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Issue 34, Apr 2009

Welcome to the April edition of FMA Online. This month, I have pleasure in announcing several new initiatives from FMA Australia, the first of which is our newest membership service, the FMA Australia Knowledgebase. Developed and maintained by WinterComms, the FMA Australia Knowledgebase currently features over 500 articles drawn from FMA Australia conference presentations, executive briefings and professional development workshops dating back to 2000, in addition to specific article links to related industry websites. This is the first time that FMA Australia members and website visitors will be able to access articles neatly categorised according to topic and article date. Click here to visit the FMA Australia Knowledgebase or visit www.fma.com.au and click on the Knowledgebase tab.

The second new initiative is a networking group for younger facility managers. A need was identified some time ago for a forum for the younger generation of FM professionals to be able to get together and discuss the issues affecting them in a more relaxed and informal environment. To meet this need, we are proud to introduce inForM. For many years FMA Australia has held social networking events across the nation, allowing members to build relationships with one another. Whilst these events have been extremely successful for the industry as a whole, we feel now is the right time to address the needs of the young, up and coming FM professionals of today and inForM is designed to do just that. Events will be held across Australia throughout the coming year. inForM will be launched officially at ideaction 09 so stay tuned for further details.

Another new event in the FM calendar, being introduced for the first time this year, is World FM Day. The 28th August will provide an opportunity for FMs to celebrate the contribution that they make to society and the economy and to raise awareness of the industry and the huge role it plays in reducing the world’s carbon footprint and contributing to the sustainability of the planet. This day of recognition was initiated by FMA Australia and has been endorsed by Global FM, of which FMA Australia is a founding member. Events will be held across the world to mark this special day and FMA Australia is currently making plans for its own celebrations. Keep checking the FMA Australia website for details.

ideaction 09 is now only a month away, so please make sure that you register for the most important FM event of the year. These may be tough times economically, but in the current climate can you really afford to miss the event that will give you the tools to survive the storm and ensure that your organisation comes out the other side primed for long-term success? If you can only attend one conference this year, make sure it’s the one that gives you the most value for your limited budget. Please note that group discounts are also available for three or more delegates from the same organisation. Contact the FMA Australia office on 03 8641 6666 for details or visit www.fma.com.au to register.

It gives me very great pleasure to announce that Chris Hunt, Regional Director, Integrated Facilities Management, Jones Lang LaSalle, has been appointed to the FMA Australia board of directors. With more than 25 years experience in facilities management from around the globe, Chris is a welcome addition to the board and I look forward to working with him during his two year tenure.

I would like to take this opportunity to thank all members for their support of FMA Australia through their attendance at branch events over a difficult few months and wish to assure you that FMA Australia continues to strive to provide the best possible service and value for your membership. I strongly encourage you to continue to support your organisation and make the most of the networking opportunities provided to make those all important contacts. You never know when you might need them.

Until next time..

David Duncan
CEO

Attend ideaction and return to the office with new ideas, contacts and solutions to help your organisation weather the economic storm and come out the other side primed for long-term success.

Make yourself an indispensable asset to your organisation - register now for ideaction 09!

Register online.
Check out the program.
Learn more about the keynote and concurrent speakers.
Check out the amazing range of site visits.
Read up on the social events.
See what sponsorship opportunities are available.

It is generally understood that the current global crisis is having a significant impact on many businesses both locally and abroad, and a majority of corporate organisations are deciding to take fast and decisive action to minimise the cost impact on their business activities.

However, while prudent strategic action is always desirable, the reaction to the current financial crisis has also resulted in widespread “short term” decision making by businesses, resulting in redundancies of several levels of management, including good people within the Facility Management field.

The need to tighten overhead costs and discretionary expenditure has never been as urgent as in the current economic situation, and both research and current anecdotal evidence shows that organisations are cancelling or deferring capital project expenditure, they are not recruiting new employees, they are deferring decisions on possible acquisitions and as a rule, they are blocking all discretionary spending.  Key economic indicators all point to very tough times ahead in 2009 and economists do not envisage any improvement until at least next year.   

As a result of the 1992 recession, Facility Management as an industry sector grew in part due to the need for organisations to outsource more non-core services. The key business drivers then were to reduce cost and seek operational efficiencies. The industry has significantly grown and matured since then, both internally as in-house teams within organisations and through the expansion of knowledge and expertise gained by external Facility Management service providers.

With the onset of the current financial crisis in 2009, organisations are again looking for ways to reduce their cost base and are expecting greater efficiencies and outcomes for less expenditure. This need has accelerated the market trend for organisations to lean towards seeking a “One Stop Shop” solution where a suite of integrated services are delivered.

This integrated service suite includes being able to design a strategic solution, develop tactical options and implement optimal operational outcomes, and the establishment of this type of business model offers customers a diverse range of service solutions that will achieve further cost and quality benefits and ultimately synergies. It also enables organisations greater flexibility and choice.

For example, organisations may want a Facility Manager to design and develop a facility or maintenance strategy where the customer can deliver it, organisations may want that strategy to be implemented and then handed over, or ultimately, organisations may want a whole of life solution designed and delivered in its entirety.

Providing organisations with choice is absolutely essential in this tough economic environment, and at Programmed Group, the Value Proposition has changed to ensure that organisations are able to receive a total vertically integrated service offering. This means that Programmed Group can provide a combined management, technical and trade delivery option across different market sectors, and this model provides a significant value advantage through being able to design a Facility Management solution that takes full ownership and accountability for delivering on an organisation’s needs.

In order to successfully design solutions for the needs of any customer, Programmed Group works collaboratively with organisations to fully understand their culture and expectations. Establishing this key aspect of a customer’s business requirement ensures that the Facility Management planning and delivery component become more aligned and relevant to business expectations.

Since the lack of business cultural understanding and alignment are two of the critical areas of failure in facility contract management, Programmed Group ensure we get it right, upfront!

Getting it right at the beginning means that less time is spent between the customer and the service provider learning on the contract and unravelling the unknowns, and it also means that a clear focus can be placed upon achieving the strategic goals and objectives set out during the design and mobilisation phases of the contract.

The delivery of quality services on the ground is invariably the measure that makes or breaks a contract. Since Programmed Group directly employ all trade based maintenance staff, the strategic and tactical objectives outlined at the outset of a new facility management contract can be articulated through our internal networks to ensure the contract deliverables are truly aligned. This also means that Programmed Group are able to take on greater contract performance-based risk on the premise of being able to drive and influence its employees to a common objective.

Like many industries, the Facility Management sector is not immune to the global economic crisis. However, it is well positioned to capitalise on opportunities to improve the underlying performance of organisations non-core business assets. Various aspects of facility and maintenance expenditure are essential to ensure compliance and to provide organisations with long term asset value. The service provider organisations that will flourish from this current economic downturn are those that will act smartly to create different ways of adding value to their customer base and to prospective customers.

For the Programmed Group, this means being able to provide a complete integrated service offering – our value advantage in today’s market, for today’s customers.

Call Steve Taylor or Danny Shafar at Programmed Facility Management on 03 9686 4999 for an appointment today.

