TZL 1310

W W W . T H E Z W E I G L E T T E R . C O M

A u g u s t 2 6 , 2 0 1 9 , I s s u e 1 3 1 0

T R E N D L I N E S

“We invite you to celebrate the industry while learning from its best-performing firms and leaders.” Evolution of a conference

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G rowth has been a Zweig Group mantra since its founding in 1988. Driving evolution and elevating the industry continue as core to our mission. Twenty years ago, Zweig Group created the Hot Firm Conference, originally inspired by the Inc. 500, which quickly became the AEC industry’s iconic growth and awards conference. Over the years, our event has evolved along with the company. As Zweig Group expanded our national awards programs, so did the options for conferences that focused on numerous individual awards, like Best Firms To Work For. Attending my first Hot Firm in Miami six years ago, I was impressed with the opportunity to improve the event by combining all the award winners in one larger conference. The best practices shared, new relationships formed, and synergistic celebrations seemed like a tremendous benefit of this new approach. With the newest iteration of this industry event, the Elevate AEC Conference & Awards Gala, it seems apropos to take a trip down memory lane and recognize the importance of this event for the AEC industry, and to reflect on just how far we’ve come. ❚ ❚ 2013: The Hot Firm Conference, Miami: 2013 was the last year that Hot Firm winners celebrated with their own conference. With an attendance of just over 90, Hot Firm was held at the Eden Roc in Miami. We named Grant Gibson, CEO of GATE, as the 2013 Jerry Allen Courage in Leadership Award winner and celebrated the top 100 Hot Firms of 2013. It was this conference that inspired the need for a much greater investment and increased effort in the production level. ❚ ❚ 2014: Hot Firm and A/E Industry Awards Conference, Beverly Hills: This was the inaugural year of a combined awards conference where Hot Firm and Best Firms To Work For award winners celebrated together. This was also the first year that Marketing Excellence Awards were recognized in a ceremony; the program was previously mail-in only. The production level took a giant leap, becoming a hybrid rock concert meets Hollywood awards banquet infused with a consumer electronics show. Zweig Group’s investment also extended to the educational portion of the conference and an increased attendance of nearly 120 guests at the Beverly Hilton. The venue alone was an enormous nod to the increased attention to elevating the conference and awards gala, as the hotel has famously hosted The Golden Globes since 1961. The hotel provided a fantastic backdrop for our event and even offered a couple of star sightings with Jennifer Aniston and Gene Simmons spotted on the property. Wm. Brock Johnson, former CEO of Garver, was named posthumously as the 2014 Jerry Allen Courage in Leadership award winner. ❚ ❚ 2015: Hot Firm and A/E Industry Awards Conference, Boston:

Chad Clinehens

Zweig Group’s Marketing Excellence Awards (MEA) highlight firms in the AEC industry with exemplary marketing strategies and techniques. One quantifiable way to identify these firms is by analyzing the percentage of proposals that were won by the firm. MEA winners across all categories are winning, on average, 13 percent more of their proposals than the industry standard based on results from Zweig Group’s 2019 Marketing Survey of AEC Firms . M O R E C O N T E N T xz KYLE AHERN: 2019 Best Firms and Hot Firms Page 3 xz 2019 Marketing Excellence Award winners Page 4 xz Elevate AEC schedule Page 6 xz 2019 Hot Firm list Page 7 xz 2019 Best Firm focus Page 8 xz PAT STOLTZ & JIM SWABOWSKI: Understanding ESOPs (Part 3) Page 9 xz 2019 Top New Venture Award winners Page 10 xz Elevate AEC sponsors Page 10 xz RANDY REYNOLDS: Data, data everywhere Page 11 xz Elevate AEC keynote speakers Page 12

See CHAD CLINEHENS, page 2

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

ABOUT THE CONFERENCE ELEVATE AEC CONFERENCE The Elevate AEC Conference is the AEC industry’s premiere experience to connect global leaders, solve industry issues, present next practices, and celebrate the most successful firms in the built environment. Previously known as the Hot Firm and A/E Industry Awards Conference, Zweig Group’s annual conference is the largest gathering of award-winning AEC firms, making it the industry’s most comprehensive business conference for leaders and aspiring leaders of AEC firms in the US. EXPANDED EDUCATIONAL OFFERINGS This year,

the Elevate AEC Conference marks a leap in the evolution of Zweig Group’s annual event with expanded educational offerings focused on firm management, marketing and business development, and client experience. M&A NEXT M&A Next is a pre-Elevate AEC Conference full-day M&A symposium designed to provide practical application through interactive roundtable discussions, expert panel conversations, and focused networking to connect leaders from across the country on current and next practices in the world of mergers and acquisitions.

The Principals Academy ZWEIG GROUP’S FLAGSHIP

TRAINING PROGRAM FOR FIRM LEADERS

Elevate your ability to lead and grow your firm at this impactful two-day program designed to inspire and in- form existing and emerging firm leaders in key areas such as: leadership, financial management, recruiting, marketing/business development, and project management.

