Healthcare construction happening in the West

Words: Dan Kamys

Healthcare construction happening in the West

More than half of architecture and engineering firms see the West Coast as the action market for healthcare construction in 2010, a new ZweigWhite survey has shown. Results of the survey are being published in the new ZweigWhite quarterly report, titled Market Advisor.

The report is part of the March 20 edition of The Zweig Letter, ZweigWhite’s flagship 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 healthcare survey said that the West Coast is where the work is, with 28 percent saying the Southwest is the hottest geographic area, and 24 percent pointing to the Northwest. The Northeast and the Midwest, both at 16 percent, also fared well. Only 4 percent of respondents pointed to the international arena as where they see potential in 2010.

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

Among significant findings:

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