tion expertise and remote monitor-
ing of building systems.
Initial design for technology-
focused systems
Designing the data, voice, video,
network, energy management, secu-
rity and similar systems is a growing
skill set and key differentiator for de-
sign engineering firms working on
large vertical building projects. The
ability to sell these services sepa-
rately from more traditional MEP en-
gineering services also provides
inroads into new projects at an ear-
lier phase, where the technology
component of the project can lead
to an expanded role and future work.
Montgomery sums up the point,
“Technology engineering is now the
fourth utility in an industry tradition-
ally based around three (mechanical,
electrical and plumbing). It is also
the most rapidly changing building
system. Technology systems impact
workflow, efficiency, expectations,
safety, communication, connectivity
and so many other things.”
Systems integration expertise
Vendor-agnostic control system
expertise is key to solving problems
and delivering an optimized facility.
Control system engineering and the
ability to connect disparate systems
are important to bridging gaps
among the mechanical, electrical
and security contractors—ensuring
proper functionality of the various
systems. Control integrators are criti-
cal players in the facility landscape,
increasing their value beyond the ini-
tial project and ongoing mainte-
nance processes.
“There are system integration op-
portunities that exist today that
could never successfully be realized
in the past,” Montgomery adds.
Continued commissioning
and service mindset
Continuous monitoring and main-
tenance of facility systems is key to
maintaining a “first-call” position
with facility owners. The ability to
collect and analyze data to help pre-
vent and solve problems is an impor-
tant core competency that allows
stakeholders to derive actionable in-
sights from the massive amounts of
6 — Winter 2018 — The North Carolina Construction News
data that too often go unused.
In a recent CBRE report, Matthew
Eastwood states, “You can measure
a million different things—but focus
on what you want to control and do
it differently.” The ability to collect
and analyze data also permits ser-
vice providers to communicate both
proactive and reactive solutions to a
facility manager or subcontractor.
These teams can then act on-site to
troubleshoot the identified issue
with purpose, avoiding potential
problems and solving issues faster
as they arise.
Who has the expertise
and skill sets?
The landscape of true technology
experts and smart facility providers
is not always obviously identified.
The unique combination of skill sets
needed to bring all of this expertise
together currently sits in various
places within the broader industry
landscape. As time goes on, the
skilled leaders will further emerge,
and increased consolidation will
likely occur. The early leaders able to
build a large base of loyal clients will
benefit the most. This evolving com-
petitive landscape will impact indus-
try stakeholders differently:
Engineering firms
Traditional MEP design and con-
sulting engineering firms have vary-
ing depths of technology
practices—from zero to extremely
advanced. Those firms that are more
deliberate in developing technology
design and integration capabilities
across key end markets are more
likely to enjoy a stronger competitive
position. “Today, building occupants across
all asset types expect 24/7 connec-
tivity and a positive user experi-
ence,” says Val Loh, principal at
Syska Hennessy Group. “That’s why
we view our capabilities in technol-
ogy design as a core component of
our services rather than as a spe-
cialty add-on. Because our technol-
ogy practice is fully integrated into
our team structure, we can offer our
clients a form of holistic design that
differentiates us from other engi-
neering firms.”
Original Equipment Manufacturers
(OEMs) Skilled controls professionals in-
side OEM organizations are a recog-
nized talent pool in the industry. The
difference between an OEM repre-
sentative and a controls engineer
from a product-agnostic firm is the
knowledge and ability to integrate
one specific product type (as op-
posed to taking a broader view). As
more systems and users move to-
ward open systems not tied to a sin-
gle product provider, the value
assigned to the expertise and ability
to work with multiple systems will
increase. This will likely pressure the
OEM providers to broaden expertise
and/or further utilize product-agnos-
tic service providers to execute the
integration. Facility managers
Certain facility managers possess
the skill sets needed to optimize
building systems, but they’re fo-
cused on responding to problems
and fixing tangible issues. Utilizing
well-designed technology with re-
mote systems expertise, analysis
and support from technical service
providers, on-site facility managers
who live and work with the equip-
ment every day can truly maximize
the performance of the buildings
they manage.
IT managers
As new technology is integrated
into buildings and facilities, and as
equipment becomes further inte-
grated, greater reliance and power
have shifted to IT managers. IT man-
agers are increasingly the gatekeep-
ers for critical facility system
decision-making and troubleshoot-
ing. The role of IT staff and the ac-
companying core information
technology knowledge is a key com-
ponent of today’s properly function-
ing facility.
As a result, the IT staff is a group
that is likely to see an increased
share of responsibility among facility
stakeholders. Montgomery states,
“Additionally, many traditionally man-
aged systems (i.e., building automa-
tion systems) are now being
managed and operated by IT person-
nel as these systems become more
data-driven. Organizations/compa-
nies desiring to truly separate them-
selves from the competition are
pushing for greater levels of technol-
ogy and often hiring the profession-
als that plan/design such systems
independent from traditional MEP
engineers.” Talented practitioners skilled in
the design, integration and ongoing
technical services of the technolo-
gies embedded in today’s facilities
are in high demand. The ability to
find, retain and train an optimal tal-
ent base is hampered by the special-
ized skill sets spread among these
disparate providers. In addition to
having a fragmented talent pool, the
competition for talented engineers is
intense as the technology giants
continue to grow. Engineering talent
with three to seven years of experi-
ence is more valuable than ever, and
acquiring such talent is a critical ob-
stacle in building the best facility
technology teams.
The acceleration of growth
in technology spend
Technology is expanding as a
component of overall building invest-
ment. This trend offers providers
value through revenue diversification
from the more traditional design
segments and can offer improved
margins for those increasingly com-
moditized firms.
A recent energy efficiency survey
by Johnson Controls clearly identifies
the expected growth in technology-
enabled facility systems and integra-
tion (Exhibit 1). Sixty-eight percent of
respondents plan to invest in building
controls over the next 12 months, up
from only 38 percent of respondents
two years ago, exceeding Johnson
Control’s expectations. Survey results
show that six of the eight top mea-
sures that organizations plan to imple-
ment in the next 12 months relate to
connected technological building sys-
tems requiring specialized design and
integration. This trend highlights the
significant growth opportunities avail-
able to engineering firms in the tech-
nology market.
This article was originally pub-
lished in the FMI Quarterly. FMI
Corp. is a Raleigh-based manage-
ment consultancy and investment
banker dedicated exclusively to engi-
neering and construction, infrastruc-
ture and the built environment.
Authors are Russell Clark
(rclarke@fminet.com), responsible
for executing merger and acquisition
advisory and capital formation en-
gagements and Greg Powell gpow-
ell@fminet.com), a managing
director with FMI Capital Advisors,
Inc., FMI Corporation’s investment
banking subsidiary.
Russell Clark
Greg Powell
The North Carolina Construction News — Winter 2018 — 7