September 2005

Conservative Optimism

TFM readers reveal their future plans for renovation and new construction.

By Tim Springer, Ph.D

“There are many methods for predicting the future. For example, you can read horoscopes, tea leaves, tarot cards, or crystal balls. Collectively, these methods are known as ‘nutty methods.’ Or you can put well-researched facts into sophisticated computer models, more commonly referred to as ‘a complete waste of time.’” —Scott Adams

Of all the things facilities managers are asked to do, projecting future requirements for resources and funding may be among the most difficult. Recent business trends have shown that the post-9/11 world is far more cautious and less willing to spend money than it was during the boom times of the late 1990s. Yet, anticipating organizational activities is critical to the success of facilities managers.

In an effort to understand the state of the profession with regard to activities, projects, and anticipated spending, TFM conducted a survey of its readers. The survey questionnaire addressed facility management plans over the next two fiscal years. Survey items inquired about new construction, renovation, number and size of projects, and anticipated budgets. The following analysis summarizes the results of these findings.

Method

In June, TFM sent an e-mail to subscribers soliciting input and participation in the survey. Those who chose to answer the survey questions were directed to a Web site where they could complete the questionnaire on-line.

Sample Population. The survey was open to respondents for three weeks. Over that period of time, 605 individuals responded. Of that number, 387 people (64%) provided complete information about the industry and size of their organization and their role within it.

Most of the respondents work in mid-sized or smaller organizations; 58% worked for organizations of fewer than 1,000 people. The industries with greatest representation were Government (14%) and Business/Financial Services (13%); Manufacturing, Real Estate and Property Management, and Education each represented 12% of the total. [See Figure 1.]

Survey Results

The results of the survey summarize findings across all 605 respondents. Some of the industry groups can be examined separately.

Overall, the survey results present a somewhat optimistic view of the near future for facilities and business. Most survey respondents indicated their plans call for a number of conservatively budgeted projects in new construction and renovation over the next two fiscal years. However, an important number of respondents indicated tens of millions of dollars budgeted for both new construction and renovation.

Plans And Projects. In an effort to judge the size and complexity of the planned activity, the survey asked two related questions. First, it asked how many projects were planned for the next two years; second, it asked how much money was allocated for the different types of activity.

According to the survey results, nearly all of the respondents plan renovations (98% of total) and new construction (94% of total) within the next two years. Of these, most companies are planning fewer projects.