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Before issuing job numbers ... T R E N D L I N E S W W W . T H E Z W E I G L E T T E R . C O M MA R K E T I N G S U P P L E M E N T Pages 5-10 N o v e m b e r 3 0 , 2 0 1 5 , I s s u e 1 1 2 9

Fostering new ideas Having fun and encouraging creativity can lead to the generation of fresh, new business ideas.

I have long felt one of the problems with the A/E/P and environmental consulting business is that we have so few new ideas – really new ideas – to fuel the success of our businesses. So many firms seem to be plodding along – with owners who are doing the same thing as the other owners of firms in this business – all hoping the economy holds up and they can sock away a few bucks so they can make it through the next recession. That’s sad. Because I KNOW that most of us could do a whole lot more with the resources we have if we just came up with some new ideas and then actually implemented them! We have smart people. We have smart clients. We have design and technical abilities. We have offices. We have cash flow. We have cash and borrowing capacity. But we aren’t using all of this very well. If we were, we’d all be a helluva lot more successful. The process of firm (and life) transformation has to start with some new ideas. Where will they come from? Here are some thoughts: 1)Start reading Inc. Magazine and other similar publications. Why? Because they are focused on privately-held, growing companies and will get you outside of this industry! Learn from people outside of this business. The most recent issue has so many articles. One on a fellow who took his fashion company from public to private. Another on a restaurant de- sign firm where all owners are equal owners

“We have smart people. We have smart clients. We have design and technical abilities. We have offices. We have cash flow. We have cash and borrowing capacity. But we aren’t using all of this very well. If we were, we’d all be a helluva lot more successful.”

Respondents to Zweig Group’s 2015 Project Management Survey report that firms most commonly establish a project budget (52 percent) before issuing a job number. Another 44 percent establish complete billing information , 39 percent obtain a signed contract , and 37 percent receive a formal notice to proceed . Only 16 percent establish a project schedule . Answers sum to more than 100 percent because choices were not mutually exclusive. — Vivian Cummins, research analyst assistant. F I R M I N D E X Affinis Corp. .............................................................. 10 AMEC Foster Wheeler ............................................... 12 A. Morton Thomas & Associates Inc. . ........................ 10 Balfour Beatty . ............................................................ 8 Boro Construction ....................................................... 8 Brasfield & Gorrie ........................................................ 8 CB&I . ....................................................................... 12 CB&I Stone & Webster .............................................. 12 Coffey International Limited ........................................ 12 Davis Architects Inc. .................................................... 8 EMCOR .................................................................... 12 Exponent .................................................................. 12 Fluor ......................................................................... 12 Georgia Power .......................................................... 12 Golden Construction ................................................... 3 Hensel Phelps Construction Co. .................................. 8 HLB Lighting Design .................................................... 6 Jacobs Engineering ................................................... 12 KBR . ........................................................................ 12 Michaels Energy .......................................................... 9 Queen City Railroad Construction Inc. .......................... 8 Schrader Group Architecture LLC . ............................... 8 Southern Company ................................................... 12 Specialized Real Estate Group ..................................... 3 Stantec ..................................................................... 12 TerraTherm . .............................................................. 10 Tetra Tech ................................................................. 12 Tindall Corporation ...................................................... 8 Toshiba ..................................................................... 12 TRC Companies ....................................................... 12 Trumbull Corporation ................................................... 8 Westinghouse ........................................................... 12 Willbros Group .......................................................... 12

Mark Zweig

MORE COLUMNS xz BRAND BUILDING: Buzzword mania Page 5 xz DEAR CHRISTY: Your management questions, answered Page 11

