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Engineer sector trends 2013 affecting it spend

Date post: 12-Nov-2014
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AEC EPC trends to impact information technology spending in 2013. The presentation looks at regional and economic trends in 2013 that will affect IT investment in engineering projects.
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Page 1: Engineer sector trends 2013 affecting it spend

AEC industry trends 2013 affecting IT spend

www.arx.com

Page 2: Engineer sector trends 2013 affecting it spend

AEC 2013 global trends affecting IT

Page 3: Engineer sector trends 2013 affecting it spend

• To remain a global energy power

• Cooling housing market expected to slow economic growth

• Mining industry has been breaking records, and will continue to be strong

• Government belt-tightening could slow GDP growth through 2013

• Modest growth up 1% from 2012

• Fiscal cliff - a worrying risk to industry prospects

• 6% growth for construction-starts to be fueled by private investment and housing market expansion

• Mining/energy sector slowing but still share healthy 2013 outlook

US 2013 Canada 2013

AEC global industry outlook 2013

Page 4: Engineer sector trends 2013 affecting it spend

• Many countries will be up-grading infrastructure & housing

• China is still the largest construction market followed by India & Vietnam

• China is open to foreign players if they partner with local ventures

• China & India to pick up pace 2013-17• Market-ready regions for AEC IT

investment in 2013: Singapore, Hong Kong & Australia

• Construction forecasts from 2012 to 2013 have been downgraded from -0.3% to -2.1% in 2012

• In 2013 from; +1.8% to +0.4%• Most countries reached or passed

the bottom of their AEC cycle • Nordic and CEE countries – better

off than the rest of Europe• Civil engineering is the biggest drag

on overall construction

Asia Pacific 2013Europe 2013

AEC global industry outlook 2013

Page 5: Engineer sector trends 2013 affecting it spend

US AEC market outlook by sector

The great balancing act

Page 6: Engineer sector trends 2013 affecting it spend

US AEC market outlook by sector

Public works construction to slide 1% as federal cuts environment projects

• Expiration of federal loan guarantees for renewable energy projects to dampen 2013

• Manufacturing - greatly improving & expected to positively affect AEC sector

Institutional building to level off after 13% drop in 2012

Multi-housing to grow to 16%, commercial to grow by 12%

Single residential construction to grow 24%

Manufacturing building to grow 8%, showing improvement after 2012 drop

Healthcare facilities set for modest rebound

Educational facilities; K-12 construction to drop, college/university to stabilize

Page 7: Engineer sector trends 2013 affecting it spend

• US Construction spend predicted to rise

• Debt dropping from record highs

• AEC / EPC growth predicted mostly for commercial construction & a gradual reduction in industry and education

US AEC market outlook

Page 8: Engineer sector trends 2013 affecting it spend

Europe AEC outlook

Slow drag ahead

Page 9: Engineer sector trends 2013 affecting it spend

1. Denmark / Norway to grow by 2%

2. Austria, France, Germany, Hungary, Poland Slovakia, Sweden, Switzerland, UK - modest growth of 0.1% & 2% a year

*UK industry expected to keep slowing until end of 2013, with prices rising slightly

3. Belgium, Czech Republic, Finland, Italy, Netherlands - moderate decline (0% to -3)

4. Ireland, Portugal, Spain - construction activity is still in deep recession

*Spain - debt more than double from 2008

Europe AEC outlook by region, sector & period

Page 10: Engineer sector trends 2013 affecting it spend

Europe AEC status by sector

2013 outlook Slight recovery to materialize • Less construction demand is the

major problem

• Many investments aiming to “green” infrastructure network development

European construction outlook to 2014, Obele Vries

Status quo - Business climate deteriorating• Spain & Italy faced more decreases in 1st half• Scandinavia, Baltic zone & Turkey faced a rise in

demand • Germany, France, recently showed a slowdown• Falling in AEC equipment orders all over

Page 11: Engineer sector trends 2013 affecting it spend

• Global engineer firms finding more opportunities in Asia /Latin America

• Firms deeply concerned about Europe

• US project funding in public sector – a worry for market in early 2013

• Sustainability building lost some of its luster due partly to costly certification

• Mining and metals – still a robust market worldwide but moderating

• One of the biggest trends - consolidation among firms

Overall AEC global trends

Page 12: Engineer sector trends 2013 affecting it spend

Engineering industry trends & IT directions 2013

Many AEC firms still lack standardized and consistent processes for managing projects

Standardization & regulatory compliance is in greater demand

.

Page 13: Engineer sector trends 2013 affecting it spend

Engineer firms strategic IT approach

Overall AEC / Engineer firms are increasingly adopting a more strategic IT approach as projects become more complex, mobile & cloud dependent

Top engineering sector technology trends - based on Gartner’s 2012 report

Page 14: Engineer sector trends 2013 affecting it spend

AEC project trends influencing need for digital signatures 2013

Construction projects to continue to grow in complexity

Many projects ROI –only reaching 2 – 5% due to cost overruns & schedule delays

A loss on one project can wipe out gains from others for the entire year.

Firms cite low profit margins as the #1 business pressure.

At least 23% of projects failing to meet required return threshold

Re-shoring trend:

Economic pressures forcing AECs to work globally - increasing documentation time and costs

Owners demand turning over of all documents in digital format at the end of projects including digital contracts & approvals

Project teams increasingly frustrated by manual efforts involved in filling out forms, reports…

Page 15: Engineer sector trends 2013 affecting it spend

US AEC IT Trends leveraging digital signatures

Tablet devices are becoming an increasingly popular tool for field site project work

Mobile & cloud services adoption growth with the globalization of projects, more onsite reporting & data sharing

Software services moving increasingly to the field & cloud

Many project managers & site-based employees are becoming integral data managers

Page 16: Engineer sector trends 2013 affecting it spend

US AEC IT Trends influencing digital signatures

Project document collaboration, management & tracking needs are rising

A growing need for lifecycle data management in projects

2012

2013

Engineering projects trends

Auto-workflow tools are increasingly adopted & standardized

Page 17: Engineer sector trends 2013 affecting it spend

Thank you

CoSign® by ARX is the most widely-used standard digital signature solution exercised by millions of signers, including AEC, EPC and manufacturing enterprises worldwide.CoSign enables engineers and project team members to meet a growing need to reduce reliance on paper, increase automated processes, deliver document integrity and comply with standards.

www.arx.comFor more information: [email protected]

Page 18: Engineer sector trends 2013 affecting it spend

Sources


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