TZL 1590 (web)

June 16, 2025, Issue 1590 WWW.ZWEIGGROUP.COM

TRENDLINES

Vacation by years of service

10 15 20 25 30

0 5

Lessons from M&A show that leadership, culture, and client diversity drive sustainable growth and firm value. Lessons from the deal table

0-4 yrs.

5-9 yrs.

10-14 yrs.

15+ yrs.

Zweig Group’s 2025 Policies, Procedures & Benefits Report

confirms that while paid vacation is standard in the AEC industry, many firms use it strategically to reward employee loyalty. Firms that determine vacation time by years of service typically offer 15 days to employees in the first four years of their tenure, increasing to 25 days for those with 15 or more years at the firm. Participate in a survey and save on a Zweig Group research publication.

S uccessful firms and leaders are always learning from a variety of sources. One often-overlooked area that provides valuable insights into what drives success is the mergers and acquisitions industry. Many of our M&A clients have successfully expanded through strategic acquisitions, targeting firms positioned for long-term growth. Savvy buyers can quickly assess potential acquisitions based on a set of key attributes that serve as strong indicators of future success. Understanding these attributes can be extremely valuable for firms preparing for sale as well as those focused on achieving sustainable growth organically. The following are a few of the characteristics that can provide a useful benchmark for assessing how your firm compares to those most sought after in the M&A landscape. LEADERSHIP: THE CORNERSTONE OF SUSTAINABLE GROWTH. One of the most critical elements that buyers assess is leadership – not just the current leadership team but also the firm’s ability to develop future leaders. In a professional services industry, leadership drives sustained growth, innovation, and operational efficiency. A firm with a well-structured system for leadership development is more attractive to potential buyers because it indicates stability and long-term viability. Developing leaders should not be left to chance. A formalized leadership program that incorporates structured learning objectives, mentorship opportunities, and participation in industry training programs can create a pipeline of capable professionals prepared to step into leadership roles. Firms that invest in leadership development demonstrate a commitment to continuity, resilience, and growth, making them more appealing to potential acquirers. CLIENT DIVERSITY: MITIGATING RISK AND ENSURING STABILITY. A diverse client base is another key factor in evaluating a firm’s acquisition potential. Firms that rely heavily on a few key clients are vulnerable to market fluctuations and client-driven revenue changes. On the other hand, those that have a broad client portfolio can maintain steady operations, better absorb economic shifts, and mitigate risks associated with losing a single client. Client diversification allows firms to weather industry downturns more effectively. By serving various sectors, geographic locations, and client types, firms can ensure a consistent revenue stream and reduce

Steve McAdams, PE

FIRM INDEX AECOM............................................................... 6

Balfour Beatty............................................... 4

Traffic Planning & Design, Inc............ 8

MORE ARTICLES n GREG SEPEDA: Changeups and curveballs Page 3 n MARK ZWEIG: Vacation time? Page 5 n MEGAN VALENCIA: A company- wide responsibility Page 7 n NIKNAZ AFTAHI: Creating a connected tech stack Page 9

