05/01/2004

Jump in FM Compensation Reported

 
NOTEWORTHY


Jump in FM Compensation Reported

A new salary report released by the International Facility Management Association (IFMA) shows an estimated 21 percent leap in compensation for facility management professionals in the last five years. The Profiles 2003 report, based on a survey of 4,700 IFMA members, shows the median base salary for facility professionals has risen to $72,500, up from $60,000 reported in the Profiles 1998 report. Total compensation, including bonuses, averaged $86,611.

Advanced degrees and the Certified Facility Manager (CFM) designation have a significant impact on earning potential, the report shows. The CFM alone can add $3,313 to a facility manager's paycheck, while an MBA increases compensation by as much as $24,000. Staying at the same company increases salary, but holding the same position erodes the gain. Switching jobs within the same company may mean an increase.

Ninety-five percent of reported base salaries range from $40,000 to $150,000. Overall, base salaries increased about 20 percent across all job levels and bonus participation
continued to increase, especially in the lower job levels.

Data for the survey was collected via the Internet and by mail in July through September 2003, with a 44 percent response rate for a total of 4,693 responses. The average respondent has 25 years of full-time working experience, with 14 of those in facility
management—an increase of three years since the 1998 study. The average age jumped from 45 to 47. The number of women in FM also is increasing, with 31 percent of female respondents today compared to 29 percent in 1998. Females in the lower positions also increased, from 39 percent in 1998 to 43 percent today.

More than half of respondents (55 percent) say they have remained in the same position since last year, but that their responsibilities have increased. About 42 percent of respondents report multiple responsibilities. Operations, maintenance and energy management comprise 19 percent of the sample; facility planning and space management, 12 percent; architectural, engineering and construction, 11 percent; administrative services, seven percent; and real estate, three percent. Health, safety and environmental services accounted for less than one percent. Twenty-six percent of survey respondents manage facilities with one million square feet or more, and a quarter of the facilities serve 2,500 employees or more.

A little more than half of respondents come from the services sector, down from 62 percent in 1998. The manufacturing sector represented 24 percent, up from 20 percent in 1998. Responses from government and education institutions also showed an increase, up to 24 percent from 18 percent in the previous study.

To obtain a copy of Profiles 2003 (IFMA Research Report #24), contact the IFMA
bookstore at (713) 623-4362 or e-mail: bookstore@ifma.org.

TOUR LEED CI PILOT PROJECT AT NEOCON

Preview one of Chicago, IL's first LEED-CI pilot projects on Tuesday afternoon, June 15, during the NeoCon World's Trade Fair. NeoCon attendees are invited to visit the new headquarters for Farr Associates Architecture and Urban Design in the historic Monadnock Building. Presented by Interiors & Sources, Farr Associates' Kevin Pierce will walk participants through the space and describe how the firm worked to apply LEED-CI to an existing, historically significant space. This tour will highlight: how LEED-CI applies to tenant spaces; sustainable strategies utilized in the historic building; conflicts between energy efficient strategies and historic appearance; plus an analysis of green materials and strategies used for the space. It will also provide insight into understanding the challenges and rewards of working within an historic context to maintain and augment a healthful, functional and attractive workspace, as well as provide a familiarity with the LEED-CI rating system and a perspective on how traditional materials are gaining new respect as healthy green materials.

CEU credits apply to tour attendance. To register for the tour, visit www.merchandisemart.com.


Las Vegas Finds Success with the Upscale Vacationer

During the 1980s and '90s, Baby Boomers fueled the flames of theme park construction as they visited these family-style vacation destinations in unprecedented numbers. Now, with their children grown, this influential generation is turning its attention and its disposable income to what has been called the "new theme park" for the 21st century: the casino.

"Resorts, where wagering provides a thrill of winning, have quickly become the destinations of choice," wrote Donald R. Boyken, CEO of Boyken International, in "Demographics Drive the Market," which appeared in the February 2004 issue of Interiors & Sources. "At the slot machine or the tables, boomers can take a risk and experience the thrill of victory, because they never consider the alternative."