CHAD CLINEHENS, from page 1

With an attendance of just over 180, the conference was held at the Fairmont Copley Plaza in Boston, earning rave reviews from attendees. Zweig Group continued its investment in the conference and awards gala, with improved educational sessions and a bigger ceremony. Marian Young, President of Brightfields, was named the 2015 Jerry Allen Courage in Leadership Award winner and we continued to collectively celebrate the Hot Firm, Best Firms To Work For, and the Marketing Excellence Award winners. ❚ ❚ 2016: Hot Firm and A/E Industry Awards Conference, Phoenix: This year saw fantastic growth in attendance, with more than 220 guests at the Arizona Biltmore Resort, which provided an immersive architectural experience. Sonia A. Martinez, CFO of BCC Engineering, was named the 2016 Jerry Allen Courage in Leadership Award winner. We again celebrated the Hot Firm, Best Firms To Work For, and the Marketing Excellence Award winners. ❚ ❚ 2017: Hot Firm and A/E Industry Awards Conference, Seattle: The Fairmont Olympic Hotel provided an upscale experience in the heart of downtown Seattle, close to a wealth of shopping and dining options. With an attendance of just over 280, the conference was the first to offer an after-party experience with party bus transportation to CenturyLink Field for the Coldplay “Head of Dreams” concert. John McAdams, Founder of McAdams, was named the 2017 Jerry Allen Courage in Leadership Award winner. He was the first recipient to receive this award without prior knowledge, culminating in a surprise reveal during the awards ceremony. ❚ ❚ 2018: Hot Firm and A/E Industry Awards Conference, Dallas: 2018 was the last year under the Hot Firm and A/E Industry Awards Conference name, as Zweig Group unveiled a new mission, “Elevate the Industry.” Appropriately, the name was changed to Elevate AEC Conference & Awards Gala. Nearly 290 attendees enjoyed the largest event to date at the Fairmont Dallas. The finale included an after party with a performance by dance-and-disco band Ultra Suede. 2018 was the first year the Rising Stars and Top New Venture award winners were added to the conference. David Goodson, a Dallas native and CEO of RLG, was named the 2018 Jerry Allen Courage in Leadership Award winner. ❚ ❚ 2019: Elevate AEC Conference & Awards Gala, Las Vegas: The conference, formerly known as the Hot Firm and A/E Industry Awards Conference, becomes the Elevate AEC Conference & Awards Gala to recognize and celebrate Zweig Group’s newly established purpose to elevate the industry. This year, the conference expands with additional breakout tracts, a pre-conference focused on mergers and acquisitions, the M&A Next Symposium, and an epic after party at The Mirage to see Cirque du Soleil’s “The Beatles LOVE.” Attendance is already breaking records, making this conference the biggest and best to date. We invite you to attend and bring your spouse, partners – even your entire team – to help celebrate the industry while learning from its best-performing firms and leaders. This evolved conference is certain to elevate you both personally and professionally. For more information, contact Marci Thompson at mthompson@ zweiggroup.com, 202-725-4871, or visit zweiggroup.com. CHAD CLINEHENS is Zweig Group’s president and CEO. Contact him at cclinehens@zweiggroup. com.

NYC

10.31–11.1

http://bit.ly/PrincipalsAcademy

1200 North College Ave. Fayetteville, AR 72703 Chad Clinehens | Publisher cclinehens@zweiggroup.com Richard Massey | Managing Editor rmassey@zweiggroup.com Christina Zweig | Contributing Editor christinaz@zweiggroup.com Sara Parkman | Senior Editor and Designer sparkman@zweiggroup.com Liisa Andreassen | Correspondent landreassen@zweiggroup.com

Tel: 800-466-6275 Fax: 800-842-1560

Email: info@zweiggroup.com Online: thezweigletter.com Twitter: twitter.com/zweigletter Facebook: facebook.com/thezweigletter Published continuously since 1992 by Zweig Group, Fayetteville, Arkansas, USA. ISSN 1068-1310. Issued weekly (48 issues/year) $250 for one-year print subscription; free electronic subscription at thezweigletter.com/subscribe © Copyright 2019, Zweig Group. All rights reserved.

THE ZWEIG LETTER August 26, 2019, ISSUE 1310

O P I N I O N

Chad Clinehens, President & CEO of Zweig Group, speaks at last year’s conference.

Data collected from Best Firms To Work For and Hot Firms continues to provide valuable insight into the AEC industry. 2019 Best Firms and Hot Firms

Z weig Group’s 2019 award recipients have been announced and winners are celebrating all over the country. While Zweig Group loves promoting the industry as a whole, especially our award winners, there is another important factor that comes out of our awards program: The data we collect provides insight into the industry from top to bottom. Our Best Firms To Work For and Hot Firm awards provide well over 2 million data points on the industry. Yes, you read that right: 2 million!