See STEVE MCADAMS, page 2

THE VOICE OF REASON FOR THE AEC INDUSTRY

STEVE MCADAMS, from page 1

dependency on any one client or industry segment. Integrating a diverse range of clients and markets into an annual revenue plan will safeguard against volatility, making diversified firms more attractive and valuable in the marketplace. CULTURE: THE INVISIBLE YET POWERFUL ASSET. Beyond financials and operational efficiencies, company culture plays a significant role in the success of an acquisition. A strong, positive culture fosters employee engagement, productivity, and overall job satisfaction, which in turn leads to lower turnover rates and higher efficiency. Culture is shaped by multiple factors, including leadership, communication, professional development, and the firm’s overarching vision. Firms that prioritize employee development through training, mentorship, and career advancement opportunities foster a loyal and motivated workforce. A clear strategic vision that is effectively communicated throughout the organization ensures alignment and commitment from employees at all levels. Firms with strong cultures are easier to integrate post-acquisition because their employees are engaged and invested in the company’s success. Buyers recognize the value of an established culture, as it often translates to a smoother transition and sustained performance post-merger. CONSISTENT BACKLOG: A PREDICTOR OF FUTURE REVENUE. The backlog of work under contract but not yet billed serves as a reliable indicator of future revenue and business stability. Firms that consistently maintain a strong backlog demonstrate an ability to secure new work regularly, ensuring predictable cash flow and sustained operations. Financial success isn’t just about meeting revenue targets; it also involves setting and achieving a monthly “new work” target. Firms that prioritize business development and maintain strong client relationships are better positioned to keep a steady backlog. A proven system to manage and achieve consistent backlog makes a firm highly attractive to potential buyers, as it reduces uncertainty and provides confidence in the firm’s future revenue streams. PROCESSES: TURNING POTENTIAL INTO PROFITABILITY. A well-defined process for converting backlog into revenue efficiently is essential for scalability and operational success. Firms that establish repeatable, trackable, and improvable processes can more easily facilitate expansion, pivot when necessary, and adopt new technologies seamlessly. The most effective processes are simple and manageable. Companies find success by starting with broad and simple systems that cover the mission critical operations such as project management workflows, client acquisition, or employee development. Initially Each process should have a clear purpose, be easily tracked and be able to be explained in less than five minutes. Complexity can be added, if necessary, once the process has been adopted with successful results. ELEVATING THE INDUSTRY THROUGH STRATEGIC FOCUS. Whether a firm is preparing for a future sale or simply looking to enhance its organic growth, focusing on these key areas – leadership development, client diversification, company culture, backlog consistency, and operational processes – will position it for long-term success. The more these factors are refined and embedded into standard operations, the more valuable and attractive the firm becomes to potential buyers. By honing these areas, firms not only elevate their own standing but also contribute to elevating industry standards as a whole. Ready to take the next step? Zweig Group’s M&A consulting team has helped hundreds of AEC firms explore, structure, and execute successful mergers, acquisitions, and sales. Whether you’re pursuing growth through acquisition or planning your exit strategy, our experts offer end-to-end support tailored to your goals. Learn more here. Steve McAdams, PE is a mergers and acquisitions advisor at Zweig Group. Contact him at smcadams@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 JUNE 16, 2025, ISSUE 1590

OPINION

Changeups and curveballs

By taking lessons from the dugout, we can better handle change – turning challenges into opportunities, and transitions into a winning season.

B aseball season is here! As I watch my favorite college team move through the new season, I’m reminded of how baseball offers so many lessons on managing change. Coaches are always reworking lineups and tweaking strategies – that’s just part of the game. Same goes for leaders who must continually adjust and prepare their teams to handle the challenges that come with change. But managing change doesn’t have to be overwhelming – it can be proactive, smart, and even fun if you approach it with the right mindset.

Greg Sepeda

Jeff Angus makes a great point about this in his book, Management by Baseball . He talks about how baseball managers continually adjust their strategies to accommodate new players, shifting game dynamics, and unexpected developments. Angus believes good leaders in business need the same mindset, staying flexible and proactive rather than getting stuck in old ways of thinking. Jim Collins, the author behind Good to Great , adds that effective leadership means facing tough realities head-on and recognizing challenges before they become bigger problems. He emphasizes the “Hedgehog Concept,” suggesting that while change is important, it should align with what your organization does best, what your team is passionate about, and what makes good economic sense. Collins’s idea of disciplined innovation – testing new strategies slowly

and thoughtfully – is a lot like baseball managers trying new player positions or batting lineups during practice games rather than critical matchups. Patrick Lencioni’s take? It’s all about team health – build trust, stay clear, and keep everyone in the loop. For him, strong communication and a cohesive team culture are nonnegotiable when managing change. According to Lencioni, leaders need to clearly communicate why changes are happening and involve everyone in the process to keep the team aligned and motivated. And there is no shortage of good baseball quotes. Alvin Dark once said, “There’s no such thing as taking a pitcher out. There’s only bringing another pitcher in.” This is such a powerful reminder that once something

