Wentworth Institute 2010

Wentworth InstituteWentworth Institute
The Engineering &The Engineering &
Construction IndustryConstruction Industry
A Recruiter’s PerspectiveA Recruiter’s Perspective

A G Page Associates, Inc.A G Page Associates, Inc.
First, a little background.First, a little background.
 Corporate Recruiting & EmploymentCorporate Recruiting & Employment
managementmanagement
 College Recruiting & Coop Program managementCollege Recruiting & Coop Program management
 Consulting & Search Firm managementConsulting & Search Firm management
 Engineering & Construction recruitingEngineering & Construction recruiting

How do I view theHow do I view the
construction industry...construction industry...

““The construction industryThe construction industry
accounts for around one-tenth ofaccounts for around one-tenth of
the world’s gross domesticthe world’s gross domestic
product, seven percent ofproduct, seven percent of
employment, half of all resourceemployment, half of all resource
usage and up to 40 percent ofusage and up to 40 percent of
energy consumption.”energy consumption.”

From PWC corporate websiteFrom PWC corporate website
http://www.pwc.com/extweb/industry.nsf/docid/707e1d1bdd3b2e0785256df800185c8chttp://www.pwc.com/extweb/industry.nsf/docid/707e1d1bdd3b2e0785256df800185c8c
““This industry has aThis industry has a
profound impact onprofound impact on
our daily lives: theour daily lives: the
buildings we livebuildings we live
and work in, theand work in, the
roads and bridgesroads and bridges
we drive on, thewe drive on, the
utility distributionutility distribution
systems we use, thesystems we use, the
railways, airportsrailways, airports
and harbors weand harbors we
travel and tradetravel and trade
fromfrom
- are all products of- are all products of
this vital industry.”this vital industry.”

THIS IS A LARGE & DIVERSE INDUSTRYTHIS IS A LARGE & DIVERSE INDUSTRY
MADE UP OF:MADE UP OF:
$ BILLION COMPANIES$ BILLION COMPANIES
$ MILLION REGIONAL COMPANIES$ MILLION REGIONAL COMPANIES
$ SMALLER LOCAL COMPANIES$ SMALLER LOCAL COMPANIES

WORLD’S LARGEST E&C FIRMSWORLD’S LARGEST E&C FIRMS
 Billion dollar Engineering & Construction companiesBillion dollar Engineering & Construction companies
• International scopeInternational scope
• Largest projectsLargest projects
• Big dollar projectsBig dollar projects
• World class talentWorld class talent
The Lagoons, DubaiThe Lagoons, Dubai

REGIONAL FIRMSREGIONAL FIRMS
 Multi million dollarMulti million dollar
regional firmsregional firms
• ConstructionConstruction
• DesignDesign
• EnvironmentalEnvironmental
• ConsultingConsulting
• SubcontractorsSubcontractors
Steelwork for pilingsSteelwork for pilings

LOCAL COMAPNIESLOCAL COMAPNIES
 Smaller specialty firmsSmaller specialty firms
• GCsGCs
• DesignDesign
• ArchitectsArchitects
• EngineersEngineers
• SubsSubs
• ConsultantsConsultants
Elementary School, Thorndike, MaineElementary School, Thorndike, Maine

ENGINEERING &ENGINEERING &
CONSTRUCTION MARKETCONSTRUCTION MARKET
CONDITIONS….CONDITIONS….
and HIRING TRENDSand HIRING TRENDS

RECENT PASTRECENT PAST
 The past five years have beenThe past five years have been
exceptionally good in the industrial sectorsexceptionally good in the industrial sectors
– until 2009.– until 2009.
 Most E&C companies posted record profitsMost E&C companies posted record profits
in 2008 and some did in 2009, backlog isin 2008 and some did in 2009, backlog is
now a big issue, reductions have occurred,now a big issue, reductions have occurred,
they are all hiring conservatively.they are all hiring conservatively.
 The residential market declined for fiveThe residential market declined for five
years and seems to be coming back.years and seems to be coming back.

