The PDF edition of The Zweig Letter.
January 23, 2023, Issue 1473 WWW.ZWEIGGROUP.COM
TRENDLINES
Base compensation increase
0% 2% 4% 6% 8% 10%
Salary increases were higher than expected in 2022 and AEC workforce demographics continue to shift. Salaries on the rise
FIRM INDEX Atwell..............................................................................4 Bennett Engineering Services.....................2 DB Sterlin Consultants, Inc............................6 Dempsey Surveying Company...................4 Emerald Coast Associates, Inc...................8 Fluor Corporation...............................................10 GeoPoint Surveying............................................8 Suffolk ......................................................................... 12 WK Dickson............................................................10 Y&C Transportation Consultants................2 MORE ARTICLES n MERCEDEZ THOMPSON: AEC marketing woes, large and small Page 3 n Responsibility: Regine Jeune Page 6 n EVAN PONTO, JOSHUA CLOUD & ALANA SCHUTT: Building a better planet Page 9 n MARK ZWEIG: The strategy of over- marketing Page 11 According to data from Zweig Group’s 2023 Salary Report of AEC Firms , the industry saw an average year-over- year increase in base compensation of around 8 percent, compared to a 3 percent increase from 2021 to 2022. Firms in the Central and Eastern U.S. regions gained by 6.6 and 7.4 percent respectively, while the Mountain- Pacific region increased by nearly 9 percent. Participate in a survey and save 50 percent on the final or pre- publication price of any Zweig Group research publication.
I n 2022, base compensation took center stage as firms raced to find ways to recruit and retain talent in their organizations. Zweig Group recently published its 2023 Salary Report of AEC Firms , and the data highlights a few interesting themes. Salary increases across the board were higher than expected, increases in IT and marketing staff salaries were strong, and the age demographics of the workforce continue to shift. In early 2022, we surveyed 85 firms and found that they expected to increase their base compensation packages by roughly 4 percent from 2022 to 2023. Over the second half of 2022, we surveyed 258 firms and found that, on average, firms actually increased salaries by roughly 8 percent, more than doubling adjustments from years past. In aggregate, we saw an average year-over-year increase in base compensation of around 8 percent, compared to a 3 percent increase from 2021 to 2022. Firms in the Central and Eastern U.S. regions gained by 6.6 and 7.4 percent respectively, while the Mountain-Pacific region increased by nearly 9 percent. Salary increases were strongest for entry-level and early career engineering professionals with fewer than seven years of experience. This group outpaced their elders by quite a margin, which continues to be one of the dynamics firm leaders and HR professionals grapple with as they map career progression and compensation ranges in their organizations. Wage growth for professionals with fewer than seven years of experience was nearly 9 percent, compared to roughly 4.5 percent in more seasoned professionals. The average project manager in the Mountain-Pacific region had 13 years of experience and made $112,000. For the same role in the Central region, we found the average project manager had 15 years of experience and made $102,000. In the Eastern region, it was 16 years and $113,000. In a separate but coordinated study, we found that the industry appears to be retaining young women in the workforce more effectively than in years past. Women under the age of 45, as a percentage of the total, have rebounded since 2020, gaining roughly 4 percentage points since then and 2 percentage points from pre- pandemic studies. We also a noticed a younger workforce than in years past, with noticeable drops in the 36- to 55-year-old segment. Though this group still makes up roughly 41.5 percent of the industry, this is the first year on record where the younger than 35 cohort (42.5 percent) makes up a larger percentage of the sample. Zweig Group
Will Swearingen
See WILL SWEARINGEN, page 2
THE VOICE OF REASON FOR THE AEC INDUSTRY
2
TRANSACTIONS BENNETT ENGINEERING SERVICES AND Y&C TRANSPORTATION CONSULTANTS HAVE MERGED Bennett Engineering Services announced it has merged practices with Y&C Transportation Consultants. Bennett+Y&C, the new combined firm, takes pride in finding innovative and cost-effective engineering solutions to important infrastructure projects
Together, Bennett+Y&C will maintain their Disadvantaged Business Enterprise and Small Business Enterprise certifications. The firms also complement each other in geography with Roseville, Sacramento, Fremont, and Milpitas office locations. Together the firm will provide services throughout California and Nevada. The firm will continue to serve clients as a trusted engineering advisor.