Kyle Ahern

Best Firms To Work For continues to be our largest source of data and is growing every year: ❚ ❚ Seventy-nine percent of Best Firms To Work For responded that they share revenue data at least an- nually. We think this is a very important tool to keep employees informed and to create a positive, open culture at your firm. ❚ ❚ AEC firms continue to perform well and paid out more than $281 million in bonuses alone in 2018. That’s a 25 percent increase over 2017. Employee satisfaction with overall compensation increased in 2018, though the amount and frequency of raises continued to be rated among the lowest categories in the entire survey. ❚ ❚ Beyond compensation, Best Firms To Work For are having to come up with other ways to distinguish themselves in this very competitive labor market.

Half of firms indicated that medical insurance pre- miums paid by employees would not increase from 2018 to 2019. Firms are now offering about 22 days of PTO in addition to an average of nine paid holi- days per year. Eighty-three percent have a parental leave policy. ❚ ❚ Best Firms To Work For are responding to the big- gest wants/concerns of employees: Training and learning opportunities. Every firm offers some type of training opportunity, either in-house or some kind of outside training. About a third of firms have their own “university” training program. Training and continuing education is a great way to invest in your employees and shows that you care about their career development.

See KYLE AHERN, page 4

THE ZWEIG LETTER August 26, 2019, ISSUE 1310

2019 MARKET ING EXCELLENCE AWARD WINNERS

Zweig Group’s MARKETING EXCELLENCE AWARD recognizes outstanding and effective marketing in the AEC industry. This year, award-winning entries will be showcased throughout the Elevate AEC Conference providing firms national recognition as well as a venue to showcase their talent and expertise in a dramatic setting. Award entries were judged by an external team of senior AEC marketing professionals and evaluated based upon overall creativity, messaging, results achieved by the campaign, and level of design. A handful of firms placed across multiple categories. Additionally, the top three winners in each category will be on display at the conference for industry peers to vote for the “People’s Choice Award.”

INTEGRATED MARKETING 1. Fabcon Precast 2. WGI T-3. Lowe Engineers, LLC T-3. BHC RHODES T-5. Crafton Tull

NEWSLETTER – INTERNAL 1. DAVIS Construction 2. Aspect Consulting 3. Harrison French & Associates, Ltd. 4. Patel, Greene & Associates PLLC 5. DBR Engineering Consultants, Inc. NEWSLETTER – EXTERNAL 1. Pond 2. Wright Engineers 3. LERA Consulting Structural Engineers 4. Sullivan Engineering 5. Syska Hennessy Group WEBSITE

BROCHURE 1. Shaffer Creative LLC and Rogue Water 2. Ulteig 3. Ulteig 4. Taylor Design 5. SGA Design Group CORPORATE IDENTITY 1. Hourigan 2. FXCollaborative 3. Brycon 4. Westwood Professional Services 5. Concord General Contracting, Inc. PROJECT PURSUIT 1. Woolpert 2. LJA Surveying, Inc. 3. Patel, Greene & Associates, PLLC 4. Environmental Design Group 5. Taylor Design

HOLIDAY 1. P2S Inc. 2. Maser Consulting P.A.

3. Gilbane Building Company 4. ATI Architects + Engineers 5. FDH Infrastructure Services

SPECIAL EVENT 1. Huckabee 2. McAdams

T-5. LJA Engineering INTERNAL MARKETING

1. Wood Rodgers Inc. 2. McKim & Creed, Inc. 3. Fabcon Precast 4. CORE Consultants, Inc. 5. Walter P Moore RECRUITMENT/RETENTION 1. Taylor Design 2. LJA Engineering 3. DAVIS Construction 4. WGI 5. Cherokee Enterprises, Inc. ADVERTISING

T-3. ISG T-3. WGI 5. Westwood Professional Services SOCIAL MEDIA 1. Gilbane Building Company 2. Miyamoto International 3. Southland Holdings, LLC 4. Patel, Greene & Associates, PLLC 5. Dennis Group VIDEO 1. Widseth Smith Nolting 2. Syska Hennessy Group 3. Southland Holdings, LLC 4. Shive-Hattery 5. Nabholz Corporation

1. Garver 2. GBBN 3. EDG 4. Environmental Design Group 5. Baseline Engineering Corporation

1. Fabcon Precast 2. LJA Engineering 3. P2S Inc.

KYLE AHERN, from page 3

❚ ❚ Mergers and acquisitions among Hot Firms matched what we saw last year with 40 percent responding that they had been involved in at least one transaction over the last three years. For firms in the top 10, M&A seems to be an even larger part of their growth strategy with eight out of 10 being involved in a transaction. M&A con- tinues to be a popular choice in this tight market. Best Firms To Work For and Hot Firms continue to distinguish themselves in a highly competitive industry by taking care of their employees and striving for tremendous growth. Their data helps us gain insight into the industry, but we also enjoy celebrating all that these firms do to Elevate the Industry! We look forward to highlighting them at the Elevate AEC Conference in Las Vegas on October 2-4. KYLE AHERN is awards manager at Zweig Group. Contact him at kahern@zweiggroup.com.