See MARK ZWEIG, page 2

Blogging is good business Page 9 Uptown livin’ Page 5

T H E V O I C E O F R E A S O N F O R A / E / P & E N V I R O N M E N TA L C O N S U L T I N G F I R M S

MARK ZWEIG, from page 1 and work together with undefined roles and it actually works. Another article on a guy who decided to pay each of his employees at least $70,000 a year. Another on someone who was considering selling their company for as much as $4 million but then real- ized they’d be taking a huge pay cut they couldn’t afford and may have other options to work less but keep it. One on someone who outsourced his operations to the Phil- lipines and pays his workers $4 an hour and he and they feel great about it. I could go on but I strongly recommend getting out our industry and learning about some others! 2)Force your managers to come up with new ideas. Try having all them do their busi- ness plans this year with more than their typical sales, revenue, and labor expense fore- casts. How about asking each unit to come up with three new things to sell and three new ways to market? Then make them present their concise plans in an entertaining format. Give out prizes for the best ideas and presentations. 3)Make your office environment a lot more fun. Maybe you need to have a free lunch for no reason. Let your people teach a class on anything they want to teach it on. Have lots of sugary snacks. Get an office sound system and try out a “DJ for a day”from your employee group. Go on a field trip to an interesting new business or somewhere fun. Mix it up. 4)Be open to new ideas. Never say “never” when someone makes a suggestion. Let it age. Ask questions. Try small experiments to see if it works. Test it on other people. Don’t be quick to say “no.” 5)Mix up the roles. Tinker with your organization structure and roles. Just because “Sally” has always been the bill collector doesn’t mean she has that job for life. Just because “Joe” is in charge of I.T. doesn’t mean he’s right for the job today. Inject some young people and new grads. I hate to tell you but youth and naïveté may actually lead to more creative thinking some times. Hopefully if you do these things you’ll be energized yourself and maybe you’ll be more inclined to come up with some new ideas. Your next challenge will be implementation. Ideas by themselves are worthless without action. But more on that another time! MARK ZWEIG is Zweig Group’s founder and CEO. Contact him at mzweig@zweiggroup.com. BUSINESS NEWS U.S. CONSTRUCTION STARTS FALL BELOW EXPECTATIONS IN Q3 U.S. construction starts came in slightly below expectations during the third quarter, with stronger activity in the civil engineering sector being more than offset by weaker growth in the residential and non-residential segments. Residential starts continued to post a healthy pace of annual growth, and the apparent weakness in the non-residential segment may be overstated because of upward revisions in historical data, according to CMD’s latest quarterly forecast report. The Q4 forecast, which combines CMD’s proprietary data with macroeconomic factors, showed construction starts are expected to grow 6.8 percent in 2015, a little less than CMD’s Q3 prediction of 7.1 percent. “Domestic activity is driving U.S. growth,” said Alex Carrick, CMD chief economist. “After a slow start in 2015, US GDP recovered strongly in Q2, and robust domestic activity is expected to drive growth over the next few years.” According to the report, construction starts are expected to grow by 8.4 percent in 2016, as rising household incomes boost growth in the residential sector and stronger business investment elevates the non-residential sector. Only civil engineering construction is expected to slow from its heady pace in 2015. “A good gain in U.S. construction starts in 2015 will accelerate in 2016 and 2017, before settling down in 2018,” stated Carrick. “Some moderation in engineering strength, which has been a main- stay of site-work lately, will be compensated by a pick-up in non-residential building activity. In resi- dential, pent-up demand for new housing continues to accumulate and will soon need addressing.” For more information about CMD, visit cmdgroup.com. WE WANT YOUR NEWS THE ZWEIG LETTER loves to share its readers news! Please send press releases related to projects, hires, promotions, expansions, branding, and M&A to Managing Editor Andrea Bennett at abennett@zweiggroup.com.

Take your advice from Mark Zweig to-go. Listen to this and past editorials from The Zweig Letter via the free TZL Podcast on Stitcher, iTunes and Soundcloud. zweiggroup.com/podcast

1200 North College Ave. Fayetteville, AR 72703 Mark Zweig | Publisher mzweig@zweiggroup.com Andrea Bennett | Managing Editor abennett@zweiggroup.com Christina Zweig | Contributing Editor christinaz@zweiggroup.com Sara Parkman | Editor sparkman@zweiggroup.com Megan Halbert | Design Assistant mhalbert@zweiggroup.com Liisa Andreassen | Correspondent lsullivan@zweiggroup.com Richard Massey | Correspondent rmassey@zweiggroup.com Jake Crawford | Intern dcrawford@zweiggroup.com

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E-mail: info@zweiggroup.com Online: www.thezweigletter.com Twitter: twitter.com/zweigletter Blog: blog.zweiggroup.com Published continuously since 1992 by Zweig Group, Fayetteville, Arkansas, USA. ISSN 1068-1310. Issued weekly (48 issues/yr.). $475 for one-year subscription, $775 for two-year subscription. Article reprints: For high-quality reprints, including Eprints and NXTprints, please contact The YGS Group at 717-399-1900, ext. 139, or e-mail TheZweigLetter@TheYGSGroup.com. © Copyright 2015, Zweig Group. All rights reserved.

THE ZWEIG LETTER NOVEMBER 30, 2015, ISSUE 1129

P R O F I L E

Uptown livin’ Specialized Real Estate Group and Modus Studio promise trailside apartment community in Fayetteville, Arkansas, will promote modern and healthy living.

By Richard Massey Contributor

T he trailside apartment community under construction in Fayetteville, Arkansas, is expected to be a groundbreaking structure in terms of access, style, and, above all, healthy living. Situated in the Uptown neighborhood at Joyce Avenue and Steele Boulevard, the 300- unit complex by Specialized Real Estate Group of Fayetteville sits astride the Mud Creek Trail, a central leg of the 37-mile Razorback Regional Greenway. Utilizing the latest green technology throughout all facets of construction, the building will be registered for LEED certification. Amenities will include a community garden, a bike repair station, a trailhead, saltwater pool, outdoor balconies, patios, and roof decks. The complex, built by Golden Construction of Birmingham, Alabama, will also feature 12,000 square feet of commercial space. “Uptown will bring a truly crisp modern aesthetic with incredible community spaces and amenities carved in and around the buildings.” Though inspired by similar projects in other parts of the country, the Uptown complex, scheduled for completion in 2017, will be a first for Fayetteville. “Fayetteville hasn’t seen this type of mixed-use product at all,” says Jeremy Hudson, CEO of Specialized Real Estate Group . “Putting all these pieces together – housing, businesses, shopping, dining, trails, and sidewalks – makes a connected community that contributes to the health and vitality of our whole community.” While the complex’s amenities provide the curb appeal, it is the guts of the project that will make it a true piece of eco-friendly construction. Recycling will occur during and after construction, energy efficient fixtures will be installed throughout the building, no-VOC interior paints will be used, as well as white roofing to prevent solar gain. Two forested acres will be preserved, and the landscaping will consist of native and drought- tolerant vegetation.

