American Moving and Storage Association PANEL DISCUSSION Workforce Trends Peter M. Winters, CFM, CFMJ, AIA Director, IFMA Board of Directors and Senior Vice President, HOK Advance Strategies

Facility management responsibilities have expanded to encompass… Planning and project management Real estate Leadership and management Finance Operations and maintenance Quality assessment and innovation Human and environmental factors Communication Technology (newest)

Planning and project management

Real estate

Leadership and management

Finance

Operations and maintenance

Quality assessment and innovation

Human and environmental factors

Communication

Technology (newest)

Here’s the bad news…

Current Trends in the Commercial Real Estate Industry

Commercial property sales plunged 73% last year. Office vacancy rates have risen to two-year highs. Unemployment in the construction industry is 15.3%, well above the average 7.2% jobless rate. The national average rental rate for downtown retail space rose 7% last year. Conditions differ regionally throughout the United States. “ We believe we will see further erosion in all sectors before vacancy rates and rental rates stabilize in late 2009 and early 2010.” - Jeffrey Finn, president and CEO of NAI Global. Many in the construction industry are pushing Congress to quickly approve hundreds of billions of dollars in new public works spending, including bridges, roads and schools.

Commercial property sales plunged 73% last year.

Office vacancy rates have risen to two-year highs.

Unemployment in the construction industry is 15.3%, well above the average 7.2% jobless rate.

The national average rental rate for downtown retail space rose 7% last year.

Conditions differ regionally throughout the United States.

“ We believe we will see further erosion in all sectors before vacancy rates and rental rates stabilize in late 2009 and early 2010.” - Jeffrey Finn, president and CEO of NAI Global.

Many in the construction industry are pushing Congress to quickly approve hundreds of billions of dollars in new public works spending, including bridges, roads and schools.

Here’s the good news… What goes down must come up. Together we have the ability to overcome this downturn and come out stronger in the end.

What goes down must come up.

Together we have the ability to overcome this downturn and come out stronger in the end.

Space and Project Management Benchmarks IFMA Research Report #28

Office Type

Reasons for Moving

Where They’re Moving

Who Physically Does the Moving

Resources Provided to Individuals Affected by Moves Resources % Moving boxes 80% Designated staff move coordinators 66% “ How-to-pack” memos 57% “ How-to-pack” meetings 30% Rented stacking crates 28% Bubble bags 18% Hired move consultants 18% Move Web site 8%

Post-relocation Activities Provided Activities % Furniture adjustments 83% Roving department facilities support 61% On-site technology set-up support 60% Technology help desk 56% Post occupancy evaluation 33% Lost and found 22% Satisfaction survey within first week 19% Follow up survey several weeks later 14% Other 9%

Distributed Work Strategies Report Early Findings (not yet published by IFMA)

Allocation of Workspace

Allocation of Workspace Non-dedicated space is tied to facility size. Facilities with fewer employees are less likely to offer this option. Headquarters facilities are more likely to have some assigned space. Most education/training facilities, factories, health care and warehouse/distribution centers offer non-dedicated space.

Non-dedicated space is tied to facility size.

Facilities with fewer employees are less likely to offer this option.

Headquarters facilities are more likely to have some assigned space.

Most education/training facilities, factories, health care and warehouse/distribution centers offer non-dedicated space.

Allocation of Workspace Within the institutional sector, a majority of educational and city/county government facilities have all assigned space. Telecom, insurance, consumer products and electronic manufacturers are most likely to offer non-dedicated space.

Within the institutional sector, a majority of educational and city/county government facilities have all assigned space.

Telecom, insurance, consumer products and electronic manufacturers are most likely to offer non-dedicated space.

FMs with Workers Sharing Workspace in Their Facilities (Two or more workers sharing same space or desk)

Shared Workspace Proportion of shared workspace increases with number of employees, doubling from 38% with 100 or less to 77% of facilities over 5,000 employees Health care, telecom, energy and consumer goods manufacturing facilities are most likely to have workers sharing workspace.