HOT FIRM SNAPSHOT ❚ ❚ Avg. Hot Firm grew revenue by $28.9M ❚ ❚ Avg. Hot Firm grew by 81% ❚ ❚ Avg. Hot Firm: NSR per FTE of $202,381 ❚ ❚ Top 10 Hot Firms grew by an avg. of $107M ❚ ❚ Top 10 Hot Firms grew by 195% ❚ ❚ Top 10 Hot Firms: NSR per FTE $309,094 ❚ ❚ Top 10 Hot Firms: 8 out of 10 merged with or acquired another firm

The Hot Firm Award provides us with great data on the fastest growing firms in the industry: ❚ ❚ The average Hot Firm grew by $28.9 million from 2015 to 2018. A $3.7 million increase from last year. The average percentage revenue growth for that time period was 81 percent, up 8 percent over last year. Net service revenue per full-time employee is up to an average of $202,381 this year. This is up almost $15,000 over last year, in- dicating firms are becoming more efficient. These are great signs of strong performance within the industry. ❚ ❚ The top 10 numbers are even more impressive. Top 10 firms grew by an average of 195 percent while dollar revenue growth averaged more than $107 million for the last three years. The average NSR per FTE for these firms was an astounding $309,094.

THE ZWEIG LETTER August 26, 2019, ISSUE 1310

COOL GREY 1

COOL GR 10

539

158

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diversify

celebrate change promote educate

formerly the Hot Firm and A/E Industry Awards Conference

BUILD YOUR BUSINESS. BUILD YOUR BRAND. BUILD YOUR BRAIN. October 02–04, 2019 Las Vegas • The Green Valley Ranch Resort and Spa

ENTS

JOIN ZWEIG GROUP FOR THE ELEVATE AEC CONFERENCE The Elevate AEC Conference is the AEC industry’s premiere experience to connect global leaders, solve industry issues, present next practices, and celebrate the most successful firms in the built environment. Zweig Group’s annual conference is the largest gathering of award-winning AEC firms, making it the industry’s most comprehensive business conference for leaders and aspiring leaders of AEC firms in the US. EXPANDED EDUCATIONAL OFFERINGS This year, the Elevate AEC Conference marks another leap in the evolution of Zweig Group’s annual event with expanded educational offerings focused on firm management, senior marketers and HR professionals covering the latest strategies and emerging trends critical to grow your business.

M&A Next is a full-day symposium (pre- Elevate AEC Conference event) designed to provide M&A education. The conference-within-a-conference will provide practical application through interactive roundtable discussions, expert panel conversations, and focused networking to connect leaders from across the country.

SAVE $200 ON REGISTRATION THROUGH JULY 15 using PROMO CODE: CSElevate zweiggroup.com/elevate-aec-conference

Zweig Group exists to advance the AEC profession. Our Mission is to Elevate the Industry. We believe in a world that celebrates the built environment and recognizes its impact on individuals, communities, and commerce. Empowering organizations with the resources they need – to perform better, grow and add jobs, pay better wages and to expand their impact on the community – is always at the forefront of our action.

QUESTIONS? For group rates, or if you have any questions, contact Melissa Swann at 479-305-3357, mswann@zweiggroup.com or visit zweiggroup.com.

THE ZWEIG LETTER August 26, 2019, ISSUE 1310

OCTOBER 2 – 4, 2019 LAS VEGAS, NEVADA

CONFERENCE & AWARDS GALA

schedule at a glance

WEDNESDAY • OCTOBER 2 7:30 AM – 4:30 PM

M&A NEXT SYMPOSIUM (pre-conference event requiring separate registration)

WELCOME RECEPTION

6:00 PM – 8:00 PM

THURSDAY • OCTOBER 3 7:30 AM – 8:30 AM

BREAKFAST & REGISTRATION

STATE OF THE INDUSTRY Chad Clinehens, PE, President & CEO – Zweig Group

8:30 AM – 9:15 AM

Z-TALK KEYNOTE PRESENTATION Zen, Life, Business: KAIZEN/Lean Process in Your Life and Business (Kit Miyamoto, CEO – Miyamoto International) BREAKOUT LEARNING SESSIONS Qualifiers and COAs: Understanding Connections, Mitigating Risks Congress’ Definition of R&D: Why Designers Qualify for Research Tax Credit Business Intelligence: Is It a Competitive Advantage or a Crippling Weakness at your Firm? How Progressive A&E Leaders Create Higher Profits & Happier Employees Compensation in a Tight AEC Labor Market: From Salaries to Incentives to Perks AWARDS & KEYNOTE LUNCH How to Bridge the Gap Between Technology and Culture (Shafat Qazi, CEO & Founder – BQE Software) Rising Stars & Top New Venture Awards BREAKOUT LEARNING SESSIONS After the Ink Dries: An M&A Integration Conversation Answers You Should Know to the Top 10 Valuation & Ownership Transition Questions Dollars for Design: Optimizing Tax Incentives for AEC Creating Peak Moments in your Client Experience Journey Bring Clarity to Your Key Performance Indicators; Understanding Your Firm’s Metrics and Why They Matter to You

