TZL 1613 (web)

December 15, 2025, Issue 1613 WWW.ZWEIGGROUP.COM

TRENDLINES

IT spending growing fast

$- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000

A new era of AEC growth is emerging, driven by value creation and strategic expansion. The new rules of growth

2023 2024 2025

FIRM INDEX AMDG Architects........................................6 Balfour Beatty US.......................................8 Garver............................................................... 10 KGD Architecture........................................4 Tutor Perini Corporation........................2 MORE ARTICLES n SARA PARKMAN: A new chapter for The Zweig Letter Page 3 n SCOTT BUTCHER: Is a seller- doer model right for your firm? Page 5 n MARK ZWEIG: Mantras to live by Page 7 n WALLACE SMITH: Doing good is good business Page 9 n LUCAS GRAY: Year-end tech check Page 11 Zweig Group’s 2025 Information Technology Report shows rapid growth in IT spending across AEC firms, with median spending up 27% year-over-year and 51% over two years. Average IT spending rose from $728,500 in 2023 to $1.1 million in 2025, reflecting firms’ growing commitment to technology as a driver of efficiency, innovation, and competitiveness. Participate in a survey and save on a Zweig Group research publication.

G rowth has always been an interesting concept in the AEC industry. Many firms have opportunities to grow with existing clients, grow into new markets, or grow into new geographies. Existing demand, in some markets, is a magnet for firms to expand the presence of their services. Oftentimes, demands for growth are stifled due to management’s lack of enthusiasm to allocate resources to add employees, manage staff, deal with headaches, and develop business – all while trying to continue to execute work at a high level. From my experience, the majority of traditionally owned architecture and engineering businesses are treated as income stocks and not growth stocks. The owners don’t reinvest – partially because working capital in this space can get extended, but also because they take the excess margin as income. Kind of like JG Wentworth: “It’s my money and I need it now!” However, a new dynamic is shaping up in an industry that can be hyper local, with hyper loyal clients, and ownership teams who are focused on simply managing what they can manage. Design firms with under 50 FTE, doing roughly $10M in net service revenue (NSR) make up the bulk of firms in this industry, in fact most are under 20 FTE and $5M in NSR. An interesting dynamic that we’re starting to encounter is the excitement from these smaller firms to grow their influence by joining larger platforms or larger strategic partnerships. This option is being seen as a way to expand their influence, build pipelines for talent, and access markets that have demand for their existing services. Zweig Group recently conducted a study of about 200 firms interested in M&A, the results of which are featured in Zweig Group’s 2025 AEC M&A Outlook Report . We found something that is not shocking, however, it is interesting in the context of a growth-oriented conversation. Value creation is the top reason firm leaders are interested in M&A – both on the buy and sell side. We asked firms about their ownership structure: traditionally privately held, private equity backed, ESOP, or Other. The majority of the firms (77%) were traditional privately held, nearly 10% were private equity backed, just over 12% were either full or partial ESOPs, and 1% represented the Other category. We asked when firms were founded and what their NSR was last year. The average traditional-privately held firm was 39 years old, doing about $40M per year in NSR; firms

Will Swearingen

See WILL SWEARINGEN, page 2

THE VOICE OF REASON FOR THE AEC INDUSTRY

BUSINESS NEWS BLACK CONSTRUCTION-TUTOR PERINI JV AWARDED $181.8 MILLION GUAM DEFENSE SYSTEM PROJECT Tutor Perini Corporation, a leading civil, building and specialty construction company, announced the Black Construction-Tutor Perini Joint Venture has been awarded a task order valued at approximately $181.8 million by the Naval Facilities Engineering Systems Command Pacific for the Guam Defense System – Enhanced Integrated Air and Missile Defense Phase 1 project in Guam. The task order includes two options for additional scope elements that, if exercised, would increase the task order value by $12.1 million.

This project, funded under the U.S. Defense Department’s Pacific Deterrence Initiative, includes the construction of an enhanced integrated air and missile defense site complete with its own power generation facility. The power generation facility will include standby power generation, a switchgear building and associated equipment, fuel storage facilities, a fire pump building and water storage, an entry control facility, functional areas, and all supporting infrastructure. Tutor Perini Corporation offers diversified general contracting and design-build services to private customers and public agencies throughout the world.