See GREG SEPEDA, page 4

THE ZWEIG LETTER JUNE 16, 2025, ISSUE 1590

BUSINESS NEWS BALFOUR BEATTY SELECTED FOR LAWA’S MULTIPLE AWARD TASK ORDER CONTRACT As part of a joint venture between Balfour Beatty’s Civils West and California Buildings operations, the company has been selected as one of the prequalified design-build and construction services contractors for Los Angeles World Airports Multiple Award Task Order Contracts. Balfour Beatty’s portion of the MATOC consists of approximately $1 million-$250 million of works to complete construction projects, specifically infrastructure and facilities modernizations at Los Angeles International Airport. The company is one of the 13 first-time prime contractors, as part of a pool of 31, selected by LAWA to assist in these deliveries which will greatly

streamline procurement processes and accelerate DB&C Services at the airport. As LAWA’s largest MATOC, the $5 billion investment allows LAWA to readily draw from a pre-qualified pool of contractors without requiring repeated qualification solicitations or approvals, as well as executing the award process faster. For pre-qualified contractors, MATOC can provide a steady stream of work for the life of the contract, as firms will be able to respond to requests for a variety of scopes and services that best match their skills, knowledge, and abilities. “Being selected for LAWA’s MATOC allows us to continue our valued partnership with LAWA as well as support our strategic efforts in diversifying our

aviation project portfolio,” said Eric Stenman, Balfour Beatty US president and CEO. “Our extensive expertise in delivering aviation infrastructure and facilities, combined with our deep familiarity with LAX projects through our ongoing work on the LAX Automated People Mover, gives us invaluable insights into how LAWA expects their projects to be delivered with passenger experience as the priority.” The DB&C Services MATOC will support LAWA’s Capital Improvement Program and other key initiatives, with 20 projects included in the contract planned to begin in 2025. The MATOC will be valid for five years, with options for LAWA to exercise two one-year renewal options at its discretion.

prioritize clear, consistent communication during times of change. Explain the “why,” share the likely impact, and make space for questions. People don’t need a speech – they need clarity. ■ Balance new ideas with stability. While innovation and fresh strategies are crucial in baseball, sudden drastic changes can disrupt a team’s rhythm and effectiveness. Good baseball managers know the importance of balancing innovation with familiar routines and proven strategies, providing stability and maintaining confidence among players. In our companies, leaders should adopt a similar balanced approach when implementing new initiatives or processes. This means carefully timing and phasing changes to avoid overwhelming teams, while preserving essential organizational practices and the core values that employees rely upon for a sense of security and stability. ■ Build trust and team spirit. Trust and team cohesion are the lifeblood of successful teams, especially during challenging periods. Coaches focus on building strong interpersonal relationships, fostering a supportive culture, and creating an environment where players can openly communicate, share concerns, and contribute ideas. Likewise, we should prioritize building trust and promoting a strong, cohesive team. Creating opportunities for team collaboration, acknowledging individual contributions, and demonstrating reliability through consistent actions helps teams remain resilient, committed, and unified during periods of change. As I cheer on the Tigers this season, I keep these insights close. Baseball, with all its strategic shifts and surprises, mirrors organizational life beautifully. By taking lessons from the dugout, we can better handle change – turning challenges into opportunities, and transitions into a winning season. Greg Sepeda is a former engineering manager and is currently rewired as a management consultant. Connect with him on LinkedIn .

GREG SEPEDA, from page 3

has happened, you can’t change it – you can only focus on making the next decision count. Leonard Koppett, the famous sportswriter, put it perfectly: “The whole purpose of every decision is to maximize your chances of making the next thing succeed.” So, drawing from these insights, here are a few practical tips for effectively managing change: always pay attention to the strengths and strategies of their opponents to plan their next moves effectively. They study past games, analyze current performance metrics, and constantly look for subtle signals that can reveal their opponent’s next move. Similarly, successful leaders should continuously monitor industry trends, emerging technologies, and internal developments. By staying informed and alert, we can anticipate shifts and proactively adjust strategies, positioning our organization to not only navigate change effectively but also capitalize on new opportunities. ■ Stay ahead of the curve. Great baseball coaches important decisions during high-stakes games. Instead, they experiment with new strategies, batting orders, or player positions during spring training or practice sessions. They observe results carefully, adjusting their plans based on performance and feedback. In business, this means leaders should implement small-scale pilot programs to test new ideas, products, or processes before a wider rollout. Gathering real-world data and feedback allows us to refine our approach, reduce risks, and enhance the likelihood of successful outcomes. ■ Keep communication clear and open. A baseball manager who clearly communicates roles, expectations, and game plans helps players feel confident, aligned, and engaged. Coaches regularly discuss strategies openly, creating an atmosphere of transparency and trust. Similarly, we must ■ Try before you fly. Baseball managers never rush

THE ZWEIG LETTER JUNE 16, 2025, ISSUE 1590

FROM THE FOUNDER

Vacation time?