AIA Chief Economist, Kermit Baker, PhD, Hon. AIA said “Things should begin to turn
around midway through next year with retail and hotels expected to see the
strongest growth, along with health care and amusement and recreation facilities.”
Market Growth Forecast 2010 2011
Overall Nonresidential -20.3% 3.1%
Commercial/Industrial
Hotels -43.3% 8.7%
Office -29.1% 0.0%
Retail -25.6% 7.6%
Industrial -21.3% -2.0%
Institutional
Amusement/Recreation -14.4% 8.1%
Education -13.2% 1.3%
Religious -10.2% 0.0%
Public safety -9.1% -0.7%
Healthcare -6.5% 5.1%

EVEN IN THE LARGEST E&Cs MARKETEVEN IN THE LARGEST E&Cs MARKET
CONDITIONS ARE MIXEDCONDITIONS ARE MIXED
 Fluor: July 26, 2010 (Bloomberg) -- Fluor Corp., the largest
publicly traded engineering and construction company in
the U.S., may reach a record backlog of projects this year
on energy industry demand, Chief Operating Officer David
Seaton said.
 SAN FRANCISCO, March 31, 2010— Bechtel Corporation
today announced 2009 revenue of $30.8 billion; new work
booked of $20.3 billion; and backlog revenue of $82.1
billion. Revenue and new work booked for the year were
below 2008’s record-breaking results of $31.4 billion and
$35 billion, respectively, underscoring the impact of the
economic recession on the industry. Backlog revenue was
down five percent from $86.5 billion at the end of 2008.

EmploymentEmployment
Since the start of the recession in DecemberSince the start of the recession in December
2007, the number of unemployed persons2007, the number of unemployed persons
has increased by 7.6 million to 15.1has increased by 7.6 million to 15.1
million, and the unemployment ratemillion, and the unemployment rate
doubled to 10.1 percent. Now it’s 9.6doubled to 10.1 percent. Now it’s 9.6
In the construction industry the SeptemberIn the construction industry the September
unemployment figure was 17.2%, while inunemployment figure was 17.2%, while in
September 2008 it was 9.9%.September 2008 it was 9.9%.

UnemploymentUnemployment

Unemployment 2010Unemployment 2010

Bechtel EmploymentBechtel Employment
 Bechtel currently has over 40,000Bechtel currently has over 40,000
employees.employees.
 At a 5% attrition rate that meansAt a 5% attrition rate that means
they’ll need 2000 new employeesthey’ll need 2000 new employees
every year to maintain current workevery year to maintain current work
levels.levels.

FUTUREFUTURE
 Greatest need in the E&CGreatest need in the E&C
industry is new engineeringindustry is new engineering
talent.talent.

 McGraw-Hill Construction isMcGraw-Hill Construction is
forecasting that totalforecasting that total
construction starts will climbconstruction starts will climb
11% to $466.2 billion in 2010,11% to $466.2 billion in 2010,
following an estimated 25%following an estimated 25%
decline in 2009. The forecast wasdecline in 2009. The forecast was
announced at the 2010announced at the 2010
Construction Outlook conferenceConstruction Outlook conference
in Washington, D.C.in Washington, D.C.

