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T R E N D L I N E S A u g u s t 1 7 , 2 0 2 0 , I s s u e 1 3 5 7 W W W . T H E Z W E I G L E T T E R . C O M

Overhead staff

Generational differences can be a powerful source of innovation and adaptability. Diversity of age

Using Zweig Group’s newest product, the Operating Expenses Benchmarking Tool, firms can compare their organizational structure in overhead departments to thousands of other firms in the AEC industry. Furthermore, firms can select certain attributes to compare themselves to companies similar to them. For example, the chart above shows overhead staffing for four separate departments as a percentage of total firm size for multidiscipline engineering firms. Typically, marketing and finance/accounting employees make up more of the total staff in these firms relative to HR and IT workers.. Participate in a survey and save 50 percent on the final or pre- publication price of any Zweig Group research publication. F I R M I N D E X Brown and Caldwell..............................10 Dewberry................................................4 GCI General Contractors.........................2 Neel-Schaffer, Inc....................................4 RJN Group..............................................6 SCS Engineers......................................12 Urban Engineers. ..................................12 Ware Malcomb....................................2, 8 MO R E A R T I C L E S xz JULIE BENEZET: Mastering business development Page 3 xz Clear vision: Jeff Plymale Page 6 xz EDUARDO SMITH: Client success initiative Page 9 xz MARK ZWEIG: A/E firms are doing surprisingly well Page 11

T he ability for leaders to understand and guide those they lead is essential. And, with baby boomers, Gen X, millennials, and now Gen Z in the workforce, there is an opportunity for firms to capitalize on generational differences in perspective and values. Diversity of age in a leadership team is a powerful strategy for AEC firms and AEC firms would be well-served to see age as a number, not a credential. When principals and firm leaders have younger voices to stimulate innovation and challenge the status quo coupled with more experienced colleagues with deep expertise and the steadiness needed to prevent self-destruction, the results can be powerful. Why, then, is it that Zweig Group’s 2020 Principals, Partners, & Owners Survey Report found that only 2 percent of AEC firm principals are 39 years of age or younger? A principal with a couple of decades ahead of them to live with the consequences of their decisions is going to see things very differently than someone whose retirement – and liquidation event – is a year or two away. Risk tolerance changes over time, and healthy discussions about the tension between short-term profitability and longer-term investments is one to encourage. In one firm we work with, I sat in on a spirited discussion between two principals – a boomer and a millennial – in which the boomer expressed frustration that the incoming principals lack commitment to the company by not “just going down to the bank and getting a loan” to pay for their ownership interest (in full). The discussion that followed didn’t just lead to a better understanding of the student loan burden that the incoming principal generation had taken on, but also a significant softening in age-related frustration about younger staff in general. After the discussion, we modeled out the ownership transition financing options – both incoming and outgoing – to find solutions that kept the entire ownership pool enthusiastic to invest in the company they were all so important in building. A surprising contrast in our data set this year is that 82 percent of AEC firm principals are older than 50 and the median age at which principals plan to retire is 65. Yet with this massive concentration of ownership held close to a planned retirement date, our study also found that 75 percent of firms do not have an age requirement for principals to begin to sell down their ownership. The consequences of hoarding shares and selling all ownership at once upon retirement are risky financially. Perhaps worse, though, is that this can cause serious rifts between exiting shareholders and the incoming ownership group, which, when

Jamie Claire Kiser

See JAMIE CLAIRE KISER, page 2

T H E V O I C E O F R E A S O N F O R T H E A E C I N D U S T R Y

BUSINESS NEWS WARE MALCOMB ANNOUNCES COMPLETION OF ZS ASSOCIATES OFFICE IN SAN FRANCISCO Ware Malcomb , an award-winning international design firm, announced construction is complete on the offices of ZS Associates located at 611 Gateway Boulevard in South San Francisco. Ware Malcomb provided interior architecture and design services for the project. ZS Associates, a global professional services firm, expanded its offices into 11,682 square feet in South San Francisco. A complete interior renovation of the space included a mixture of open office seating, collaboration spaces, meeting rooms, large training room, and an open kitchen area. The firm also maintains its existing office space on the 10th floor of the building. “For over 35 years, ZS has been helping clients innovate and solve complex problems by taking things apart, seeing how they work, and putting them back together in a way that works even better,” said Rhea Butler, director, interior architecture and design of Ware Malcomb’s San Francisco office. “It was exciting to adapt this corporate culture into the new office design by implementing the concept of puzzle pieces.” Abstract geometric shapes such as triangles and parallelograms were used throughout the space to denote the concept of interlinking puzzle pieces. The design also represented an abstraction of the ZS Associates logo design to tie the San Francisco office into the global firm. Bold uses of color blocks formed another component of interlocking pieces, which help to delineate the smaller neighborhoods that combine to form the greater office. Strategic placement of collaboration and interaction spaces in the center of the plan encourage employees to congregate and interact with each other. In addition to the overall design aesthetic, ZS Associates was also focused on the acoustics of the space. To achieve optimal sound attenuation, all walls use double layers of drywall and connect directly to the structure.