Going hand-in-hand with this latest choice of destination is the fact that boomers have money and want to be pampered. Destination leisure resorts are where they seek this type of entertainment.

The result: mega hotel renovation and construction in Las Vegas, NV, that delivers what Baby Boomers want: four- and five-star accommodations within the "winner take all" atmosphere only Las Vegas can provide. Consequently, Las Vegas hotel property owners and managers are working overtime to deliver increasingly higher levels of emotional appeal—the intangible satisfaction that comes with staying at a memorable hotel or resort, which is considered one of the most critical elements in any hospitality project's success.

Frank Hill, vice president of marketing/sales for SM Automatic, a manufacturer of motorized window treatments, agrees. The Culver City, CA-based SM Automatic is currently working with many Las Vegas resort properties in the construction and/or upgrading of guest room amenities.

"Las Vegas is indeed once again experiencing a building boom, while at the same time, several premier properties built during the last boom of the early 1990s are undergoing extensive renovations," notes Hill. For example, after completing a full spectrum of renovations of all guest rooms at Bellagio in early 2004, the property is undergoing additional expansion by adding the 900-room Spa Tower, designed and furnished in keeping with the resort's five-star status.

Another project drawing everyone's attention is Wynn Las Vegas, with its 2,700-room tower currently under construction, and a second tower comprised of 1,300 rooms that was recently announced. "As the latest brainchild of Las Vegas visionary Steve Wynn, this property promises to once again raise the bar of hotel standards, as Wynn did previously at The Mirage in the late '80s and Bellagio in the '90s," Hill comments. In addition, Hills describes significant renovations and expansions in various stages of development for at least six other major Las Vegas properties, which coupled with the Bellagio and Wynn Las Vegas, will once again change the city's skyline."Las Vegas
has positioned itself as truly a destination resort, with a one-of-a-kind lure. The passing fancy of promoting itself as a family destination, and competing with the likes of Orlando, is a thing of the past, with the city once again wearing the 'Sin City' moniker with pride," says Hill. "Attracting an adult demographic, with plenty of money to spend, is fueling this boom in hospitality building and renovation. Even considering the opening of a major new property in Atlantic City, or the expansion of Indian gaming across the
country, the simple fact is, there is only one Las Vegas.

"The history of Las Vegas is one of: Build as much as you can, wait for the market to catch up with you, then build some more. Over the long-term, there is little question that the trend will continue, but it will start and stop according to economic factors," continues Hill. "The certainty is that once a building has outlived its lifespan, it will be torn down to make way for the latest mega resort. There's no reason to believe that this
'build, then build some more philosophy' will not continue as long as gaming is legal in Nevada—which is to say, there is no end in sight."

SM Automatic is a supplier to both the Bellagio and Wynn Las Vegas projects, with its drapery motors in every guest room of both resorts. Between the two hotels, the company will have over 16,000 motors installed.

"Our products are being specified for the same reason as gold-plated bathroom faucets, or plasma televisions in every room," says Hill. "These hotels are catering to a clientele that is used to the best—and expects the best. If a convenience can be incorporated into a guest room that can make a guest's experience more pleasurable, it will be done."

GRANTS BOOST PUBLIC DESIGN AWARENESS

Educators, community groups and other non-profit organizations are encouraged to apply for grants to support public education programs in Massachusetts that enhance public understanding of the value of well-designed buildings, public spaces and communities. The Boston Foundation for Architecture (BFA) has issued its 2004 application guidelines, which elicit proposals for design-oriented public programs. Grants typically range from $500 to $10,000. The application deadline is August 12, 2004.

The BFA once again is collaborating with The Engineering Center Education Trust and the Boston District Council of the Urban Land Institute in making grants to recognize the importance of the disciplines of architecture, engineering and urban development in creating and enriching the built environment. Through 2003, the BFA has distributed over $620,000 in grants to public- and private-sector groups and other organizations and individuals committed to enhancing public awareness of the built environment.

For a copy of the application guidelines, visit the BFA Web site at www.bfagrants.org or e-mail requests to: bsa@architects.org.