Interested in learning more
about the projects and ideas driving the AEC industry forward? Learn more with Civil+Structural Engineer Media.
WILL SWEARINGEN, from page 1
continues to monitor the dynamics of the industry as it changes from the old guard to the new. In years past, we only saw 4 percent of the under 40 cohort in an ownership position, but this has jumped up to nearly 9 percent in a recent sample. Though these statistics may not seem surprising, they have profound impacts on the way AEC firms are managed and the incentive structures firms use to retain talent. Remote workforces and the emerging hub-and-spoke production model are expanding our ability to grow outside of the more traditional “downtown office” setting. Remote work stations, co-working facilities, and work from home models are here to stay and some firms will build their growth strategies around that phenomenon. Zweig Group has always been a proponent of thoughtful investments in areas of the business that promote growth and innovation. As such, investments in HR, marketing, and IT functions are an important part of running a successful business today. This is reflected in increases in IT director salaries (roughly 15 percent over last year, averaging around $130,000) and marketing director salaries (averaging around $120,000). These increases were consistent across geographies. Regardless of your firm’s approach to the remote versus in-office work dynamic; design firms are increasingly reliant on cloud based technology for production platforms, project management tools, and communication software. Ensuring your firm has appropriately compensated leadership in HR, marketing, and IT is just one way to ensure your firm’s efficiency and image stay intact. Over the last year Zweig Group has engaged a number of firms, conducting comprehensive benefits and compensation studies. If you’re a firm leader and are struggling with the rapid changes in expectations from your staff, there are a few ways to back up or even create your compensation program. You can: 1. Establish a compensation philosophy 2. Benchmark your salaries and benefits often 3. Create flexible programs that match your firms structure and career pathing This year’s edition of Zweig Group’s Salary Report is just one resource to help your firm in developing a competitive total rewards program, but it’s perhaps the most effective tool you can leverage to align expectations with your most valuable asset – your people! Will Swearingen is a principal and director of ownership transition advisory services at Zweig Group. He can be reached at wswearingen@zweiggroup.com.
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THE ZWEIG LETTER JANUARY 23, 2023, ISSUE 1473
3
OPINION
Many of the biggest obstacles AEC marketing teams face are ultimately the same – regardless of firm size. AEC marketing woes, large and small
A friend and colleague recently presented a webinar about proposal design that I attended. She was brilliant. Afterward, however, she shared with me that she was receiving very mixed feedback. Some, myself included, raved about her design skills and practical tips. Others found the material too niche and suggested it was applicable only to proposal professionals working at large firms with seemingly endless resources. Among the dissatisfied, a theme emerged: “I don’t feel seen or heard as a marketing professional at a small firm.”
