The most effective FM departments function strategically and work alongside executive teams on progressive initiatives such as technology integration, sustainability and energy efficiency – all of which have positive impacts upon the financial stability of organizations. Our outlook discusses these sectors and the strategic initiatives that are prevalent among institutions' FM departments.

1. Facilities Construction Real Estate Engineering
R E TA I N E D E X E C U T I V E S E A RCH
Facilities
Management
Outlook
2012
Focus
On:
Healthcare
&
Higher
Education
Part
I
Trends
in
Strategic
Initiatives
Facilities
Management
(FM)
reinvented
itself
over
the
last
several
years
and
its
professionals
have
worked
hard
to
demonstrate
its
role
as
an
instrumental
component
to
the
overall
success
of
institutions.
The
most
effective
FM
departments
function
strategically
and
work
alongside
executive
teams
on
progressive
initiatives
such
as
technology
integration,
sustainability
and
energy
efficiency
–
all
of
which
make
positive
impacts
upon
the
financial
stability
of
organizations.
Specializing
in
FM
executive
searches,
Helbling
&
Associates
partners
with
healthcare
and
higher
education
institutions
in
attracting
and
securing
talented
professionals
who
play
proactive
roles
in
the
development
of
efficient
and
progressive
organizations.
Within
this
outlook,
we
will
look
at
these
owners
and
their
FM
opportunities,
trends,
objectives
and
strategies,
which
make
it
an
exciting
time
for
this
sector
and
its
professionals.
Healthcare
2012:
While
the
healthcare
market
is
already
at
a
historically
high
level,
REED
Construction
Data
is
forecasting
an
8%
increase
in
construction
spending
for
2012
and
a
13%
increase
for
2013.
Sharing
the
challenges
of
financing
and
government
policy
uncertainty
with
other
sectors,
healthcare
is
seeing
the
demand
for
special-­‐care
facility
construction
and
renovation
of
existing
facilities
surpassing
those
issues.
The
U.
S.’s
aging
population,
outdated
facilities
and
quickly
advancing
technologies
are
driving
activity.
The
U.
S.
Census
Bureau
projects
that
by
2020
the
number
of
Americans
65
years
and
older
will
grow
from
40M
to
54.6M,
an
increase
of
36%.
If
the
number
of
hospitals
expands
in
conjunction
with
the
senior
population
over
the
next
two
decades,
the
country
will
see
more
than
2,000
additional
hospitals
and
about
340,000
additional
beds.
Healthcare
reform
will
also
help
keep
this
sector
active.
According
to
the
National
Real
Estate
Investor,
the
32M
individuals
who
will
be
covered
under
the
new
law
will
require
64M
sf
of
additional
space.
The
increase
in
additional
square
footage
needed
would
be
11%
by
2019.
Lucile
Packard
Children’s
Hospital
73% of healthcare
at
Stanford
According
to
the
results
of
a
survey
by
Health
construction is currently
Facilities
Management
and
the
American
Society
for
for modernization of
Healthcare
Engineering
(ASHE),
73%
of
healthcare
construction
is
currently
for
renovations
and
modernization
of
facilities
to
update
IT
infrastructure
for
greater
clinical
integration,
and
to
facilities to update IT
make
them
greener
and
more
patient-­‐friendly.
infrastructure for greater
It
should
be
noted
that
a
dominant
trend
is
to
focus
more
on
ambulatory
facilities
than
on
in-­‐ clinical integration, and to
patient
care
facilities
to
effectively
address
the
needs
of
the
population.
Related
construction
make them greener and
projects
included
in
this
sector
are:
nursing
homes,
assisting
living
centers,
physician
offices,
more patient-friendly.
clinics,
outpatient
centers
and
continuing
care
retirement
communities.

2. Higher
Education
2012:
Despite
decreased
endowments
and
continued
tight
financing,
higher
education
institutions
are
initiating
/
continuing
their
long-­‐term
capital
programs.
Over
the
last
several
years,
this
sector
has
become
increasingly
ambitious
towards
green
building,
sustainability
and
energy
efficiency,
which
are
the
primary
drivers
of
new
construction
and
renovation
projects.
The USGBC claims
The
United
States
Green
Building
Council
(USGBC)
claims
that
higher
education
leads
all
sectors
in
that higher
green
building
in
terms
of
square
footage,
having
the
highest
number
of
registered
and
certified
education leads all
LEED
projects.
The
decreased
operating
costs
that
result
from
sectors in green
green
building
are
the
impetus
for
this
activity
as
this
concept
building in terms of
can
reduce
energy
usage
by
30
–
50%
on
average.
With
institutions
facing
extremely
high
deferred
maintenance
costs,
square footage,
effectively
managing
these
expenditures
can
determine
their
having the highest
long-­‐term
financial
stability.