Midyear Update
The improving trend for single family housing paused in
late spring, and the gain for full year 2010 will be smaller
than previously forecast. This year's loss of momentum for
commercial building is not as severe as 2009, but it
remains substantial. The retreat for institutional building
has been made worse by the eroding state and local fiscal
picture. And, while the lift to public works construction
from the federal stimulus act is still present, the push
directed at highway and bridge construction is beginning
to subside. At the same time, the year 2010 is seeing a
few bright spots, such as a rebound for healthcare facilities
and stronger activity for environmental public works.
McGraw Hill

FUTUREFUTURE
The 2014 E&C job market.The 2014 E&C job market.
 EnergyEnergy
 InfrastructureInfrastructure
 IndustrialIndustrial
 CommercialCommercial
 EnvironmentalEnvironmental
 ResidentialResidential
 New marketsNew markets

World’s largest projectsWorld’s largest projects

Yas Island Mixed-Use Complex, Abu DhabiYas Island Mixed-Use Complex, Abu Dhabi
$39 billion$39 billion

EnergyEnergy
 Oil & Gas – improving – oil prices upOil & Gas – improving – oil prices up
• upstream – exploration, drilling, transportupstream – exploration, drilling, transport
• downstream- refining, distributingdownstream- refining, distributing
 Power Generation – very goodPower Generation – very good
• nuclear – US & abroadnuclear – US & abroad
• renewables – wind, solar, biofuelsrenewables – wind, solar, biofuels
• fossil fuels – oil, gas, coalfossil fuels – oil, gas, coal
 Cogeneration- OK depending on financingCogeneration- OK depending on financing

 A few examples of alternativeA few examples of alternative
opportunitiesopportunities
 WindWind
 SolarSolar
 BiofuelsBiofuels

Cape Wind:130 planned wind turbines in the overall wind
farm can generate a maximum of about 468 megawatts
with an average anticipated output of 182 megawatts.

Fluor is providing engineering, procurement, and construction (EPC) to
Greater Gabbard Offshore Winds Limited for a 500-megawatt (MW)
offshore windfarm off the Suffolk coast of the United Kingdom, which
when complete, will be the world’s largest offshore wind farm.

Solar farmSolar farm

BiodieselBiodiesel
Greenline IndustriesGreenline Industries

INFRASTRUCTUREINFRASTRUCTURE
 Roadways –Roadways – Stimulus!Stimulus!
 Bridges –Bridges – Stimulus!Stimulus!
 Water Resources –Water Resources – Stimulus!Stimulus!
 Marine –Marine – Stimulus!Stimulus!

California approves $10B bond for bullet trainsCalifornia approves $10B bond for bullet trains
November 5, 2008 By DON THOMPSON (Associated Press Writer)November 5, 2008 By DON THOMPSON (Associated Press Writer)
LOS ANGELES - California voters are green-lightingLOS ANGELES - California voters are green-lighting
America's most ambitious high-speed rail system,America's most ambitious high-speed rail system,
approving a nearly $10 billion bond to put speeding bulletapproving a nearly $10 billion bond to put speeding bullet
trains capable of topping 200 mph between the state'strains capable of topping 200 mph between the state's
major metropolitan areas.major metropolitan areas.
The measure will fund the first phase of what is projected toThe measure will fund the first phase of what is projected to
be a $45 billion, 800-mile (1,287-kilometer) project builtbe a $45 billion, 800-mile (1,287-kilometer) project built
with state, federal, local and private money.with state, federal, local and private money.
UPDATE 2010:UPDATE 2010: California won a $2.3 billion federal grantCalifornia won a $2.3 billion federal grant
to help build the high-speed link. More later.to help build the high-speed link. More later.

$1.6 billion Dulles Corridor Metro$1.6 billion Dulles Corridor Metro
Rail ProjectRail Project

$8.7 billion NJ Mass Transit Tunnel project started in June.$8.7 billion NJ Mass Transit Tunnel project started in June.

Nation’s largest cement plant opened this summerNation’s largest cement plant opened this summer
in Missouri.in Missouri.