See UPTOWN, page 4

THE ZWEIG LETTER NOVEMBER 30, 2015, ISSUE 1129

UPTOWN, from page 3

WANT MORE? Check out the November 15th edition of TZL (1128) for more information on the Razorback Regional Greenway.

Hudson is confident the complex will be a hit with the pub- lic, and if that’s the case, look for more to be built. “Uptown is a really exciting project for us because hous- ing is the missing piece in that neighborhood,” Hudson says. “When we look at potential sites, we look for walk- able neighborhoods and access to trails, green-space, and centers of employment – Uptown has it all. We see a large demand for modern, walkable apartments in this area, and we’ll continue to pursue those opportunities.” The Uptown center was designed by Modus Studio of Fay- etteville, a leading firm inmodern architecture. The building uses typical materials – brick, stucco, fiber cement board, cedar, and steel. The trick, however, says Modus principal Chris Baribeau, is to develop creative concepts that ulti- mately become unique places and spaces in which people want to live. Uptown, with one and two-bedroom units ranging from 408 to 1,262 square feet, does just that. “Uptown will bring a truly crisp modern aesthetic with in- credible community spaces and amenities carved in and around the buildings,” Baribeau says. “The mixed-use aspect will give the larger Northwest Arkansas community the op- portunity to shop, play, and eat within the development, whether it’s accessed via trail or road.” The template for the Uptown project is Eco Modern Flats, another Fayetteville project designed by Modus and de- veloped by Specialized Real Estate Group. A renovated 96- unit student housing complex, Eco Modern Flats is consid- ered the greenest apartment development in Arkansas, and was recognized by the Urban Land Institute, the U.S. Green

Council, the National Apartment Association, and won the 2012 LEED for Homes Award for Outstanding Multifamily Project. Specialized Real Estate Group is an adherent to the 21 rec- ommendations of the Urban Land Institute’s Building Healthy Places campaign, which includes physical activity, healthy food and drinking water, healthy environments, and social well-being. The initiative encompasses land uses, streetscapes, play spaces, on-site gardening, food markets, ventilation and airflow, and pet-friendly policies, among others elements. Like Eco Modern Flats, Uptown also follows the Indoor Air Quality Pledge, which encompasses non-toxic interior paint, non-toxic building materials, non-toxic cleaning ma- terials, quarterly air filter replacements, gentle pest man- agement, and non-smoking communities. Both Modus and Specialized learned a lot from EcoModern Flats, and poured that knowledge into Uptown. “In many ways, Eco Modern Flats is our flagship, and we are applying many of those lessons learned to the Uptown proj- ect,” Hudson says. “With Eco, we realized how the built en- vironment could shape human health.” Creating scaled urban spaces where tenants and consumers can overlap is challenging, Baribeau says, and Uptown re- quires tremendous hardscape, landscape, and building fin- ishes. But once it’s done, the effort would have been worth it. When people enter the building, “they will feel as if they have been transported to a high-end retail center in another sophisticated, larger city,” Baribeau says. “However, visitors will be connected to the natural beauty of Northwest Ar- kansas through familiar views of the city of Fayetteville.”

THE ZWEIG LETTER NOVEMBER 30, 2015, ISSUE 1129

MARKETING A SUPPLEMENT OF THE ZWEIG LETTER

A s we wrap up a record year for the AEC industry, it is time to look ahead to 2016 and get into business-planning mode. That does not mean it is time to read another trendy business management book and publish a strategic plan that is laced with the latest industry buzzwords. It also does not mean that, because we are so busy, we can skip the planning process altogether. Buzzword mania Start speaking in plain English, especially when it comes to internal strategic planing, to develop a clear strategy and purpose. O P I N I O N

The tendency for firms to do the above, combined with hard data from our research, leads us to the easy conclusion that it is time that this industry take strategic planning more seriously. Strategic plans are something that the entire organization must get behind and that must inspire employees to be different and work hard. Here are some things to consider as you prepare to develop a new plan or update your current plan: Cut down on buzzwords. The use of buzzwords to make the idea or plan sound more important is a real problem. Buzzwords are most useful when one needs to distract the reader from realizing that an effort was a complete failure. Your business planning effort should be driven by hard data – what is working, what is not, and what you need to do to accomplish growth. “Turn your next planning retreat away from buzzword mania and into a meaningful, data-driven session, where you look each other in the eye and sincerely develop a plan that has clarity and purpose that your organization can embrace.” Buzzwords, in addition to overly academic or technical jargon, tend to turn off the general staff in our firms. Frankly, we employ some of the most skeptical people when it comes to business management and processes. Technical and design types do not respond well to trendy concepts and fluff. Don’t employ wimpy facilitators. There is a wealth of strategic planning facilitators out there that you can pay to walk you through this process. Many do not un- derstand this industry and will likely lead you through a process where you end up with a plan full of vague, See CHAD CLINEHENS, page 8

THE ZWEIG LETTER NOVEMBER 30, 2015, ISSUE 1129

Mark

The power of light (and people) HLB Lighting Design is this year’s winner of Zweig Group’s People’s Choice Award; HLB’s marketing manager attributes success to the firm’s fearless brand identity campaign.

