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BUSINESS N EWS AECOM AWARDED CONTRACT TO SERVE AS TECHNICAL ADVISOR FOR HAMILTON LRT IN ONTARIO, CANADA AECOM, the world’s trusted infrastructure consulting firm, announced that it has been appointed by Metrolinx as technical advisor for the Hamilton Light Rail Transit project, a 14-kilometer transit line to be located within Hamilton, Ontario. The line will be the city’s first light rail transit system and will be designed to accommodate expected future growth and development, improve connectivity and attract economic development in the rapidly growing area. “As Ontario advances its record investment in public transit, we look forward to working with Metrolinx and our partners to support a more connected and economically vibrant Hamilton through accessible and sustainable transportation,” said Richard Barrett, chief executive of AECOM’s Canada region. “AECOM has played a critical role in light rail projects across Ontario and Canada, and our teams are excited to deploy their
depth of experience and local expertise to deliver this transformative project.” AECOM’s integrated team will be supporting Metrolinx on the delivery of the full breadth of infrastructure for the Hamilton LRT “World-class transit is critical to urban development, especially as we seek to design more sustainable cities,” said Mark Southwell, chief executive of AECOM’s global Transportation business. “This project will set Hamilton apart as a leader in public transportation, preparing it for a more livable, low-carbon future. As we deliver major transit projects across the globe, the Hamilton LRT is the latest example of how our Sustainable Legacies strategy continues to improve social and environmental outcomes for communities.” The LRT is designed to provide connectivity across Hamilton with new light rail vehicles running along dedicated track for greater safety, frequency, and
reliability. In addition, the project plans to support sustainable growth and city- building through revitalization of critical utilities and general infrastructure along the route. AECOM is the world’s trusted infrastructure consulting firm, delivering professional services throughout the project lifecycle – from advisory, planning, design and engineering to program and construction management. On projects spanning transportation, buildings, water, new energy and the environment, our public- and private- sector clients trust us to solve their most complex challenges. Our teams are driven by a common purpose to deliver a better world through our unrivaled technical and digital expertise, a culture of equity, diversity and inclusion, and a commitment to environmental, social and governance priorities. AECOM is a Fortune 500 firm and its Professional Services business had revenue of US$13.1 billion in fiscal year 2022.
■ Regional domination. Of all the wealth-building AEC- related business strategies listed above, this one may be the most difficult to pull off – become the big, multi-office firm that does everything for everyone in markets that are too small to attract the big guys. Yet I have seen this approach work in some of the less densely-populated areas of the country, such as Montana, Idaho, New Mexico, rural Wisconsin, and elsewhere. It won’t come quickly – it takes lots of diligence – but I have seen a number of companies grow from nothing to 200-400 people with this “do all” approach. The key here is localized talent and a service-oriented approach above all else. With the growth and scale comes value. And that value can make the owners (as long as there aren’t too many!) very wealthy. So which one of these approaches are you using in your firm to become highly successful? None of these? Maybe you should rethink that if so! Mark Zweig is Zweig Group’s chairman and founder. Contact him at mzweig@zweiggroup.com. “Anyone who says you can’t make serious money in the architecture and engineering business is just plain wrong. It may not come easily, and it may not come overnight, but there are a number of strategies one can employ to make lots of money in this business.”
MARK ZWEIG, from page 5
management, too. Check out Zweig Group’s Salary Reports and you will see what I am talking about. ■ Staying small and specialized. This approach can also work, although less of the money will come from the value created for the business at exit, and more of it from what the owners can extract from the business annually. I have seen plenty of single- or two-owner, highly specialized firms of 30 or 40 people with unbelievably high revenue- per-head numbers that make 30 percent plus profits every year. The most extreme example I have ever seen was a specialized planning and landscape architecture firm that did $60 million a year in revenue and made a 40 percent profit three years in a row. I also saw a small specialized single-owner consulting firm with revenues of more than $400K per head. The key here is specialization, and I mean becoming really, really good at something. ■ Steady consistent growth through adding specialties. There are many firms on Zweig Group’s Hot Firm List or the ENR top 500 list that have grown this way and become incredibly valuable in the process. You add up 20, 30, or 40 years of consistent 10-15 percent growth and you will build a major firm. The key is consistent growth – not sporadic growth with periodic rests, or worse, retreats. It is through being highly organized, investing in constant system improvement, making planned new market hires, staff training, really good accounting and financial management, and other initiatives that an ownership team can build a consistently growing and profitable firm that virtually prints money every year and is a valuable asset for the individual owners when they want to get out.
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THE ZWEIG LETTER DECEMBER 4, 2023, ISSUE 1515
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