W e are in that time of the year now when everyone starts taking their family (or other) summer vacations. Most companies in this business seem to let their employees decide when they will be gone or not. There is very little thought put into these requests and securing formal approval from supervisors seems to almost be a vestige of the past. Leaders should set clear expectations around vacation planning, approval, and communication to avoid disruption and disengagement.

Mark Zweig

I have a few thoughts on these vacations that I wanted to share: 1. If people are going to be gone, they should at least clear it with their boss. I don’t think it is too much to expect from an employee – it’s a courtesy if nothing else. I would never just “tell” my boss I’m going to be gone for a week or two. 2. Scheduling vacations is a lot easier if people plan in advance. Is it too much to ask to at least make these requests 30-60 days before they are supposed to occur? Sometimes you cannot afford to have specific people out at the same time or nothing gets done. Like whomever answers the phone. Or whomever does the SOQs

or RFP responses. Or whomever pays the bills. Or a key PM on a job under construction. A little coordination may be necessary. 3. Is there somewhere in the company people can go to see who is out? A shared calendar? Maybe that would be helpful to those of us who send an email and request a response that we don’t get if we knew someone was out. 4. What is your policy on “out of office” emails. Personally, I despise them. The out of office assistant says “I don’t care about you” to me. I may be an old fart but I don’t think it is too much to ask for engaged, salaried professionals to look at their emails and texts a couple times a day even

See MARK ZWEIG, page 6

THE ZWEIG LETTER JUNE 16, 2025, ISSUE 1590

BUSINESS NEWS AECOM NAMED OFFICIAL VENUE INFRASTRUCTURE PARTNER FOR THE LOS ANGELES 2028 OLYMPIC AND PARALYMPIC GAMES AECOM, the trusted global infrastructure leader, announced it has been named the Official Venue Infrastructure Partner for the LA28 Olympic and Paralympic Games and Team USA. With an unprecedented scope that includes infrastructure architecture, engineering, planning, program management, and construction management services, AECOM will support the comprehensive delivery of the venue infrastructure program for the Games that will feature 50+ Olympic and Paralympic sports, 800+ events, and over 15,000 Olympic and Paralympic athletes. “The Olympic and Paralympic Games unite the world through sport, and we are honored to contribute our expertise to help bring LA28’s vision to life,” said Troy Rudd, AECOM’s chairman and chief executive officer. “Just as athletes push the boundaries of performance in pursuit of excellence, our team brings deep technical expertise and relentless innovation to deliver world- class infrastructure that makes these moments possible. Building on AECOM’s legacy of delivering a better world, we are committed to championing the Olympic & Paralympic Movement and helping to build an unparalleled experience for spectators and participants at the LA28 Olympic and Paralympic Games.” AECOM has a proven track record in iconic sports venue and infrastructure delivery, having contributed to the success of past global sporting events, including at

London in 2012, Rio in 2016, and Tokyo in 2021. Working closely with LA28 and key stakeholders, AECOM will help deliver LA28’s unique and innovative venue infrastructure program, which relies on temporary venues and temporary overlays on existing permanent venues, to enhance the athlete and spectator experience and facilitate the seamless execution of the LA28 Games. “Powered by our vision of uplifting LA’s state-of-the-art venues, our partnership with AECOM will deliver cutting-edge temporary infrastructure, creating sports experiences unlike the world has ever seen,” said Casey Wasserman, LA28 chairperson and president. “Los Angeles is a thriving center of innovation and culture. We’re excited to team up with AECOM to showcase the best of this dynamic city and drive progress within the Olympic and Paralympic Movement.” As a complex integrator of large-scale programs, AECOM will apply its broad expertise and capabilities to support the delivery of LA28’s temporary infrastructure program at Games venues. AECOM’s role includes the architecture and engineering to deliver LA28 venues, as well as the program management of their delivery, and its AECOM Hunt business overseeing the procurement process, cost estimating, scheduling, and construction management of the required venue infrastructure. AECOM’s approach to the LA28 Games is driven by a powerful shared commitment to innovation and sustainability, redefining the future of the Games as