9:15 AM – 10:00 AM

10:30 AM – 11:30 AM

11:30 AM – 1:00 PM

1:15 PM – 2:15 PM

BREAKOUT LEARNING SESSIONS The Future Of Professional Land Surveying Preventing and Reversing Burnout in You and Your Organization Organizational Nervous System Using Data to Create Change Strengthening Our Strategic Thinking Muscles to Become Better Leaders

2:45 PM – 3:45 PM

KEYNOTE PRESENTATION If You’re Not Moving Forward… You’re Moving Backward: A Disciplined Commitment to Sustainable AEC Growth (Bill McConnell, PE, JD, MSCE, CDT, CEO – Vertex)

4:00 PM – 5:00 PM

NETWORKING RECEPTION

5:00 PM – 6:30 PM

FRIDAY • OCTOBER 4 7:30 AM – 8:30 AM

BREAKFAST & REGISTRATION

KEYNOTE PRESENTATION Living Your Purpose: Mission Driven Brands (Jackie Dryden & Catherine Harris – Savage Brands) BREAKOUT LEARNING SESSIONS ElevateHer | A Discussion of Diversity in the AEC Industry Cyber: Is Your Coverage Structurally Sound? Smart Growth through Knowledge Management From Turnovers to Touchdowns; Score More Work Through a Strategic Business Development Approach Elevating Strategic Planning: Recession Proofing, Next Practices, and Leading with Purpose

8:30 AM – 9:45 AM

10:00 AM – 11:00 AM

KEYNOTE PRESENTATION The Innovator’s DNA (Jeff Hurt, Chief Epiphany Officer – Empowered Epiphanies )

11:15 AM – 12:00 PM

AWARDS RECEPTION & GALA

5:00 PM – 9:00 PM

AFTER PARTY “THE BEATLES LOVE” Cirque du Soleil (Sponsored by Corporate Tax Advisors)

9:30 PM – 11:00 PM

* content at time of publication and subject to change

ABOUT THE CONFERENCE The Elevate AEC Conference & Awards Gala is the AEC industry’s premiere experience to connect global leaders, solve industry issues, present next practices, and celebrate the most successful firms in the built environment. This year, the Elevate AEC Confer- ence & Awards Gala marks a leap in the evolution of Zweig Group’s annual event with expanded educational offerings including the M&A Next Symposium; a full-day designed to provide practical application on current and next practices in the world of mergers and acquisitions.

800.466.6275 zweiggroup.com

The complete

1. NV5 Global, Inc. 2. NELSON Worldwide 3. Dennis Group 4. Ardurra 5. Hargrove Engineers + Constructors 6. Anser Advisory 7. VLK Architects 8. The Thrasher Group 9. ISG 10. CMTA 11. RINCON CONSULTANTS, INC 12. Parametrix, Inc. 13. Parrish and Partners, LLC 14. LJA Engineering 15. Maser Consulting P.A. 16. Ware Malcomb 17. SEPI Engineering & Construction, Inc. 18. Halff Associates 19. RTM Engineering Consultants, LLC

35. Garver 36. Mabbett & Associates, Inc. 37. Woodard & Curran 38. CRB 39. Ramey Kemp & Associates, Inc. 40. Coffman Engineers, Inc. 41. Humphreys & Partners Architects 42. Long Engineering 43. 4 S.T.E.L. Engineering, Inc. 44. IPS-Integrated Project Services, LLC 45. CORE Consultants 46. ATI Architects + Engineers 47. Lowe Engineers, LLC 48. SAM, LLC 49. The Mannik & Smith Group, Inc. 50. Westwood Professional Services 51. GH2 Architects, LLC 52. CMBA Architects 53. Environmental Partners Group, Inc. 54. Quality Engineering & Surveying, LLC 55. Sullivan Engineering 56. LeCraw Engineering, Inc. 57. J2 Engineers 58. C.A.P. Government, Inc. 59. SCJ Alliance 60. Arora Engineers, Inc. 61. Traffic Planning and Design, Inc. 62. TETER, LLP 63. OHM Advisors 64. Bowers + Kubota Consulting, Inc. 65. DCI Engineers 66. WSB 67. G3 Quality, Inc. 68. Huckabee

69. Harper Houf Peterson Righellis Inc. 70. Chen Moore and Associates 71. GEI Consultants Inc. 72. Harley Ellis Devereaux 73. The Vertex Companies, Inc. 74. SWCA Environmental Consultants 75. Langan 76. WGI 77. Steelman Partners 78. Gorrill Palmer 79. Calvin, Giordano & Associates 80. JSD Professional Services, Inc. 81. Atlantic Environmental Solutions, Inc. 82. ADC Engineering 83. Fleis & VandenBrink 84. Wade Trim 85. PK Electrical 86. TLC Engineering Solutions 87. Stonebrooke Engineering 88. EMC Engineering Services, Inc 89. BSI Engineering 90. EDG 91. CME Associates, Inc. 92. SWBR 93. CWE 94. A&E Architects, P.C. 95. SSOE Group 96. A. Morton Thomas and Associates, Inc. 97. Metro Consulting Associates 98. Alta Environmental 99. EBI Consulting 100.Wood, Patel & Associates, Inc.