WILL SWEARINGEN, from page 1

that were ESOPs were 61 years old, doing roughly $132M; and private equity-backed organizations were doing nearly $210M and were just 29 years old. In basic terms, this tells us private equity backed firms are growing more than five times faster than their privately held peers. Let’s be clear. This comes with a catch and one that people need to understand prior to making the commitment. The catch is that you have to want to grow. Like really grow. The historical model of focusing on what you can control and growing responsibly, is taking a back seat to scale and value creation. In this new era, firm leadership are focusing on value creation while attempting to ensure the impact their employees can deliver meets the market demand. Professional development and education programs for key people become paramount as leaders look to creating management succession plans to satisfy the need. While value creation remains the top priority for leaders looking to exit, the impact the transaction will have on their people is a close second. Zweig Group is a full service consulting agency and recently, we’ve been facilitating a lot of educational sessions with leadership teams to talk honestly about their future, about their firms, and about their people. The industry is at a dynamic inflection point and many owners in the industry are facing tough decisions as outside capital continues to gorge itself on these islands of unique cultures and talent. This industry serves the built environment. It’s constantly changing, growing, and contracting. It’s a space in constant need of repair and improvement. Many leaders and owners want to understand the expectations for growth, for value creation, and what their role will be post transaction. They want to know how they can get into their highest and best use and grow their value accordingly. We are seeing firms entertain transition discussions earlier on in their lifecycle. The prospect of attaching to a larger organization with more resources is intriguing to some who are tired of being in the driver seat all the time. There’s movement in the industry at the ownership level. And a philosophical shift seems to be occurring as promises of a technological revolution circle the design and construction industry. The space is ripe for transformation. It’s ripe for value creation. And it’s primed to deliver impact-focused growth to fuel the next generation of structures and systems that shape the human experience. The industry is at a major inflection point – and understanding the forces behind today’s accelerating M&A activity is key to charting your next move. The 2025 AEC M&A Outlook Report offers a clear, data-driven look at trends in buyers, sellers, valuation, culture, and capital. See what’s driving AEC M&A now and what’s coming next. Download the report for free. Will Swearingen is senior director of Transition consulting at Zweig Group. Contact him at wswearingen@zweiggroup.com.

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Chad Clinehens | Publisher cclinehens@zweiggroup.com Sara Parkman | Senior Editor & Designer sparkman@zweiggroup.com Tel: 800.466.6275 Email: info@zweiggroup.com Online: zweiggroup.com/blogs/news LinkedIn: linkedin.com/company/22522 Instagram: instagram.com/zweiggroup Twitter: twitter.com/ZweigGroup Facebook: facebook.com/p/Zweig- Group-100064113750086 Published continuously since 1992 by Zweig Group, Fayetteville, Arkansas, USA. ISSN 1068-1310. Issued weekly (48 issues/year). © Copyright 2025, Zweig Group. All rights reserved.

THE ZWEIG LETTER DECEMBER 15, 2025, ISSUE 1613

OPINION

The Zweig Letter is moving forward, shifting to more dynamic digital formats that better serve AEC leaders. A new chapter for The Zweig Letter

F or almost 30 years, The Zweig Letter has delivered management insights, data, and leadership advice to AEC leaders – first on paper, then online. When I joined Zweig Group in 2015, the newsletter was still a paid print publication reaching about 500 readers each week. But the launch of our free digital subscription soon after changed everything, removing the limits of print and setting The Zweig Letter on a path of rapid growth throughout the AEC industry.

Sara Parkman

That shift set the stage for what came next. When COVID-19 hit and nearly all our readers found themselves working from home, the print edition – which was being delivered to vacant offices across the country – was no longer reaching our readers. In April 2020, Zweig Group made the decision to discontinue the print version, moving fully digital. This change enabled us to publish and update content right up to the moment of release, allowing us to deliver insights in real time – a critical advantage at a time when business conditions were changing daily. Since then, The Zweig Letter has continued to evolve. Today, our newsletter reaches more than 70,000 inboxes each week, with most readers engaging with our content through our weekly email or directly

on LinkedIn. As our audience has grown and reader preferences have changed, one format has quietly become less relevant: the PDF edition. In many ways, the PDF has been a bridge – a digital successor to the print layout, built exactly the same way but never sent to press. As our publishing model and readership have evolved, the need for that format has naturally run its course. So now, it’s time for another transition. The December 29 issue will be the final PDF edition of The Zweig Letter . This change comes with real benefits. Retiring the PDF allows us to focus more intentionally on improving the reader experience on our website,