LA28 sets a new standard for how they are hosted. This partnership builds on AECOM’s decade of dedicated support for LA28 starting with its technical and design support for the LA 2024/LA28 Exploratory Committee. It also provided critical services, including design, cost estimation, and sustainability and energy consulting. With a combined design and construction portfolio of more than 150 stadiums and arenas, AECOM has long been a trusted partner in delivering world-class sports infrastructure, helping cities and countries transform major events into lasting opportunities. In the Los Angeles area alone, its work has delivered landmark venues that will play a key role in the LA28 Games, including both historical and new state-of-the-art homes of several Los Angeles-based professional sports teams, reinforcing its leadership in global sports infrastructure. The LA28 Games will mark Los Angeles’ third time hosting the Olympic Games, previously hosted in 1984 and 1932, and first time to host the Paralympic Games. Los Angeles will host the world’s most elite athletes in 2028 as it welcomes Paralympians and Olympians from around the world to compete on the biggest stage in sports. AECOM is the global infrastructure leader, committed to delivering a better world. As a trusted professional services firm powered by deep technical abilities, AECOM solves clients’ complex challenges in water, environment, energy, transportation and buildings.

Let’s stop acting like we are helpless as employers here when it comes to employee vacations. Unplanned vacations with employees who completely disengage are not OK and should not be treated as “normal.” Mark Zweig is Zweig Group’s chairman and founder. Contact him at mzweig@zweiggroup.com. “Most companies in this business seem to let their employees decide when they will be gone or not. There is very little thought put into these requests and securing formal approval from supervisors seems to almost be a vestige of the past.”

MARK ZWEIG, from page 5

when they are on vacation. I can do it. Why can’t they? We all have smartphones with email on them. Do they actually care about their clients, company, and fellow workers, or not? 5. What is your policy on responding even if out of the office? I think a lot of managers are afraid to say that is their expectation for salaried workers even if it is. Why is that? Is it OK to say that even though you are on vacation we still expect you to check in daily? I think it is. 6. Do we force people to take their vacation every year or not? Do we think it is best for them to do so? Not to mention the fact that accumulated vacation time can become a major financial liability for the firm. If you do want your people to use their vacation time, make it a policy to use it or lose it.

THE ZWEIG LETTER JUNE 16, 2025, ISSUE 1590

OPINION

A company-wide responsibility

A ttracting the right talent is essential to maintaining a competitive edge and growing your firm. The dynamics of the job market have changed dramatically over the past few years. With the rise in technology and remote work, companies face increased competition for skilled professionals. Every employee plays a crucial role in recognizing and attracting top talent, shaping company culture, and ensuring long-term business success.

Megan Valencia, SHRM-CP

To stay competitive, businesses must adopt innovative strategies that reach beyond human resources, extending the responsibility of talent acquisition and recruitment to all staff members. At TPD, our employees are our most valuable asset, so when team members from various departments engage in this process, they help identify candidates who align with the company and department culture, values, and long-term vision. THE BENEFITS. What can be gained from embracing and implementing initiatives promoting company-wide talent acquisition and recruitment? ■ Improved retention. Candidates who are referred by employees are known to have a higher retention rate. The greater the sense of belonging

for the individual, the less likely turnover will occur.

■ Higher quality candidates. Employees help tremendously when it comes to identifying candidates with culturally aligned skills and work ethic. ■ More efficient hiring. If employees are consistently engaged in talent acquisition and recruitment, the vetting process may be somewhat shortened, thereby accelerating the screening and interview process. ■ Stronger employer branding. A unified effort enhances the company’s reputation as a top employer.

See MEGAN VALENCIA, page 8

THE ZWEIG LETTER JUNE 16, 2025, ISSUE 1590

■ Clearly communicate that hiring is a shared responsibility.

