9. Keynote - Glenn Doran Presentation
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Transcript of 9. Keynote - Glenn Doran Presentation
ECI’s 23rd Annual Conference 2012
The European Construction Industry
- Facing the Global Challenges
26 & 27 April 2012 Hilton Hotel, Dusseldorf
Global Challenges Facing the US Construction Industry
Glenn F. Doran ConocoPhillips, General Manager Asia Pacific - Project Development Chair, Construction Industry Institute
3
The Challenge
Organization Readiness Vs.
Project Environment
4
Organization Readiness
Only if you are ready to address: Changing workforce demographics Increasing project complexity and risk Industry Image
Will your organization be ready to successfully execute construction
projects in the future?
5
Workforce
From 2010 to 2020 theUS 65+ Population Will Grow Rapidly
14
6.5
-1
1.6
3.3
-3.9
-10 -5 0 5 10 15 20
16-24
24-34
35-44
45-54
55-64
65+
Age
Grou
p
Millions of People
• Average age of workers is changing • Smaller, less educated, incoming labor pool • National mobility decreasing • Increase in employer changes by individuals • Since 2008 many experienced workers have left the industry
Source: CII presentation Nov 2011, “Preparing for the New Normal” by Dr. Thomas Stinson, Lead Economist, State of Minnesota
6
Industry Image
• Fewer people are entering the construction industry • Fewer professionals choosing construction management path • Re-create construction as a career path for younger generations
Construction sectors need to improve communication
of opportunity and importance
7
Project Execution • Economies are picking up in the US and around the world • Capital spend is forecast to increase worldwide creating opportunities across many industries • New projects are increasingly more complex • Project risk has increased
US Construction Spending 12 Month % Change by Industry44%
14% 12%
4% 2% 2% -10%-6%-3%-2%-1%-1%
Man
ufac
turin
g
Com
mer
cial
Pow
er (O
il &
Gas
Pip
elin
es)
Non
resi
dent
ial
Educ
atio
nal
Hig
hway
and
stre
et
Hea
lth c
are
Off
ice
Com
mun
icat
ion
Recr
eatio
n
Was
te d
ispo
sal
Tran
spor
tatio
n
Data Source: AGC of America, December 2011
8
Project Complexity • Challenged to build bigger than
ever before • Accomplish what hasn’t been done
before • More technologically advanced
facilities • New Location issues – availability
of infrastructure • Global projects with international
partnerships • Financing issues • Local and Global Labor markets
impact • Layers of supplier quality
Political Stability
Larger Scale Scope
Supplier Quality
Changing Labor
Markets
Stakeholder Management
Global Locations
Financing
New Technology
Construction Project
9
Opportunity through Productivity Construction Industry Fact:
“Value of construction work done per employee in Heavy and civil
engineering construction subsector increased 64% between 2002 and 2007.” Source: US Census
Increasing Productivity Has Two Parts
QUALITY INNOVATION
Source: CII presentation Nov 2011, “Preparing for the New Normal” by Dr. Thomas Stinson, Lead Economist, State of Minnesota
10
Opportunity through People
• Companies that can leverage their staff can be successful • Recruiting, Training and Re-creating experienced teams • Recruiting has changed
Source: CII presentation Nov 2011, “Preparing for the New Normal” by Dr. Thomas Stinson, Lead Economist, State of Minnesota
Retention Recruitment Retraining
11
Application at ConocoPhillips
TALENT MANAGEMENT TEAMS
Retention
Recruitment
Retraining
12
Meeting the Challenge
Knowledge Creation • Research to define best practices, breakthroughs, and industry norms
• Research, Academic and Breakthrough Strategy committees
Knowledge Dissemination • Research publications, implementation guides, educational materials, workshops and conferences
• Implementation Strategy and Professional Development committees
Knowledge Assessment • The impact of CII practices through benchmarking and metrics
• Benchmarking & Metrics committee
Knowledge Management • Organization and assessment of the relevance of the 500-plus CII documents and publications
• Knowledge Management committee
European Construction Institute
www.europeanconstruction.eu