See SARA PARKMAN, page 4

THE ZWEIG LETTER DECEMBER 15, 2025, ISSUE 1613

ELEVATE THE INDUSTRY®

TRANSACTIONS KGD ARCHITECTURE

ENTERS

With more than 40 associates between its Washington, D.C., headquarters and Arlington, Virginia, offices, in addition to staff based in Bangkok, KGD Architecture will retain its existing name, workforce and operations in the partnership. The firm’s executive leadership, including Principals Tsutomu Ben Kishimoto, Christopher Lee Gordon, Manoj Dalaya, Tom Donaghy and Henry Mahns, will continue to collectively lead the firm following the transaction. “We are extremely pleased to have found such a like-minded ally in the form of Signal Hill,” said Dalaya. “Their vision, together with their commitment to our team members and communities, made them an ideal partner at this stage of our company’s evolution.” “We have been growing and shepherding KGD for 30 years,” added Gordon. “As we witness market demands and a host of changes occurring throughout our industry, this move positions us to remain a strategic leader and true to our mission for the next 30 years.” In addition to capital, Signal Hill will provide KGD with professional and business expertise to help execute its long-term growth and community impact objectives. “Partnering with KGD strengthens the core of our social-infrastructure thesis by directly addressing the pressing needs of our communities,” Signal Hill Chief

Executive Officer Ahmed Abdel-Saheb noted. “Their consistent delivery in public- private partnership projects strongly fits with our essential-services focus. Further, KGD’s award-winning design capabilities and broader government and community agency work strengthens our social infrastructure sector offerings. This partnership will accelerate our vision for a best-in-class national A/E platform. We’re honored to carry on the KGD legacy and look forward to supporting their team.” Signal Hill received legal support from Taft Stettinius & Hollister LLP in this transaction, while KGD Architecture was advised by Zweig Group as well as Lee/ Shoemaker PLLC. Founded in 1995, KGD Architecture is an award-winning, full-service, multidisciplinary architecture and design firm. It has received accolades for design excellence and environmental stewardship for its work addressing many pressing community needs including affordable housing, corporate and commercial offices, hospitality, mixed-use, multi-family residential, educational, institutional, science and technology, and sustainable design. The firm brings diverse perspectives to complex projects, creating spaces that articulate each client’s values, history, brand, and culture. Our places are designed to enhance performance, purpose, function, and wellbeing.

STRATEGIC JOINS INFLUENTIAL NATIONAL PLATFORM, WITH SIGNAL HILL EQUITY PARTNERS KGD Architecture, a multidisciplinary, full-service architecture and design firm based primarily in the DMV market, has entered into a strategic partnership with Signal Hill Equity Partners. The transaction allows KGD to consider a host of substantially larger initiatives and growth opportunities, while ensuring the continuation of its brand, leadership and employees. PARTNERSHIP, Signal Hill is a middle-market private equity firm that invests in architecture, engineering and consulting and essential service businesses, with the goal of leveraging their resources and industry experience to help grow enduring businesses. KGD Architecture will partner alongside three previously established Signal Hill investments: CSArch, a prominent AEC services provider to the education sector; ZMM Architects and Engineers, a trusted firm primarily serving education and municipal clients; and Kluber Architects + Engineers, an integrated full-service A&E firm primarily serving municipal clients. Together, the partnership unites more than 210 professionals across 13 offices delivering comprehensive AEC services to clients within the social infrastructure sectors throughout the Northeastern, Mid-Atlantic, and Midwestern United States.

Thank you for reading, sharing, and shaping The Zweig Letter over the years. We’re excited for what’s ahead – and proud to keep bringing you the ideas and perspectives that move this industry, and your firm, forward. Sara Parkman is senior editor of The Zweig Letter and a senior content editor at Zweig Group. Contact her at sparkman@ zweiggroup.com. “Retiring the PDF allows us to focus more intentionally on improving the reader experience on our website, while also freeing up our team to focus on what matters most: delivering timely insights, sharper analysis, and strategic thought leadership for AEC leaders.”

SARA PARKMAN, from page 3

while also freeing up our team to focus on what matters most: delivering timely insights, sharper analysis, and strategic thought leadership for AEC leaders. What’s not changing is the substance of The Zweig Letter . You’ll still receive the same weekly insights, leadership advice, and data-driven content – just delivered in the formats our readers use and value most. Full issues will remain available on our archive page and through our weekly email, and we’re working to add sharing links to every article so you can easily pass them along to colleagues. This next step feels both practical and energizing. The Zweig Letter has always been about connection – between leaders, ideas, and insights that drive the AEC industry forward. Whether it arrived in a printed envelope, a PDF attachment, or a LinkedIn post, that mission remains unchanged.