20. HILGARTWILSON, LLC 21. Binkley & Barfield, Inc. 22. Ross & Baruzzini, Inc. 23. Hastings Architecture, LLC 24. Woolpert 25. Mead & Hunt

26. Cobb, Fendley & Associates, Inc. 27. Patel, Greene and Associates, PLLC 28. P2S INC. 29. ECS 30. MCADAMS 31. VHB 32. BKF Engineers 33. Atwell, LLC 34. WestLAND Group, Inc.

THE ZWEIG LETTER August 26, 2019, ISSUE 1310

P R O F I L E 2019 Best Firm focus Leaders of employee-friendly firms talk about how being a Best Firm affects recruiting, culture, and opportunities. M ATT HOYING, PRESIDENT, CHOICE ONE ENGINEERING: Being a Best Firm To Work For is something you can only truly experience

1-49 EMPLOYEES 1. Choice One Engineering Corporation 2. Comprehensive Environmental Inc. 3. Patel, Greene and Associates, PLLC 4. MWM DesignGroup 5. GACE Consulting Engineers, DPC 50-99 EMPLOYEES 1. Fitzemeyer & Tocci Associates, Inc. 2. Wright Engineers 3. Garmann/Miller Architects – Engineers 4. Mulhern & Kulp Structural Engineering, Inc. 5. Taylor Design 100-199 EMPLOYEES 1. Bowers + Kubota Consulting, Inc 2. TowerPinkster 3. Provost & Pritchard Consulting Group 4. Civiltech Engineering, Inc.

after you are a part of the team, so this award helps confirm to potential hires that our culture is truly what we say it is. Being ranked at the top nationally in our category and size of firm is an accomplishment that we are very proud of, especially given the great firms that we are going up against. This designation is something we utilize to catch the eye of the great talent looking for an organization to be a part of. Internally, it’s a nice verification that we’re working to do things in the best way to fulfill our mission, vision, and purpose. At Choice One, we are all a part of making that happen and it is nice to get that recognition for all of the effort and hard work our employees and their families put into making us who we are. Our culture is what truly drives our retention, but the award is a nice reminder of why we do what we do. JEFF ROMEO, EXECUTIVE VICE PRESIDENT, FITZEMEYER & TOCCI ASSOCIATES, INC.: We strive to be a workplace of choice with an inclusive environment that provides growth opportunities for all employees. We offer a progressive work environment with top tier compensation and benefits. Being recognized as a Best Firm To Work For validates our efforts and how our current employees really feel about working here while enabling us to promote this reputation in our recruiting efforts. BRIAN BOWERS, PRESIDENT, BOWERS + KUBOTA CONSULTING, INC: We’ve been fortunate to be designated as a top firm in Zweig Group’s Best Firm To Work for over the past nine years. Each year, we learn more from our team on areas that the firm can enhance or improve. Attending the conference has also been beneficial as it provides networking opportunities with other Best Firms and the ability to learn from each other. Being a Best Firm is a journey not a destination. DAN WILLIAMS, CEO, GARVER: Recognition for being an employee-friendly firm is certainly beneficial for recruiting and retaining top talent, but the designation has also become part of Garver’s culture. Our employees take great pride in working for a Best Firm. As a direct result of the survey and outcome, we created Best Firm Fridays, where all employees at offices throughout our footprint celebrate. This also provides an opportunity to show employees how much we appreciate their participation in the survey. Having participated for the past six years, the survey has become a valuable and trusted tool for employees to share ideas and concerns, knowing their voices will be heard by a responsive leadership team. Participating in the Best Firm survey makes Garver a better company year after year.

5. TETER, LLP 200+ EMPLOYEES 1. Garver

2. Huckabee 3. McAdams 4. P2S Inc. 5. LJA Engineering

Visit bit.ly/2019BFTWF for the complete list of Best Firms To Work For winners.

THE ZWEIG LETTER August 26, 2019, ISSUE 1310

S P O N S O R

Surrounding oneself with the appropriate professionals, and planning properly, will position your company for a successful transition to ESOP ownership. Understanding ESOPs (Part 3)

T his article serves as a continuation of our “Understanding ESOPs” series, with Part 1 and Part 2 focusing on the tangible and intangible benefits of ESOPs. Here we look at the importance of education and planning when it comes to business succession.