INDUSTRIALINDUSTRIAL
 Food – Slow but growingFood – Slow but growing
 Pharmaceuticals – SlowPharmaceuticals – Slow
 Auto – NOT OKAuto – NOT OK
 Chemical – SlowChemical – Slow
 Manufacturing – drop in’10Manufacturing – drop in’10

COMMERCIALCOMMERCIAL
follows the general economy and financing - SLOWfollows the general economy and financing - SLOW
 Retails storesRetails stores
 Hotels & ResortsHotels & Resorts
 RestaurantsRestaurants
 Office BuildingsOffice Buildings
 Hospital, healthcareHospital, healthcare
 Education, ReligiousEducation, Religious
Boston Children’s MuseumBoston Children’s Museum

ENVIRONMENTALENVIRONMENTAL
Generally GoodGenerally Good
 Water Management (B&V, ENSR)Water Management (B&V, ENSR)
 Waste WaterWaste Water
 Energy Management (LEED)Energy Management (LEED)
 DesalinationDesalination
 Air QualityAir Quality
 Land QualityLand Quality
 Consulting & Engineering firmsConsulting & Engineering firms

Residential - New housing startsResidential - New housing starts

ISSUES CONTRIBUTING TO THEISSUES CONTRIBUTING TO THE
JOB MARKETJOB MARKET

THE ECONOMY
October 5, 2010
WASHINGTON (CNNMoney.com) -- A panel of economists on
Tuesday predicted several more years of pain for the United States,
agreeing unemployment will remain high far longer than 2014,
when White House and congressional economists have predicted a
jobs improvement.
The panel -- including Nobel Prize winner Paul Krugman, Harvard's
Martin Feldstein and Goldman Sachs chief economist Jan Hatzius --
agreed that policymakers have failed to adequately stimulate the
economy, and that more needs to be done.

But, there is aBut, there is a
NEED for TALENTNEED for TALENT

PROJECT ORIENTED INDUSTRYPROJECT ORIENTED INDUSTRY
 WHEN PROJECTS TURN OVER PEOPLEWHEN PROJECTS TURN OVER PEOPLE
TURN OVERTURN OVER
 Project Managers, Assistants, ProjectProject Managers, Assistants, Project
Accountants….all site staff will have to beAccountants….all site staff will have to be
reassigned at the close of a project. Orreassigned at the close of a project. Or
not!not!
 Project end is a transition time.Project end is a transition time.

 The electric power industry stands toThe electric power industry stands to
lose up to one-third of itslose up to one-third of its
professional and craft workers inprofessional and craft workers in
both construction and operations toboth construction and operations to
retirement in the next five yearsretirement in the next five years
 A new study released by the National Committee on EnergyA new study released by the National Committee on Energy
Policy (2009).Policy (2009).

AGING WORKFORCEAGING WORKFORCE
 THERE IS A GAPTHERE IS A GAP
• EXCEPT FOR THE 2008-2009 “BLIP”EXCEPT FOR THE 2008-2009 “BLIP”
THERE ARE NOT ENOUGH ENGINEERSTHERE ARE NOT ENOUGH ENGINEERS
• GRADUATING TOO FEWGRADUATING TOO FEW
• HIRING NEEDS WILL GROWHIRING NEEDS WILL GROW

SPECIALIZED KNOWLEDGESPECIALIZED KNOWLEDGE
 EVERY SINGLE PROFESSIONAL JOB REQUIRES AEVERY SINGLE PROFESSIONAL JOB REQUIRES A
HIGH DEGREE OF PROFESSIONAL KNOWLEDGEHIGH DEGREE OF PROFESSIONAL KNOWLEDGE
AND SKILLAND SKILL
 THIS MEANS YOU ARE A SCARCE COMMODITYTHIS MEANS YOU ARE A SCARCE COMMODITY
 BECAUSE YOU ARE A SCARCE COMMODITYBECAUSE YOU ARE A SCARCE COMMODITY
COMPANIES ARE WILLING TO PAY WELL - AndCOMPANIES ARE WILLING TO PAY WELL - And
even utilize recruiters to help them findeven utilize recruiters to help them find
experienced specialistsexperienced specialists

