FMI Prefabrication Forum. The Changing Face of Engineering & Construction

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1 FMI Prefabrication Forum The Changing Face of Engineering & Construction Ethan Cowles, Director

2 2 The past doesn t always match the future. That s the nature of disruption. Patterns of change build gradually until they merge and rapidly reshape the business landscape. At that point it s too late to respond. Dr. Stefan Hajkowicz, Senior Principal Scientist, CSIRO

3 3 Questions That Should Keep You Up At Night 3 Are my past assumptions a good prediction of the future? Am I comfortable that my assumptions can withstand perpetual and unpredictable change? Am I comfortable that I m armed with what I need to make the best decisions? Source: Thought Expansion Network

4 How Will You Compete in The Future? 4 Irrelevant Business as usual Zero listening or adaptation Momentary Compete for the moment Reacting to trends & behavior Relevant Compete for the future Proactive to shape meaningful experiences

5 Why Does It Matter? 5 Prefabrication will be a large part of construction in the future. As a result, companies will have to restructure the way they compete and do business in the long term.

6 2017 Prefabrication Study Quick Facts 6 Partnered with AGC BIMForum Surveyed 156 contractors (GCs/CMs/Subs) Interviewed 30+ stakeholders Majority (75%) are in the commercial sector Participants collectively generate $38 billion in industry revenue each year

7 Things Have Changed 7

8 8 Today the conversations have shifted to, Just how much can we impact projects bottom line and schedule? We have transitioned from, Does it work? to Yes, it works and it has become a clear competitive differentiator. Geoffrey Golden, President, Golden Construction

9 Prefab Is Gaining Momentum 9

10 New Technologies Are Key To Driving Prefab 10

11 Practice Makes Perfect 11

12 It s Much Harder Than It Looks 12

13 The Biggest Challenges Are People-Related 13

14 14 Innovation has nothing to do with how many R&D dollars you have. It s not about money. It s about the people you have, how you re led and how much you get it. Steve Jobs, Former CEO of Apple

15 The Big Culture Obstacle 15 Getting people to embrace new ways of thinking and doing work differently is one of the most challenging aspects of organizational change.

16 Changing The Conversation 16 This is a broader conversation than just prefabrication. This is about leading organizations through innovation and change. Get the right people on board then leverage new processes and technologies (and not the other way around).

17 17 The entrepreneur always searches for change, responds to it, and exploits it as an opportunity. Peter Drucker, Management Challenges for the 21st Century (1999)

18 Are You Ready for Change? 18 Is your organization prepared for change? What is your vision? Are you communicating the appropriate ambitions? Are you building the right structures and systems? Are you satisfied with the current progress, speed and results? What key elements of transformation are missing in your organization today?

19 19 The challenge with doing prefab is, it s not just thinking about prefab. Instead, it s more about thinking of how your prefab strategy fits within the overall strategy of delivering a project. Atul Khanzode, Ph.D., Head of Technology and Innovation, DPR Construction

20 Questions & Discussion 20 Ethan Cowles Director

21 ABOUT FMI Industry Focus. Powerful Results. 21 ABOUT FMI For over 60 years, FMI has been the leading management consulting and investment banking firm dedicated exclusively to engineering and construction, infrastructure and the built environment. FMI serves all sectors of the industry as a trusted advisor. More than six decades of context, connections and insights leads to transformational outcomes for our clients and the industry. Sector Expertise A/E and Environmental General Contractors/CM Heavy Civil Industrial Specialty Trades Utility T&D Clean Tech and Energy Services Construction Materials Building Products Oil and Gas Private Equity Owners For more information, please visit Follow FMI on LinkedIn.

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