Mercedez Thompson
While the above-mentioned friend and colleague does not work with endless resources, I felt like many of her recommendations could apply regardless of team size. Our conversation led me to consider how marketing, especially proposal management, differs between small and large firms. Personally, I’ve worked in professional marketing roles within diverse industries and organizations ranging from seven to more than 10,000 staff. I know something of the woes of both small and large firms. And while there are certainly nuances, I have found that our biggest obstacles are ultimately the same – regardless of firm size. Here are some of those woes:
■ I wear many, many hats. When I worked at a small firm, I was in charge of every proposal that went out the door. I also ordered business cards, updated the company website, managed all social media accounts, planned events, ordered lunches, and made sure the office rugs were picked up and cleaned on a monthly basis. You name it. The variety was nice, but it’s nearly impossible to be great at something when you do everything. There just isn’t the bandwidth to develop expertise. One of my greatest motivators for moving to
See MERCEDEZ THOMPSON, page 4
THE ZWEIG LETTER JANUARY 23, 2023, ISSUE 1473
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TRANSACTIONS ATWELL ENTERS INTO A DEFINITIVE AGREEMENT TO ACQUIRE DEMPSEY SURVEYING COMPANY, EXPANDING PRESENCE IN MIDWEST Atwell has entered into a definitive agreement to acquire Dempsey Surveying Company, a land surveying firm based in Cleveland, Ohio. This acquisition will expand the company’s presence in Ohio and surveying capabilities in the Midwest. Dempsey Surveying Company’s services include topographic surveys, construction staking, boundary services, Federal Emergency Management Agency flood elevation certificates, surface model TINs, Global Positioning System services, aerial mapping, and drone services. “We’re pleased to combine the knowledge, technical capabilities, and experience of these two successful companies,” said William Anderson, senior vice president of Atwell. “Our shared priorities of providing proactive solutions and excellent client service
will strengthen our ability to deliver quality projects that achieve our clients’ goals.” Dempsey Surveying Company has a wide range of clients across several markets including industrial, commercial, public utilities, and more. The company maintains more than 50 years of survey records. “We’re excited to join the team at Atwell and look forward to being able to expand the services we offer to our existing and future clients,” said Christopher Dempsey, CEO of Dempsey Surveying Company. “This acquisition provides new opportunities for both our clients and team members.” Since 1985, Christopher Dempsey has been providing surveying services throughout Ohio as a second-generation surveyor. He started Dempsey Surveying Company in 2002 with the sole focus on surveying and providing exceptional service.
This is Atwell’s third acquisition in Q4 2022. In November, Atwell also financed the acquisition of Cross Surveying, a 28-person land surveying firm based in Florida, and acquired Ben Dyer Associates, a 55-person engineering firm based in Maryland. Atwell, LLC is a national consulting, engineering, and construction services firm with technical professionals located across the United States totaling more than 1,400 team members. Creating innovative solutions for clients in industries such as real estate and land development, power and energy, and oil and gas, Atwell is committed to providing comprehensive turnkey services including land and right-of- way support, planning, landscape architecture, engineering, land surveying, environmental compliance and permitting, and project and program management.
had to be involved in proposals – that was my job, after all. I shudder to recall entire technical approaches written by yours truly. Attendance at meetings generally improved at large firms, but accountability around deadlines did not. I found that my technical leads were even busier and spread even thinner, with pressure to be constantly billable. I was working more proposals with bigger values but still doing it all – from design to writing to reviewing and editing. It turns out that many of us have to do the jobs of three or four people to submit a proposal. ■ Expectations around volume impact quality. I’ve worked for a small firm that didn’t have a go/no-go process. And I’ve worked for a large firm that had one but managed to “go” everything anyways. The result is the same: an emphasis on volume that results in lower quality proposals. I once had a senior proposal manager tell me he would win nine contracts a year, regardless of whether he proposed on 10 or 100. While I’m sure his example was an exaggeration, the point holds true. An ongoing battle, regardless of firm size, is advocating for stricter selection when it comes to what we are pursuing. In considering the differences between marketing at small and large farms, I found that we have more in common than not. It would serve us well to unite around these similarities and work together toward solutions and strategies that help us add more value and ultimately win more work. Mercedez Thompson is a pursuit manager and writer at PwC. Connect with her on LinkedIn.
MERCEDEZ THOMPSON, from page 3
a large firm was the opportunity to focus on proposal management. How much better could I be if I wasn’t spread so thin? Yet, even though I was no longer updating the company website, I found myself handling award submissions, coordinating conference abstracts, booking travel, ordering lunches, even fixing the office printer. My department manager worried that I was too specialized and wondered how I could be involved earlier in capture planning and later in project execution. The fact is, large or small, marketing is often seen as a catch-all position: an ongoing problem that may prevent us from performing our actual duties – you know, the ones written in the job description – well. “We have more in common than not. It would serve us well to unite around our similarities and work together toward solutions and strategies that help us add more value and ultimately win more work.” ■ When it comes to proposals, it’s a one-man-show. I still have nightmares about nobody showing up for a kick- off meeting. Unfortunately, this was quite normal during my small firm days. I was the beginning and end of the marketing team, and the “process,” if you could call it that, was lax. Many of my coworkers didn’t understand why they
© Copyright 2023. Zweig Group. All rights reserved.
