CURT Owners Survey Indicates Capital Concerns for Construction

Collecting data from the company's 45-member ""Construction Users Roundtable (CURT)"":http://www.curt.org/, FMI released the results of its most recent study on the sector, revealing that ""project disruptions"" hindered capital initiatives for construction during 2012. Citing factors such as delays, cancellations, and general funding challenges, ""FMI's"":http://www.fminet.com/ CURT Owners Survey showed that such inhibitors significantly impacted owners' capital programs throughout the year.

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According to FMI, 93 percent of CURT members reported the need to utilize self-funding for projects in 2012, while 83 percent of CURT members experienced project delays. Additionally, 41 percent of CURT participants noted project cancellations.

Addressing future issues affecting capital programs, degree of preparedness for impending concerns, levels of staffing changes

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and current staffing trends, degree of project disruptions, and alterations to project delivery systems and procurement methods, FMI's study indicated that 72 percent of respondents who are ""worried about limited project funding"" aren't confident in their ability to meet the challenge. Currently, capital availability for construction projects ranks as the top concern among CURT members.

More than 50 percent of those taking part in FMI's survey stated that they lacked ""confidence"" in their ability to respond to internal staffing and skilled labor issues. FMI added that between 2010 and 2012, two-thirds of respondents continued their internal staffing rate from 2008 through 2010.

Commenting on the company's statistics, FMI stated, ""The changing landscape of owner staffing has created a void for many capital programs while it has created a growth opportunity for others. During interviews, owners noted the movement of talent across the industry as certain construction markets rise and fall. As once-depressed markets begin to turn, it is likely that some of this shift will reverse. These dynamics have led to an influx of new ideas within capital programs fortunate enough to add talent with diverse back- grounds.

""On the other hand, they have caused a loss of specific experience and knowledge within other capital programs. Further challenging capital programs is the effect of project delays, cancellations and funding challenges. Although signs of optimism are evident, far too many respondents are still struggling with delays and cancellations to capital projects. Resolving the industry's challenges of tomorrow is too great for the actions of a single firm to suffice,"" FMI concluded.