Steve Taylor
CEO

Bruce Ferguson

By Bruce Ferguson, Helmsman International

Projects that explode are not just a little late or a little over cost, they are often very late and very over budget. Unfortunately the organisation is often not aware the project was late or over budget until it is too late to recover. These projects don’t get late incrementally; they seem to be on track until suddenly the project team is forecasting a delay in years and a budget blow out reaching into the millions. Bruce Ferguson, Chairman of international project support services company, the Helmsman Institute, explores the key factors of project failure and success.

The research we’ve undertaken at Helmsman in conjuction with university and project management association has shown that there are three questions that need to be asked or understood for a project to remain under control:

1. Is the project more complex than usual for us?
2. If it is; are our delivery people capable of doing the work?
3. Is our management context (the management team, management processes and oversight) capable of supporting the delivery team?

Understanding project complexity

“Is the project more complex than usual for us?”

By creating a large database of projects, Helmsman has been able to extract the factors that create difficulty for organisations in delivery. What has become clear is that for different sectors and different organisations, projects of equal complexity do not create the same issues for each organisation.

We have identified that there are five areas that create complexity:

1. Project context: Each project exists in a context of stakeholders and expectations. If the stakeholder groups are larger and more powerful then the organisation is used to dealing with, the project will have to spend more effort on creating alignment to be able to proceed. An example is when a company delivers projects into a new sector where regulatory involvement (inspections and quality control) is much more rigorous and hands on.
2. Sociological issues: A high percentage of project managers and project management organisations come from a technical or engineering background. As such the impact of cultural, behavioural or people change management issues are often underestimated or overlooked. If a project is running into deep paradigm changes for users, regulators or owners and managing change is new to a project organisation, it is almost guaranteed the project will explode.
3. Ambiguity: If the issues and approach to the project have higher levels of ambiguity (lack of clarity) then usual, an organisation may not have the negotiation, analytical and clarification process and skills to create sufficient definition early enough to prevent the project blowing out at later stages.
4. Technical challenge: From our research we have identified that two key technical challenges increase complexity. Systems complexity arises from the level of emergence in the solutions (are the solutions off the shelf, developmental or bleeding edge). In parallel, if the technical systems involved require high levels of integration or automation, the complexity can rapidly escalate. If an organisation does not have experience in developmental or emergent technology and the associated systems integration, the project blowout can be rapid and extreme.
5. Project management components: For all large projects there are aspects of project management that are unique to projects that create complexity. Key aspects relate to relationships and resources. Key relationship complexities are the contracting agreements between customers and suppliers which determine whether the contract is more complex (i.e. alliance versus fixed price). Resources management can also be an issue. If the team is larger, more complex or difficult to find and retain, the project can blow up rapidly.

Given the current financial environment, companies need to be more careful to ensure that projects deliver. At the same time, project companies will be looking to take on projects that they may have seen as too risky before. It thus behoves executives deciding on projects to look at the complexity of the project before making any commitments to proceed.

Once the executive is aware of the complexity, it will either be within the regular skill set of the organisation’s delivery capability or be above that level. If it is above the level, the executive could still proceed with the project, but will need to improve both delivery capability and management strength.

Project team capability

It is critical to evaluate the capability of the delivery arm, not just the capability of the project manager that will be assigned to the venture. The delivery team includes all of the areas involved in delivery. Dependent on the industry this includes engineers, IT staff and commercial and financial managers. If delivery is mostly outsourced, this includes the true capability of the outsourced team.

It is important to pay particular attention to the specific areas that are creating additional complexity. If the problem is:

1. Context – beef up the communications and stakeholder management capabilities
2. Sociological – look for project team members with stronger HR skills
3. Ambiguity – look for design skill, business analyst or consulting skills dependent on the sector
4. Technical – look at partnering with universities, research houses or advanced technology companies
5. Project management – look for strong commercial and experienced project management professionals. Look at potential project management organisations for partnerships in delivery

Having the right people on board is crucial to successful project delivery.

It is important to be realistic about your organisation’s capabilities. While all organisations have some stretch around project complexity, lack of understanding of these higher complexity issues can create immense strain and results that could potentially destroy a company.

Once the actions are in place to ensure that the competence of the project delivery teams is up to the challenge, it is time to look in the mirror and see if management is in a position to support the delivery.

The management context

While it is often easy to create the changes needed to deliver projects through changes to the delivery teams, the impact of not improving the management context is insidious but critical to success.

The management context is the combination of culture, executive behaviour and relationships, plus governance, reporting and performance management approaches that shape the boundaries and approaches that the project team is able to pursue without intervention.

If an organisation is relatively entrepreneurial and decision making is often devolved with independent action, a project where there are deep commercial controls required may see a team getting into trouble through loose commitments and lack of clear responsibility pathways.

Conversely, in an organisation that is disciplined and introverted and focused on good engineering and limited communication, should the stakeholder context become complicated with media attention and government involvement, the project could rapidly run into trouble.

It is important then, for organisations to look at the complex projects that they are going to undertake and evaluate whether their culture and management style can be changed to support the project’s needs.

In summary, be careful when you step into projects that are not run of the mill from your organisation’s perspective. Evaluate the project’s complexity and then ensure that the delivery team and the management context are up to the challenge.

About the Author

Helmsman is a firm that has had the privilege of supporting hundreds of companies around the globe to deliver their projects successfully. Over the last ten years we have been researching the factors that cause large projects to blowout or explode.

If you wish to have more of an understanding of the detail in our research around these three areas, please contact helmsman at contact@helmsman-international.com

More than 75,000 construction jobs could be lost due to a sharp fall in building activity, according to the latest forecasts from the Australian Construction Industry Forum’s Construction Forecasting Council (CFC).

Despite a swift upturn in residential building and the federal government’s spending boost, construction industry cash flow is forecast to contract by almost $12 billion over the next two years.

Spending on residential building is forecast to turn around in 2009/2010, following a 4% fall in the 2008/2009 financial year,” said CFC Chair Peter Verwer.

The first home owners grant and government stimulus packages have halted the recent decline in residential building expenditure.

“The CFC predicts a very strong recovery in stand-alone housing and in the alterations and additions market, driven by pent-up demand, low interest rates and net population growth.

“Apartment building is more likely to remain in the doldrums until 2011/2012, with a 15% fall in spending forecast,” he said.

The CFC says the outlook for commercial building – offices, shopping centres, hotel and industrial facilities – is grim.

“Private spending on commercial property is not forecast to fully recover for three years,” Verwer said.

“However, the overall picture for non residential building is likely to be offset by a boost to government investment in schools and hospitals.”

“2011/2012 will see a sharp improvement in private and commercial property spending following a contraction of nearly 40% on current construction expenditure.

The CFC forecasts a sharp decline of 22% in infrastructure spending in 2010/2011, following a 1% contraction during 2009/2010.

Infrastructure spending is slated for a cyclical downturn following unprecedented levels of activity, particularly mining-related construction, which is expected to fall by 60% in 2010/2011.

“Mining-related construction spending is quite solid for the next 12 months; however, weakening commodity prices are expected to result in the postponement of very large projects and a sharp drop in construction activity in 2010/2011,” said Verwer.

The CFC forecasts, which are prepared for ACIF by KPMG Econtech, assume a 1.2% fall in GDP over the next 12 months and an increase in unemployment levels to 7.1%.

“However, while the economic downturn has dampened demand, the market fundamentals are quite different from the recession of the early 1990s,” said Verwer.

