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Market Analysis Summary
Market Analysis Summary
1. Government: After years of government downsizing, the need for local and state
government work will continue to be steady, as state agencies and local
governments begin to renovate existing facilities to handle their restructured
programs. This means the addition of new facilities and renovated
spaces. Government construction spending should be on the increase.
2. Educational: New school construction reached a high in the 1990’s, due to the
‘Baby-Boomer’ generation. In spite of voter demand for reduced taxes,
education appears to still be receiving a strong vote of confidence. Education
construction projects show continued growth for the early 2000’s.
3. Private and Commercial Sectors: The emphasis is predominately on renovation
of existing facilities, not new construction. Companies will continue to extract
more efficient use of existing space, as they re-engineer existing operations
through new work patterns. The retail industry is benefiting from an effort by
many cities to rejuvenate core business districts. Renovation of existing centers
to attract or retain shoppers is the key theme. Many retail chains are investing
to give face lifts to older stores to remain competitive. The growth of mega
retailers continues, with smaller stores on line for less populated areas.
4. Health Care / Senior Facilities: Nationwide, managed care is in a state of
flux. This new direction is fueling the potential growth and modification of health
care delivery and health care facilities. Today, care giving and health
maintenance have become natural extensions of existing businesses that include
primary care, long term care, therapies, home care, hospice and respite
care. Many other companies who have been on the sidelines over the years are
now benefiting from expansion, including ancillary services, such as pharmacies,
laboratories, medical equipment and drug research facilities. Investors and
financial merger potentials are being attracted to larger scale ventures in the area
of health care / senior facilities.
5. Architectural and Engineering Firms: As a group, we have good working
relationships with a number of architectural and engineering firms throughout the
Northeast. We have consulted on several major projects over the last two years,
and will continue to expand this segment of our services.
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Market Analysis
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All of our target market segments have buildings or facility needs which require skilled
engineering work to design and implement. They need engineers who understand their
needs, their budget constraints, and the legal and code requirements for their facilities’
purposes and locations.
Our engineers are certified, with many years of experience in their fields, and ongoing
relationships with government developers and planners, commercial developers, and
local school districts throughout the Northeast. We will use these contacts to learn of
new projects, develop competitive bids, and provide high-quality services to these
market segments.
In addition, architectural and engineering firms often have need additional engineering
consulting. Architects will always need skilled engineers to make their designs a reality,
and large engineering firms sometimes have more work than they can handle.
The engineering, design and consulting business consists of many smaller consulting
organizations and individual consultants for every one of the few dozen well-known
architectural / engineering companies.
The key element in purchase decisions made at the Pyramid client level is trust in the
professional reputation and reliability of the engineering firm.
Pricing of projects and billing rates are surprisingly variable. In engineering at this level,
it is easier to be priced too low than too high. Clients and potential clients expect to pay
substantial fees for the best quality professional advice. The nature of the billing,
however, is sensitive. Clients are much more likely to be offended when a job starts at
$20K and ends up at $30K because of overruns, than if the same job started at $30K or
even $35K.
Clients rarely compare consultants directly, looking for two, or more, possible
providers for a proposed project or job. Usually, they follow word-of-mouth
recommendations and past reputation, rather than selecting from a menu of possible
providers.
The most important element of general competition, by far, is what it takes to keep
clients for repeat business. It is worth making huge concessions in any single project to
maintain a client relationship that brings the client back for the future projects.