Additionally, other acoustical components such as Fitz Felt walls, acoustical light fixtures, and soft seating were added to help absorb sound. The general contractor for the project was GCI General Contractors . GCI is a Bay Area-based commercial general contractor that specializes in tenant improvements, laboratories, base building renovations, and infrastructure. ZS Associates is a professional services firm that works side by side with companies to help develop and deliver products that drive customer value and company results. ZS Associates leverages its deep industry expertise, leading-edge analytics, technology and strategy to create solutions that work in the real world. With more than 35 years of experience and more than 7,000 people in more than 25 offices worldwide, ZS Associates is passionately committed to helping companies and their customers thrive. Established in 1972, Ware Malcomb is a contemporary and expanding full service design firm providing professional architecture, planning, interior design, civil engineering, branding and building measurement services to corporate, commercial/residential developer and public/institutional clients throughout the world. With office locations throughout the United States, Canada and Mexico, Ware Malcomb specializes in the design of commercial office, corporate, industrial, science and technology, healthcare, retail, auto, public/institutional facilities and renovation projects. Ware Malcomb is recognized as an Inc. 5000 fastest-growing private company and a Hot Firm by Zweig Group. The firm is also ranked among the top 15 architecture/engineering firms in Engineering News-Record ’s Top 500 Design Firms and the top 25 interior design firms in Interior Design magazine ’s Top 100 Giants.

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JAMIE CLAIRE KISER, from page 1

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 2020, Zweig Group. All rights reserved.

unmitigated deprives both groups of much-needed mentorship and perspective. One of the most effective ways to maximize team output is to boost cognitive diversity, bringing in different backgrounds and perspectives. An age-balanced leadership team doesn’t happen without intention. According to PwC, only 8 percent of organizations include age as part of their diversity and inclusion strategy. While generational differences can sometimes be a source of conflict in the workplace, when managed effectively, they can be a powerful source of innovation and adaptability. JAMIE CLAIRE KISER is managing principal and director of advisory services at Zweig Group. Contact her at jkiser@zweiggroup.com.

THE ZWEIG LETTER AUGUST 17, 2020, ISSUE 1357

O P I N I O N

For many leaders, business development resides outside their core competencies and comfort zone, to their firm’s detriment. Mastering business development

L eadership of professional service firms calls for three primary components: strong technical expertise, a set of values consistent with the organization, and an ability to attract and retain clients. Having worked with AEC leaders for many years, I have found that they have little difficulty finding and building technical expertise. Similarly, they can achieve alignment with firm values so long as the firm has clearly defined them.

Julie Benezet

The problem arises with the third component: business development. Broadly defined, business development means marketing firm services to new and existing clients, then winning the engagement. The firm economic model relies upon it, and its importance will increase as we navigate another recession. However, for many leaders, business development resides outside their core competencies and comfort zone, to their detriment and the firm’s. BUILDING BUSINESS DEVELOPMENT EXPERTISE. To build business development expertise, consider the following five building blocks: 1)Learn the business of the business. AEC professionals love what they do, i.e., design and deliver beautiful and functional buildings. They will

invest countless hours making that happen. Not so much the business of the business. Many express not only ignorance of how firm economics work, but lack of confidence that they can learn “those numbers.” Without mastering them, however, they will have a hard time negotiating profitable client projects. Financial training for nonfinancial managers in the AEC industry should move from a nice-to-have to a critical investment. If the training is not in-house, follow up with further education tailored to the firm’s business. 2)Overcome fear of business development. In the words of one young engineering leader, business development is scary because “it’s a new territory

See JULIE BENEZET, page 4

THE ZWEIG LETTER AUGUST 17, 2020, ISSUE 1357

ON THE MOVE BROWN AND CALDWELL HIRES SEASONED INDUSTRIAL WATER EXPERT Leading environmental engineering and construction firm Brown and Caldwell announced Randall Watts has joined the company as industrial water senior process engineer. Having spent his 24-year career until now at Merck, Watts brings an impressive background of specializedwater andwastewater experience in the pharmaceutical manufacturing industry. He has served as technical lead on numerous high-profile projects to improve treatment system performance — including the treatment of endocrine-disrupting compounds and other active pharmaceutical ingredients and constituents — at production facilities in multiple countries. His expertise covers water supply and sustainability, wastewater process design, wastewater system optimization, field and pilot study design and coordination, system start-up and operational support, and operational efficiency.

