Demand for facility re-design will be strong.

Insider Outlook

In the recent past, Lockwood Greene's New York office has been repositioning itself in new arenas that are centered on rebuilding infrastructure and aging facilities. In the year ahead, we foresee a continued market shift towards activities where integrated architectural and engineering services are required for rehabilitation and renovation projects.

For many years, industrial engineering has been the mainstay of Lockwood Greene's business, but the decline of manufacturing in New York City compelled the office to initiate and implement a reorientation. The process has entailed an acute re-examination of market opportunities in relation to the firm's unique industrial design capabilities, and a new emphasis on facilities redesign.

Despite the many changes, some things remain the same. Competition for contracts will continue to be stiff. We believe, however, that work is increasing as the result of a livelier economy and changing technologies which dictate redesign. Corporations, hospitals, schools and universities, and municipalities are spending on redesigning facilities and expanding infrastructure to keep pace and stay competitive.

Besides competition, advances in technology are certainly driving the market. For instance, as the volume of air cargo surges, with airports and air cargo companies relying more heavily on increasingly sophisticated technology, the demand for systems engineering increases. As the volume of data explodes, corporations are required to upgrade mechanical/electrical systems to support the activity. Tenants are demanding more sophisticated building systems from owners, necessitating upgrades in older and even recent vintage buildings.

In the educational sector, rehabilitation has only just begun. Universities and school systems will continue to require renovation and rehabilitation services for a long time to come. Agencies like the Dormitory Authority of New York (DASNY) and the State University of New York (SUNY) are identifying numerous projects to improve their facilities.

Through advances in "manufacturing technology" engineers are helping processors find better ways to make a product. Increasingly, manufacturing companies, including food processors, industrial producers, and pharmaceutical firms, are involving design engineers in the selection and procurement of equipment, the construction, and improvements of the manufacturing process itself.

Last, but not least, there is growing activity in security and resource management. Since the bombing of the World Trade Center, building owners and managers are placing renewed emphasis on developing comprehensive security master plans that will help prevent catastrophes.

Overall, it appears that 1995 will be a good year for capital improvement projects, with a wide and diverse business base and with all clients seeking maximum value in all areas of their business.

Carmine DiLullo Manager - New York Office Lockwood Greene Engineers