MEGAN VALENCIA, from page 7

WHAT YOUR PEOPLE CAN DO. So, how can individuals contribute to recruitment? Try some of the following: ■ Refer quality candidates. Don’t forget to be selective – they may become your future coworkers! It’s icing on the cake if your employer offers a referral bonus. If you are unsure of your firm’s policies, ask your HR department. ■ Act as a brand ambassador. You are your firm’s best advocate! If you’re happy there, say so to anyone who will listen! ■ Be a mentor. Beyond hiring, you can take on mentorship roles, helping less experienced staff members acclimate, develop skills, and integrate into the company culture. Look into joining your firm’s formal mentorship program, if applicable. ■ Providing honest feedback. When the opportunity arises, you can and should provide feedback (anonymous or not) on what’s working and what isn’t. This information helps your firm refine hiring strategies, policies and practices to attract and retain the best talent. WHAT LEADERSHIP CAN DO. For talent acquisition and recruitment to become a company- wide initiative, leadership must set the tone. Managers and executives should consider the following:

■ Recognize and provide positive reinforcement to employees who actively contribute to hiring efforts. ■ Foster a culture of inclusivity and openness where potential hires feel welcomed. “To stay competitive, businesses must adopt innovative strategies that reach beyond human resources, extending the responsibility of talent acquisition and recruitment to all staff members.” THE BOTTOM LINE. Every employee plays a crucial role in recognizing and attracting top talent, shaping company culture, and ensuring long-term business success. By making recruitment a shared responsibility, businesses can build stronger teams, improve retention, and enhance overall company performance. The best hires often come from those who already know and love their firms. Megan Valencia, SHRM-CP, is human resources director at Traffic Planning & Design, Inc. Connect with her on LinkedIn .

THE ZWEIG LETTER JUNE 16, 2025, ISSUE 1590

OPINION

Creating a connected tech stack

Solving the silo problem in AEC firms starts with a connected tech stack that boosts collaboration, efficiency, and profit.

Technology update brought to you by

T he architecture, engineering, and construction industry is undergoing a digital transformation, yet many firms still struggle with disconnected workflows and information silos. Let’s dig into the challenges AEC firms face in adopting and integrating technology, and how creating a connected tech stack can revolutionize operations.

Niknaz Aftahi

THE CHALLENGE: DISCONNECTED SYSTEMS, FRAGMENTED TEAMS. 1. Data silos. Many AEC firms still operate in isolated structures, where information is trapped within specific teams, departments, or software tools. These data silos lead to incomplete records, inconsistent documentation, and coordination challenges. According to McKinsey, data silos can increase project costs by up to 25 percent and contribute to significant delays. The root issue is often a lack of interoperability. Tools don’t talk to each other, requiring manual reentry of data or reliance on outdated methods like spreadsheets. As a result, crucial information is either lost or becomes inaccessible at key stages of the project lifecycle. 2. Resource constraints. Digital adoption requires more than just tools, it needs people. However, only about 1 percent of architecture firms have dedicated in-house technologists or R&D teams,

according to a 2023 report by the AIA and the Center for Architecture Science and Ecology. Small and mid-sized firms often rely on peer recommendations, junior staff doing occasional research, or informal exploration of tools, a method that is inefficient and prone to bias. With steep learning curves and limited guidance, many firms fail to integrate technology meaningfully into their workflows. 3. Limited knowledge-sharing culture. Unlike sectors such as software or aerospace, where open-source collaboration and peer-reviewed research are common, the AEC industry often operates with a “closed” mindset. Sharing project data, processes, or lessons learned is the exception, not the rule. Innovative exceptions do exist. ELEMENTAL, for instance, has openly published project documentation and design strategies. Similarly,