“There is little evidence of the oversupply that delayed the recovery of construction spending following the last recession.

“Indeed demand for residential property is strong and spending on commercial buildings is slightly below the historical average,” he said.

“The flow of new capital will directly determine the shape of the construction industry recovery – which means debt markets will need to recover quickly if job losses are to be contained, given the Government’s limited capacity to continue with pump-priming programs.”

ACIF’s Construction Forecasting Council (CFC) produces twice-yearly forecasts of building and construction activity, covering short, medium and long-term prospects for the industry.

These forecasts are based on modeling of the economy by KPMG Econtech, and include short-term to long-term forecasts (10 years). The CFC’s latest forecast figures have been derived from the December 2008 quarter National Accounts and Australian Bureau of Statistic building approvals to the end of January.

Detailed forecasts, including sector-by-sector and state-by-state breakdowns, are available free of charge on the CFC website at www.cfc.acif.com.au.

Contact:
Peter Verwer, Chief Executive, Property Council of Australia
Phone: 02 9033 1926, mobile: 0407 463 842, email: pverwer@propertyoz.com.au
website: www.propertyoz.com.au

Peter Barda, Executive Director, Australian Construction Industry Forum Ltd
Phone: 1300 854 543, mobile: 0418 438 550, email: peterbarda@bigpond.com.au
website: www.cfc.acif.com.au

About ACIF: ACIF is Australia’s peak construction industry consultative organisation. Membership is open to any Australian building or construction industry association which has a national structure and focus, whose principal membership is comprised of individual persons and/or private sector business enterprises and which serves the interests of its members in one or more of the residential, non-residential, engineering or investment property sectors.

Members of ACIF are:
Air Conditioning & Mechanical Contractors Association of Australia (AMCAA)
Association of Consulting Architects - Australia (ACAA)
Association of Consulting Engineers Australia (ACEA)
Australian Institute of Architects (RAIA).
Australian Institute of Building (AIB)
Australian Institute of Quantity Surveyors (AIQS)
Construction Industry Engineering Services Group(CIESG)
Engineers Australia (IE Aust)
Facility Management Association of Australia (FMAA)
Fire Protection Association of Australia (FPAA)
Master Builders Australia (MBA)
Planning Institute of Australia (PIA)
Property Council of Australia (PCA)

About the CFC: ACIF’s Construction Forecasting Council produces twice-yearly forecasts of building and construction activity in Australia. These forecasts are based on modelling of the economy by KPMG Econtech, and include short-term to long-term forecasts (10 years), derived from the National Accounts and Australian Bureau of Statistic building approvals, building and construction industry data from Reed Construction Data, plus input from representatives of industry, unions and government agencies.

CFC sector forecasts, Australia wide, 2008-09 to 2017-18 Click here to enlarge

CFC sector forecasts, Australia wide, 2008-09 to 2017-18 Click here to enlarge

 

DETAILED ANALYSIS

Engineering construction (roads, ports, railways, telecoms, water and sewerage, mining infrastructure) will remain solid in the short term, thanks to a pipeline of existing projects, but is then forecast to fall sharply in years to come as current major projects are completed and no new projects replace them – particularly in the mining infrastructure sector.

Residential building will fall in 2008/2009 due to low consumer confidence and poor availability of credit for commercial developers. However, pent-up demand will drive a strong recovery commencing in 2010/2011.

Non-residential building will fall sharply as the recession forces local businesses to put expansion plans on hold. Developers will face difficulty in obtaining credit due to the GFC until credit markets normalise later in 2010.

The rest of this document deals with each of these sectors in more detail.

NON-RESIDENTIAL BUILDING

The total private sector (retail, offices, industrial, hotels) will drop by around 40% over the next two years. Retail, for example, was $6 billion a year at its peak and is going to drop to $3.5 billion.

While the private sector is going to be hard hit, the government sector (schools, hospitals, aged care) will hold up relatively well due to a number of factors.

These include various stimulus measures, such as the Commonwealth Government’s Financial Stimulus Package in February, along with the expectation that Building Australia funding will be directed in part to health and other non-residential building, as well as structural changes occurring in the health sector.

However, the public sector accounts for only 20% of non-residential construction spending, so even if governments were to double their non-residential construction spending, it will not be nearly enough to offset the declines in private sector spending.

Sector-by-sector:

Office building
The outlook for office building over the next few years will be very soft. Office construction is going to be hit very hard, with many big projects that had already been approved now being cancelled.

Activity in this sector will fall to at least 2003/2004 levels, and probably will be worse.

Currently there is minimal lending for commercial building, and approvals are not translating into “work done”.

Rental growth has been impeded by the global financial crisis, and cap rates will decompress. And when investors can buy a building for less than half of the replacement cost, it simply makes no sense to build new.

When this sector eventually recovers, Sydney will be the first to return. The issue for the other state capitals will be that once lending resumes, there will be no sites ready to go, thereby delaying the recovery.

Non-metropolitan non-residential activity will come back a bit earlier because these projects tend to be slightly smaller, but even outside the state capitals, any recovery is still six to eight quarters away.

Forecast changes in value of offices, work done, Australia
UNITS	2008-09	2009-10	2010-11	2011-12	2012-13	2013-14	2014-15	2015-16	2016-17	2017-18
$ million	6,151	4,052	3,607	4,050	4,545	5,262	6,021	6,702	7,378	8,369
% change	-19%	-34%	-11%	12%	12%	16%	14%	11%	10%	13%

Industrial
The big driver for this sector has been the transport and logistics business. Much of the building has been carried out, and a lot of the demand has now been met in what has been huge structural change over the past few years.

There has been a steep fall in activity in this sector which will continue until mid-2011.

Forecast changes in value of industrial, work done, Australia
UNITS	2008-09	2009-10	2010-11	2011-12	2012-13	2013-14	2014-15	2015-16	2016-17	2017-18
$ million	4,379	3,065	2,716	3,141	3,538	3,987	4,418	4,786	5,097	5,668
% change	-16%	-30%	-11%	16%	13%	13%	11%	8%	7%	11%

Hotels/accommodation
The value of hotel construction is forecast to drop by 33%. The massive decline in tourism means that room yields are dropping, so building new hotels is not going to be an attractive proposition.

Recovery here is at least six quarters away.

Forecast changes in value of accommodation (hotels), work done, Australia
UNITS	2008-09	2009-10	2010-11	2011-12	2012-13	2013-14	2014-15	2015-16	2016-17	2017-18
$ million	1,393	1,026	939	1,120	1,322	1,443	1,532	1,704	1,841	1,945
% change	1%	-26%	-8%	19%	18%	9%	6%	11%	8%	6%

Education
There is huge spending coming up for Australia’s public school system: $13 billion over two to three years boosted by the government’s stimulus measures.

Forecast changes in value of education, work done, Australia
UNITS	2008-09	2009-10	2010-11	2011-12	2012-13	2013-14	2014-15	2015-16	2016-17	2017-18
$ million	3,720	4,229	5,240	5,641	5,135	4,729	4,827	5,004	5,237	6,230
% change	9%	14%	24%	8%	-9%	-8%	2%	4%	5%	19%

Health/aged care
Massive structural changes are working their way through the system, with the mooted move from state-based health systems towards a single federally controlled one.