As a key addition to Brown and Caldwell’s Industrial Water Group, Watts will be responsible for developing and implementing tailored solutions to the chemical and pharmaceutical industry’s most complex water and wastewater challenges. Watts will lead process engineering and design on projects encompassing water use reduction, water and wastewater treatment and reuse, active pharmaceutical ingredient management, nutrient removal, smart utilities, and systems operation and optimization. “I am delighted to welcome Randall to our team of industrial water experts,” said Brown and Caldwell Director of Industrial Water Si Givens. “His deep knowledge of chemical and pharmaceutical manufacturing and water and wastewater treatment in these industries will provide our clients with heightened technical knowledge, rigor, innovation, and responsiveness, translating to the

development of unique and robust solutions that provide long-term value.” Based in Philadelphia, Watts has a doctorate and a master’s in environmental engineering and a bachelor’s in chemical engineering from the University of Florida. Headquartered in Walnut Creek, California, Brown and Caldwell is a full-service environmental engineering and construction firm with 52 offices and more than 1,700 professionals across North America and the Pacific. For more than 70 years, our creative solutions have helped municipalities, private industry, and government agencies successfully overcome their most challenging water and environmental obstacles. As an employee-owned company, Brown and Caldwell is passionate about exceeding our clients’ expectations and making a difference for our employees, our communities, and our environment.

JULIE BENEZET, from page 3

with underhanded schemes for stepping over others to gain advantage. In fact, politics merely means how people interact, with whom, and why. To make sure your colleagues include you in their pursuit of external work and support yours, become an expert on your firm’s practice groups and geographies. Three tools will help: ❚ ❚ Study the firm organization chart. Identify the key decision makers, influencers, and information sources. Who talks to whom and, better, who listens to whom? Then you will know where to spend your time. ❚ ❚ Consult or initiate the creation of a central database. A database of firm skills, experience and clients will inform firm members as to what talent is available and minimize overlapping new business campaigns. ❚ ❚ Dedicate time and energy to cultivating relationships. People have a tendency to reach out to familiar faces. If you feel someone is ignoring you, more likely they feel more comfortable defaulting to known quantities. 5)Find a mentor to model the way. Seasoned business developers have well-practiced techniques gleaned from experience. However, if you ask them for pointers, they might struggle to describe what they do. The best way is to shadow them to client meetings, observe, and debrief afterwards. Business development fuels the firm engine. It therefore behooves firms to devote significant time and energy to cultivating its leaders’ ability to deliver it. Everyone will benefit. JULIE BENEZET spent 25 years in law and business, and for the past 18 years has coached, taught and consulted with executives from virtually every industry. She earned her stripes for leading in the scariness of the new as Amazon’s first global real estate executive. She is author of the award-winning The Journey of Not Knowing: How 21st Century Leaders Can Chart a Course Where There Is None . Her workbook, The Journal of Not Knowing , provides a self-guided discovery mission to navigate the adventure of pursuing one’s dreams based on the Journey principles. She can be reached at juliebenezet. com.

with no template.” A building project has a schedule, budget, and a standard action plan to guide the way. Business development follows no playbook. While most firms have organized lists of marketing prospects, PowerPoint decks and generic materials, as anyone who has survived the mind-numbing weekly marketing meeting will tell you, they support but do not deliver work. Instead, winning work requires leaving the office to explore the market. That means asking probing questions about trends and creating unique strategies for each prospective client. In this uncharted journey, you might encounter the discomfort of talking with people you barely know, hearing questions you can’t answer, and proposing new project offerings that, while doable, will steepen your firm’s learning curve. The only way to overcome discomfort is to embrace it. It’s intrinsic to trying something new. The more you stretch, however, the easier and more enjoyable the process becomes. “Business development fuels the firm engine. It therefore behooves firms to devote significant time and energy to cultivating its leaders’ ability to deliver it. Everyone will benefit.” 3)Manage your time commitments strategically. Time is always in short supply, particularly as people juggle work and home. Layering business development onto that challenge requires smart time management. Winning client work covers a continuum of promoting your skills via speeches, articles and interviews, courting new clients, delivering stellar services, tending relationships, and gathering market intelligence. Allocate your time across all these activities to make sure each receives deliberate if only brief attention. 4)Give serious attention to firm politics. People often recoil when they hear the word, “politics.” They equate them

THE ZWEIG LETTER AUGUST 17, 2020, ISSUE 1357

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THE ZWEIG LETTER AUGUST 17, 2020, ISSUE 1357

P R O F I L E

Clear vision: Jeff Plymale President and CEO of RJN Group (Wheaton, IL), a firm that is passionate about the environment, committed to community, and devoted to the welfare of its employees.