THE ZWEIG LETTER DECEMBER 15, 2025, ISSUE 1613

OPINION

AEC firms use seller-doers, business developers, or both, and the best model depends on buyer preferences and firm capabilities. Is a seller-doer model right for your firm?

P rofessional services firms often approach sales differently than other industries. Law firms and accounting firms, for instance, often require staff to bring in their own business. It is a tried and true model as old as the professions, and the generic term for these professionals is “seller-doer.” Within the built environment – architecture, engineering, construction, environmental, construction management, and related firms – many firms employ a similar model.

Scott D. Butcher, FSMPS, CPSM

In general, companies utilize one of these models:

business development representative, business development manager, business development director, or something similar. Combination seller-doer and business developer. Firms employing this model rely on both higher-level technical staff to conduct business development (seller-doers) while also employing dedicated sales professionals. Seller- doers typically focus on generating repeat work from existing clients, while business development staff generate business opportunities with prospective new clients.

■ Exclusively seller-doer. These firms have no dedicated sales (business development) staff, and staff members in certain positions are required to bring in work for the firm. These positions may include president/CEO, vice president, principal, partner, project executive, project manager, lead architect (or engineer or designer, etc.), superintendent, and estimator. ■ Exclusively dedicated business developer. With this model, firms rely on sales professionals to generate work, whether calling on existing clients or new clients. Typical positions include

■

See SCOTT BUTCHER, page 6

THE ZWEIG LETTER DECEMBER 15, 2025, ISSUE 1613

ELEVATE THE INDUSTRY®

TRANSACTIONS THE STONEWALL GROUP ANNOUNCES ACQUISITION OF AMDG ARCHITECTS The Stonewall Group, a private investment firm focused on acquiring, investing in, and operating premier architecture and engineering companies across the U.S., announced its partnership with AMDG Architects, a respected architecture and design firm headquartered in Grand Rapids, Michigan.

Established in 1992, AMDG Architects provides design services to clients across education, workplace, civic, worship, and residential markets. Guided by its mission to “care for people and steward creation through design,” AMDG has built a reputation for design quality, client service, and values-driven leadership – making the firm a natural fit within The Stonewall Group’s family of brands.

The Stonewall Group’s portfolio of firms delivers best-in-class services to a diverse range of end markets, including K-12 and higher education, hospitality, athletic facilities, healthcare, industrial, manufacturing, and more. The company’s collaborative approach emphasizes long-term relationships, operational excellence, and sustained value creation for its partners.

profession continually filled with rejection and can be highly intimidating to many people, particularly in the AEC industry. Successful selling requires certain personality traits. ■ Lack of time. The oft-quoted excuse for a seller-doer not selling is, “Would you rather I take care of our existing clients that are paying us or try to find new clients?” Seller-doers must balance billable work with business development, and by default, they typically focus their efforts on doing the work, not getting the work. ■ Lack of tools/support. This is actually a challenge facing dedicated business developers as well. To succeed, they need a marketing machine that researches target markets and identifies prospects, creating marketing content of value to share and helping with messaging for proposals and presentations. If this function is not present within a firm, it makes the sales process all that much more difficult. ADVANTAGES OF THE SELLER-DOER MODEL. Firms continue to try to succeed with the seller-doer model because an increasing number of clients prefer to meet with people who will be managing or leading their project(s). In fact, concerns about nontechnical salespeople struggling to articulate offerings and value messages are a frequently cited reason for using the model. Continuity of relationship from the initial stages through a project’s life cycle is another advantage, and seller-doers are often tasked with generating repeat work with the clients they serve, providing additional services, or working in multiple locations (this is known as account mining). But the reasons for failure outlined above are very real for many firms. To succeed with the seller-doer model, you need everyone to be in “the right seat on the bus.” Seller-doers must have the right aptitude and training, and their firm must be 100% behind them to provide sales and marketing support while budgeting meaningful periods of non-billable hours to focus on business development. If you’re struggling to get the results you need with your seller- doers, or you are looking to implement the model, contact us today to discuss where to go next. This could include business development strategy and planning, or training for your seller- doers. Scott D. Butcher, FSMPS, CPSM is managing director of Strategic Growth Advisory at Stambaugh Ness. Connect with him on LinkedIn.