It is expected that that Building Australia funding will be directed in part to this sector.

Structural changes have occurred over the past decade in education and in industry; they are now going to happen for health.

Forecast changes in value of health/aged care, work done, Australia
UNITS	2008-09	2009-10	2010-11	2011-12	2012-13	2013-14	2014-15	2015-16	2016-17	2017-18
$ million	3,045	3,781	4,607	4,900	4,783	4,693	4,817	4,990	5,215	5,664
% change	5%	24%	22%	6%	-2%	-2%	3%	4%	5%	9%

RESIDENTIAL BUILDING

All the ducks are lining up for residential. The demand is there; the issue is getting the funding – even the major developers, with strong balance sheets, can’t obtain funding for apartment projects.

Again, a recovery in global capital markets will be the key to getting this sector moving.
The long-term prospects for all residential sectors are strong; it is only a question of timing as to the turnaround point.

Nationally, there is currently an annual shortfall of around 30,000 houses.

Sector-by-sector:

Single dwellings
Over the next 12 months, single dwellings construction will show a slight decline, but a recovery is set to start in the second half of 2010.

The CFC anticipates an 16% increase in construction in 2010/2011, compared with 1% growth in the preceding year.

The banks are back and lending, and things are getting slightly better for single-home builders and homeowners. Interest rates are low, and the first homeowners’ grants are driving new construction.

However, lending to subdivision developers is getting worse, and is likely to do so for the rest of 2009 and into 2010.

While there is substantial pent-up demand, availability of finance to developers is really holding this sector back.

More than any other sector, residential construction forecasts for single dwellings show a very wide variation across each state.

Forecast changes in value of new houses (single dwellings), work done, Australia
UNITS	2008-09	2009-10	2010-11	2011-12	2012-13	2013-14	2014-15	2015-16	2016-17	2017-18
$ million	24,065	24,288	28,292	31,446	33,750	33,260	32,858	34,408	35,464	35,661
% change	-6%	1%	16%	11%	7%	-1%	-1%	5%	3%	1%

Units/townhouses
This sector is very dire in the short term. It will be six quarters before this sector starts to pick up – mid-2010 at the earliest.

Units/townhouses will not see a recovery for at least 18 months, and in the short term there will probably be a 15% decline nationally in activity levels.

Projects are being pulled across the board, and some projects that have started are now not being completed.

Developers are trying to get DAs/BAs on sites to then on-sell them, rather than to build on them.

The recovery will be gentle at first, and it will be delayed, and won’t really commence until credit markets come back. But sooner or later the GFC will end, and there will be enormous pent-up demand to satisfy.

Again, forecasts for apartments and townhouses show considerable variation between states, and with any real recovery not occurring until 2011/2012 – at which point it is forecast to be very strong.

Forecast changes in value of new “other residential” (apartments & townhouses), work done, Australia
UNITS	2008-09	2009-10	2010-11	2011-12	2012-13	2013-14	2014-15	2015-16	2016-17	2017-18
$ million	10,195	8,794	8,657	11,479	14,721	16,689	17,401	18,964	21,187	22,697
% change	-6%	-14%	-2%	33%	28%	13%	4%	9%	12%	7%

INFRASTRUCTURE/ENGINEERING CONSTRUCTION

Engineering construction in aggregate will fall over the next couple of years; currently it is still at quite high levels. This collapse will mainly be due to a drop off in mining infrastructure investment.

This forecast drop is sharp – although it should be recognised that mining infrastructure investment has been at unprecedented levels for the past three to four years, and will drop back to levels seen as recently as 2005.

Outside of mining infrastructure investment, the outlook for engineering construction is significantly brighter; we can be relatively optimistic about road construction, with a pick up in activity starting to come through during 2011.

Other sectors will also remain at reasonable levels of activity over the next few years.
Government expenditure under the various stimulus packages is in part making up for the withdrawal of the private sector.

In engineering construction, there has historically been approximately a 60/40 split of private/public spending.

Governments will be trying to reverse that split over the next three to four years.

Sector-by-sector:

Mining investment
There will be a very sharp drop off in activity in this sector, from $22 billion a year, down to just $9 billion a year in 2010/2011. It will then start to pick up from 2011/2012.

There are very few major mining projects set to start in the next two to three years.

Right now, the mining industry is awaiting an improvement in the US economy, which in turn will drive demand from China, India and Japan.

Forecast changes in value of new heavy industry (includes mining), work done, Australia
UNITS	2008-09	2009-10	2010-11	2011-12	2012-13	2013-14	2014-15	2015-16	2016-17	2017-18
$ million	21,316	21,516	8,794	12,259	19,743	22,630	24,463	24,967	25,140	26,146
% change	10%	1%	-59%	39%	61%	15%	8%	2%	1%	4%

Road construction
The outlook for this sector is reasonably good, save for Queensland and Western Australia where substantial drops in work are expected in 2009/2010 as major projects close out.

After a spending spike in 2008/2009, spending will decline until 2011/2012, as much of the government’s stimulus money will be going into road construction.

Forecast changes in value of new road construction, work done, Australia
UNITS	2008-09	2009-10	2010-11	2011-12	2012-13	2013-14	2014-15	2015-16	2016-17	2017-18
$ million	16,017	14,989	14,029	14,509	15,730	16,875	17,715	18,443	19,374	20,522
% change	27%	-6%	-6%	3%	8%	7%	5%	4%	5%	6%

Bridges, rail, ports
These will be patchy until 2012/2013 as projects currently under construction near completion.

Again, the government has been spending in this sector under its stimulus measures to make up for the withdrawal of the private sector.

Forecast changes in value of new bridges, rail, harbours, work done, Australia
UNITS	2008-09	2009-10	2010-11	2011-12	2012-13	2013-14	2014-15	2015-16	2016-17	2017-18
$ million	6,141	5,732	5,716	5,362	5,772	6,310	6,748	7,154	7,678	8,448
% change	7%	-7%	0%	-6%	8%	9%	7%	6%	7%	10%

Electricity
We expect to see quite strong growth beginning in the next few years. There is a lot of aging infrastructure that is coming up for replacement.

The big “X-factor” is the federal government’s emissions trading scheme (ETS) and potential changes towards various forms of “green” energy (for example, there are a lot of wind farms now coming on line).

There will certainly be more investment around “green” energy, but it is too soon to quantify this yet until the ETS is finalised.

Forecast changes in value of new electricity and pipelines, work done, Australia
UNITS	2008-09	2009-10	2010-11	2011-12	2012-13	2013-14	2014-15	2015-16	2016-17	2017-18
$ million	11,198	12,243	11,663	11,172	11,555	11,885	11,818	11,907	12,284	13,102
% change	20%	9%	-5%	-4%	3%	3%	-1%	1%	3%	7%

Water and sewerage
Australia has a deficit of water infrastructure, and there is the prospect of several more desalination plants – which will result in large “one-off” expenditures.

There is also considerable government funding to be spent on the Murray-Darling system coming from the February Financial Stimulus Package, but this is likely to be spread over a number of years, and as yet is too early to properly quantify.

