The attached presentation was given to the CMAA Fellows and looks at emerging trends affecting the enginering and construction industry. Three top trends are identified and include: - Capital Efficiency - Capital Certainty - Schedule Certainty Other trends are categorized and outlined and encompass: - Labor & Safety - Equipment - Materials - Construction Means & Methods - Business & Contracting - Legal Issues & Frameworks - Risks - Technologies - New Ideas - Continuing Challenges

1. Emerging Industry Trends
Presented By:
Bob Prieto
Advancing Professional Construction and Program Management Worldwide

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Advancing Professional Construction and Program Management Worldwide

3. © 2013 Fluor Corporation. All Rights Reserved.
Emerging Industry Trends
Bob Prieto
Senior Vice President
CMAA
Fellows Meeting

4. Learning Objectives
 Understand Top Industry Trends
 Understand emerging trends in detail
Advancing Professional Construction and Program Management Worldwide

5. Top Trends
 Capital Efficiency
 Capital Certainty
 Schedule Certainty

6. Capital Efficiency
 CAPEX (CBOD; toolmaking)
 Schedule (Fabrication)
 OPEX (O&MBOD)
 Plant Availability (Predictive Maintenance)
 Inventories (Supply Chain Design)

7. Capital Certainty
 Predictive Analytics
 Re-invigoration of quality
 Do right things right
 More CPI focus
 Do, Assess, Learn, Improve
 Contract Structures
 PPP, Self-Perform/Fabrication, Incentives, Supply
Chain

8. Schedule Certainty
 Predictive analytics
 RFI reduction
 Fabrication (parallel construction)
 Field communications/information (reduce
waiting time)
 Workface planning

9. Emerging Industry Trends
In Detail
 Labor & Safety
 Equipment
 Materials
 Construction Means & Methods
 Business & Contracting
 Legal Issues & Frameworks
 Risks
 Technologies
 New Ideas
 Continuing Challenges

10. Labor & Safety
 Global Engineering Centers
 Project Labor Agreements
 Obamacare impacts
 Automation of knowledge work
 Bluetooth arrays
 Gulf Coast construction labor supply
 Gulf Coast construction labor skills and associated training needs
 Fab yard construction labor union jurisdiction
 Applicable fab yard safety standards (construction or manufacturing)
 Growing focus on safety risk and hazard elimination

11. Equipment
 Internet of Things
 Asset management role brought forward
 Emergence of predictive versus preventative
maintenance
 Growing use of SPMTs
 Greater focus on heavy lifting methods
 Minimization of work at heights

12. Materials
 Concrete Pipe racks
 Composites
 Nano materials (nano cladding) and other
advanced materials
 Rise of Logistics
 Photocatalysts

13. Construction Means & Methods
 Increased fabrication and modularization
 Site interoperability
 Zero Lay Down
 Shift from environmental mitigation to
environmental enhancement
 Augmented workface planning
 Reduction in “loss of availability” periods
 Construction led programs

14. Business & Contracting
 Owner Readiness
 JV Readiness
 PPP
 Design Build (more
expansive use)
 PMC+
 Increased risk transfer
 Extended Facility Lifetimes
(100 years +)
 Competition of Supply
Chains
 Trust Fund Outmoded
 Performance based
contracting
 Industry consolidation
 Definition of a US firm
 Life cycle
 Project finance
 Industry consolidation/
globalization
 DBOM (creates effective
extended warranty)
 Growing balance sheet
requirements

15. Legal Issues & Frameworks
 Performance based codes and standards
 Standard of Care
 Potential performance liabilities from smart structures
 Potential workmanship liabilities from higher
resolution NTE
 Good Samaritan risks
 Pervasive cameras
 Data retention & reuse
 Performance risks highlighted by laser scanning

16. Risks
 Growing IP risks (Hybrid Composite Beam (HCB))
 Potential performance liabilities from smart structures
 Potential workmanship liabilities from higher resolution NTE
 Resiliency/ business continuity as a performance requirement
 BIM – unchartered territory
 Pervasive cameras
 Black Swans
 Management of dynamic risks (long duration; post event of scale)
 Growing software & App risks (V&V standards)

17. Technologies
 Smart structures
 Higher resolution NTE
 Big Data and Analytics
 Life cycle BIM
 Robotics
 Unconventional energy
(market and use at site)
 Drones
 Google Glass
 3D Printers
 Cloud
 Laser scanning to
generate as-builts
 Mobile internet
 LED lighting
 Wireless charging
 Microgrid
 BYOD
 RFID everything

18. New Ideas
 7D SM Optioneering
 Construction Basis of Design
 Semantic Analysis
 Aggressive IP Use
 Toolmaking
 Data enabled coveralls
 Self erecting structures
 Near autonomous vehicles/
construction equipment
 Welding of composite and
nano clads
 Measuring complexity
 New metrics related to
use of fabrication
(manhour density)
 Flexible displays
 Virtual reality training
 Wearable sensors (aka
Nike Fuel)
 Software as a service

19. Continuing Challenges
 Schedule Reduction
 Productivity
 Body of Knowledge
 Innovation mechanisms and barriers
 Reducing construction indirects
 Growth in NPI in process industries
 Industry safety vs Best of Class

20. Questions?
What did you think of this session?
www.cmaanet.org/2014cps
Bob.Prieto@Fluor.com
Advancing Professional Construction and Program Management Worldwide