Pat Stoltz

BOOKS & RECORDS – FINANCIAL INFORMATION. Wintrust ESOP Finance is one of the few national ESOP lenders that not only is involved in the structuring of the financing for an ESOP, but also manages the relationship with the ESOP-owned company after closing. A common part of our practice includes a “lessons learned” discussion with our clients to help other companies be best prepared for their ESOP transition. Among the most common re- sponses are those focused on the preparation of financial information. ❚ ❚ Make sure the company is in good standing in the states where it operates, as it may take an extended period to rectify. ❚ ❚ Confirm the organization’s documents are up to date and allow for the contemplated transaction. ❚ ❚ If financial statements consist of tax returns and

company prepared statements, consider getting a review or an audit. The improved integrity of the financials will allow for a stronger valuation and/or reduce the amount of closing diligence. ❚ ❚ Review current contracts to see if any Change of Control provisions exist. If so, the majority sale of a company will likely require consent in order to avoid a potential breach of contract. This, too, can take an extended period of time depending on the circum- stance. MANAGEMENT. Because the ESOP alternative allows a business owner to ease out of his position at his own pace, it is often viewed as the most flexible succession planning alternative. One essential way to insure this flexibility is to build the managerial bench. In order for the surviving company to

Jim Swabowski

See PAT STOLTZ & JIM SWABOWSKI, page 10

THE ZWEIG LETTER August 26, 2019, ISSUE 1310

SPONSORS

PAT STOLTZ & JIM SWABOWSKI, from page 9

succeed, there needs to be competent tal- ent to fill the shoes of the departing own- er, particularly in the scenario where the ESOP is a leveraged ESOP. As this process frequently takes months (and even years) to complete, planning the long-term man- agement of a company should always be front and center. VALUATION. A common first step in an ESOP process is getting a feasibility study. It provides a business owner with a third- party perspective of potential ESOP struc- tures, including valuation, plan structure, and financing. However, many business owners prefer to have a general valuation completed prior to initiating a transition process. It may sound counter-intuitive but doing so is ill-advised, for the follow- ing reasons: ❚ ❚ Duplicative cost, as a valuation will be a part of the feasibility process. ❚ ❚ Valuation drivers change based on the in- tended use of the valuation. Depending on the succession path desired, this may set inappropriate expectations. ❚ ❚ The general valuation will need to be dis- closed in the diligence process and any variations in value from this valuation will need to be addressed. PROFESSIONALS. When working through a succession plan such as an ESOP, it is important for a business owner to

surround himself with professionals who are experienced in ESOPs. As a relation- ship-focused bank, we certainly appreci- ate loyalty amongst long-term business partners. However, utilizing attorneys, accountants, advisors, or bankers that are not regularly involved in ESOPs will not only put the transaction at risk, but will likely create elevated costs in completing the transaction. Executing on a succession plan is typically a once-in-a-lifetime event. Just as a business takes years, often decades, to develop, a succession plan should be well planned for. Surrounding oneself with the appropriate professionals and planning accordingly will position your company for a successful transition to ESOP ownership. Wintrust ESOP Finance and Wintrust CE&A look forward to participating in the 2019 M&A Next and 2019 Elevate AEC Conference in Las Vegas. Wintrust Financial Corporation is a more than $30 billion financial services company headquartered in the Chicago area. With its national niche lending groups, including Wintrust ESOP Finance and Wintrust Construction, Engineering & Architecture, our experts have the knowledge and expertise to provide a business owner in the AEC space with a relationship-focused partner and key trusted advisor. PAT STOLTZ and JIM SWABOWSKI can be reached at pstoltz@wintrust.com and jswabowski@wintrust.com.

The TOP NEW VENTURE AWARD honors a group of the fastest growing start-ups in the AEC industry based on revenue growth and entrepreneurial spirit (story of founding, firm structure, results achieved). Competing firms had to be founded after January 1, 2019, had to have at least $1 million in revenue for 2018, and 50 percent of their 2018 fiscal year revenue had to be derived from the AEC industry. Public entities such as departments of transportation or municipal public work were not eligibile. Here are the 2019 winners: 1. Catalyst Environmental Solutions Corporation 2. H2R Corp 3. Shear Structural, LLC

THE ZWEIG LETTER August 26, 2019, ISSUE 1310

S P O N S O R

Data, data everywhere

Getting a better handle on your data helps you identify what your firm is truly good at, and where the highest profits are.

I f you are a marketing or business development professional in the AEC industry, you need to help your firm make the best decisions possible to maximize the profitability of each job you take on. You may also be tasked with finding ways to strategically grow your business in a very intentional way versus just being opportunistic about where to pursue additional business.