NEW MARKET SECTORSNEW MARKET SECTORS
 STIMULUS PROJECTSSTIMULUS PROJECTS
 SUSTAINABLE ENVIRONMENTSUSTAINABLE ENVIRONMENT
 ENERGY PRODUCTION, DISTRIBUTIONENERGY PRODUCTION, DISTRIBUTION
AND EFFICIENCY (LEED)AND EFFICIENCY (LEED)
 INTERNATIONAL PROJECTSINTERNATIONAL PROJECTS

How does this affect you?How does this affect you?
 SELECT YOUR MARKET WISELYSELECT YOUR MARKET WISELY
 GOOD COMPANIES WILL PAY PERFORMERSGOOD COMPANIES WILL PAY PERFORMERS
 THEY WILL PROMOTE YOU FASTTHEY WILL PROMOTE YOU FAST
 GAPS IN MANAGEMENT WILL BE FILLED WITHGAPS IN MANAGEMENT WILL BE FILLED WITH
YOUNGER PEOPLEYOUNGER PEOPLE
 YOU NEED TO BE WILLING TO WORK HARD ANDYOU NEED TO BE WILLING TO WORK HARD AND
BE FLEXIBLEBE FLEXIBLE

ENTERING THE JOB MARKET INENTERING THE JOB MARKET IN
20142014
Enter now.Enter now.
Get involved in as many internships,Get involved in as many internships,
coops, seasonal jobs as possiblecoops, seasonal jobs as possible
while you are in college. These willwhile you are in college. These will
help you make your career decisionshelp you make your career decisions
later, and often lead to a job later.later, and often lead to a job later.

Social Networking & Job BoardsSocial Networking & Job Boards
 Face BookFace Book
 My SpaceMy Space
 LinkedInLinkedIn
 The LaddersThe Ladders
 MonsterMonster
 Career BuildersCareer Builders

PROFESSIONAL NETWORKINGPROFESSIONAL NETWORKING
 Associations – join & participateAssociations – join & participate
 Stay in touch with professionalsStay in touch with professionals
 RecruitersRecruiters

Internships & coopsInternships & coops
WENTWORTH IS ONE OF THE BESTWENTWORTH IS ONE OF THE BEST
CHOOSE WITH YOUR FUTURE IN MINDCHOOSE WITH YOUR FUTURE IN MIND
TRY SOMETHING NEWTRY SOMETHING NEW

Once you’re on the jobOnce you’re on the job
 Continue learningContinue learning
 Don’t job hop – project turnsDon’t job hop – project turns
 But don’t stagnate eitherBut don’t stagnate either
 Develop your networkDevelop your network
 Seek out a mentorSeek out a mentor
 Volunteer for extra dutyVolunteer for extra duty

Resources
AGC - www.agc.org/cs/construction_markets
AGC College - www.agc.org/cs/career_development/college
Lean Construction Institute - www.leanconstruction.org/
Nat’l Association of Women in Construction - www.nawic.org/nawic/Default.asp
Nat’l Society of Professional Engineers - www.nspe.org/index.html
Project Management Institute - www.pmi.org/Pages/default.aspx
US Green Building Council - www.usgbc.org/
Engineering News Record - www.enr.com
National Biodiesel Board - www.biodiesel.org/
National Renewable Energy Lab - www.nrel.gov/pv/
Renewable Fuels Association - www.ethanolrfa.org/
Solar Electric Power Association - www.solarelectricpower.org/
LinkedIn - www.linkedin.com
The Lagoons project - www.bentley.com/en-US/Markets/Building/GenerativeComponents/CaseStudy_TheLagoons.htm
Cementamericas.com http://cementamericas.com/mag/capacity_expansion_update_1108/

Wentworth Institute 2010

Recommended

Recommended

More Related Content

What's hot

What's hot (8)

Viewers also liked

Viewers also liked (16)

Similar to Wentworth Institute 2010

Similar to Wentworth Institute 2010 (20)

Wentworth Institute 2010