SCOTT BUTCHER, from page 5

So, which is the best sales approach for your firm? Like many things in life, the answer is “it depends.” There is really no one-size-fits-all business development approach for AEC and related firms. There are so many variables to consider, including the complexity of the sales process and the service offerings, the sales aptitude of your key technical staff, the financial model of the firm, the geographic area covered by the firm, and many more factors. One of the most important things to consider is the preference of the buyers – the clients and prospective clients. Who do they want to call on them? Do they want initial meetings with sales professionals, followed by meetings with subject matter experts? Or do they want to meet with potential project team members from the very first conversation? Are they OK with a salesperson scheduling an initial meeting but bringing technical expertise with them? Research conducted by the Society for Marketing Professional Services (SMPS) Foundation in the book AEC Business Development: The Decade Ahead found that different categories of buyers have generalized preferences for how they prefer to be “sold.” Governmental buyers (local, state, federal) appreciate meeting with nontechnical business developers because they themselves frequently do not have technical backgrounds. Industrial and corporate buyers tend to prefer to meet with technical professionals from the initial conversations. Institutional buyers like education and healthcare systems had a less pronounced preference, one way or the other. WHY THE SELLER-DOER MODEL FAILS. There are several reasons for the lack of success, with these being the major ones: ■ Lack of training. Sales are often “thrust” upon individuals as they advance in a firm or get hired into certain positions. Their reward for excelling at one thing is often being given responsibility – and accountability – for something they know little about! SMPS research found that two-thirds of firms that utilize seller-doers do not provide any sales training. ■ Lack of aptitude. “Sell” is a four-letter word, and some people don’t have the aptitude for it. Selling is a tough

THE ZWEIG LETTER DECEMBER 15, 2025, ISSUE 1613

FROM THE FOUNDER

Mantras to live by

Never give up, act decisively, share the numbers, and lead by example to build a stronger, more resilient firm.

A fter more than 55 years of working in my own and others’ privately-held businesses, there are certain mantras I have grown to live by. Maybe some of these will be helpful to our readers.

Here are a few of them:

“There is always something you can do.” This one has been critical to me and I use it in every aspect of my life. It goes along with one of my late father’s favorite mantras – “Decide. Act.” Make a decision. Act on it. Paralysis and inaction are rarely the path to success. You have to keep trying new things to get through whatever mess you are in. And there is a big difference in experimentation and failure that I think deserves some attention here. Experiments don’t all work out. But you don’t fail until you stop experimenting. Otherwise you are still on the path to success.

■

Mark Zweig

“If you never give up you never fail.” I have already gone on the record with my complaints about the “failure mentality” that seems to be preached constantly these days by supposed “entrepreneurship experts.” They advocate failing early, failing often, and that all successful people fail with their first business, along with a bunch of other nonsense that gives people the idea that failing is normal and great. But I have a different idea. Mine is to never give up. The stain of failure is not a badge of honor. I don’t want to be tainted by it myself. When you work in a tight- knit industry or community, no one ever forgets your failures. And they won’t trust you the same way they will someone else who hasn’t had big failures in their past.

■

■ “HR problems, if ignored, will either mushroom or go away.” This may seem obvious but it again lends itself to taking action if you really understand what I am saying here. “Going away”

See MARK ZWEIG, page 8

THE ZWEIG LETTER DECEMBER 15, 2025, ISSUE 1613

ELEVATE THE INDUSTRY®

BUSINESS NEWS BALFOUR BEATTY AWARDED BEST PROJECTS AWARDS BY ENGINEERING NEWS-RECORD Balfour Beatty US has announced that three of its projects have been recognized with awards from Engineering News-Record’s 2025 Best Projects program in their respective regions. These prestigious awards celebrate and honor the best construction projects and the companies that designed and built them in the U.S. and Puerto Rico. The projects are selected by juries of industry professionals and are evaluated on criteria including safety, innovation, contribution to the industry and community, aesthetic and functional quality of design, and construction quality and craftsmanship. The 2025 award-winning projects include:

main ballroom space. Outdoor renovations included full overhaul of existing pool complex and outdoor bar areas. Del Mar Heights School (Best K-12 Education Project, ENR West): The rebuild of Del Mar Union School District’s Del Mar Heights School campus in California which features three buildings for 23 K-6 learning studios, three STEAM+ learning studios, three after school program rooms, a new administration building, multiuse room with a stage, kitchen/servery, innovation center, learning commons, new play field, play courts and play structures, outdoor amphitheater, garden and decompressed granite track. Caltrain (Award of Merit, Specialty Construction, ENR West): Through design-build services, Balfour Beatty electrified and upgraded the performance, operating efficiency, capacity, Electrification