See NIKNAZ AFTAHI, page 10

THE ZWEIG LETTER JUNE 16, 2025, ISSUE 1590

real-world examples show how integrating the right stack can revolutionize practice. One large engineering firm used Egnyte in conjunction with Autodesk BIM 360 to manage over 20TB of data across 15 global offices. The result? A 40 percent reduction in data retrieval time and better regulatory compliance across jurisdictions. Another startup architecture firm leveraged SWAPP AI to reduce manual drafting time by 60 percent, allowing their designers to spend more time on conceptual work and less on repetitive documentation. AI AND AUTOMATION: SUPERCHARGING THE STACK. AI is becoming the connective tissue of the modern AEC stack. Whether it’s predictive scheduling, generative design, or automated compliance checks, AI is eliminating friction at every turn. InspectMind AI, for example, transforms field notes and images into detailed reports automatically, syncing with project records instantly. Tools like this eliminate the need for double- entry or delayed updates from the field to the office. The key advantage? AI can interpret, map, and normalize data across platforms, even when those platforms don’t natively integrate. Platforms like Arkdesign.ai leverage AI to assist with early- stage design decisions by generating and optimizing floor plan layouts in real-time. Similarly, Qbiq uses data and generative algorithms to automate workplace planning, helping firms produce accurate space plans tailored to specific organizational needs in minutes. Meanwhile, D5 Render uses AI and GPU acceleration to produce photorealistic renderings almost instantly, making visualization an integrated and interactive part of the design process. LOOKING AHEAD: A BLUEPRINT FOR FUTURE-PROOF FIRMS. The industry is heading toward interoperability by default. As open standards (like IFC and ISO 19650) become more widely adopted, and tools increasingly offer plug-and-play integrations like those within BQE CORE, the vision of a fully connected AEC stack is becoming more achievable. To stay competitive, AEC firms should: 1. Audit current tools and identify where data silos exist 2. Invest in integration-first platforms that align with firm workflows 3. Leverage directories like aecplustech.com to explore options and find the best-fit tools 4. Train staff to embrace digital processes and build data fluency 5. Identify parts of their workflow that could be automated or improved with integrated tools 6. Build out the integrations that would give them better insights from their data or save time on their processes FINAL THOUGHTS. Siloed data is no longer just an inconvenience. It’s a liability. With connected platforms, AI integrations, and a culture of collaboration, AEC firms can unlock new levels of productivity, creativity, and profitability. The future is integrated. Niknaz Aftahi is CEO and co-founder of AEC+Tech . Contact her at niknaz@aecplustech.com.

NIKNAZ AFTAHI, from page 9

the aec+tech platform offers a community-driven Case Study Library, allowing AEC technology providers and firms to share real-world implementation stories. But such openness remains rare. The result? Missed opportunities for peer learning, slow innovation, and redundant efforts across firms facing similar challenges. THE IMPACT AND COST OF DATA SILOS IN AEC. The average AEC project involves dozens of stakeholders, from architects and structural engineers to contractors and sustainability consultants, each using different software tools and platforms. This lack of interoperability forces teams to rely on manual data transfers through spreadsheets or emails. Not only is this error-prone, but it also means that crucial insights are often buried or overlooked. According to McKinsey and other industry analyses, more than 95 percent of data generated in the construction industry goes unused, largely due to fragmentation. This is not just a missed opportunity; it’s a direct hit to productivity and profits. WHAT DOES A CONNECTED TECH STACK LOOK LIKE? A connected tech stack breaks down these silos by integrating tools across the project lifecycle. Rather than relying on legacy systems that don’t communicate, firms now have access to platforms that sync in real-time, automate workflows, and centralize data. An effective connected tech stack includes: ■ Project management platforms that track timelines, budgets, and resources ■ Design and modeling software that supports collaborative workflows

■ AI engines that analyze and optimize data in real time

■ Cloud-based storage and content management for centralized access ■ Software platforms that have open APIs that can be used to build integrations The result? A streamlined ecosystem where everyone, from the intern to the executive, works off the same up-to-date information. WHY NOW? The built world is the second least digitized sector globally, according to McKinsey. However, the AEC industry is a significant contributor to the U.S. GDP, with an average annual spending of $1.4 trillion. AEC firms’ spending on technology is increasing, driven by the need to improve efficiency, reduce environmental impact (as the AEC industry is a primary contributor to greenhouse gases), and leverage horizontal applications like FinTech, SaaS, Big Data, IoT, AI-ML, and robotics. TOOLS LEADING THE INTEGRATION EFFORT. In the AEC+Tech community, you’ll find a growing collection of platforms designed specifically to break down silos and encourage connected workflows in AEC firms. From case studies featured on aecplustech.com, several

THE ZWEIG LETTER JUNE 16, 2025, ISSUE 1590

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