By LIISA ANDREASSEN Correspondent

P rior to becoming RJN Group’s president in 2017, Jeff Plymale served as the company’s executive vice president and COO. The board chose him to step into this position based on his track record of strong leadership and innovation – both inside and outside of RJN. He’s been with the company since 2000 and has held multiple management positions including business development, strategic planning, geographic expansion, product development, and management of multiple large-scale condition assessment programs around the country with municipalities under federal consent decrees. “As an ESOP, all employees get to build their future and reap the rewards as owners,” Plymale says. “As a destination, RJN offers employees the opportunity to shape their career, have a voice, and build their legacy.” A CONVERSATION WITH JEFF PLYMALE. The Zweig Letter: What’s the greatest difference

between your role now and your role as executive VP and COO? Jeff Plymale: My appointment as chief operating officer was coincidental with the former president announcing his retirement. Under a compressed five-year timeframe, we formed an Executive Management Team (EMT) that fulfilled the role of the president. Once I became president, my duties remained the same, but the full weight of the position hit me as the last line for decisions. It now rests on me to lead with a vision and set the company tone for expectations and values. It’s often said that it can be lonely at the top, and that’s certainly proved true. TZL: In one word or phrase, what do you describe as your number one job responsibility as CEO? JP: Delivering shareholder value for our employees is number one, which takes a clear vision and accountability.

THE ZWEIG LETTER AUGU

TZL: How are you balancing investment in the next generation – which is at an all-time high – with rewards for tenured staff? This has always been a challenge but seems heightened as investments in development have increased. JP: We’re committed to developing all levels of staff through training, expanded responsibilities, and mentorship. For succession planning, we’ve bolstered our investments in our junior staff and the next tier of leadership. We have an Associate Partner program, which takes on the responsibility of the “voice of the employee,” where rising leaders participate on the strategic planning, 401(k), and other business committees. Our 100 percent ESOP culture embodies investing in our employees, with ownership rewards for all. “Our success is centered around strong financials, smart growth, and cultivating remarkable people. We offer long-term stability and a flexible work-life fit in a culture of inclusion where all employees are appreciated and respected.” TZL: How has COVID-19 impacted your firm’s policy on telecommuting/working remotely? JP: Coincidently, we recently adopted a telecommuting policy and our intent was to gradually expand participation as we gained experience and refined it. Little did we know that within two months, all of our staff would be putting telecommuting to the test. When the crisis hit, we expanded the policy, outfitted staff to work from home, and bolstered our remote capabilities. I’m proud of our staff and their focused efforts to adjust quickly to this new environment. TZL: How much time do you spend working “in the business” rather than “on the business?” JP: As the dynamics of the management team changes, so does my focus. With a full complement of executive managers, I am able to spend more time on the business. Over the last two years, the needle has pointed more toward “in the business” as we integrated new senior

leaders and I put on my mentor hat. It was swinging back to “on the business” until COVID-19 hit, but this is gradually fading. TZL: RJN Group’s tagline is “Engineering Infrastructure for Tomorrow.” How do you ensure that you’re keeping up with, and ahead of, what the future holds for water management? JP: Water quality is and will remain a driving force for utility providers and our economy. Since the late 1970s, RJN has been regarded as a pioneer in the water environment. Our engineers developed one of the first work-order systems, along with hydraulic analysis and asset coding methodologies, which are the foundation of current industry standards. Our professional staff stay ahead and often lead the charge as leaders in various industry organizations, serving as presidents, committee members, and experts on research forums. We remain curious of new and evolving engineering approaches, construction methods, and technologies to advance our practice for the benefit of our clients and the environment. TZL: Trust is crucial. How do you earn the trust of your clients? JP: Deliver – be early, accurate, and thorough. Be the consultant you’re hired to be – listen, respond, and honor your agreements. TZL: Artificial intelligence and machine learning are potential disruptors across all industries. Is your firm exploring how to incorporate these technologies into providing improved services for clients? JP: Our clients are deluged with all kinds of data. What they really want is statistical and analytical data to act on – and they want it now. In our wastewater flow monitoring business alone, we deliver more than 14 million data points per day. We’re now diving deep into “smart” systems and integrating our software with cutting-edge technologies from around the globe to enhance our client deliverables. ClarityTM is an online tool we built for utility owners that delivers live hydraulic and condition assessment data. It provides event notification, statistical, and analytical outputs so clients can immediately make informed decisions. See CLEAR VISION, page 8

HEADQUARTERS: Wheaton, IL NUMBER OF EMPLOYEES: 190 YEAR FOUNDED: 1975 NUMBER OF OFFICE LOCATIONS: 24 SERVICES: ❚ ❚ Engineering design ❚ ❚ Condition assessment ❚ ❚ Asset management ❚ ❚ Modeling ❚ ❚ Alternative delivery for wastewater, stormwater and water systems VISION: Engineering infrastructure for tomorrow. VALUES: RJN embodies an ownership culture, passionate about the environment, committed to community, and devoted to the welfare of its employees. BUILDING COMMUNITY: Founded in 1995, the RJN Foundation provides resources and financial assistance to more than 30 not- for-profit programs that focus on areas of human welfare. In addition, it has also established scholarship programs at seven colleges, nationally.