THE ZWEIG LETTER JANUARY 23, 2023, ISSUE 1473
6
PROFILE
Responsibility: Regine Jeune Co-president and CEO of DB Sterlin Consultants, Inc., a 100 percent minority-owned firm comprised of professional engineers, architects, planners, and surveyors.
By LIISA ANDREASSEN Correspondent
J eune is a progressive, collaborative, and freethinking leader who supports women’s equality in the engineering industry. She’s a big advocate for the improvement of STEM education in college and for girls starting early education in STEM from kindergarten through grade 12. In 2016, DB Sterlin had four women engineers or engineering technicians and, by 2022, that number had risen to 16 and continues to grow. Jeune is a natural-born leader who many like to follow and she’s well deserving of this honor. She knows what needs to be done and how to do it. Under her leadership, DB Sterlin (Chicago, IL) has grown into a multi-disciplinary engineering firm that provides services for public and private sector projects. “Whether it’s a deadline, a deliverable, advice – delivering the work on time and being honest builds our credibility with our clients,” Jeune says. “I clearly communicate to staff that if they can’t meet a deadline, it’s better to let the client know upfront so the project plan can be altered. Surprises are never fun and missing a deliverable with no explanation can quickly turn a solid project into a sub-par one.”
A CONVERSATION WITH REGINE JEUNE. The Zweig Letter: Your website’s “Careers” page mentions DB Sterlin’s “unique” culture. Tell me a little about your firm’s culture and what sets it apart from others in the industry. Regine Jeune: In a family-owned business, there’s a sense that everyone wears many hats and that the whole team is unified and accessible. Further, I take the position to lead from the “front.” Most mornings you can find me emptying the dishwasher, not because I have to, but because it demonstrates to employees that we’re all working toward the same goals. It also improves team morale. My employees know they can approach me for any issue that may arise without hesitation and there’s a sense of comfort in knowing they’re being lead down the right path. TZL: Give me a little firm history. Who founded it in 1997? When did you become president? What’s your background? RJ: My father founded the firm in 1997. He started it after a long career of working for large engineering companies. My sister
THE ZWEIG LETTER JANU
7
Florence (co-president) joined the firm in 2003 and I joined in 2012. I have a degree in biology and worked in the pharmaceutical industry prior to coming on board. I’ve demonstrated the ability to lead diverse teams of professionals to new levels of success in a variety of highly competitive industries, cutting-edge markets, and fast-paced environments. Florence has strong technical and business qualifications with an impressive track record of more than 15 years of hands- on experience in strategic planning, business unit development, and project management. “My employees know they can approach me for any issue that may arise without hesitation and there’s a sense of comfort in knowing they’re being lead down the right path.” TZL: How did COVID-19 permanently impact your firm’s policy on telecommuting? RJ: In March of 2020, no employee had the ability to work from home. We had very few laptops and were not prepared for the quick pivot. In three days, once we realized the shutdown was coming, we had to order laptops and computers from Amazon. Now, almost three years into the shift, our focus has been on incorporating a hybrid work schedule. We do, however, believe that great engineering comes from collaboration, and, in order to do that, people need to be in the office. In addition, about 20 percent of our staff has been hired since COVID. It’s important that they feel a part of DBS. We know when employees feel like they are part of a community they’re less likely to look for another job. TZL: As co-president of DB Sterlin, what’s top of mind right now? Growth, recruitment, retention, etc.? What are you doing to meet that end? RJ: All of the above. We’re in a great situation right now where the demand for infrastructure projects is high, and the talent pool is low. We want to keep our current employees and continue to recruit top talent. In addition, we need to keep up with our growing backlog. We like to proactively have one-on-one discussions with our current employees to find out what they are doing, and what they like and dislike about their work. We believe
