The challenges that 2020 has brought has caused a lot of big plans to change for many businesses. This has impacted the construction sector in many regionally-nuanced ways, as projects were significantly altered. Depending on which industries a construction, architecture, or engineering company serves, this can mean a lot of different things. So, we reached out to Indiana builders to ask them: How does the future look for firms like yours? (Over the next year or two)
Jump to a response:
Sarah Hempstead, CEO, Principal
If there is one thing 2020 has taught us, it’s not to be too confident in the accuracy of your crystal ball. That said, the future of firms like Schmidt Associates, as a Big A and Big E (equal emphasis on both architecture and engineering), remains strong. While our institutional clients of all kinds – K-12, higher ed, healthcare, community profit organizations – will continue to be under stress, they remain fully committed to serving their communities. To that end, we believe capital projects will focus on infrastructure investments that enhance resilience, health, and wellness.
In 2021, clients who are in a position to move large projects forward sooner rather than later may also benefit from fluctuation in the bid market and enhanced availability of labor. When they’re ready, we will be poised with the new insights and advanced technological capabilities necessary to design solutions that meet their needs and fulfill their missions in today’s changing world.
Brandon Hoopingarner, Design Director
Several architecture sectors, specifically hospitality and entertainment, have been significantly impacted by the pandemic. Overall growth will be down until we have a vaccine, with a strong rebound expected in 2022 and beyond.
The healthcare sector will be working to recover revenue lost due to fewer elective procedures being performed this year. Healthcare clients will be re-evaluating 2021 projects, with projects that adapt existing facilities to better serve patients during the pandemic being highest priority.
Much research will go into determining the workplace design of the future. Building infrastructure improvements, such as higher efficiency HVAC systems, will be required. Adaptive and flexible office design will be critical moving forward. Overall, designing buildings and open spaces for increased safety and public health will bring new opportunities for architectural firms.
American Structurepoint is well positioned to weather this challenging time in our industry due to our strong business principles, our multi-discipline offerings, and the diversification in architecture sectors that we serve. This allows the ability to shift staff to sectors where there is work.
Stephen Kleinen, Executive Vice President of Strategic Partnerships
Over the past 50 years, Orbital Engineering has provided engineering and inspection services to clients focused on addressing the challenges of expanding and maintaining the nation’s utility and energy infrastructure. We see this trend continuing as clients address the issues associated with the aging infrastructure and delivering alternative energy sources.
Even with the current pandemic affecting the world, Orbital has a positive outlook for the next 2-3 years and expects to grow in revenue and expand its existing customer base. Specializing in advanced technology implementation, Orbital has positioned itself to adapt well to working remotely and continues to serve the essential businesses across the country.
Tim Larson, President
Larson-Danielson Construction Co., Inc.
We are optimistic on the future. While the current economic climate has dampened the pace of construction, which may continue, we believe it will be relatively short-lived provided a vaccine is delivered by year-end and the Novembers elections and global economic recovery are also favorable to business. Even with the pandemic we believe the economic fundamentals remain relatively strong, particularly here in northwest Indiana. Our region has a great deal to offer and that will help us to continue attracting new business and drive expansions during the recovery.
Despite current economic concerns, we continue to help clients move forward with projects so they can position themselves for the anticipated growth they foresee later in 2021 and beyond. The ability to lock into historically low interest rates or in the case of renovations, the ability to expense 100% of the cost, are also weighing heavily on the decision process to move forward with projects now.
Larson-Danielson’s approach to integrated design and construction services, whether through design/build or construction management, allows us to deliver exceptional value for our clients with their capital projects. We can also assist with site selection, financing, cost segregation and even development services when clients have the need; further streamlining the entire process.
Anthony Pangere, Vice President
Entering the year, we were cautiously optimistic on the strength of the market in Northwest Indiana, with above-average interest for pre-engineered metal buildings and healthcare projects. Unfortunately, the impact of COVID-19 has forced many of our customers to reevaluate their future investments, leading to delays and cancellations of some projects.
With social distancing measures in place and businesses not operating at normal capacity, we don’t anticipate a significant rebound until 2021. While we expect work to strengthen somewhat in the remaining months of the year, the pandemic has caused enough uncertainty that it is difficult to gage which industries will rebound and when. Though we have seen some optimism from customers that planned projects will eventually move forward, we are changing the way we work in order to fit the current circumstances. As with any downturn, we will continue to adapt to the current market and find ways to create opportunity for our company.
Pat Pasterick, CEO
2020 was initially projected to be a year of modestly slow growth for nonresidential construction. With the impact of the COVID-19 pandemic we are now seeing national declines of more than 10% in commercial and institutional sectors. 97% of architecture firms nationally have reported being negatively impacted.
Regionally, these reductions are worst in the northeast (where there has been more significant construction stop orders), somewhat lighter in the West, with the Midwest in the middle.
Early predictions of a quick, strong recovery have been tempered recently and projections looking forward remain soft.
Donna Stevenson, President,
2020 has been a difficult year to manage and while the impact over the next two years are largely unknown, I know that our team works hard to innovate how we approach and manage construction services. Our future will depend not on if things will be difficult, but how we can work through the difficulties with clients who need our service.