By LIISA ANDREASSEN Correspondent

of our engaging and impactful marketing strategies in our new brand that we have been able to ‘humanize’ our marketing materials. Our audience has responded really well to the new materials because they are light- hearted and fun,” Foster says. He says that winning this award will open many doors for them in the marketing and business development community by giving them greater exposure and gar- nering respect from their peers. “As a specialty subconsultant, it’s a great accomplish- ment to be able to compete with the larger firms that have huge marketing budgets and marketing depart- ments,” he adds. At HLB, principals believe a collaborative mindset works best. They know when to lead, listen, mentor, and get out of the way. And, Foster attributes the fact that they have been able to generate success with their brand to this mentality. “Our marketing team was given the greatest gift that no promotion, raise, or bonus could ever fulfill ... and that’s the gift of freedom,” Foster says. “We took that opportunity to create the most memorable brand ex- perience possible.” He says that they kept it simple, but made it memo- rable.

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T he people have spoken. HLB Lighting Design (New York, NY), a 60-person internationally rec- ognized design firm focused on architectural light- ing for both interior and exterior environments, first received Zweig Group’s Marketing Excellence Award in the internal marketing category and then went on to win the People’s Choice Award. Why? Because its brand is for the people, by the people. Founded in 1968 by lighting pioneer Jules Horton, the HLB team believes in the power of light to shape inspiring, innovative, and functional environments where people can live, work, and play. Jonas Foster, senior associate and national market- ing manager for HLB, says they were very excited to receive this award. He believes the main reason they won the People’s Choice is because they were not afraid to take a little risk and be honest, succinct, and authentic in their brand identity campaign. “Some people may love it, others may hate it. That’s what makes it unique. We were not afraid to be open,” he says. Creating an experience. “It has been our goal to create a new HLB experience, not just a brand. It’s because

Jonas Foster, Senior Associate, HLB Lighting Design.

THE ZWEIG LETTER NOVEMBER 30

rketing

Zweig Group is social and posting every day! C O N N E C T W I T H U S

facebook.com/ ZweigGroup

twitter.com/ ZweigGroup

linkedin.com/company/ ZweigWhite

blog. ZweigGroup .com vimeo.com/ ZweigGroup

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“We were not afraid to be completely authentic with our brand- ing strategies and to be different than the rest. In the end, we made it less about us and more about our audience, because let’s be honest … design is a relationship business,” he says. What Foster is most proud of is that they handled their entire re-brand within the walls of HLB. “We are very proud of our diverse marketing team who creat- ed such professional and top notch branding pieces. It’s a true testament to our firm’s desire to mentor the next generation of marketers and empower them to be the best at what they do. It’s the team we are most proud of, it’s because of them we were able to create many award winning marketing projects,” he says. “And, there’s nothing better than being recognized by your peers in the industry for your dedication and hard work.” A new brand identity in five easy steps. In the fall of 2013, HLB set out to re-evaluate their marketing and branding strategies in order to meet their aggressive sales and business develop- ment goals. The five pieces were as follows: HLB’s Branding Brilliance: A brand identity book – welcome to everything HLB. HLB’s “A New Level of Light” design brochure: An overall port- folio of 15 market sectors of lighting expertise to target exist- ing clients, new clients, new markets, and business develop- ment efforts.

HLB’s “The Daylight Dynamic” design brochure: An overall portfolio of HLB’s daylighting and sustainable design practice conveying thought leadership and technical expertise to target existing clients, new clients, new market, and business devel- opment efforts, to this specific business unit at HLB. HLB’s “Marketing Year End Success Story 2014”: This was the firm’s first-ever marketing year-end report and created ac- countability and established expectations within the inter- nal team to maintain and deliver the firm’s new brand identity with quality as all re-branding efforts were tracked and docu- mented. “Everyone is a marketer.” HLB swag: Fun giveaway items anchored HLB’s new brand identity. From sunglasses to business cards, one-of-a-kind pieces were created to spark fun and engaging conversation with the firm’s audience. And with a re-branding budget of $25,000, HLB is now realiz- ing the overall result. Since August 2014, HLB has been able to increase design fees with repeat clients to 33 percent and new clients to 11 percent. Their hit rate is stronger than ever at 39 percent and this has allowed them to leverage more clients in new areas where HLB is considering geographic expansion. “Most importantly, we had a great time doing this together as a team,” Foster says. “We live it, breathe it, feel it.” That’s likely why they are the People’s Choice.

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OVEMBER 30, 2015, ISSUE 1129

BUSINESS NEWS TINDALL RANKS AMONG ENR’S TOP SPECIALTY CONTRACTORS Tindall Corporation (Spar- tanburg, SC), a national leader in precast concrete, ranked fifth in the Top 20 Specialty Concrete Contractors in the United States and 77th overall in Engineering News-Record ’s Top 600 Specialty Contractors in 2015. “We’re proud to rank among the best con- tractors and concrete firms in the world,” said Tindall’s president and COO, Greg Force. “We attribute our success to a culture of quality, performance and safety. This is a testament to Tindall’s skilled personnel and over 50-year track record of success. We look forward to building upon this reputation for excellence.” The ENR Top 600 Specialty Contractors is an annual national survey of the US-based spe- cialty trade contractors and subcontractors that ranks companies according to construc- tion trade specialties and total annual revenue. ENR provides relevant news, analysis, com- mentary and data focused on the construction industry. Each year, ENR publishes 13 top lists ranking different types of firms in the design and construction industry based on revenue. STATES ANNOUNCE Q3 PROJECTS, REVENUE In the third quarter of 2015, California saw almost 3,500 projects go out for bid, valued at over $16 billion. Of these projects, more than 500 were privately funded and nearly 3,000 were publicly funded. California high-profile projects out for bid in the third quarter included: San Francisco International Airport Terminal 1 Center, a $700 million demolition and rebuild of an existing terminal structure plus addition – Hensel Phelps Construction