addressing issues upfront helps with retention and builds onto the company’s culture. TZL: Have you had a particular mentor who has guided you – in school, in your career, or in general? Who were they and how did they help? RJ: My father pushed me to do better in school and in my career. He continues to push me as an owner and continually reminds me that I can always do better. He started DBS with a reputation for being a strong leader and an excellent engineer and he’s used those relationships as a foundation to build the firm. TZL: What are some professional tips on how to prepare for growth? RJ: The single most important tip I have for growth is a paraphrase of a quote I heard a long time ago: “Surround yourself with people smarter than you. Empower them to make decisions and listen to feedback, positive and negative.” A strong team you can trust makes growing the organization much easier than if you think you can do it alone. TZL: Trust is essential. How do you earn the trust of your clients? RJ: There are a few simple words we live by here at DB Sterlin: Truth and quality. These are values we live by. Whether it’s a deadline, a deliverable, advice – delivering the work on time and being honest builds our credibility with our clients. I clearly communicate to staff that if they can’t meet a deadline, it’s better to let the client know upfront so the project plan can be altered. Surprises are never fun and missing a deliverable with no explanation can quickly turn a solid project into a sub-par one. “We evaluate our work carefully and ensure that the work we do is within our capacity to get the job done, while maintaining quality and efficiency.” TZL: As a minority entrepreneur, what have been your greatest challenges? How have you met them? And, on the flip side, what benefits have come from it? RJ: As a minority-owned business, the biggest issue I have is when a large “prime” firm tells me that I already have enough work. To clarify, if we win a big design job, I’ve had firms tell me they don’t want to work with us because See RESPONSBILITY, page 8
HEADQUARTERS:
Chicago, IL
NUMBER OF EMPLOYEES:
102
YEAR FOUNDED: 1997
OFFICE LOCATIONS: 1
MARKETS:
Highways and
■
roadways
Bridges
■
Rail and transit
■
Aviation
■
Utilities
■
SERVICES:
Civil engineering
■
Structural
■
engineering
Construction
■
management
Professional land
■
surveying
© Copyright 2023. Zweig Group. All rights reserved.
UARY 23, 2023, ISSUE 1473
8
TRANSACTIONS GEOPOINT SURVEYING ACQUIRES NORTH FLORIDA SURVEYING FIRM, EMERALD COAST ASSOCIATES GeoPoint Surveying announced the acquisition of Emerald Coast Associates, Inc. to its growing corporate footprint in the southeast U.S. ECA’s location in Santa Rosa Beach, Florida made it an ideal addition to GeoPoint as the company has been growing its north Florida business for the last three years after opening an office location in Panama City Beach in 2020 to support a long-term contract at Latitude Margaritaville Watersound. In addition, the experienced team at ECA had been providing excellent service to the area for more than 40 years which was desirable to GeoPoint who had been seeking to expand their work force to meet demand in the panhandle. “The opportunity to bring the ECA team
under the GeoPoint Surveying brand was not only great timing for our growth strategy, but also uniquely personal for me,” said David Williams, President of GeoPoint Surveying. “ECA leaders gave me my first job as a rodman in the early 90s, and with their exceptional training I later became a Crew Chief, which ultimately set me on the career path that led to today.” Seventeen employees were added to the GeoPoint team through this acquisition, including three individuals who will take on leadership roles as part of the transition: Dexter Lundy, Assistant Director of North Florida Operations; Daryl Burgis, Project Manager; Ray Howard, Chief of Crews. Awarded the Best Places to Work, Tampa Bay 200, and ‘Fast 50’ top growing companies by the Tampa Bay Business Journal , GeoPoint has developed a
premier reputation in the Florida survey industry, setting the standard for high performing staff, and access to forward- thinking technology and leading-edge equipment. One of the largest land surveying companies in the Southeast, GeoPoint Surveying, Inc. provides standard-setting survey services including subsurface utility location, remote sensing/ LiDAR, construction support and land development services, hydrographic surveys and geographic information systems for residential, commercial, energy, industrial, and various other public and private projects. GeoPoint is licensed in Florida and Texas, and currently has seven offices located in Tampa, Orlando, West Palm Beach, Panama City Beach, Santa Rosa Beach, and Hudson.