Additional
benefits
of
green
number of registered
building
include
carbon
footprint
reduction,
an
initiative
to
and certified LEED
George
Washington
University’s
Science
which
many
institutions
have
committed.
&
Engineering
Building
projects.
Among
the
largest
healthcare
projects
are: Among
the
largest
college
and
university
construction
projects
in
the
‣ Stanford
University
Medical
Center
Expansion
(CA)
–
$3.5B
planning
phase
are:
‣ Medical
Lifecare
Campus
(CA)
–
$3.3B
‣ Fordham
University
Lincoln
Center
Expansion
(NY)
-­‐
$1B
‣ North-­‐Shore
Long
Island
Jewish
(NY)
–
Approaching
$2.5B
‣ University
of
Maryland
East
Campus
Redevelopment
(MD)
‣ Scripps
Health
(CA)
–
$2B
-­‐
$700M
‣ Union
Center
Medical
Campus
(NV)
–
$1.5B
‣ Palomar
Community
College
District
Proposition
M
(CA)
-­‐
‣ Louisiana
State
University
Medical
Center
(LA)
–
$1.2B $613M
‣ Howard
University
Medical
Campus
(DC)
–
$1.1B ‣ Bluegrass
Community
Technical
College
(KY)
-­‐
$480M
‣ University
of
California
San
Diego
Health
System
(CA)
–
‣ Indiana
University
of
Pennsylvania
Student
Housing
-­‐
More
than
$1B $250M
-­‐
$400M
‣ Seattle
Children’s
Hospital
(WA)
–
$1B ‣ Arts
&
Transit
–
Academic
Building
for
Creative
/
‣ University
of
Connecticut
(CT)
–
$1B Performing
Arts
(NJ)
-­‐
$300M
‣ CA
Pacific
Medical
Center
Cathedral
Hill
(CA)
–
$900M ‣ Mixed-­‐Use
Campus
&
Osteopathic
School
(AL)
-­‐
$279M
‣ Duke
University
Health
System
(NC)
–
$800M ‣ George
Washington
University
Science
&
Engineering
Building
(DC)
-­‐
$275M
‣ Veterans
Administration
Hospital
(CO)
–
$800M
‣ New
York
City
College
of
Technology
New
Academic
‣ Exempla
St.
Joseph
Hospital
(CO)
–
$750M
Building
(NY)
-­‐
$252M
‣ Prince
George’s
Hospital
(MD)
–
$600M
‣ Academic
Village
at
Point
Park
University
(PA)
-­‐
$244M
‣ Massachusetts
General
Hospital
(MA)
–
$579M
*Source:
ENR
11/7/11
‣ Carl
R.
Darnall
Army
Medical
Center
(TX)
–
$503M
‣ McLaren
Health
Village
(MI)
–
$500M
‣ Henry
Ford
Health
System
(MI)
–
$500M
‣ Omaha
Veterans
Administration
Hospital
(NE)
-­‐$500M
*As
of
November,
2011

3. Trends
in
Strategic
Initiatives
‣ Aligning
Information
Technology
(IT)
and
facilities.
This
initiative
is
prevalent
among
healthcare
and
higher
education
institutions.
Organizations
seek
to
create
and
integrate
software
systems
that
work
in
tandem
with
financial
systems
to
effectively
manage
their
utilities,
facilities,
capital
projects
and
budgets
on
a
real-­‐time
or
close
to
real-­‐time
basis.
‣ Improving
energy
management.
Utilities
management
is
a
rapidly
advancing
area
of
FM
and
it
is
central
to
the
short
and
long-­‐term
plans
of
every
institution.
Some
organizations
are
strategically
taking
advantage
of
utility
rebates
and
cost
savings
of
locking
in
fuel
and
utility
prices.
Others
are
pursuing
comprehensive
commissioning
and
retro-­‐commissioning
programs.
‣ Initiating
Commissioning
&
Retro-­‐Commissioning.
Building
Commissioning
(Cx)
and
Retro-­‐Commissioning
(RCx)
have
received
interest
from
the
institutional
sector
for
their
cost
and
energy
saving
benefits.
Statistics
show
a
commissioned
building
can
have
average
operating
costs
that
are
8
–
20%
below
those
of
a
non-­‐commissioned
building
and
those
savings
are
only
the
beginning
of
Cx’s
advantages.
RCx
has
been
found
to
generate
energy
savings
of
about
16%
annually.
Two
prominent
higher
education
institutions
that
have
aggressive
programs
are
University
of
Chicago
and
University
of
Michigan.
‣ Utilizing
green
building
and
sustainability
to
increase
competitive
advantage.
Though
higher
education
leads
in
the
amount
of
LEED-­‐certified
square
footage
in
the
U.