Forecast changes in value of new water and sewerage, work done, Australia
UNITS	2008-09	2009-10	2010-11	2011-12	2012-13	2013-14	2014-15	2015-16	2016-17	2017-18
$ million	6,869	6,172	5,531	5,917	6,529	7,038	7,436	7,844	8,321	8,363
% change	-7%	-10%	-10%	7%	10%	8%	6%	5%	6%	0%

Telecoms
The push for a national broadband network means there will be significant spending in the next few years; at present, its exact nature is still unclear.

Forecast changes in value of new telecoms, work done, Australia
UNITS	2008-09	2009-10	2010-11	2011-12	2012-13	2013-14	2014-15	2015-16	2016-17	2017-18
$ million	4,673	5,205	5,211	5,412	5,615	5,384	4,702	4,502	4,543	4,731
%change	5%	11%	0%	4%	4%	-4%	-13%	-4%	1%	4%

FMA Australia VIC Branch News

Grand Prix in Melbourne

FMA Australia Victorian Branch Golf Day

Superstitions state that number 13 is an unlucky number and that Friday is an unlucky day but on Friday, 13th March the weather at our Victorian Annual Golf Day sponsored by Culligan Water was picture perfect.

It was an early start for the 70 participants who gathered at the Sandhurst, one of Melbourne’s premier golf clubs. The day began with a light breakfast at registration followed by 56 golfers heading off to the lush greens to tee off for 18 holes of golf.

The day was a huge success with golfers enjoying the refreshment carts on the course and returning back to the clubhouse for the reward of a deluxe BBQ lunch. This was a great way for all our participants to relax and network amongst peers and colleagues.

Congratulations to all teams and in particular, the following winners:

1st Prize winners: Terry Wilson (ISS), Glen Hallay (ISS), David O’Brien (Dexion), Jim Anderson (Programmed Carpet Management), pictured right with National Board Member, Bryon Price (AG Coombs)

2nd Prize: Matthew Mytton (AE Smith), Brad Gemmell (AE Smith), Derek Burford (AE Smith), Peter Ferguson (AE Smith)

3rd prize: Nigel Christie (Bilfinger Berger), Paul Magree (Bilfinger Berger), P Main (Bilfinger Berger)

Many thanks to our major corporate sponsor, Culligan Water, and other supporter sponsors; ISS Facility Services, GJK Facility Services, AG Coombs and Signwave for their support on the day and a big thank you to all the attendees for making the day so successful.

Special thanks also to FMA Australia national office staff and fellow Victorian committee members for another well planned event.

Upcoming Events

Friday, 3rd April - FMA Australia Victorian Branch Lunch
The PPP Process from an FM Perspective: from Bid to Build to Operation
Speaker: Noel Sprague, Brookfield Multiplex
RACV Club

The Melbourne Convention Centre is a 25 year Public Private Partnership (PPP) between Plenary Conventions and the State. Brookfield Multiplex is sub-contracted to Plenary Conventions for FM services at MCEC which includes the Melbourne Exhibition Centre and the new Melbourne Convention Centre for 25 years.

This is the first time in Australia that a facility manager has been involved in the whole process and Noel will give an overview of all phases of the Melbourne Convention Centre PPP from the initial bid phase to the operation of the new Convention Centre and what this will entail. Click here to register.

6th – 8th May
ideaction 09 - FMA Australia National Conference
Melbourne Convention Centre

If you only attend one conference this year, make it count! Register now for ideaction 09. Click here for more information. Link in to events page.

Thursday, 21st May - Cocktail Function
Old Melbourne Gaol

Stay tuned for further details regarding this event.

Friday, 12th June – FMA Australia Victorian Branch Lunch
Staying Upbeat in an Economic Downturn - How a positive workplace can boost your bottom line
Speaker: Helen MacDonald, Mac Consulting
RACV Club

Managers have a critical responsibility to create an environment in which they are able to encourage their team members to do their very best. The good news is that there are a few important, cost-effective and high-impact steps which can make a real difference. Join us for this practical presentation which will provide real value for these challenging economic times.

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FMA Australia SA Branch News

The Adelaide Festival Centre

March News

Following the success of the SA branch in 2008, the first branch committee meeting of 2009 focused on the development of sub-committees and the key roles and responsibilities of committee members going forward. The roles of committee members have been accepted as follows:

- Chair & sponsorship – Leah Nelsen
- Vice Chair – David Yates
- Membership and support reward scheme – Roz White & Craig White
- Events – Peter Keys, Ian Pibworth, David Yates & Andrew Phillips
- Young FM – Carla Zub

The branch has since welcomed two new committee members, Gary Beazley, Edge Recruitment and Nick Mavrospi, CB Richard Ellis. It is with great sadness and thanks that the committee says goodbye to Grant Semmler. Grant played a key role in reforming the branch and his involvement will be missed.

With the formation of new sub-committees, the focus has now turned towards this year’s events calendar with the first event to be held in April. A complete calendar of events will be released shortly. Any businesses that would be interested in sponsoring events are more than welcome to contact the committee.

Next event

It’s not easy being green
7.30am, Thursday 16 April 2009
Parsons Brinkerhoff, 1 King William Street Adelaide

The next event is an informative walk through of Parson Brinkerhoff’s new premises at 1 King William Street, Adelaide. Following the site tour, Parson Brinkerhoff’s “Office Move” Project Manager, Ashley Manna, will discuss the process and lessons learnt in moving into one of Adelaide’s iconic buildings, the challenges and synergies of working with the building owner and facilities manager and aiming for a 5 Star Green Star fit-out rating.

Upcoming events

May – SA branch lunch forum
July - FM industry today - trends and directions
September – Golf day
November - Christmas networking event

Carla Zub
Committee Member, FMA Australia South Australian Branch

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FMA Australia NSW Branch News

Sydney Skyline

APRIL News

NSW Golf Day

Representatives from Culligan Water, major sponsor of the golf day

On Thursday 26 March the NSW Branch held its annual golf day at the picturesque location of Boonie Doon Golf Club, Pagewood. With a glorious sunny day after a fierce electrical storm the previous night, the day was sure to be a success with the 90 guests who registered on the day.

fter the sausage sizzle and player briefing, those fortunate enough to have booked carts early enough whizzed off to their respective holes for the 12.30 shot gun start. The rest of those who walked the distance at least managed to get some good exercise in for the day. By 5.30pm the stories of near misses, amazing shots and how many strokes each team achieved were discussed during the canapés and drinks prior to the presentations.

Golf pro Greg Green with representatives from Heart Kids, the nominated charity for the golf day

One of the aims of the day was to raise funds for our nominated charity, “Heart Kids”. Heart Kids strives to offer support, encouragement and hope to families of children with heart disease, while raising awareness and injecting vital funding into the causes of this chronic disease. Further information is available on their website, www.heartkids.org.au. Approximately $1,500 was raised on the day form the charity hole and the auction for the round with the golf pro, donated by the Bonnie Doon Golf Club.

I would like to thank all our sponsors for the event, without whom the golf day would not have been as successful. They were Culligan Water, our major sponsor and provider of the business card draw prze (won by Greg Scott), ISS Facility Services for the putting green competition (won by Martin Fisher), CBD Projects and Resolve FM for nearest to the pin (won by Michael Robson and Steve Fitts) and Hays Facilities Management for the Longest Drive (won by Jason Kinnane). The winners of the major prize were as follows: 3rd prize sponsored by Express Glass went to Bill Rhodes’ team, 2nd prize sponsored by Hays Facilities Management went to Dario Falchi’s team and 1st prize sponsored by Triple M went to Tim Gorden’s team. I would also like to thank Valorem, Gold Key Services and FDC Building services for sponsoring holes and donating gifts for the event. Congratulations to the winners.

