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this line of thinking hampers a firm’s vision of growth. Instead of using excess capital to improve or expand the company, this mindset focuses on paying off significant debts as quickly as possible. Clinehens also said the return on investment per dollar is higher now than it has ever been, which he believes creates the perfect opportunity for capital investments in growth. Zweig extended this further, pointing to the fact that return on equity in the AEC industry is similarly at a historic high. In fact, return on owner’s equity – pre-tax, pre-bonus – for small firms within the AEC industry is currently at 47.3 percent compared to the rest of the industry at 43.2 percent. Under these conditions, both speakers were quick to point out the current opportunities for investment in long-term growth. Throughout the hour-long webinar, the pair covered topics ranging from recruitment and retention to the manager- producer dilemma and everything in between. One thread that binds the challenges and opportunities facing small firms in the AEC industry is the need for more discussion and connection. As the AEC industry continues to work toward solving the major challenges of the future, it is important that small firms understand that there is strength in numbers. By engaging other small businesses in conversation, we can work together to Elevate the Industry. Consider attending Zweig Group’s AEC Small Business & Entrepreneurship Forum to join the conversation about the unique opportunities and challenges associated with being a small firm in the AEC industry. Learn more here! Luke Carothers is Zweig Group’s senior content manager and editor for Civil+Structural Engineer Magazine . Contact him at lcarothers@zweiggroup.com.

LUKE CAROTHERS , from page 7

growth. Clinehens continued this thread, pointing out that this plays out in areas such as recruiting and retention where larger firms with more resources can afford to pay higher rates with a long-term goal in mind. According to both Zweig and Clinehens, small firms in the AEC industry need to think creatively to overcome these unique challenges, and they underscored the importance of talking with other small business owners to gain insight into potential solutions. Continuing the discussion about recruitment and retention, Zweig emphasized the importance of selling the benefits of working in a small business to potential employees. He pointed out that, oftentimes within larger firms, there is a tendency for new employees to get “pigeonholed.” On the other hand, the experience of working at a small firm can often be much more rewarding on a personal and professional level. By selling the benefits of working in small firms, such as being able to work on a wider variety of projects, these companies can better compete to recruit and retain future employees. To effectively sell the benefits of working in small firms, both speakers placed an emphasis on building culture. When it comes to building a company culture that effectively promotes growth as well as recruitment and retention, Clinehens emphasized the opportunity to be bold and clear. Particularly within smaller AEC firms, he pointed out that it’s significantly easier to be bold in terms of vision because you are only worried about getting a small group to buy into your vision. Both speakers shared a common sentiment that the AEC industry is more risk-averse than other industries, which Clinehens said plays out with a number of firms putting an oversized emphasis on being debt-free or low-debt. He said

THE ZWEIG LETTER APRIL 19, 2024, SPECIAL ISSUE

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