learning center and elementary school in Phoenixville – Schrader Group Architecture LLC , architect, and Boro Construction , general contractor In the third quarter, more than 3,800 construc- tion projects, worth over $17 billion, were ac- tively bidding in Texas. Texas high-profile projects out for bid in the third quarter included: Visual and Performing Arts, STEM Academy and Classroom Addition, a $575 million addition and expansion of an educational facility in Fort Worth – Fort Worth Independent School District, contracts administrator Liberty Mutual Offices at Legacy West, a $325 million office development in Plano – Balfour Beatty , general contractor EATON ANNOUNCES A CALL FOR ENTRIES FOR SOURCE AWARDS NATIONAL LIGHTING DESIGN COMPETITION Power management company Eaton has announced that it’s accepting en- tries for the 39th annual SOURCE Awards na- tional lighting design competition. Professional and student entries can be submitted at The Lighting reSOURCE (TheLightingreSOURCE. eaton.com), Eaton’s new online informational hub. The competition deadline is January 20, 2016. The SOURCE Awards competition, which fo- cuses on furthering the understanding, knowl- edge and function of lighting as a primary ele- ment in design, is open to all lighting design- ers, architects, engineers, professional design- ers and consultants who use Eaton’s lighting and controls products for interior or exterior design projects.

Co. , construction manager EchoWater Project, site work for a $568 million water/sewer project in Elk Grove In Florida, the number of private construction projects that went out for bid in third quarter of 2015 grew 5 percent compared with the previ- ous quarter. Florida high-profile projects out for bid in the third quarter included: Port Redwing Improvements Phase VI, a $1 billion project for additional railroad track for Port Tampa Bay at its Redwing Terminal – Queen City Railroad Construction Inc. , general contractor University of Florida O’Connell Center Expansion and Renovation, a $50 million renovation and expansion of a 10,526-seat arena – Davis Architects Inc. , architect, and Brasfield & Gorrie, construction manager Throughout Pennsylvania, more than 2,600 projects, with a combined contract value of nearly $6 billion, went out for bid in the third quarter of 2015. Compared with the second quarter, the number of Pennsylvania construc- tion projects increased 3 percent. Pennsylvania high-profile projects out for bid in the third quarter included: River Chamber Completion at Charleroi Locks and Dam, a $240 million project in Monongahela River – Trumbull Corporation , general contractor Early Learning Center and Elementary School, a $30.4 million new construction of a 152,000-square-foot early

CHAD CLINEHENS, from page 5

last trendy business management book they read and will simply espouse buzzwords and concepts that are empty and irrelevant. Admittedly, many in this industry do not have much, if any, formal business education, so we get it wherever we can. This includes trendy business management books. Many of these authors and books have great ideas and concepts. Unfortunately, when the lingo of a few billionaires becomes buzzwords we use every day, the overused words begin to lose their meaning. Instead, we should challenge ourselves and encourage our organizations to speak clearly in everyday, simple language. Sharing the strategic plan with all staff is critical for the organization to embrace it. Simple, clear language greatly improves the chances of the plan being embraced by an already skeptical employee. Turn your next planning retreat away from buzzword mania and into a meaningful, data-driven session, where you look each other in the eye and sincerely develop a plan that has clarity and purpose that your organization can embrace. CHAD CLINEHENS is Zweig Group’s executive vice president. Contact him at cec@zweiggroup.com.

emotional terms that lack substance. In other words: The typ- ical facilitator is an expert on buzzwords and generic planning processes, not your business and how to design a meaningful plan. If you need a facilitator, choose carefully. This is an im- portant job and not just something you check the box on. Get someone who understands your business and the industry you operate in. Someone who can collect data and analyze it and provide you true consulting and strategic guidance. Invite the right people to the table. This is always a huge debate when we are working with firms. Firm leaders default to inviting just principals or top management. My advice is to not allow those who will not contribute or those who likely not support and work hard to execute the plan to take up a precious seat at the table. Invite those that can truly affect change in the organization. For example, our research shows that only around half of firms invite the marketing leader into the process. This seems crazy, as marketing usually has a huge role in the execution of any plan that has any meaning- ful growth goals. If you do not have marketing leadership that deserves a seat at this table, you might have the wrong marketing leader. When considering this small but very im- portant group, get those who can look forward, visualize, and execute a meaningful plan. Avoid those who hide behind the

THE ZWEIG LETTER NOVEMBER 30, 2015, ISSUE 1129

MARKETING A SUPPLEMENT OF THE ZWEIG LETTER

B E S T P R A C T I C E S

Blogging is good business More and more companies are utilizing blogs to share information and to connect with clients, employees, and others.

