U.S. at a Glance� Gross Domestic Product: 19.39 trillion dollars

(2017)*

� Current US population: 327 million (2018)

"National Income and Product Accounts. Bureau of Economic Analysis. U.S. Department of Commerce.

Vertical-Transportation Statistics

U.S. Totals

� Elevators: 1.1 million (2017)

� Escalators: 35,000 (2016)

� Field Technicians: 30,000 (2016)

� Nonresidential specialty trade contractors added 5,500 new jobs in March 2019 — a significant increase.

� Construction unemployment rate is 2.2% lower over this time last year.

� Construction employment changed little in March 2019 (+16,000). Much of the change occurred in specialty trade contractors (+13,000).

� The construction industry has added 246,000 jobs over the past 12 months.

*Source: Associated Builders and Contractors/Bureau of Labor Statistics

U.S. Construction Industry Trends

U.S. Elevator IndustryTrends & Facts

� Employment of elevator installers and repairers is projected to grow 12% from 2016 to 2026, faster than the average for all occupations. This equates to 2,700 new jobs in the industry.

� In addition, the need to regularly maintain, update, and repair old equipment; provide access to the disabled; and install increasingly sophisticated equipment and controls will maintain demand for elevator installers and repairers.

2018 Median Pay $79,780 per year $38.36 per hour

Number of Jobs in 2016 22,100

Job Outlook, 2016-26 12% (Faster than average)

*Source: Bureau of Labor Statistics

U.S. Elevator Industry Trends & Facts

� For the 5-year period ending in 2017, the U.S.-based elevator industry achieved a 2.7% annual growth rate. Revenues generated by the industry came to about $22 billion, or 25% of the global elevator industry.

� In the United States, there are just over 19,000 firms that are currently engaged in the elevator installation and service category. These firms are responsible for the direct employment of about 107,000 people each year.

*Ibis World

U.S. Elevator Industry TrendsEducation

� Finding / hiring appropriately skilled labor is still an ongoing issue.

� The labor shortage is driving demand for better training.

� Federal response and funding training in the trades has been good.

� Executive Order on Expanding Apprenticeship in America - $150 million grant

� Increase in “training centers” in the industry.

� Urbanization trend continues, particularly in Midwest US cities: OEMs, independents and suppliers are reaping the rewards as downtown becomes an ever-more-attractive place to live, work and play.

� In addition to new construction, historic buildings are being modernized with new vertical-transportation (VT) systems.

� OEMs and independents alike tell EW that business is strong across the region across product lines. They are positive about the rest of this year and beyond.

� Despite general optimism, there are points of worry, including tariffs on trade partners such as China that affect VT manufacturing.

Midwest U.S. TrendsELEVATOR WORLD (March 2019)

� "While we do a significant amount of maintenance and modernization business, we've also seen solid new-equipment sales in the Midwest," Otis Regional General Manager Crawford Green says. "The outlook for the Midwest is positive."

� Midwest Elevator has had a "very, very strong" past three years, says President Gary Schuette. "Right now, it seems like we're getting a lot more traction in modernization sales outside of healthcare, and I think we are going to have a pretty strong 2019," Schuette says. "We are cautiously optimistic."

� "We expect to continue to have a healthy mix of new construction, modernization and service work across the geography." KONE Director of Marketing & Communications Patrick O'Connell

Midwest U.S. TrendsContinued…

Notable Projects

U.S. Elevator Industry Trends

� There is an increased use in mobile devices to file reports share information and keep jobsites safe.

� Use of this technology reduces costs while improving the reliability of reports and jobsite documentation.

� Using custom applications on mobile devices provides instant answers to questions that would have previously slowed down a project with trips to the jobsite.

� Both OEMs and independents are embracing mobile technology for solutions.

Integrated mobile technology and information on jobsites

*Source: Modern Contractor Solutions; Elevator World magazine

Trends Shaping the Smart Elevator Market

� Connectivity: Internet-connected smart elevators are increasingly becoming commonplace.

� Cloud Predictive Maintenance: Collected data is sent to the Cloud and analyzed. Engineers can effectively address and rectify the issue before the elevators breaks down, thereby reducing down time.

� Interactive Touch Panels: Manufacturers now include interactive touch panels in elevators to provide passengers entertainment, cab indicator functionality, system monitoring, and emergency call technology all as a measure to increase commuters’ comfort.

� Automated Vehicle Storage and Retrieval Technology: This uses elevators and other related systems to transport vehicles using robotic lifting systems. This is an untapped market which is not dominated by most of major suppliers.

� Intuitive Elevator Technologies: Intuitive elevator technologies include smart grouping and destination-based models with modern aesthetics. It can also reduce energy consumption by up to 27 percent.

*ARC Advisory Group

Death and Injuries Involving Elevators or Escalators

� There is an upward trend in elevator-related fatalities in construction, as the number of deaths and rate has doubled from 2003 to 2016.

� Between 2011 and 2016, 145 construction workers died due to elevator-related injuries, accounting for more than half of such fatalities in all industries.

� By occupation, elevator installers and repairers had the highest risk of elevator-related deaths in construction (more than 50 times the rate of such deaths for all constructions workers on average)

� The majority (53.5%) of elevator-related fatalities in construction were caused by falls to a lower level, nearly half (47.9%) of which were falls from 30 feet or more.

*The Center for Construction Research and Training, 2018

Continued…

� About 46% of construction workers with elevator-related nonfatal injuries required 31 days or more off work to recover.

� Elevator-or escalator-related injuries treated at hospitals among members of the public jumped by more than 30% from 2007 to 2017.

� Unlike fatalities, elevator-related nonfatal injuries in construction generally declined from 2003 to 2016, with a 70% drop between 2012 and 2016.

� Accidents do not discriminate by age, race or experience! Stay safe and follow the industry safety protocols, codes and programs set forth by the industry and/or your university.

Elevator Industry Field Employees’ Safety Handbook

Hard Hats Turn (at Least) 100!

• Though protective leather hats had been made since 1898, the “Hard-Boiled Hat” was patented in 1919 by E.W. Bullard.

• Originally made of steamed canvas, glue and black paint.

• Bullard’s hat (inspired by the steel helmet he’d worn in World War I) was so successful that the U.S. Navy commissioned him to make a shipyard protective cap the same year.

• That kicked off the widespread use of hard hats.

Urbanization Trends

*Sources: World Cities Report 2016 | UnHabitat | CTBUH

• People:• 54% of the world’s population live in cities

• In the U.S., it is 81%• It is projected that nearly 70 percent of the world’s population will

live in urban areas by 2050 (6.7 Billion people).

• Buildings:• Worldwide, in 2017, more buildings of 200+ meters or higher were

completed than any other year• 2017 was also the most geographically diverse year for 200+ meter tall

buildings • The U.S. doubled its record of 200+ m. buildings with 15 in 2017

ur·ban·i·za·tionˌərbənəˈzāSH(ə)n

An increase in a population in cities and towns versus

rural areas.

Most Populous Cities

*census.gov

Where Americans Live, Versus Where They Want to Live

“If Americans did sort themselves according to their desires, there would be an exodus from the big

cities and, to a lesser degree, from small cities and towns, accompanying

a movement to rural areas.”

--Gallup’s, Frank Newport

The Elevator Operator!• Roughly 53 elevator

operators work full-time in NYC

• Ruben Pardo, 76, (pictured) works at L.A.’s Desmond’s luxury apartment building

• In the 1930’s, operators made as little as 30 cents an hour (about $4.38 in today’s dollars)

• In 2019: $24 an hour!

“The best part is working with the public. I always try to look and learn. It’s like going to college!”

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