UST 17, 2020, ISSUE 1357

BUSINESS NEWS WARE MALCOMB MOVES TO NEW LARGER OFFICE SPACE IN BROADWAY STATION Ware Malcomb , an award-winning international design firm, announced it has moved its Denver operations into a new larger office space located in Broadway Station at 900 S Broadway, Suite 320 in Denver. The new office will be the firm’s second largest in North America, providing architecture, planning, interior design, civil engineering, branding and building measurement services to clients in a wide range of industries. The move accommodates Ware Malcomb’s growing client and employee base in the region, as well as the growth of the firm’s Denver-based civil engineering practice. Ware Malcomb opened its first Denver office in 2001 and has been operating a second Denver office for its civil engineering operations since 2016. All services will now be based out of the new Denver office location at Broadway Station. “By bringing our leading architecture, interior design and civil engineering services under one roof, we will be able to reap the maximum synergies of this incredible team in both client service and project management,” said Matt Chaiken, principal of Ware Malcomb’s Denver office. “We are so proud of our civil engineering team’s growth and evolution over the past several years,” said Chris Strawn, principal, civil engineering. “This new office will continue to provide a strong base to continue expanding Ware Malcomb’s

civil engineering services in markets across North America,” added Tom Jansen, principal, civil engineering. Ware Malcomb’s new Denver office incorporates the latest in interior design trends, as well as the firm’s own design standards. Ware Malcomb has also implemented the firm’s own Healthy Workplace Assessment protocols in the new office design, including occupancy density, distancing and interaction plans, signage and messaging, and other cleaning and wellness standards. “We are following the COVID-19 pandemic closely, and we look forward to bringing our employees back into the new office slowly, safely and in strict compliance with all local and state guidelines,” added Chaiken. The entry to each Ware Malcomb office conveys a hospitality feel, providing an open and inviting welcome punctuated with iconic pieces of furniture. The color palette, finishes, and materials reflect the Ware Malcomb brand colors of vibrant orange with white and grey accents. The work environment fosters collaboration while also allowing for privacy and heads down work when needed. It includes desking stations with adjustable desk heights to provide a variety of work options and cater to every individual’s work preference. In addition to implementing the firm’s design standards across its offices in North America, Ware Malcomb’s in-house branding studio also incorporates a unique design flair in each regional office that reflects the local community

and surrounding area, as well as the office’s client base. Ware Malcomb serves as the landlord architect for Broadway Station, a transit-oriented, mixed-use infill development that serves as a gateway to downtown Denver, the Central Business District as well as the Denver Tech Center. Ware Malcomb has completed more than 2,000 projects across the state of Colorado for clients including Prologis, Hines, Xfinity, TruStile and Karcher, among many others. Established in 1972, Ware Malcomb is a contemporary and expanding full service design firm providing professional architecture, planning, interior design, civil engineering, branding and building measurement services to corporate, commercial/residential developer and public/institutional clients throughout the world. With office locations throughout the United States, Canada and Mexico, Ware Malcomb specializes in the design of commercial office, corporate, industrial, science and technology, healthcare, retail, auto, public/institutional facilities and renovation projects. Ware Malcomb is recognized as an Inc. 5000 fastest-growing private company and a Hot Firm by Zweig Group. The firm is also ranked among the top 15 architecture/engineering firms in Engineering News-Record’s Top 500 Design Firms and the top 25 interior design firms in Interior Design magazine’s Top 100 Giants.

CLEAR VISION, from page 7

TZL: Over the years, what do you think is the most important skill or trait that you developed or have that made you successful as president? Why? JP: I’ve always been passionate about fostering growth for others to help them realize their potential and play to their strengths. As president, you can’t run a company alone – you need a strong team. I’ve never shied away from cross- field promotions that match the passion of an employee with the needs of the company. TZL: A firm’s longevity is valuable. What are you doing to encourage your staff to stick around? JP: It’s our culture that keeps employees here for the long term. As an ESOP, all employees get to build their future and reap the rewards as owners. As a destination, RJN offers employees the opportunity to shape their career, have a voice, and build their legacy. Our success is centered around strong financials, smart growth, and cultivating remarkable people. We offer long-term stability and a flexible work-life fit in a culture of inclusion where all employees are appreciated and respected. By giving our employee-owners the freedom to grow and the opportunity to reach their full potential, we hope RJN becomes their final destination.