Hospital CFO's Predict Increase in Capitol Spending

Nearly three-fourths of chief financial officers said they will increase their hospitals'
capital spending over the next five years, according to a survey of CFOs at 460 hospitals and health systems nationwide, conducted by the Healthcare Financial Management Association (HFMA) in partnership with GE Healthcare Financial Services. Survey results, as reported in an issue of Financing the Future, indicate that CFOs expect to increase capital spending by an average of 14 percent per year, with spending in certain regions of the U.S. rising more than others. In contrast, average annual increases in capital spending between 1997 and 2001 were merely one percent. Driving this increased spending are three primary, often competing issues CFOs face in operating their companies: staying ahead of deteriorating fixed assets (plant, property and medical equipment), a need to upgrade technology, and increasing capacity.

States expected to need the most significant percentage increases in capital spending are Idaho, Georgia, Florida, California, Tennessee, Alaska, Texas, Rhode Island, Arkansas and Arizona. These states reflect some or all of the key factors influencing future capital needs, such as high projected rate of population growth, low historical capital spending, potentially diminishing health status of residents and high physician demand. States expected to experience comparatively lower acute capital needs are Louisiana, Ohio, Iowa, Maine, Montana, Nebraska, Wyoming, Hawaii and South Dakota.

CFOs overwhelmingly cited new technology as a primary contributor to their increasing capital budgets. They also cited plant and facilities as an important area for future
spending and offered two key views on the state of their infrastructures. Nearly one-third indicated that their hospitals are in worse condition than they were 10 years ago, and almost half believe their infrastructures are deteriorating faster than they can make capital improvements.

Fifty percent of teaching hospitals expect capital spending to increase at a rate of 15
percent or more annually. In the past, hospitals in Hawaii, Alaska, North Dakota and New York reported the lowest average capital expenditure growth rate, pointing to higher capital needs in the future. Conversely, Louisiana, Georgia and Michigan had a higher expenditure growth rate, indicating a lesser need for capital in coming years. What's more, small, rural facilities and not-for-profit hospitals reported the most aggressive capital spending plans, a pattern which may be tied to improving reimbursement levels in recent years.

Career Advancements for Women and Minorities

A significant increase in career advancement opportunities within the profession of
architecture for women and minorities has occurred during the last two years, according to The Business of Architecture: The 2003 AIA Firm Survey report released by The American Institute of Architects (AIA) in late 2003. The study, which is conducted every three years, examines issues related to business conditions of AIA member-owned architecture firms.

The survey findings demonstrate considerable improvements in the profession's efforts to serve a diverse and dynamic society. Over the past several decades, an increasing number of women and minorities have entered the profession. As of 2002, women comprised 27 percent of architecture staff at firms, up from 20 percent in 1999. Racial and ethnic minorities accounted for 17 percent, up from nine percent three years prior. The figures for registered architects are just as strong: women accounted for 20
percent in 2002, up from under 14 percent in 1999, while racial and ethnic minorities were over 11 percent in 2002, up from six percent during the same period.
Some of this increase is due to simple demographics. However, the recent change is the rate at which women and racial and ethnic minorities have moved into leadership positions at firms. In 2002, women accounted for almost 21 percent of principals and partners at firms, a figure which grew from 11 percent in 1999. Likewise, racial and ethnic minorities accounted for 11 percent of principals and partners in 2002, up from five percent in 1999.



  • HABITAT FOR HUMANITY RECEIVES TILE DONATION

    Recent exhibitors at Coverings, an international exhibition for ceramic tile and natural stone floor coverings, donated 150 pallets and 16 crates of tile, enough to fill seven trailers, to Tile Partners for Humanity, a non-profit industry partnership that provides ceramic tile and installation services to Habitat for Humanity projects across the country.

    A portion of the tile collected from the show will be used in the kitchens, entryways and bathrooms of Habitat for Humanity homes currently under construction in the Orlando, FL, area; the remaining tile will be sold through the Habitat Home Store in Orlando with 100 percent of the proceeds used to fund new Habitat for Humanity construction in Orlando. The Habitat Home store estimates that sales of these donations will bring in a minimum of $40,000.

    Freeman Decorating Co. donated labor and transportation for this donation.



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