said Eric Stenman, Balfour Beatty US president and chief executive officer. “From revitalizing hospitality experiences in Scottsdale to advancing sustainable transit in California and reimagining educational environments for future generations, these awards affirm our commitment to building with purpose and excellence.” These awards underscore Balfour Beatty’s continued commitment to delivering exceptional projects that enhance communities and infrastructure across the United States. The company’s focus on innovative construction methods, sustainable practices and collaborative partnerships continue to drive its success in the industry. Balfour Beatty is an industry-leading provider of general contracting, at-risk construction management and design- build services for public and private sector clients across the United States. Headquartered in Dallas, Texas, the company performs heavy civil, rail and a broad variety of vertical construction in select local geographies. The company is held by Balfour Beatty plc, a global leader in international infrastructure with interests in Hong Kong, the U.K., and the U.S. Balfour Beatty US is ranked among the top domestic building contractors in the United States by Engineering News- Record.

■

Grand Hyatt Scottsdale (Best Renovation/Restoration Project, ENR Southwest): Major hotel renovations at the Grand Hyatt Scottsdale in Arizona featuring the delivery of six new dining experiences: La Zozzona; Tiki Taka; Mesa Centrale; Grand Vista Lounge; Sandbar; and H2Oasis. Additional renovations included lobby bar transformation, lobby reception area and doubling the size of existing

■

safety, sustainability and reliability of Caltrain’s 52-mile commuter rail service between San Francisco and San Jose, California. “We are proud to be recognized by ENR for these award-winning projects that exemplify the talent, innovation and dedication of all of our teammates,”

with everyone. How else can they be part of the solution to the problem if they don’t get to see the numbers that tell you how big of a problem you have, and why? The numbers are the gauges on the production machine. Any machine takes gauges to know if it is operating as it should. ■ “Do what you don’t want to do first thing every day.” What you don’t want to do is often the most important thing as well, in my experience. It is crucial, not only to accomplishing what you need to accomplish, but to actually feeling good at the end of the day. ■ “Practice what you preach.” This is THE single most important mantra for leadership. You will not be effective as a leader nor will your leaders be if they don’t set the proper example. This is absolutely fundamental for leadership. These are just some of the mantras I live by. I’m sure there are others but I am out of space! If you have some that YOU live by, drop me a line with them. We would love to hear from you! Mark Zweig is Zweig Group’s chairman and founder. Contact him at mzweig@zweiggroup.com.

MARK ZWEIG, from page 7

refers to the person who is unhappy about something. They may be a good person and someone you do not want to lose. But ignore their problems and they will go away. Not good. “Mushrooming” obviously refers to things getting worse. We don’t want either of these things to happen so we must take action on all HR problems. ■ “A key to business is driving demand beyond your ability to supply it.” I will live by this mantra. It’s at the heart of how you get better clients, better projects, better fees, and get paid faster. When I hear people tell me that “word of mouth is the best marketing,” I know that they are doing nothing marketing-wise. Of course it is the best marketing, but what gets you word of mouth if you don’t have any clients in the first place? My experience is that 95 percent or more of the companies in this business are not doing all they can or should marketing-wise. They almost all need to spend more on it long enough that being able to get good clients, projects, and fees is never a problem. ■ “Your people can’t solve the problem if they don’t know the numbers.” That is just one reason I believe in being an open-book management firm and sharing the numbers

THE ZWEIG LETTER DECEMBER 15, 2025, ISSUE 1613

OPINION

Doing good is good business

Giving back is a responsibility that strengthens communities, builds better businesses, and reminds leaders their greatest impact starts beyond the blueprint.

G iving your time, effort, and money isn’t just a kind gesture – it’s a responsibility. If not us and our community, then who? I came to this realization as a young man while serving in the Army National Guard to help pay for college. During a semester break, I took a job as a shopping mall Santa. What started as a way to earn some extra money for school became a life-changing experience. I was deeply moved by the children I met – many of whom carried burdens far heavier than a wish list for gifts. Sometimes it was the hard questions for Santa that stayed with me. Like when kids ask less about toys and treats and share more about loss or longing. Their unfiltered honesty can shift how you see the world.