The event was conducted in the spirit of fun whilst providing plenty of opportunities to network and catch up with colleagues, not to mention, for some, the chance to brush the cobwebs off their clubs. I would especially like to thank Phil O’Keeffe from Hays Facilities Management for organising the event on the committee’s behalf. We look forward to seeing you at the next golf day.

Robert Iacono
Chair, FMA Australia NSW Branch

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FMA Australia ACT Branch News

Parliament buildings in Canberra

Upcoming Events

Thursday 23 April 2009
Lunch forum
AIS Athletes Go For Gold From Their New Energy Efficient Accommodation

The forum will outline how energy efficient measures such as hydronic heating and cooling and room design in their new accommodation has assisted AIS athletes in their quest for gold medal results.

28 May 2009 Basic building services site visit 

25 June 2009 Site visit

31 July 2009 Lunch time forum

Look out for upcoming emails for more details of these events, or visit www.fma.com.au.

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FMA Australia QLD Branch News

Sunny morning riverside in Brisbane

April News

Next event

Willawong Bus Depot Site Visit
7.00am, Thursday 23 April 2009
Willawong Bus Depot, Sherbrooke Road, Willawong

Willawong Bus Depot is the first of four new bus depot facilities planned before 2016 as part of Brisbane City Council’s Transport Plan for Brisbane 2008 – 2026. The $35 million redevelopment of the 6.3 hectare site in Brisbane’s west provides capacity for 200 buses and approximately 300 staff. The facility includes a state of the art depot administration building, staff recreational facilities, a garage and workshops, a refuelling and detailing building and associated car parking and hardstand for 200 buses.

The development has incorporated a number of sustainability initiatives including microclimate intervention, daylight optimisation, natural ventilation, passive cooling and heating, operational energy optimisation and integrated water cycle management.

The site visit will include presentations from key members of the project delivery team and a light breakfast.

We look forward to seeing you there!

Earlier this year the fifth annual Global 100 list of the most sustainable large corporations in the world for 2008 was announced, with Australia accruing just three of the top 100 spots. Australian property companies reigned supreme with Lend Lease Corporation Limited and Dexus Property Group joining Sims Metal Management Ltd on Australia’s list of the three most sustainable corporations.

The Global 100 includes companies from 15 countries encompassing all sectors of the economy that were evaluated according to how effectively they manage environmental, social and governance risks and opportunities, relative to their industry peers.

The United States led the way with 20 Global 100 companies, the United Kingdom followed with 19, Japan finishing with a total of 15. Rounding out the top five countries with the most constituents were France (eight) and Germany (seven), while Canada, Finland and Sweden each registered five Global 100 constituents.

The Global 100 Most Sustainable Corporations in the World is a project initiated by Corporate Knights Inc and powered by research from Innovest Strategic Value Advisor Inc. Launched in 2005, the annual Global 100 is announced each year at the World Economic Forum in Davos.

The full release can be downloaded at: http://www.global100.org/PR_Global_2009.pdf

The company that introduced the wheelie bin to Australia has devised a free guide – Waste, your business and climate change – for business to minimise the impacts of their operations on the environment.

Remondis Waste Solutions CEO Luke Agati says by employing simple tips for increasing sustainability, organisations can also increase their competitive advantage and reduce costs.

“We found many people were uncertain about the ways they could reduce the amount of greenhouses gases they generate and what impact this could have on our ecological footprint,” said Mr Agati.

“Waste, your business and climate change has been written to outline the key issues affecting organisations from a waste management perspective and to simply explain the impact of our actions.”

The guide also provides information on the Carbon Emissions Trading Scheme timeline.

“Remondis invites business to contact us to obtain a copy and learn more about ways to drive costs down, recover and recycle resources and deliver important environmental benefits,” Mr Agati said.

Remondis Waste Solutions has been operating for 25 years in Australia and is of the fastest growing waste resource companies, providing professional waste management and environment solutions with particular focus on resource recovery outcomes for customers, minimising diversion to landfill.

To obtain a copy of Waste, your business and climate change telephone Remondis on 13 73 73.

DID YOU KNOW…
- Recycling 1 tonne of glass saves 38 litres of oil
- Recycling 1 glass bottle saves enough energy to light a 100W bulb for 4 hours
- Recycling 1 aluminium can saves enough electricity to operate a TV for 3 hours
- Recycling 1 tonne of paper saves 17 trees or 4 cubic metres of landfill
- Recycling 1m3 of compost offsets approx. 50 days of emissions of an Australian car.

World leading research from CSIRO’s Future Manufacturing Flagship, as part of the Victorian Organic Solar Cell Consortium (VICOSC), aims to develop flexible, large area, cost-effective, reel-to-reel printable plastic solar cells.

Victorian Minister for Energy and Resources, Peter Batchelor, announced recently the start of printing trials by Securency International, a banknote printing company.

“The production of these film-like solar cells will be literally as easy as printing money,” Mr Batchelor said. 

“These solar cells are cutting edge technology and offer advantages over traditional solar technology because of the potential to mass produce the cells cheaply and install them over large areas such as rooftops.

“The technology used for these cells is still in its infancy, but this project aims to speed-up the development of this technology and take it from research to rooftops as quickly as possible,” Mr Batchelor said.

The Minister for Innovation, Industry, Science and Research, Senator Kim Carr, said the trial was an exciting development for the solar industry in Australia.

 “To be able to manufacture flexible, organic solar cells which are ‘printed’ on to polymer in much the same way as money is made, quickly and cheaply, has enormous potential. The trial could also lay the ground work for a world leading Australian industry in printable electronics."

CSIRO Executive Dr Steve Morton said the technology for the solar cells was the result of work by CSIRO researchers on advanced polymers.

“We have assembled a team of world-class scientists spanning chemistry, physics and materials science to develop the molecular building blocks which will form the basis of this solar energy revolution,” Dr Morton said.

“This research will act as a catalyst to the creation of world-leading Australian businesses in the field of printable electronics.”

The three year $A12 million VICOSC solar cell project is 50% funded by the Victorian Government through an Energy Technology Innovation Strategy Sustainable Energy Research and Development grant.

VICOSC includes researchers from the CSIRO Future Manufacturing Flagship, University of Melbourne, Monash University, with industry partners Securency, BP Solar, Bluescope Steel and Merck.

For more information visit: http://www.csiro.au/news/Trials-for-printable-plastic-solar-cells.html

The 2009 IFMA Foundation scholarships for full-time students enrolled in a facility management (or related field) program are now open, and applications close 31 May 2009.

The IFMA Foundation www.ifmafoundation.org is a non-profit entity with a charter of education, scholarships and research to improve our built environment in a changing world.

Successful scholarship applicants will receive a minimum of US$1,500 scholarship, and be flown to IFMA’s World Workplace conference, exhibition and scholarship awards ceremony to be held 7-9 October 2009 in Orlando, Florida, USA.