By LIISA ANDREASSEN Contributor B logs are a great way to share information. Here are four companies that are exercising their blogging muscles. STAYING RELEVANT. At Michaels Energy (La Crosse, WI), a 60-person energy efficiency consulting firm, the top goal is to share relevant content re- lated to the energy efficiency industry, with a refreshing, unfiltered (or slightly filtered) spin. The primary author for this weekly blog is Jeff Ihnen, vice president, who gathers fodder for the “Energy Rant.” “We’re trying to start a conver- sation,” says Kristin Laursen, director of marketing and busi- ness development. “Nothing is really off limits as long as it’s related to energy efficiency.” “We track opens, click- throughs, and comments on all posts (sent to subscrib-

START A BLOG OF YOUR OWN. We asked these professionals what tips they would offer other firms that want to start a blog. Here are some ideas: Be sure that your company leaders are on board. They can suggest topics, which helps keep your contributors engaged. Decide ahead of time how often you want to post and set reminders to yourself so the blog doesn’t get lost among other tasks. Prepare ideas as to what kinds of features, topics, or spotlights you want to have and understand that blogging takes time and research. Marketing departments need to be proactive and own the blog. It helps to schedule a 30-minute meeting with project managers to learn about their projects and find the story. Ghostwrite the first draft based on your interview then let the “author” proofread it and give it their own spin. Know what your clients (and website/blog visitors) care about. Utilize fun blog headline generators like Hubspot’s Blog Topic Generator to find an attention-getting headline that is search engine optimized. Use tracking tools such as Google Analytics or Wordpress plug-in Blog Metrics. Before you post your first blog, create a backlog of posts. Engage people from across the firm in the content creation. Having co- workers take turns being in the “hot-seat” keeps everyone fresh. Create simple blogging guidelines to distribute to new contributors. Inform them that the blog shouldn’t be too long (400 – 600 words is fine), should have a fun and interesting title, and should contain plenty of photos and graphics. If a certain blog topic or author tends to receive more views than others, schedule more posts on similar topics or by the same author. Comments, social media shares, and “likes” are also a good way to gauge a blog’s success.

See BLOGGING, page 10

THE ZWEIG LETTER NOVEMBER 30, 2015, ISSUE 1129

BUSINESS NEWS GLOBAL CONSTRUCTION MARKET TO GROW $8 TRILLION BY 2030: DRIVEN BY CHINA, US AND IN- DIA Global Construction 2030 , a new report by Global Construction Perspectives and Oxford Economics, forecasts the volume of construc- tion output will grow by 85 percent to $15.5 trillion worldwide by 2030, with three countries – China, US and India – leading the way and accounting for 57 percent of all global growth. The benchmark global study – the fourth in a series – shows average global construction growth of 3.9 percent to 2030, outpacing that of global GDP by over one percentage point, driven by developed countries recovering from economic instability and emerging countries continuing to industrialize. “China’s share of the world construction mar- ket will increase only marginally as growth slows in the world’s largest construction mar- ket to 2030. In comparison, US construction will grow faster than China over the next 15 years – growing by an average of five percent per annum. Meanwhile, we’re due to see a surge in construction rates in India as it over-

takes Japan to become world’s third largest construction market by 2021,” says Graham Robinson, executive director of Global Con- struction Perspectives. China construction growth is to slow consid- erably with a slump in housing and the first ever decline in housing output for China will be registered this year. But, its transition to a consumer and services driven economy pro- vides opportunity for growth in new types of construction in healthcare, education and so- cial infrastructure, in addition to retail and other consumer end-markets. The construction market in India will grow al- most twice as fast as China to 2030, provid- ing a new engine of global growth in emerging markets. India’s urban population is expected to grow by a staggering 165 million by 2030, swelling Delhi by 10.4 million people to be- come the world’s second largest city. “Although globally we see construction grow- ing more rapidly than the overall economy, with developed markets forecast to rebound from their depressed levels, many will not be

back to their previous peak levels even by 2030. The current weakness in most emerging countries is likely to be temporary, with higher growth rates soon returning,” says Mike Betts, Global Construction Perspectives. In the US construction growth will tilt towards the southern states, reflecting the region’s greater catch-up potential and higher popula- tion growth. “Fed lift-off, expected as early as December, could mean a risk for construction growth in key emerging markets – Brazil, Russia, Turkey and India – that could all suffer from significant short-term reductions in growth for construc- tion, with some of these countries potentially halving growth,” says Jeremy Leonard, direc- tor of industry services at Oxford Economics. When it comes to Europe, whilst it won’t re- cover to reach pre-crisis levels until 2025, the UK is a stand-out growth market, overtaking Germany to become the largest in Europe and the world’s sixth largest construction market by 2030.

COMPLEMENTARY COMMUNICATION. Peggy Amor, marketing manager at Affinis Corp. (Overland Park, KS), a 30-person transporta- tion planning and design firm, says that their blog supports their overall communications plan goals: To expand the company’s reach To establish a reputation as a trusted resource To illustrate their competitive advantage They post technical posts about new engineering concepts, highlights about different work groups, project details, co-worker news, and more. “A variety of topics makes the editorial calendar easier to fill up,” Amor says. “Ideas regularly get added to the calen- dar and we are already scheduled through March of 2016.” PROVIDING EDUCATION. At TerraTherm (Gardner, MA), a 75-per- son firm specializing in the development and imple- mentation of in situ thermal remediation of organic contaminants in subsurface source zones, Nate Bier- schenk, sales and marketing associate, says that their niche is a unique one and because of that, many po- tential clients, consultants, and end-users of their technologies may not know much (or anything) about the products and services they provide. As a result, their goal is to educate. “In our posts, we attempt to answer the most common ques- tions about technologies and processes to create a space where we can refer potential clients if that question arises again,” he says. Soil scientists, process engineers, construction profession- als, environmental chemists, site operators, and other pro- fessionals contribute to their blog, “Think Thermal.” They also use the blog to promote events such as webinars, work- shops, and conferences.