Wallace Smith, PE

Another transformative experience was serving in the Persian Gulf War. Witnessing so many people in desperate and hopeless circumstances – and seeing how simple acts of human kindness, like offering food, water, or medical care, could make a profound difference – completely shifted my perspective. It made me realize how blessed I am and that I was duty bound to help others. For more than 30 years now, I’ve had the privilege of working with organizations across Central Arkansas – Women and Children First, Goodness Village, and many others. Whether I’m leading a capital campaign,

mentoring students, or simply putting on a Santa suit to bring joy to children in crisis, I’ve found that community service is not just good, it’s essential. And it’s more than giving dollars; it’s about looking someone in the eye, listening to them with intention, and forging real human connections. That’s where the heart of service truly lives. WHY IT MATTERS TO COMMUNITIES. Our communities face complex challenges: housing insecurity, lack of access to healthcare, and

See WALLACE SMITH, page 10

THE ZWEIG LETTER DECEMBER 15, 2025, ISSUE 1613

ELEVATE THE INDUSTRY®

WHY IT MATTERS TO THE AEC INDUSTRY. As leaders in the AEC space, we have a unique opportunity – and responsibility – to shape the future. That means investing in STEM education, mentoring the next generation, and advocating for equity and access. Through my work with Junior Achievement and the University of Arkansas at Little Rock, I’ve mentored students from underrepresented communities, helping them envision careers in engineering and design. These efforts strengthen our industry by bringing fresh perspectives and diverse talent. We also have a duty to honor those who’ve served. As a longtime member of Veterans of Foreign Wars Post 9095, I’ve organized events and raised funds to support veterans in need. These experiences have deepened my appreciation for service and reminded me that leadership is about lifting others up. A CALL TO ACTION. To my fellow AEC leaders: I encourage you to look beyond the blueprint. Our expertise is valuable, but our compassion is transformative. Whether it’s volunteering your time, lending your skills, or mentoring a young person, your impact can ripple far beyond the job site. Community service isn’t a side project – it’s a cornerstone of resilient communities, thriving businesses, and a forward- thinking industry. Let’s build more than structures. Let’s build hope, opportunity, and lasting change. Wallace Smith, PE, is director of federal services at Garver and the recipient of the 2025 national ACEC Community Service Award. Connect with him on LinkedIn.

WALLACE SMITH, from page 9

educational disparities. As engineers and architects, we have the skills to help solve these problems, not just through design and construction, but through leadership, advocacy, and hands-on involvement. Take the Women and Children First Peace Center in central Arkansas, for example. When their outdated facility could no longer meet the needs of those they serve, I worked on a team lead a campaign to build a new 60,000-square-foot center. This isn’t just a building project. It’s a lifeline for women and children seeking safety, medical care, job assistance, housing, and legal support. That’s the kind of impact we can have when we step beyond our job descriptions. WHY IT MATTERS TO BUSINESS. Community service is more than just altruism. It’s also smart business. When our teams engage with local organizations, they build relationships and gain a deeper understanding of the people and places we serve. It fosters trust, strengthens our reputation, and creates a culture of empathy and purpose. At Garver, I’ve seen firsthand how service-oriented leadership inspires others. Our charitable program, GarverGives, exemplifies this by matching the funds our employees raise for causes that matter most to them – amplifying their impact through corporate support. Our younger professionals are eager to get involved, and our clients notice when we show up in not just boardrooms, but in shelters, schools, and hospitals. It’s a powerful differentiator in a competitive industry.

THE ZWEIG LETTER DECEMBER 15, 2025, ISSUE 1613

OPINION

Year-end tech check

Tech becomes a strategic advantage when firms measure real ROI and budget for tools that drive profit, productivity, and long-term capability.

Technology update brought to you by

A s 2025 winds down, firm leaders in architecture and engineering are setting budgets, approving tech upgrades, and deciding where their next-year bets will land. Too often technology and software is treated as a cost center rather than a business driver. But the firms that will pull ahead in 2026 will use tech not just for automation but for measurable value.

Lucas Gray

Here is a fresh way to think about technology ROI: not in profit and loss spreadsheets as expenses and subscription fees, but in terms of real impacts on profitability, productivity, and strategic advantage. When you view tech through that lens, the questions are not “Should we buy this?” or “How much will this cost?” but rather “How will this move the levers that matter?” FINANCIAL ROI: THE PROFIT IMPACT THAT EVERYONE NOTICES. When a firm invests in technology, it should expect more than smoother workflows. It should expect

results that show up on the bottom line. A concrete example: INC Architecture & Design moved to a modern firm-management system and saw a 6% increase in firm-wide profitability in just over a year. That gain did not come from cost-cutting. It came from clearer forecasting, tighter billing, and stronger project accountability. For a 40+ person firm, a 6% boost in profitability could equate to hundreds of thousands of dollars. The investment in software had an incredible return on investment. That kind of shift in profitability boosts compensation,