Following the Green Cities '09 Conference in March this year, the Green Building Council of Australia (GBCA) and Property Council of Australia (PCA) have both separately agreed to promote the IFMA Foundation's 2009 Student Scholarships. The GBCA and PCA now join other industry organisations including the AIQS, RAIA, RICS, TEFMA and FMA Australia in promoting these scholarships for full-time students enrolled in a facility management (or related field) program.

Additionally, Stephen Ballesty, the IFMA Foundation’s first ever Australian Board member, will “Rock the Foundation” with a speaking tour in April, providing industry presentations and meetings in Chicago, Boston, New York and Atlanta prior to his attendance at the Foundation’s annual workshop in La Grange from 24 – 27 April.

“It’s a simple plan for a ‘low-cost, high-impact’ goodwill tour to raise awareness of the Foundation and funds for student scholarships during these tough times,” Mr Ballesty said.

FMA Online caught up with Stephen Ballesty to ask him about the scholarships available.

FMA Online: What is the IFMA Foundation?
SB: The IFMA Foundation is a non-profit organisation established to support the facility management profession and advance the built environment worldwide, through education, research and scholarships.

FMA Online: Are there any other criteria that have to be met in order to apply for a scholarship, other than the ones stated?
SB: No, not really, all the relevant criteria and forms are on the Foundation website. We really strive to make the scholarships as widely available as possible. For example, one of the most common questions I get is "do you have to be an IFMA member to apply?" and the answer is this is not a criterion, another reason for it being scholarships for FM or related fields. The Foundation is a separate entity to the association.

FMA Online: How many scholarships are available?
SB: There is not a set limit, indeed one of the reasons for the modest amounts involved is to share the benefits of the Foundation's scholarships with as many as possible - the world needs more competent FM'ers than ever before! Last year we received 55 applications for scholarships from 22 different schools, and awarded 29 scholarships valued at US$96,500. Since 2005 we have nearly doubled the number and value of scholarships awarded annually. But with greater industry support we could do so much more. Now is the time to act and anybody wishing to invest in the future of FM as the foremost contributor to a productive and sustainable built environment should contact me.

FMA Online: What can scholarship winners expect in terms of networking and information sharing opportunities at IFMA's World Worplace conference in October?
SB: IFMA’s World Workplace is held annually and is the largest FM gathering on the planet, attracting over 5,000 delegates per annum in recent years. Students will get to experience the exhibition and educational programs, meet industry leaders and share ideas. In addition there are specific student functions and of course the IFMA Foundation Reception at which they will receive their awards. It’s an opportunity not to be missed.

For application details www.ifmafoundation.org/scholarships/apps.cfm
For more information contact: Stephen Ballesty, CFM at stephen.ballesty@au.rlb.com
Remember, applications close 31 May 2009.

Laurie Reeves

Laurie Reeves is one of scores of dedicated volunteers across Australia who freely gives up his time to serve on an FMA Australia State Branch committee. As well as dedicating time to ensuring the FMA Australia VIC branch continues to deliver exceptional networking events and professional development opportunities, Laurie has also found time to establish a new business venture of his own, focusing on the management and educational aspects of working in the building sector.

This month, FMA Online’s Melanie Drummond spoke to Laurie about what lies ahead in terms of his own business aspirations and his hopes for the FMA Australia Victoria Branch and greater industry at large.

FMA Online: What is your current role?
LR: I am the owner of a small business called ‘melt FM’ that started late last year. Our focus is on the management and educational aspects of working in the FM and building services sector.

FMA Online: In terms of FM, what are your key areas of interest or expertise?
LR: It has varied over the 27 years in our industry but my management focus is on how we run a FM business and the incremental improvements required to make a big difference. Over the past 10 years, I have had an intense interest in the maintenance of existing buildings and the impact of current practices on attempts to maximise the life cycle of assets.

FMA Online: How long have you been a member of FMA Australia?
LR: Not really sure, it did lapse at some point and then I rejoined a few years ago. Mental note - make sure I don't forget my subscription!

FMA Online: What made you join the FMA Australia VIC Branch committee?
LR: The opportunity to work with an eclectic mix of industry professionals who enthusiastically want to be part of creating and supporting change in the FM industry.

FMA Online: What do you like most about serving on the VIC Branch committee?
LR: Again the people on the committee, and working with the FMA National Office team and Board of Directors. We are never without a challenge and there is certainly plenty of feedback from the broader FM community on topics to be actioned. 

Strong networking is also a big feature in FMA Australia and in particular we feel the Victorian membership has enthusiastically supported all events that have been staged. Naturally these events don't just rely on the local committee, but also the National Office team, attendees and of course a generous sponsorship base.

FMA Online: What will be the main focus of the VIC Branch over the next 12 months?
LR: Many issues have been emerging since our economy has slowed down and I am sure these critical topics will be the subject of forums, breakfast briefings and lunches in the months and years to come. On the whole we will continue to support FMA National Office and IFMA foundation initiatives on education, professional development and accreditation – which are, without a doubt, probably the most exciting ranges of practical projects the branch and FMA Australia have been part of to date. 

FMA Online: What reasons would you give members for attending FMA Australia VIC Branch events?
LR: It's all about the great company!  Well actually it's many aspects of business life all rolled up into a great venue, great food and interesting and educational topics, all in a short period of time. We are a close community and the networking is strong, with a diverse range of industry participants that seem to blend well.

FMA Online: Finally, what are you most looking forward to over the next 12 months?
LR: Many things. On a business level I am introducing a business simulation training program called ProfitAbility into Australia that I believe will have a definite and practical benefit to small, medium and large business groups. We will be demonstrating profitability at ideaction 09. From a personal perspective I am eagerly waiting on the opportunity for Victoria to win back to back Sheffield Shields! And from the FMA Australia angle, the running of a great ideaction 09 in Melbourne and the introduction of FM accreditation and training in Australia. Oh, forgot one more thing - world peace!

Mark Patruno

AMP is a leading wealth management company with more than 3.4 million customers and 3,800 employees in Australia and New Zealand. Offering a wide range of financial products and services which include retirement savings and income, investments, superannuation, financial planning, insurance and banking, AMP is one of Australia’s most significant investment managers.

FMA Online’s Melanie Drummond spoke with AMP Facilities Co-ordinator, Mark Patruno, about working day-to-day for a high profile financial institution.

FMA Online: When and why did you join FMA Australia?
I joined late last year and I joined because I saw it as an opportunity to be exposed to the latest ideas and innovations within the FM industry.

FMA Online: What is your background in FM?
MP: I got into facilities management by accident really. I’m an electrician by trade and I travelled to the UK six years ago and got into a job over there doing facilities maintenance. I worked in the same company for 5 years, working my way up from a maintenance engineer which gave me a good understanding of FM hard services and what that involved. Through promotion I worked my way up to Maintenance Manager and then in to facilities management. I also studied Facilities Management at the University of Westminster.

FMA Online: What does your current role involve?
MP: I currently co-ordinate all of the facilities services for AMP nationally, which involves co-ordinating all the maintenance management teams that we have, looking after all the hard and soft services for AMP tenancies and liaising with project teams and other departments from Sydney through a help desk system which processes any ad-hoc items or reactive jobs that might come in.

FMA Online: What do you like most about the job?
MP: Although it sounds like a cliché, I really like the variety that facility management offers. No two days are the same. I’m lucky enough as well that I work with a fantastic team of professionals here.