BLOGGING, from page 9

ers) and track our website analytics in terms of post views and path to our blog,” she says. “We analyze post perfor- mance based on topic and make necessary adjustments to keep our open rate high (nearly 40 percent, consistently).” Laursen says they work to keep their blog relevant by sur- veying subscribers to gauge whether or not people continue to find the content useful, if there are other things they’d like to read about, and how often they’re reading and inter- acting with posts. EXPANDING THE MESSAGE. At A. Morton Thomas & Associates Inc. (Rockville, MD) – a 450-person civil engineering, land- scape architecture, surveying, planning, construction in- spection, and subsurface utility engineering firm – Mary J. Stiff, marketing communication specialist, says the firm’s monthly blog is designed to give the firm an extra voice, an extra tool to get the firm’s message across, particularly when that message is longer than something that might do well on other social media platforms. It also brings users to the firm’s website. AMT is a diverse company, so team members post items across all business lines. They write about everything from what their surveyors find to posts about living shorelines. They also post about employees, events, and general busi- ness items that may be of interest to the community. AMT utilizes an editorial calendar that works around events and holidays, but Stiff says it’s im- portant to remain flexible in case a staff member has something interesting to say, or they come across an in- teresting internal email that would make a good post. “Any editorial calendar that you set up must be flexible enough to accommodate individuals within the organiza- tion who want to contribute. They are your gold,” she says.

THE ZWEIG LETTER NOVEMBER 30, 2015, ISSUE 1129

Your management questions, answered This month, readers seek advice on topics related to ‘working retired,’ nepotism, and project-person fit. O P I N I O N

WORKING PARTNER HAS ‘RETIRED’ Dear Christy,

“One of our partners seems to have retired on the job. He comes in late, leaves early, and doesn’t sell or do anything. But he also owns 20 percent of the company and has been here for 30 years. How can we get him gone?” – Worried in Wisconsin Dear Worried, I know this isn’t the easiest situation, but no architecture or engineering firm can afford to have someone asleep on the job. Just because this person is a partner doesn’t mean he isn’t an employee and doesn’t have to do his job. Figure out a way to buy

HAVE MANAGEMENT QUESTIONS YOU NEED ANSWERED? Dear Christy is THE ZWEIG LETTER ’s newest column, a place for industry leaders to anonymously submit their most pressing leadership, management, finance, marketing, or human relations questions. Each month, submissions will be answered in print, so that the entire A/E/P and environmental consulting industry can benefit from the shared experiences and information highlights. Have a question you need answered? Email Christy Zweig at christinaz@zweiggroup.com or send your letter to Zweig Group, P.O. Box 1528, Fayetteville, AR 72702. Even if letters are signed or if emails contain the writer’s name, all entries will be kept confidential and published anonymously.

DEAR CHRISTY

his stock back and get him out of there – it will be worth it. This person is probably dragging down morale in ways that are bigger than you realize; people that don’t represent ownership well end up decreasing the value of the stock and threaten the overall ownership structure.

BOSS WANTS TO GIVE BROTHER LEADERSHIP POSITION Dear Christy, “Our company president wants us to hire his brother as a marketing consultant. Problem is, none of the rest of us are very impressed with him. What do we do?” – No Nepotism in Nashville Dear No Nepotism, Well, at least it sounds like you aren’t the only one. Having a few people on the same page when it comes to this kind of thing is a big help. Start by determining exactly why you aren’t impressed with this guy. Accurately assess him. If your president is a reasonable person (which he/she probably is) and you bring valid points to the table along with a process in how someone like this should be chosen to be hired, you should be able to get the best person for the job. Develop other alternatives quickly and present a comparison.

NEED TO MAKE SURE SMART, TALENTED ENGINEER DOESN’T DERAIL PROJECT Dear Christy, “I have an engineer in my group who is a very smart and talented guy. However, I am afraid to let him meet a client for fear he will want to completely redirect the direction of the project. We don’t want to do that at this stage. Help!” – Too Much of a Good Thing Dear Too Much, It is great that you have a big mover in your firm, but there’s a time and place for this person to come into a project. Talk with him and explain the current status of the project and the time and work that it has taken to get there. Although a new person might have a better solution, it isn’t a better overall solution for the client to start over and derail the work that has already been done. A big part of an effective solution for the client is getting the job done on time. If you really think he won’t get it, save him for the next project and bring him in at the very beginning.

THE ZWEIG LETTER NOVEMBER 30, 2015, ISSUE 1129

ZG15 INDEX

Share Pricing

Valuation

Ticker Name

Market

Close Beginning of % Month Change % Change EPS

EV/

EV/ Price/ Price/

Book Value

Jul. 31, 2015

Aug. 30, 2015

Month Change

Change

from 50 -day MA

Rev. EBITDA Sales

Cap

ACM AECOM Technology Corp NYSE

4.58B 2.93B

27.51

29.47

1.96

1.63

5.68% (0.68) 0.56 10.28 0.29 1.11 -32.51% 0.36 0.60 8.75 0.40 1.33 5.62% (2.68) 0.52 5.41 0.36 2.08 -2.67% 0.79 0.30 4.15 0.36 1.25

AMFW Amec Foster Wheeler

NYSE

0.00 #DIV/0!

