent) of the respondents to this year’s survey are forecasting rising backlogs in 2011. (KPMG)”
Positive Notes:
1. Construction starts to be up across the board in 2011
2. Large construction firms are pushing away from large infrastructure projects in favor of niche markets in power such as oil, gas, nuclear, power generation, water
3. Many builders are actively looking internationally and toward growing markets in South America.
4. Very few builders look to lay off workers in 2011 and are considering lean growth.
5. Steady rise in green and sustainability projects. Green Market demand in 5 years has grown 6 fold from $10+ million to just under $70million
6. Steady rise retail and hospitality tenant improvement/renovation construction.
7. Construction starts forecast for 2011: Multifamily up 26%, Office/Retail/Hospitality up 16% and even single family is projected to be up 27% over 2010.
8. Area of concern – Public works and institutional building due to fading support from stimulus bill and local jurisdictions.
9. Many leaders feel that a “renewed expansion” is just around the corner.
Looking back: Stimulus was un-stimulating for real estate. Most of the Administration’s stimulus packages went towards the civic arena to save jobs in public education, police and fire service. Though this is great and did stave off some unemployment issues for the country it did little to save jobs in real estate development (including design and construction) which if taken by itself has seen almost a 25% drop in employment nation wide.
Looking forward: Real estate firms (architectural, construction and development) are adopting a leaner meaner approach to hiring. Thus creating a more dedicated employer that is willing to invest long-term in top talent not only fiscally but also through more advanced training and mentorship. Clients have learned the hard way during the Great Recession that over staffing can cause a tragic ripple effect in hard times costing them even their most coveted talent. Most employers now feel they can do more with a little bit less and therefore survive tough economic downturns with less lay-offs and retain the talent they’ve worked hard to recruit. This also creates a stronger atmosphere for more competition because companies won’t put themselves in harms way going after more than they’re capable of. More companies in niche markets will create a great demand for talent as the market improves.
From Kipp’s desk: 2011 should have an upbeat tone to it. Each quarter getting a little bit better than the one prior. When looking for a job don’t just rely on job boards and social networking. Remember to get out and be noticed. Have a couple of coffee-meetings a week with those in every side of the industry. Don’t send your resume off into the great unknown of the cyber world but learn who’s hiring, track down the hiring manager and make direct contact. 2011 should be a better year but it will be slow in gathering steam. We’ll stay in touch but if you ever have a question or need some guidance give me a call.
It’s tough to go from 3 years of dark clouds to seeing a ray of light because at this point even a little light can be blinding and a bit confusing. Atrophy has forcefully set in and we’ve become sluggish, but now is the time to shake off the dust and throw some cold water in our faces because in 2011 we have work to do!
Happy Holiday to you and your loved ones!
Kipp Gillian – President
Gillian Executive Search, Inc.
www.gessearch.com
866-600-0437 x 1