FMA Online: Have you seen the role change?
MP: I’ve done the bulk of my facility management work in the UK where the industry has been established longer, so being fairly developed they seemed to push for change within the industries. It’s the same here in Australia now; everything is changing all the time due to numerous external factors, such as changing Government legislation and the environment. In the last five years the industry has changed dramatically and it’s going to continue to change.

FMA Online: What is the most challenging aspect of your role?
MP: Anything from your standard facility calls to organising our participation in a worldwide event like Earth Hour. AMP is one of those firms where you are always in the public eye so you really need to be certain you don’t make mistakes.

FMA Online: Do you have any sustainability initiatives underway at AMP?
MP: Well, AMP is building a sustainable supply chain which benefits both the company and the supplier, including both social and environmental standards. We’re committed to reducing our environmental footprint and improving the efficiencies of AMP’s operations. You have to constantly assess where you are placed and that can mean re-examining contracts and seeing how things can be improved. Every decision you make now incorporates an aspect which relates to the environment.

FMA Online: What do you hope to get out of your FMA Australia membership?
MP: Hopefully the opportunity to view and share ideas within the industry, whilst keeping up-to-date with the latest changes.

Brendan Dwyer

Like most other facilities managers, Brendan Dwyer is the resident jack of all trades at his workplace. Co-ordinating the Australian facilities for international professional services firm KPMG, Brendan enjoys the fact that no two days are ever the same when you’re working in facilities.

FMA Online’s Melanie Drummond talks to him further about the responsibilities involved with looking after a landmark facility.

FMA Online: When did you join FMA Australia?
BD: I joined FMA Australia in December last year to keep up to date with the latest events in facilities management.

FMA Online: What is your background in facilities management?
BD: I have worked in FM for seven years. I started off in the mail room at Clayton Utz and I am now the Senior Facilities Co-ordinator at KPMG. I am currently studying for my Masters in Facilities Management at Sydney University.

FMA Online: What does your current role involve?
BD: What doesn't my role involve! My role involves maintaining all of the building, operational and environment needs for the Sydney KPMG office. I am a jack of all trades but mainly focus on contract negotiations, fit outs, tenders, cleaning, essential services outages, OH+S, preventative maintenance, reactive maintenance, sustainability and the co-ordination of large office relocations - and I have only been here 3 months!

FMA Online: What do you like most about the job?
BD: I like that every day is different, I like meeting new people and I like learning new things, but most of all I like the responsibility of looking after a landmark facility.

FMA Online: Tell us a bit about KPMG?
BD: KPMG is a leading international professional services firm which has audit, tax and advisory as the main streams. At KPMG there are almost 2000 employees in Sydney and 4500 employees in 13 offices Australia wide. KPMG is a dynamic and rewarding place to work.

FMA Online: What are some of the biggest challenges you face?
BD: One of the main challenges I face at the moment is getting to know the building, getting to know our policies procedures and getting to know our key stakeholders. The challenge of prioritising my time is very important as time consuming incidents regularly occur.

FMA Online: Do you have any sustainability initiatives underway at KPMG?
BD: KPMG has a dedicated team committed to reducing our operational greenhouse gas emissions. The firm received its Greenhouse Friendly™ certification from the Department of Climate Change on 1 July 2008. KPMG also works hard in maintaining its ABGR energy rating of 5 by implementing its energy efficient design features.

We also launched an internal environmental program focusing on reducing the 3 Ps - planes, paper and power.

FMA Online: What significant projects have you been involved with?
BD: At KPMG, the significant projects that I have been involved with in the past 3 months have been the cleaning tender, security key audit, fit outs, large re-stack, preventative maintenance schedules and the organisation of essential service shutdown. I have many more upcoming projects, including the fit out (and subsequent relocation) of an entire floor.

FMA Online: What are some of the key issues you think the facility management industry will be facing over the next five years?
BD: Sustainability is number one. In the current financial climate, the way we FMs handle this issue will be the biggest issue we face. With the impending recession every dollar will be scrutinised so preventative maintenance will become increasingly important. As our industry becomes increasingly professional FM courses will start to play an essential role.

FMA Online: What do you hope to get out of your FMA Australia membership?
BD: I am looking forward to learning new things about the FM industry via the monthly magazine and the e-newsletter. I am hoping to get to some of the FMA Australia events to talk with like-minded people and build a larger network of industry peers.

CONSULTING engineer and environmental solutions company, SEMF, has taken the final step towards becoming a truly national organisation with the creation of two key national leadership roles. The new leadership roles will cut across existing state office lines, effectively changing the structure of the company and the way it operates.

John McCambridge, who has been instrumental in assisting SEMF develop its environmental and infrastructure capabilities model - initially for the Tasmanian market and later across the country - will head up the development of SEMF’s Environmental and Infrastructure sector as National Principal. John is an environmental scientist with more than 28 years experience in environmental management in both the public and private sectors.

Bill Layton, who is a director of SEMF and former managing director of Austek Engineering (which merged with SEMF in 2004), will assume the position of National Principal, Industrial Engineering. Bill is a mechanical engineer with extensive experience and knowledge in the mining, processing and manufacturing industries and has expertise in all aspects of project engineering.

SEMF managing director, Allan Waitzer, says moving to a national model will be enormously advantageous to clients. “Irrespective of where our customers’ projects or businesses are located, SEMF will be able to provide them with access to the full extent of our engineering capability which currently numbers approximately 60 staff in each of the areas we operate in - building engineering, industrial engineering and environment and infrastructure.”

SEMF is a multi-disciplinary consulting engineering, scientific and management firm which offers a broad range of services throughout Australia.

Elynwood Pty Ltd, specialists in commercial and industrial cleaning as well as commercial catering and facility services, has appointed Mario Vella-West as its new CEO and Business Partner of the Managing Director, Michael Ebejer.

Mario has over 28 years experience in the property and services management industry within government, corporate and private medium-sized companies, most recently as the CEO at GJK Facility Services and National General Manager-Strategic Development for ISS Facility Services.

His appointment marks Elynwood’s readiness to enter the next phase in their corporate growth by extending their service delivery to the FM industry sector. Having been in operation since 1992 during which time they have been relatively “quiet achievers”, Elynwood received the Prime Minister’s Award in 2006, as well as various other industry awards and recognitions prior to and after this, demonstrating the capacity and capability that Michael Ebejer has developed.

“With the support of the management team at Elynwood, I look forward to my contribution in providing leadership, in-depth service industry know-how and networking towards the further development of a dynamic business model. This business model will be based on people, environmental considerations and business profitability, to the benefit of all stakeholders,” said Mr Vella-West.

Siemens Ltd (Australia and New Zealand) is pleased to announce the promotion of Mr. Michael Shaw to the position of Head of Building Technologies for the Pacific region as of 1 April 2009. In his announcement to the organisation, Managing Director and Chairman, Mr. Albert Goller commended Mr. Shaw’s advancement within Siemens and the valuable contribution he has made since beginning as a graduate in 1993.

“His work over the 16 years he has been with Siemens has helped position us as the leading provider of technology-based solutions that address the greatest problems now facing Australia and New Zealand - these being in the areas of water, energy, environment, healthcare, productivity, mobility, safety and security.”

Siemens commenced operations in Australia in 1872 and is now one of the country's most reliable and trusted brands.