IAMC Dispatch
Vol. 7, No. 4, April 2008

a newsletter for corporate
real estate executives

A Few Choice Words

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Research and Resources

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IAMC Active Members

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IAMC Dispatch

ECover Letter


IAMC Active Members — Corporate Real Estate for Manufacturing Companies

IAMC’s Active members, managers who conduct real estate operations for their companies, are skilled and dedicated professionals. Their companies, which average 69,000 employees, include many that are among the world’s best known industrial firms, including General Electric, Honeywell, Boeing, Alcoa, among others. In this article, we will look at the characteristics of both the members and their companies.

Senior Level Managers

Considering the sizes of their companies and the extent of their own responsibilities, it should not be surprising that these members tend to hold senior mid-level positions. The combined budget for real estate and facilities management is usually second only to corporate human resources. The members’ titles give a rough idea of their responsibility levels. The largest member group, 41 percent, holds the title of director. Almost 20 percent are vice presidents.

Men outnumber women in IAMC by a ratio of six to one. Thus, women are underrepresented compared to their percentages in their own companies. This is not by design, though. The organization gladly accepts every woman who qualifies as a CREM executive and would like to join.

The members tend to reside in large states where their companies are likely to have multiple facilities, but two small Northeastern states are home to substantial numbers, as well.

Top States of Active Member Residence

  1. Pennsylvania
  1. Georgia
  1. Texas
  1. Minnesota
  1. New Jersey
  1. Connecticut
  1. Illinois
  1. Michigan
  1. Tennessee
  1. New York

Manufacturing and industrial companies dominate IAMC, with two of the largest being United Parcel Service and General Electric. All have global operations.

The companies represent a cross-section of industries. Food and beverage firms constitute the largest group, followed by pharmaceuticals.

Top Industries Represented

1. Food & beverage

6. Transportation

2. Pharmaceuticals

7. Construction materials

3. Diversified outsourcing

8. Aerospace & defense

4. Chemicals

9. Consumer products

5. Industrial & farm equipment

10. Forest & paper products

Large, International, Profitable

The roll of Active Members’ companies, with their massive size, profitability and global scope, would be great fodder for a Taylor Caldwell novel. But for IAMC members, their significance amounts to good, well-paid work and lots of it.

That they typically employ tens of thousands, we have already noted above. But another measure of size and influence is whether, or not, a company makes it onto a prestige list, such as the Fortune 500. The IAMC companies are well represented here.

The vast majority of these corporations are publicly held; about one in ten is private.

Most of the companies claim the United States as their tax home, and, as a result, tend to be listed on U.S. stock exchanges. However, a few trade their shares on the EuroNext and Pink Sheets exchanges.

Beyond their size and financial mass, most of the companies experienced strong business growth from 2005-06, in some part due the decline in the dollar and the resulting boost to overseas sales. Note in the chart below that 15 percent grew sales by 20 percent, or more, over the period, which is a major feat considering that sales is measured in billions of dollars for these firms.

Sales growth is most appreciated by stockholders when it results in robust net income growth. Note in the chart below that an amazing 44 percent of the member companies reported net income up by 20 percent, or more.

 

Growth and Change

With a concerted recruitment push in the Fall of 2007, IAMC began adding Active members at a faster pace. With this growth has come a small measure of change, although most demographics remain consistent with previous years’ data.

First, we note that some of these members have fewer years of experience in CREM than was the case for many of the long-timers. Partly, this is a result of a campaign to encourage existing members to recruit their coworkers to join. However, some of those new to CREM are actually seasoned corporate veterans posted to leadership positions in the real estate unit.

As with the old guard, the new-members’ companies tend to be large. The trend has not been toward smaller firms.

Global companies have global facilities. And the new members are often traveling to Europe, China, India and South America to acquire new space for new corporate operations.

Another characteristic of the recently joined members that is consistent with their peers who had joined earlier is their extensive support of manufacturing operations, which, on average, occupies almost three-fifths of their time.

Conclusions

IAMC’s Active members hold responsible positions in large, profitable, global companies, which, for the most part, manufacture goods and industrial inputs. The members, on average, spend almost 60 percent of their work time supporting manufacturing operations.

The Data

The sources for this profile include the following:

  • Membership application forms,
  • Hoovers.com,
  • Fortune.com and
  • Web sites of some members’ companies.

Sales and net-income growth data show the changes from 2005 to 2006. Employment data are for 2007.

 
 
 
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