TZL: Is change management a topic regularly addressed by the leadership at your firm? If so, elaborate. JP: We’ve had two competing agendas that have caused a tremendous amount of change over the last six years – growth and retirement. We nearly doubled in size while transitioning eight executive leaders, including three C-suite and six board members. The EMT provided a means to mentor and pass the baton smoothly. We’ve launched into five new geographic territories and diversified our service offerings. We continue to adapt our organizational structure, institute new standards, and improve our onboarding process in anticipation of change. “Once I became president, my duties remained the same, but the full weight of the position hit me as the last line for decisions. It now rests on me to lead with a vision and set the company tone for expectations and values.”

THE ZWEIG LETTER AUGUST 17, 2020, ISSUE 1357

O P I N I O N

Client success initiative

It’s more important than ever to stay close to our clients, to understand their changing needs, and to help them achieve their business goals.

B ack in 2016-2017, we at SCS Engineers were strategizing how to bolster our organic growth in what was then a sluggish economy. We decided we needed to focus more on client outcomes rather than simply completing projects. We had to broaden our perspective and become part of our client’s delivery team, completely dedicated to helping them achieve their business goals. We rolled out training, communication and client feedback programs, implementation tools, and follow-up tactics to educate, align, and execute on the plan. We called this our Client Success initiative.

Eduardo Smith

All significant mindset or culture changes take time and receive varying levels of initial acceptance. CSi was no exception. And frankly, soon after we launched the initiative, the economy took off and we, like most of the AEC industry, rode the wave. Our organic growth exceeded plan and we were busier than ever serving clients, even though we hadn’t made huge strides in implementing the initiative. There was so much work on the street that it more or less walked in the door. With the effects of COVID-19 on our psyches and the economy, it’s more important than ever

to stay close to our clients, to understand their changing needs, and to help them achieve their business goals. During and on the other side of this pandemic, clients will be forced to cut back on spending and will be looking for ways to stretch their dollar – to get more for less. In such a world, understanding our client’s objectives and focusing on delivering business value will be more critical than ever. It will be the differentiator that will determine our success as AEC firms, especially when we are competing

See EDUARDO SMITH, page 10

THE ZWEIG LETTER AUGUST 17, 2020, ISSUE 1357

BUSINESS NEWS URBAN ENGINEERS CELEBRATES 60TH ANNIVERSARY Urban Engineers is proud to celebrate and recognize its 60th anniversary. The firm opened in August of 1960 with a staff of seven and has grown to a staff of 475 with 15 offices across the country. To celebrate the firm’s culture, people, partners, and projects, Urban has been running an online campaign called #UR60N – pronounced Urban 60 – that highlighted a different aspect of the firm each month building up to the anniversary this August. “Over the past 60 years, we’ve worked hard to create an inclusive and flexible work environment for all of our employees,” said Kenneth R. Fulmer, PE, the president and CEO of Urban. “I am proud that we have maintained a ‘family’ atmosphere as our firm grew over the years. Our #UR60N campaign was a great showcase for what we value and what our vision is for the future. This week we celebrate this important landmark, and I

thank everyone individually for helping us get here.” Urban’s 50th anniversary focused on its history. In anticipation of this week’s 60th anniversary, Urban shared themed stories over the past 11 months about staff, culture, partners, and work with an eye toward where the firm is heading. Themes included career agility, diversity, resiliency in infrastructure, and work/life balance. Stories were shared using text, images, and videos on the firm’s Excellence blog and on social media. The month of November focused on how the firm gives back, with donations made to 10 separate charities as a part of the campaign. All blog posts celebrating at the firm can be viewed here. Urban Engineers is a multidisciplinary planning, design, environmental, and construction support services consulting firm headquartered in Philadelphia, Pennsylvania.

Urban’s experts put their passion to work to improve your everyday built environment, wherever that may be. The firm provides services for facilities, ports and waterways, public transportation, railroads, airports, energy and utilities, bridges, and roadways. Urban has transitioned leadership only three times throughout the company’s history. From the start in 1960, then in 1990, and again in July of 2016. Through a strong internal mentoring process, the vision of its founders, combined with the passion of new leaders, Urban’s core values continue to carry the firm to great accomplishments. Urban provides planning, design, and construction services for highways, bridges, railroads, buildings, transit, airports, and ports, in addition to environmental consulting. An ISO 9001:2015-certified firm, Urban maintains 15 offices in Pennsylvania, New Jersey, New York, Maryland, Delaware, California, Connecticut, and Texas.

