January 31, 2019
The new year will be a continuation of the current construction boom. Even if economic headwinds arise this year, the effects won’t be felt by active construction projects in 2019. Even in a busy market, the year ahead comes with challenges. DPR national core market experts each weigh in about a trend they’re watching that has the potential to impact customers.
“The Cloud is central to everything we do at work and at home. There is no short-term ease on demand. As such, the focus in 2019 will be minimal speculative builds with optimized speed-to-market strategies. The customers of our customers are exerting a lot of pressure on getting things online. Contractors need to use every tool at their disposal to ensure just-in-time delivery of materials and methods like prefabrication to shorten schedules. That said, the magic will happen in the planning stages; preconstruction and VDC services have the tools to really drive the process, especially in collaborative arrangements like design-build.”
“The single biggest driver in the market this year will be the younger generation of the workforce and the expectations they have for workplaces and lifestyles. On the office front, we’ve seen how spaces that offer flexibility and nudge toward healthy decisions and sustainability are preferred. Beyond that, in sectors like hospitality, the effect is even greater. With travel trends, it’s not OK to have a cookie cutter hotel anymore, and owners are spending more time looking at things like lighting to encourage selfies and food posts to social media. Cost is a pressure, but the need is real. We expect, even with a potential slowdown, we’ll see owners taking advantage of lower costs to renovate existing spaces to these new standards.”
“There continues to be a lot of discussion about how driving services to less acute facilities will ultimately lead to the increased development of outpatient facilities. However, the majority of work we continue to see are major patient tower expansions and renovations to existing acute care facilities. This is due to more access to insurance, an increasingly older population and a desire to capture market share with nicer amenities and newer technologies.
“That being said, healthcare systems continue to look at doing more with less to increase profitability due to lower reimbursement rates. Prefabrication and modularization, particularly for things like exterior skin and headwalls to corridor racks and full bathroom pods, will be key in helping customers maximize their returns. The good news is this is driven by more access to insurance, so systems are aiming to support a larger share of the population and providing key services to those who need it.”
“We keep hearing from customers that their biggest uncertainty is knowing what majors will be in demand in five to ten years. Plus, technology changes quickly. As a result, we see high demand for lab/STEM/STEAM spaces, but with an emphasis on flexibility. How can we best advise a customer on design and construction of a new space that they can literally roll in new equipment in a few years to meet student and professor needs? The way we address that issue will be a key issue in 2019."
“Manufacturing is trending towards scaling-out instead of scaling-up to keep pace with exciting new life science discoveries that demand a more targeted and personalized approach to treating diseases. We know that there is a trend toward smaller production spaces, where smaller lots can be produced before making the investment to manufacture at large scale. On the R&D front, there is a growing number of projects that are converting office buildings into lab buildings; that will involve some very technical needs from a contractor. Additionally, there is more reliance on data, so we see a convergence among the interests of life sciences, healthcare and data center customers.”