Randy Reynolds

Making the correct strategic growth decision requires data. But what happens when it takes days or even weeks to pull together all the data you need to make informed decisions? If you can’t find the data you need quickly, you may be missing out on potential projects or worse, pursuing the wrong kind of projects. TOO MANY DATA SILOS. Managing the wealth of data necessary to keep AEC firms running and growing is a massive challenge. Whether you are creating project proposals, managing sales projections, or evaluating past projects, you need a single source of data for your business. But it’s not as simple as it might appear. Information is inconsistent at best and distributed around the office in spread- sheets, file cabinets, financial systems, project

management systems, email archives – even post- it notes! If your firm has acquired another firm, you have historical information in other systems that need to come together to form a complete picture of your business and your people. Some information you need may not be in any system at all – it may be inside the memory of one or more of your tenured employees: The self-proclaimed company historian who remembers details of ev- ery past project. How can you get to the answers you need when it exists in all these different “data silos?” At the pace of today’s business, speed and accuracy can be the difference between winning the next job or wasting time and resources on the

See RANDY REYNOLDS, page 12

THE ZWEIG LETTER August 26, 2019, ISSUE 1310

KEYNOTE SPEAKERS

KIT MIYAMOTO, CEO, MIYAMOTO INTERNATIONAL, “Z TALK – ZEN, LIFE, BUSINESS” The Kaizen/LEAN management process was developed in Japanese industry decades ago and adopted by many leading companies such as Nike, Intel, and Toyota. It’s often used in the construction process to maximize efficiency and eliminate waste, but was never widely adopted by AEC businesses. The Kaizen process is not just a system to maximize growth and profit. It’s a value system, and it promotes company culture and shapes how the business sees itself in the community and society. Miyamoto, who leads a global engineering firm, discusses how he turned around a zero-profit company with flat growth to a high-profit company with rapid growth in 12 months by using the Kaizen system. He will also discuss how an African tribe in remote Ethiopia uses the concept of Kaizen to overcome drought which is caused by the $1.8 billion Gibe III dam system.

JEFF HURT, CHIEF EPIPHANY OFFICER, EMPOWERED EPIPHANIES, “THE INNOVATOR’S DNA” Innovation is the heartbeat of today’s economy. It’s also where leaders need to focus their attention, time, and resources to compete in today’s marketplace. So how do leaders become more innovative? Is innovation a talent from birth or something that can be learned and acquired? What are the traits of today’s innovative professionals? How do they think and behave? Why don’t they let traditional rules and the status quo stand in the way of their vision? What questions do they constantly use to benchmark their thinking? What are the skills needed for innovative thinking and behaviors? Innovators think and act differently. They don’t follow the status quo. Join Hurt to talk about it.

BILL MCCONNELL, CEO, VERTEX, “IF YOU’RE NOT MOVING FORWARD, YOU’RE MOVING BACKWARD” Growth of AEC companies, or lack thereof, is often dictated by overall market conditions. Corporate expansion through bull and bear markets alike requires a culture of growth. Vertex has averaged more than 20 percent year-over-year growth for nearly 25 years. Growth is a decision at Vertex, not a side effect. McConnell will discuss how Vertex makes a continued and concerted effort to grow every 90 days in accordance with a 10-year growth plan. He will review how Vertex’s growth plan contemplates a balance of noncyclical services (to hedge against recessionary cycles) with traditional AEC services (in order to take advantage of expansion cycles). McConnell will also cover Vertex’s approach to adding services and regional expansion, and the benefits and challenges that accompany a continued growth strategy.

SHAFAT QAZI, CEO & FOUNDER, BQE SOFTWARE, “HOW TO BRIDGE THE GAP BETWEEN TECHNOLOGY AND CULTURE” The BQE talk will look into the latest cloud technologies that are designed specifically for AEC firms. Qazi will look at some of these disruptive tools and discuss strategies for how every firm can easily implement or take advantage of streamlining workflows. Additionally, Qazi will guide attendees on the principles to improve your firm by igniting internal culture since happy employees means happy customers and increased profits. Join Qazi, CEO and founder of BQE Software, former engineer, recipient of Top 50 CEOs in the USA, Top 50 CEOs for Women and Diversity and Best Workplaces by Inc. Magazine , as he shows you five ways to improve culturally, improve your firm, and five ways to implement new technology to increase productivity.

RANDY REYNOLDS, from page 11

wrong job. This is the chaos of business development and marketing within many AEC firms. END THE CHAOS. Much of this chaos caused by the lack of a single source of truth for your customers, partners, proj- ects, and people is costing your business in lost productiv- ity every day. Worse yet, this suboptimal productivity may be leading to poor decision-making that could impact the top-line revenue in your business. “Cosential gave us access to the data we already had, but we had no single place to access it,” says Adrienne Ruebusch with Miller-Valentine Group. “Now we can look at it, analyze it, notice trends, and make smarter decisions for our business.” Fortunately, there are solutions in the market today to help end this chaos and bring order, control, speed, and efficiency to business development and marketing professionals. Unlike generic customer relationship management solutions that merely manage contact data and are built for product sales, Cosential Growth and

Relationship Management software was developed for project sales and the unique challenges faced by AEC businesses. Data silos are a reality all businesses deal with. But there are solutions in the market to help you get to that “single source of truth.” The results can be dramatic with some customers experiencing increases in productivity in key business development processes by up to 50 percent while increasing annual revenue by 1 percent. Getting a better handle on your data helps you better identify what your firm is truly good at, where you have the happiest customers, and where you are hitting the highest profits. RANDY REYNOLDS is vice president of marketing at Cosential. Contact him at rreynolds@cosential.com.

THE ZWEIG LETTER August 26, 2019, ISSUE 1310

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