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O P I N I O N
The drive for diversification Once a firm has a strong identity, it can branch out into multiple markets, an essential if a firm wants to stay productive during economic downturns and seasonal lulls.
W e can learn a lot from patterns. From project teams to leadership, patterns help us gather data, solve problems, forecast revenues, and gauge success. In the AEC industry, the markets that we serve have a distinct pattern as well. While one segment is booming, another is down. Then, when that thriving market starts a downturn (and it always does), another will start its upswing. Though we can never fully predict the timing of the markets, the trend lines show a decades-long pattern that provides a clue to managing the fluctuations. And, if done right, diversification is one way to survive. So far, it has boded well for Westwood Professional Services (Hot Firm #9 and Best Firm Multidiscipline #32 for 2015).
Paul Greenhagen FIRM FOUNDATION
Westwood is Minnesota-born, established in 1972 as an engineering firm serving private land development. Back in the day, serving a single industry from one location, we, like many firms, survived market variations by making tough staffing decisions and spending cuts. Add a long, cold Minnesota winter to a market slowdown and work reduced even more. Our business is dependent on many things that are out of our control, so diversification can bring more stability and less sleepless nights for those of us leading the charge. Diversification has helped Westwood to become a
scalable and agile firm, better equipped to manage the ups and downs within the markets we serve. The strategy we use can be stated simply: We focus on applying what we do best in markets and geographic locations that align with our vision and create balance in our business. ❚ ❚ We look for markets that trend opposite to the other market(s) we serve. Researching and com- paring forecasts and historic market data across segments, we can find opportunities in the opposing trend lines. Market segments that show promise
See PAUL GREENHAGEN, page 10
THE ZWEIG LETTER June 20, 2016, ISSUE 1157
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