S.,
healthcare
is
not
far
behind.
Green
building
and
sustainability
continue
to
grow
in
importance
and
prominence
worldwide.
Institutional
owners
are
performance-­‐
driven
and
are
increasingly
demanding
green
construction
and
LEED-­‐certified
projects.
In
fact,
many
major
higher
education
institutions
have
announced
that
they
will
only
build
LEED-­‐certified
facilities.
Supporting
this
initiative
is
the
U.
S.
Green
Building
Council
(USGBC).
In
April
2011,
it
added
a
healthcare
category
to
its
LEED
rating
system,
encouraging
developers,
designers
and
contractors
of
healthcare
projects
to
implement
services
and
programs.
‣ Experimenting
with
innovative
technologies
and
alternative
project
delivery
methods
for
capital
projects.
New
technologies
continue
to
shape
the
way
capital
projects
are
designed
and
delivered.
Pressures
continually
mount
to
keep
project
costs
down
and
to
increase
efficiency,
which
is
why
BIM
has
earned
much
respect
in
the
institutional
sector.
With
its
many
benefits
for
owners,
designers
and
contractors,
its
market
will
only
expand.
Institutional
owners
consistently
seek
to
maximize
their
return
on
investment
(ROI)
of
capital
While CM at Risk and
projects
and
to
generate
revenues
as
quickly
as
possible.
There
are
various
concepts
being
tested
in
the
marketplace.
While
Construction
Management
at
Risk
and
Construction
CM as Agent are still
Management
as
Agent
are
still
the
most
popular
for
capital
projects,
new
alternative
delivery
the most popular for
methods
have
been
successful
in
certain
situations.
capital projects, new
Integrated
Project
Delivery
is
gaining
traction
in
the
industry
offering
an
efficient
construction
alternative delivery
management
process.
This
method
gathers
architects,
contractors,
facilities
staff
and
major
methods have been
subcontractors
together
early
in
the
planning
phase
to
easily
provide
“design-­‐assist”
services,
mitigate
potential
problems
and
streamline
the
entire
process.
successful in certain
Prefabrication
and
modularization,
proven
methods
in
Europe,
are
emerging
concepts
in
the
situations.
U.
S.
that
are
expected
to
accelerate
due
to
owners
wanting
shorter
schedules,
decreased
costs
and
a
new
way
to
address
the
worsening
labor
shortage.
Job-­‐Order
Contracting
shares
the
same
concept,
benefits
and
goals
of
Design
Build
but
can
be
used
for
smaller
projects
ranging
from
$50k
to
$2M
such
as
renovations
and
repairs.
This
is
a
relatively
new
concept
for
owners
and
facility
managers
but
one
that
can
deliver
quality
as
well
as
efficiency.
Job
Order
Contracting
has
a
strong
record
of
success
with
federal
and
military
agencies.

4. FM
has
become
a
fast-­‐paced
and
rapidly
changing
industry
and
has
earned
its
stature
within
owner
organizations.
Teams
have
to
continually
stay
abreast
of
the
latest
technologies
and
advancements
relating
to
energy
management,
sustainability,
and
capital
project
delivery.
They
dedicate
much
time
and
consideration
to
developing
strategies
for
these
programs
that
are
efficient
and
effective
and
that
maximize
their
ROI.
Helbling
&
Associates
looks
forward
to
continuing
to
serve
our
clients
in
securing
proactive
professionals
who
have
the
ability
to
positively
impact
their
FM
departments
and
their
overall
organizations.
Learn
about
the
industry’s
trends
in
talent
management
by
reading
our
FM
Outlook
2012:
Talent
Management
Strategies
Sources:
American
Society
for
Healthcare
Engineering,
APPA,
Associated
Builders
and
Contractors,
Engineering
News-­‐Record,
Facilities
Management
Journal,
Health
Facilities
Management,
National
Real
Estate
Investor,
REED
Construction
Data,
United
States
Green
Building
Council,
U.
S.
Census
Bureau,
World
Economic
Forum,
Yudelson
Associates
Authors:
Sami
L.
Barry,
Strategic
Business
Development
James
G.
Lord,
Managing
Director
Joseph
F.
Wargo,
Managing
Consultant
Related
Information:
Case
study:
Facilities
Planning
&
Capital
Development
executive
search
performed
for
a
nationally
recognized
academic
health
system
Article:
Building
Commissioning
&
Retro-­‐Commissioning:
Gaining
Popularity
Among
Owners
Blogs:
Healthcare
Construction
Spending
On
The
Rise
Top
10
Critical
Facilities
Issues
For
Higher
Education
Facilities
Management:
Salaries
|
Demographics
|
Changing
Roles
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to
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Alerts
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