EDUARDO SMITH, from page 9

only for due diligence, but also the desired construction schedule and sales plan. They discuss the approach government agencies have taken on similar projects, and the consultant shares their experience on approaches that have been used successfully to address the expected environmental conditions. “During and on the other side of this pandemic, clients will be forced to cut back on spending and will be looking for ways to stretch their dollar – to get more for less.” They discuss how environmental conditions can affect the project, such as restrictions on stormwater management areas, groundwater use, soil conditions, worker health and safety, etc. The consultant informs the developer about potential government programs that might be available to help the project. The final reports are positively good, and the consultant presents the findings to the developer and the developer’s team to help develop strategies to overcome or deal with environmental constraints and make the project a reality. The first consultant sees the project as an environmental project and frankly, they are providing commodity services. The second consultant understands their client’s business and views their role as being part of the development team. Their project is much bigger than environmental work. They aren’t just environmental consultants; they are community builders. So the question is, do our clients want us just to solve technical problems, or do they want us to deliver business results? Or perhaps we need to look at it this way – do we want to be commodity service providers or advisors delivering business value? EDUARDO SMITH, P.E. is senior vice president of client success at SCS Engineers. Contact him at esmith@scsengineers.com.

for fewer opportunities. We must align our thinking or perspective with that of our client. After all, most of our clients are not in the business of doing engineering work. Perhaps an example will help get the point across. Take for instance a Brownfield or voluntary cleanup project in which our client, a developer, conducts their due diligence of a site to assess its viability for their envisioned master planned community. They must evaluate the entitlements, land use, and zoning restrictions, available surface transportation and utilities, and geotechnical and environmental conditions, among dozens of other factors. All this to satisfy themselves that they will be able to develop the site as planned, and their investment will yield the planned return. It’s not uncommon for our clients to spend hundreds of thousands of dollars in due diligence – on a property they aren’t sure they will ever own. And they don’t realize any return on their investment unless they purchase the property, construct the project, and start selling or occupying their final product. So let’s look at a couple of scenarios, focusing on the mindset of the environmental firm assisting the developer, as that’s the area in which I’m most experienced. In scenario one, the environmental consultant conducts Phase 1 and Phase 2 site assessments following appropriate protocols and delivers final reports that are positively good. The consultant’s work is within budget and completed when required, during the due diligence phase. The developer has an idea of the environmental condition of the site and a report they can submit to a bank to satisfy their requirements for a loan. In the second scenario, the environmental consultant meets with the developer prior to starting the work to understand their goals for the project. They go over the conceptual layout and discuss the overall schedule, not

THE ZWEIG LETTER AUGUST 17, 2020, ISSUE 1357

O P I N I O N

A ugust 2020: From the Good News Department – In spite of COVID-19, the A/E business overall is surprisingly strong. Firms seem to be doing better than most anyone would have predicted when everything had to shut down in March. Why is that? A/E firms are doing surprisingly well

Firms seem to be doing better than most anyone would have predicted when everything had to shut down in March. Why is that? I think there are a number of contributing factors: 1)Demand was high before COVID-19 and most of it is still there. Backlogs were strong going into this thing. Projects were already funded. And some infrastructure projects just can’t wait any longer. So the fact is – with many firms entering the post- COVID-19 period having six to 18 months of work on the books – this thing has had little effect on workload (so far). 2)New client needs are evidencing themselves. Better HVAC for more air exchange and filtering. Office spaces that support social distancing. More new warehousing and distribution facilities. Rethought retail with big box stores facing increasing demand at the expense of small retailers.

Changes in anything involving a queue where people have to line up. More automobile, truck, and rail travel. New technologies and spaces needed for virtual meetings. More renovation and repurposing. I could go on but for some firms, COVID has lead to new demands for what they do. 3)Firms already had the systems and technology to accommodate remote workers before COVID-19, and have refined it since. So for this industry, it wasn’t a huge deal to have everyone work from home, especially when compared to some other industries that weren’t prepared or don’t have that luxury. 4)Firms cut their overhead more quickly than they normally do. I have to say I was impressed with how the companies we work with acted quickly to shed any unnecessary costs. In the past, we tended