Proportion of shared workspace increases with number of employees, doubling from 38% with 100 or less to 77% of facilities over 5,000 employees

Health care, telecom, energy and consumer goods manufacturing facilities are most likely to have workers sharing workspace.

Facility Management Trends Linking facility management to strategy Emergency preparedness Change management Sustainability Emerging technology Globalization Broadening diversity in the work force Aging buildings

Linking facility management to strategy

Emergency preparedness

Change management

Sustainability

Emerging technology

Globalization

Broadening diversity in the work force

Aging buildings

Trend #1: Linking Facility Management to Strategy Facility management must: Have a clear vision and understanding of long-term strategy rather than a short-term focus on tactics. Transition from cost control to supporting the development of human capital. Understand the complexities associated with strategic facilities planning/budgeting.

Facility management must:

Have a clear vision and understanding of long-term strategy rather than a short-term focus on tactics.

Transition from cost control to supporting the development of human capital.

Understand the complexities associated with strategic facilities planning/budgeting.

Unforeseen emergencies Natural disasters Data protection Threatened or actual terrorism Chemical/biological incidents Workplace violence Crime Trend #2: Emergency Preparedness

Unforeseen emergencies

Natural disasters

Data protection

Threatened or actual terrorism

Chemical/biological incidents

Workplace violence

Crime

Trend #3: Change Management Scope of responsibilities for facility management are becoming less distinct requiring a wider array of competencies Greater interaction and strategic collaboration with finance, human resources and information technology

Scope of responsibilities for facility management are becoming less distinct requiring a wider array of competencies

Greater interaction and strategic collaboration with finance, human resources and information technology

Trend #4: Sustainability The demand is escalating for environmentally friendly high performance buildings. Companies not incorporating sustainable practices will be at a competitive disadvantage.

The demand is escalating for environmentally friendly high performance buildings.

Companies not incorporating sustainable practices will be at a competitive disadvantage.

Trend #5: Emerging Technology Technology will continue to significantly impact and influence how facility managers do their jobs, how they communicate internally and externally and how their buildings operate. We expect, however, that technology will become increasingly user-friendly and standardized.

Technology will continue to significantly impact and influence how facility managers do their jobs, how they communicate internally and externally and how their buildings operate.

We expect, however, that technology will become increasingly user-friendly and standardized.

Where work gets done in 2010 Corporate facilities – 40% Offsite – 20% Home – 40%

Corporate facilities – 40%

Offsite – 20%

Home – 40%

Trend #6: Globalization Significant evidence of increased emphasis on global infrastructure development. The 24/7 facility is today’s reality, not tomorrow’s prediction. 24 million Americans work in jobs requiring “non-traditional” hours.

Significant evidence of increased emphasis on global infrastructure development.

The 24/7 facility is today’s reality, not tomorrow’s prediction.

24 million Americans work in jobs requiring “non-traditional” hours.

Trend #7: Broadening Diversity in the Workforce The need is increasing to bridge larger physical operating distances. Facility management is now responsible for facilitating productivity and seamless workflow over various geographic locales. Current issues include geographic barriers, cultural differences, differing workplace expectations, changing regulatory environments and significant challenges related to demographics.

The need is increasing to bridge larger physical

operating distances.

Facility management is now responsible for facilitating productivity and seamless workflow over various geographic locales.

Current issues include geographic barriers, cultural differences, differing workplace expectations, changing regulatory environments and significant challenges related to demographics.

Trend #8: Aging Buildings A significant portion of our existing building stock is entering a cycle requiring large amounts of capital improvement/replacement. Properties for which routine maintenance has been deferred are entering a stage of severe deterioration.

A significant portion of our existing building stock is entering a cycle requiring large amounts of capital improvement/replacement.

Properties for which routine maintenance has been deferred are entering a stage of severe deterioration.

Facility Management Forecast 2007 Exploring the Current Trends and Future Outlook for Facility Management Professionals www.ifma.org -- free download

Your Thoughts? What have we missed?

What have we missed?