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Survey Assesses Health-Care Building Prospects

Monday, March 29, 2010

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More than half of architecture and engineering firms see the West Coast as the "action market" for health-care construction in 2010, a survey conducted by the business-management company ZweigWhite suggests.

Results of the survey are being published in the new ZweigWhite quarterly report,  Market Advisor. The report is part of the March 20 edition of The Zweig Letter, the company's weekly management journal. Additional Market Advisor reports to be published at the end of each quarter will focus on different market sectors.

More than half of respondents to the health-care survey said that the West Coast is where the work is, with 28% saying the Southwest is the hottest geographic area and 24% identifying the Northwest as the top growth region. The Northeast and the Midwest, both at 16%, also fared well. Only 4% of respondents said the international arena holds potential in 2010.

"Southern California is an active aging market," says Edward Caruana, president of c|a Architects, Long Beach, Calif. "We feel health facilities-whatever complexion they take on in the future-will be needed in this busy area."

Among the survey's significant findings are the following:

  • 37% of respondents are optimistic about healthcare being a hot market this year, but 40% are in the "wait and see mode" and 23% are not touching it;
  • 44% say new hospital projects will lead health care in 2010, with a significant percentage (32%) saying they will work mostly on renovations and upgrades due to lack of funding for all-new facilities; and
  • 67% pointed to lack of financing as the biggest hindrance to this market in 2010.

ZweigWhite offers a range of business management services for architecture, engineering, and environmental-consulting firms. Services include strategic business planning, business valuation, ownership transition, human-resources management, finance and administration, mergers and acquisitions, market research, marketing, project management, and project delivery methods. The firm is headquartered in Wayland, MA, with additional offices in Chicago, Ill., and Washington, DC.

More information: www.zweigwhite.com.

   

Tagged categories: Construction; Health Care/Hospitals; Trends

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