(3.69)

CBI EEI

Chicago Bridge & Iron Co. NYSE

4.65B

39.66 11.60 44.25

44.87 10.61 48.28

5.21

13% -9%

2.36

Ecology and Environment Nasdaq 46.04M

(0.99)

(0.29)

EME EMCOR Group Inc

NYSE

3.06M

4.03 0.01 6.85 5.46 0.10 2.71 1.78 3.19

9% 1%

2.56 0.17 2.84 3.72

5.55%

2.57 0.45 8.41 0.47 2.05

ENG ENGlobal

Nasdaq 33.96M

1.03

1.04

16.25% 0.10 0.25 3.75 0.34 1.07

EXPO Exponent Inc.

Nasdaq

1.33B 6.96B

44.56 42.35

51.41 47.81

15% 13%

5.86% 8.19%

1.57 3.99 15.87 4.50 5.16 4.52 0.31 4.87 0.36 2.28

FLR

Fluor Corp

NYSE NYSE

HIL

Hill International Inc

173.57M

3.28

3.38

3% 7%

(0.08)

-2.36% (0.14) 0.49 6.98 0.29 1.15

JEC

Jacobs Engineering Group NYSE

5.09B 2.74B

37.43 16.66 21.90

40.14 18.44 25.09 10.33 26.90

1.81 0.89 0.86

4.62%

2.80 0.43 6.23 0.42 1.18

KBR KBR Inc.

NYSE NYSE NYSE

11% 15% -13% 11% -4% 10%

4.89% (7.46) 0.37 (31.28) 0.50 2.79

STN TRR

Stantec Inc

3.59%

1.34

TRC Companies

313.01M 11.83

(1.50)

(1.27)

-11.11% 0.66 0.65 6.54 0.77 2.10

TTEK Tetra Tech Inc.

Nasdaq

1.6B

24.31

2.59

0.58

2.24%

1.49 0.97 10.80 0.93 1.71

VSR

Versar Inc.

NYSE MKT 30.25M

3.36

3.21

(0.15)

(0.29)

-8.67% 0.14 0.23 6.94 0.17 0.77

WLDN Willdan Group Inc

Nasdaq

90.5M

10.14

11.11

0.97

0.49

4.44%

1.16 0.65 7.17 0.72 2.59

DJIA DOW Jones Industrial Avg. NYSE

16284.70 17663.54 1378.84 8%

*information at close of day Nov. 9, 2015

Average 0.72x 4.99x 0.73x 1.91x Median 0.49x 6.94x 0.4x 1.71x

POWER GENERATION AND INFRASTRUCTURE October was a month of recovery in price-per-share for many of the companies on the ZG Index. Ten firms bested their 50-day moving aver- age with earnest. Twelve firms had positive increases in price-per-share, and nearly half of the listed firms saw double-digit percentage growth increases in price-per-share. EMCOR , Exponent , and KBR all announced dividends to be paid based on performance for the previous quarter. However, AMEC Foster Wheeler , which has been struggling through the integration of two combined giants, cut its regular dividend payout by 50 percent in an attempt to make up for declining margins. The company has increased its cost-savings target from $55 million to $180 million by 2017. This resulted in a near 25 percent drop in price-per-share on November 5. The consolidation trend being seen at record numbers throughout all levels in the AEC industry continues this month and includes one within ZG Index’s giants. KBR and Stantec have reached a deal for the planned acquisition of KBR’s Infrastructures Americas Division. This will add 180 transportation, water/wastewater, and aviation professionals throughout Texas and Alabama to Stantec’s presence in the Gulf Region. TRC Companies has announced its execution of a purchase agreement for the Professional Services segment of Willbros Group , a Houston-based engineering and contracting company focused on

energy infrastructure, for the price of $130 million cash. Of that price, $43 million will go toward working capital and improving company liquidity, while the rest will go toward reducing the company’s long-term debt. Tetra Tech also got in the acquisition game this month with the purchase of Australian-based geotechnical and mining firm Coffey International Limited , with 3,300 staff around the globe and $407 million in reported revenue for fiscal year that ended June 30. Also, Westinghouse (Cranberry Township, PA), a private subsidiary of Toshiba (Japan), announced that it will purchase CB&I Stone & Webster , the nuclear construction and engineering division of CB&I . Despite a loss of $1 billion on the sale, CB&I washes its hands of liabilities associated with lawsuits stemming from Georgia Power , a subsidiary of Southern Company , the majority owner of Plant Vogtle in Waynesboro, GA. Westinghouse named Fluor as the new company in charge of construction management of the plants. Fluor received contracts for oil field work in the Middle East, while KBR is set to perform topside facilities for the North Sea oil fields. Jacobs Engineering also received several contracts; one for mining in Australia, another for a chemical plant in Belgium, and additional transportation contracts in Texas and the United Kingdom. Power generation and infrastructure were the driving forces in growth for the companies of the ZG Index in October, and the firms are taking advantage of the increased revenue and opportunities for external growth. — Ryan Renard, consultant.

THE ZWIEG LETTER is always looking for new stories, leaders to profile, and guest speakers to feature! If you have a story or profile idea, or if you would like to contribute to TZL, please email Managing Editor Andrea Bennett at abennett@zweiggroup.com. THE ZWIEG LETTER also now offers automatically renewing subscriptions! If you would like to reduce the emails you receive regarding the publication and reduce your subscription cost by 30 percent, email info@zweiggroup.com.

THE ZWEIG LETTER NOVEMBER 30, 2015, ISSUE 1129

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