EXECUTIVE DIRECTOR UPDATE Bright Outlook for the Industry and DFI A s we begin 2017, the outlook for DFI appears bright, especially with the enthusiasm of Dan Brown, our new president. You can feel it exuding from his inaugural President’s Message on page 7. It’s been a wonderful two years with John Wolosick at the helm. Thanks John, for your leadership, your forward thinking and the growth we’ve experienced while you were in office. As we gather to brainstorm during our upcoming annual planning meeting in late February in San Antonio, Texas, I’ve been reading up on the outlook for our industry. Overall, it looks bright for our members who work hard to design and build the founda- tions for important structures worldwide. In Data and Analytics’ 2017 Dodge Construction Outlook, released in late October 2016, spending in all con- struction sectors, with the exception of the electric power and gas plant segment, are forecast to increase, with public works spending expected to increase about 6% and total construction spending to grow by approximately 5%. Contributing to the increased construction of highways and bridges is the Fixing America’s Surface Transportation (FAST) Act and the growth in popularity of P3s (public-private part- nerships). Similarly, the Water Resources Development Act (WRDA) will be a boon to construction of dams, levees and other hydraulic structures. It was also reported that in November 2016 alone, 19,000 jobs were added in the construction industry and, though the heavy civil and engineering sector lost 2,100 positions, the total increase marks the highest employment rate in eight years. The leaders of the Associated General Contractors of America (AGC) still believe there is room for expansion for the public sector. Although it’s too early to tell how the new U.S. presidential administration will proceed, the news has been favorable that billions of dollars of federal, state and local funding will be used for infrastructure and pub- lic works projects. For our neighbors to the north, where the possible be- ginning of a recession has been reported, it is still believed that overall Canadian con- struction activity is ex- pected to grow by 6% in 2017. This makes sense since spending more on infrastructure during an economic downturn is widely believed to be an effective form of stimulus; boosting em- ployment and getting more money flowing into the economy. Across the pond, the Theresa Engler Executive Director [email protected] Then there’s India, “The future looks bright for our members who work hard to design and build the foundations for important structures worldwide.” construction sector is vitally important to Europe’s economy, where a workforce of 18 million people contribute about 9% to the GDP of the EU. According to the European Builder’s Confederation (EBC), 99.9% of the sector is composed of small- and medium-sized enterprises (SMEs); meaning companies with less than 250 employees are producing 80% of the construction industry’s output. Euroconstruct foresees a record growth of 3% for 2017 and of 2.7% for 2018 for all construction activity with the main growth being generated in Spain, the Netherlands, Poland, Portugal and Ireland. A 2.6% increase is predicted for civil engineering works. The EBC and EU are cooperating to promote growth in the construction industry in Europe and the Construction 2020 Action Plan supports the SMEs, encouraging a level playing field among them to promote competition. where our members are also active through our DFI of India Chapter, and where the construc- tion industry is a major contributor towards the country’s GDP, employ- ing about 33 million people. Though they are suffering from a severe shortage of skilled workers, the introduc- tion of new construc- tion technology and the entrance of international infrastructure players are pro- ducing jobs across an immense variety of skill sets. Bringing increased activity in infrastructure and related sectors is the Atal Mission for Rejuvenation and Urban Transformation (AMRUT), which focuses on urban renewal projects and is depen- dent on a P3 model. In the Middle East, though there has been political unrest and a drop in oil prices, many megaprojects are planned. See page 57 for a report from our regional chapter chair, Emad Sharif, outlining which countries are planning these large infrastructure projects. So, as Dan said in his message, get involved with DFI’s activities in the upcoming two years and beyond. Your involvement will be appreciated and will reward you with a wealth of knowledge and chance to network with colleagues near and far during this exciting time of growth and opportunity. DEEP FOUNDATIONS • JAN/FEB 2017 • 9
