Healthcare Design - April 2016 - 26

Number of healthcare projects
completed in 2015 compared to
2014
The survey was conducted online in January
and February and open to all domestic A/E/C
firms. On average, participants reported that
about 50 percent of their work was dedicated to
healthcare in 2015, with 37 percent reporting the
majority (60 percent or more) of work in this sector.
And, overall, two key words stood out in their
answers regarding the state of business last year
and in the future: more work. It's an opportunity,
and sign of a market shift, that exists despite the
pressures that come with it.
The nitty gritty
For 2015, 48 percent of firms reported completing
more healthcare projects than they did in 2014,
and 52 percent reported receiving more RFPs.
Thirty-six percent saw about the same number

60
50
40
30
20
10
0

of projects completed and 34 percent the same
number of RFPs, with 16 percent and 14 percent
reporting fewer completed projects and RFPs,
respectively.
When Healthcare Design last gauged renovations versus new construction in 2013 (via the
magazine's former Corporate Rankings Survey),
renovations just slightly outweighed new construction at 51 percent of completed projects. Two years
later, 2015 saw a more marked difference, with
54 percent of business occurring in renovations
and 46 percent in new construction.
As for building size, the industry is staying small,
with 58 percent of projects reported completed in
2015 falling between 5,000 and 20,000 square feet.
Just a quarter were between 20,001 and 50,000
square feet, with ranges between 50,001 and more
than 1 million square feet all in single-digit percentages. Sixty-two percent of firms said this falls in line
with what they saw in 2014, with just 29 percent
seeing larger projects than the year before and
9 percent reporting a trend toward smaller work.

New construction vs. renovations
in 2015 compared to 2013

50
49%

51%

54%

46%

30
20
10
0

New
construction
2013

New
construction
2015

HCDmagazine.com 04.16

Renovations
2013

Renovations
2015

Number of RFPs received in 2015
compared to 2014

Fewer
16%

Fewer
14%

More
48%

More
52%

About the
same
34%

About the
same
36%

About the same

Fewer

New construction vs. renovation

About the same

Average size of projects completed
in 2015 compared to 2014
Smaller
9%

46%

54%

New construction

Fewer

Renovation

And when it comes to opportunity on the horizon, another notable trend stood out (signaled by
that size data)-outpatient projects. Back in 2013,
survey respondents estimated about 17 percent of
projects were in that space, while 53 percent of jobs
were dedicated to hospitals. For 2015, the margin
between the two nearly disappeared, with 52 percent
of completed projects in hospitals and 45 percent in
outpatient facilities.
Projects based in senior living saw an uptick, too.
In 2013, only 6 percent of respondents reported work
in long-term care, whereas 2015 saw that more than
double to 14 percent. Infrastructure projects, such as
parking or physical plant upgrades, rose slightly from
6 percent to 9 percent.
The why
Of course, no project gets off the ground without a
very specific organizational need behind it. And
for 2015, the needs that A/E/C firms heard
expressed by clients offer an explanation for
many of the shifts noted in the hard data.
Thirty-seven percent of respondents
reported that the renovation of existing
space was the single most common
client need influencing projects last
year. That was followed by the

About the
same
62%

About the same

Larger
29%

Larger

Smaller

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Healthcare Design - April 2016

Table of Contents for the Digital Edition of Healthcare Design - April 2016