Mark Zweig

See MARK ZWEIG, page 12

THE ZWEIG LETTER AUGUST 17, 2020, ISSUE 1357

ON THE MOVE DEWBERRY’S DAVE MAHONEY APPOINTED TO CIRT BOARD OF DIRECTORS Dewberry , a privately held professional services firm, has announced that Dave Mahoney, P.E., has been appointed to the Construction Industry Round Table’s board of directors. In his role as a board member, Mahoney is responsible for working alongside other industry professionals as a force for positive change in the design and construction industry while helping members improve the management performance of their individual companies. CIRT seeks to influence public policy to free the creativity and resources of the industry to competitively provide efficient and valuable services, improve the industry’s image and relationships with public and private clients, provide a forum for networking and education of members, and champion industry improvements. Mahoney, an executive vice president based in Dewberry’s Fairfax, Virginia, office, oversees the firm’s transportation department. With more than 35 years of experience, he is a recognized expert in design-build practices for large-scale transportation projects. He has worked on a variety of high-traffic roadways and interchanges, including the Dulles Metrorail Corridor in Northern Virginia and the Intercounty Connector in suburban Maryland. “I am thrilled to be appointed to this role on the

board of directors,” says Mahoney. “CIRT plays a critical role in the design and construction industry by supporting its members and representing the industry on public policy issues.” Mahoney earned a bachelor’s degree in civil engineering from South Dakota State University. In addition to his involvement with CIRT, Mahoney is a member of the American Road & Transportation Builders Association, American Public Works Association, Dulles Area Transportation Association, and the Design Build Institute of America. Dewberry is a leading, market-facing firm with a proven history of providing professional services to a wide variety of public- and private-sector clients. Recognized for combining unsurpassed commitment to client service with deep subject matter expertise, Dewberry is dedicated to solving clients’ most complex challenges and transforming their communities. Established in 1956, Dewberry is headquartered in Fairfax, Virginia, with more than 50 locations and more than 2,000 professionals nationwide. LUKE SULLIVAN JOINS NEEL-SCHAFFER AS SENIOR PROJECT MANAGER IN TENNESSEE Neel- Schaffer, Inc. , is pleased to announce that Luke Sullivan, PE, ENV SP, has joined the firm and will serve as a transportation senior project manager based in the firm’s Murfreesboro, Tennesee office.

Sullivan has 12 years of experience in transportation engineering, transportation planning, and site development. He has worked with a wide variety of clients, including state departments of transportation, municipal governments, transit agencies and private industry. Projects he has worked on include planning studies, road safety audits, interchange access requests for highways and intersections, intelligent transportation systems, greenways, schools, hospitals, and commercial and residential developments. In addition to being a Registered Professional Engineer in Tennessee, Sullivan is accredited by the Institute for Sustainable Infrastructure. “We are excited to have Luke join the Neel- Schaffer team,” said Richard Sullivan, PE, Assoc. DBIA, vice president for Neel-Schaffer’s Tennessee operations. “Neel-Schaffer has long been a leader in Transportation Engineering and Luke’s experience and expertise strengthens our ability to provide professional services to existing and future clients.” Luke Sullivan holds a bachelor’s degree in civil engineering from the University of Tennessee. Neel-Schaffer is a multi-disciplined engineering and planning firm with offices throughout the South. Founded in 1983, the firm is ranked 230th on Engineering News-Record ’s list of the nation’s Top 500 Design Firms for 2020.

Do all of these things mean we can avoid a recession in this business? Perhaps. Or if we do have one, it will be down the road. No doubt that hospitality, higher ed, airports and aviation, retail/office, and some other markets will have to be impacted negatively by this thing. The question is whether or not the firms affected can quickly move to reposition themselves to work in hotter markets quickly enough. Only time will tell! MARK ZWEIG is Zweig Group’s chairman and founder. Contact him at mzweig@zweiggroup.com. “No doubt that hospitality, higher ed, airports and aviation, retail/office, and some other markets will have to be impacted negatively by this thing. The question is whether or not the firms affected can quickly move to reposition themselves to work in hotter markets quickly enough.”

MARK ZWEIG, from page 11

to make necessary changes to our cost structure much more slowly. To a certain extent I think companies panicked. Things weren’t as bad as they expected so they got out in front of this problem by shedding all unnecessary costs quickly. 5)PPP money and disaster relief funds. This money was very helpful to many firms that got it. It has kept some companies that did have reduced workloads afloat and even profitable (on a cash basis) for the last five months, and it was a huge godsend to our industry. There are some companies I am aware of that got PPP funds and haven’t even touched them yet. 6)Employees can work more during any given day. No commute. Less unproductive meetings that linger on. Think about all the time people wasted prior to COVID-19 that they aren’t wasting now. There was a lot of it. Everyone has more time now, plus, the remote technologies and working from home expands the potential work day dramatically. Many studies have shown that people are now working harder (i.e., more) than ever. 7)More aggressive marketing. If you follow the largest firms in this business as we do, you will have seen a dramatic uptick in their marketing efforts. Improved websites. White papers. Podcasts. Surveys. Much more social media activities than they were doing prior to COVID-19. E-marketing. New videos. All of these things are much more common now than they were five months ago. It makes me proud to see!

THE ZWEIG LETTER AUGUST 17, 2020, ISSUE 1357

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