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THE ZWEIG LETTER DECEMBER 15, 2025, ISSUE 1613

ELEVATE THE INDUSTRY®

margin by 3%, reduce time to invoice by 20%, improve project margin by 5%, reduce your time to payment by 10%). 2. Benchmark today. Capture current performance: utilization, average realization, days to invoice, days to payment, billing backlog, number of manual setup hours per project. 3. Track after. After implementation monitor the same metrics quarterly. Use quantifiable gains to validate the investment and guide next steps. Also build in adoption and change metrics. Buying tech is the easy part. Making it deliver value depends on people using it and using it right. Know that new software requires adequate training of your entire team. It also necessitates changing existing habits, which takes time and effort. You can’t buy software, not invest in training and ongoing maintenance, and expect strong return on your investment. Make sure you dedicate the resources needed to make it a success. Common traps to avoid: ■ Treating tech as an expense with no link to business outcomes.

LUCAS GRAY, from page 11

funds strategic hires, specialist tools, and even improves acquisition-readiness if that is something your firm is looking for. When you evaluate a tech investment, ask: how will this change revenue per employee, realization rates, billing cycle, or project margin? And measure those before and after. PRODUCTIVITY ROI: TIME IS YOUR SCARCE RESOURCE. Technology often promises “efficiency,” but without clarity, the value remains vague: How many hours will you save? What will you do with them? At INC the shift mattered not just in numbers but in behavior. Project managers began using dashboards to monitor time, billing, and project progress weekly instead of relying on finance reports. The result: dozens of hours saved each month in manual project setup and billing tasks. That translated into time that the project teams used to explore design ideas and build stronger client relationships. For your firm, if you save 40 hours a month in administrative time, multiplied by the fully-loaded cost of those staff and you have a clear productivity return. Then ask: How can you redeploy that time to client work, business development, or innovation? In this scenario, you get more done with the same staff, and the return compounds. “When you choose the right tools, implement them well and measure their impact, tech becomes a multiplier for growth, profit, and culture.” STRATEGIC ROI: BUILDING CAPABILITY FOR TOMORROW. Technology also unlocks strategic value: better decision making, stronger culture, competitive differentiation. These returns are harder to quantify but no less real. At INC the leadership noted that the automation and real- time visibility helped junior staff become more financially fluent. They used realization rates and utilization metrics in performance reviews. That kind of cultural shift matters. When your people understand how their time, work, and deliverables translate into firm financial performance, you create a learning organization that builds up the next generation of firm leaders. Similarly, a tech investment that gives you forecasting tools or real-time dashboards helps you respond to situations faster. Opportunities and risks don’t surprise you. You are in motion, not just reacting. You can make smarter decisions backed in real time data. For an architecture or engineering firm facing tighter margins, an unstable economy, more competition, and higher client expectations going into 2026, this kind of capability is no longer optional. A SIMPLE THREE-STEP FRAMEWORK FOR YEAR-END EVALUATION. Use this framework to build your tech investment playbook now: 1. Define the outcomes. Before you buy anything, pick one or two key metrics you want to move (e.g., increase profit

■ Buying tools and then not measuring their impact.

■ Assuming time-savings automatically translate into billable time. ■ Ignoring adoption. Without adoption all the tech remains shelf-ware. WHY YEAR-END IS THE IDEAL MOMENT. Now is the moment to review current systems, ask hard questions, and prepare your budget for 2026. Try looking at the data throughout the year that can quantify the return on investment of your software tech stack. Many firms are planning without clear insight into how their tools have performed this year. With a data-driven ROI mindset, you turn budgeting from guesswork into strategy. When you align next-year tech investments with your firm’s mission, your financial health, and your people’s performance, you build capability. You turn an expense into an investment that will improve your firm’s financial performance. And in the AEC industry, where project complexity, talent competition, and client demands keep rising, capability wins. FINAL THOUGHT. Technology will not fix everything. But when you choose the right tools, implement them well and measure their impact, tech becomes a multiplier for growth, profit, and culture. The firms that thrive in 2026 will be those who treat technology like what it is: a strategic investment in their future. Lucas Gray leads content strategy at BQE Software, focusing on how smarter technology and stronger operations help architecture and engineering firms grow. Connect with him on LinkedIn.

THE ZWEIG LETTER DECEMBER 15, 2025, ISSUE 1613

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