RESPONSBILITY, from page 7
they’re concerned about our capacity to do the work. Currently, DBS is one of the largest female-owned and operated African-American firms in Chicago. We are a full-service DBE engineering firm that is one of the most IDOT-prequalified in several complex areas. We evaluate our work carefully and ensure that the work we do is within our capacity to get the job done, while maintaining quality and efficiency. TZL: Who are you admiring right now in the AEC industry? Where do you see thought leadership and excellence? RJ: I admire all entrepreneurs who have made it in this industry. In the last five years, I’ve watched several of my colleagues who own WBE and MBE firms grow tremendously. While we may be competitors, I am so proud and happy to watch them grow and flourish. I don’t have an issue picking up the phone and calling any of those leaders to ask for advice or to use them as sounding boards. TZL: What role does your family play in your career? Are work and family separate, or is there overlap? RJ: As a second-generation owner of a family-owned company, work and family can never really be separate. You can imagine that family dinners have a lot of business talk. There have been many year-end details discussed during “Most mornings you can find me emptying the dishwasher, not because I have to, but because it demonstrates to employees that we’re all working toward the same goals. It also improves team morale.”
DB Sterlin staff participating in a 5K together.
holiday dinners. That said, when push comes to shove, family comes first. TZL: They say failure is a great teacher. What’s the biggest lesson you’ve had to learn the hard way? RJ: Getting involved in every aspect of the business. No one can be great at everything. I had to learn to delegate and trust that people know their jobs and will do them well. TZL: In one word or phrase, what do you describe as your number one job responsibility? RJ: Responsibility. The reason I go to work every day is that I know that 100 people are relying on me to get a paycheck. The impact of DBS not being successful could change/affect our employees’ lives in an adverse way.
© Copyright 2023. Zweig Group. All rights reserved.
THE ZWEIG LETTER JANUARY 23, 2023, ISSUE 1473
9
OPINION
Building a better planet
Sustainability doesn’t have to run counter to building projects on time and on budget.
W hen people think about sustainability in the building industry, it’s common for their focus to be on things like carbon neutrality, LEED certification, and other initiatives.
What’s often overlooked is just how those worthwhile initiatives will be managed throughout a project. How do you ensure sustainability benchmarks will be met while still keeping the overall project goals in mind? The key is having a team in place, throughout a project, that has a rich background in sustainability coupled with strong project management skills. SETTING A SUSTAINABILITY AGENDA. Not every project starts out with sustainability goals on the punch list. Many owners and developers believe that sustainability initiatives will make a project too expensive. A lot of times, this belief comes down to how sustainability initiatives are framed. For example, if you were to ask an owner or developer whether they would like to reduce the carbon impact of their project, their first response will likely be that it is too expensive. But if you ask if they would like to
create efficiency within their building systems and reduce their operational budget, the conversation quickly changes. The goal of this reframing is not to trick an owner or developer into making their buildings more sustainable. It’s to point out that sustainability doesn’t have to run counter to building projects on time and on budget. HAVING THE RIGHT TOOLS IN THE TOOLBOX. Sustainability is just one component on a long list of things to consider when managing a construction project. Working with a team that has in-depth experience in all aspects of project design and construction – including a background in guiding clients through sustainability initiatives that can result in cost efficiencies – often leads to better project outcomes.
Evan Ponto
Joshua Cloud
Alana Schutt
See PONTO, CLOUD & SCHUTT, page 10
THE ZWEIG LETTER JANUARY 23, 2023, ISSUE 1473
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TRANSACTIONS GISI AND HILL
INTERNATIONAL
client services, thanks to GISI’s focus on long-term success.” Newman added: “Hill’s uniqueness as a for-fee-only program management firm, combined with its technical and managerial expertise, makes the company a welcome addition to the GISI family. We’re excited to bring aboard Raouf and the entire Hill team.” Initially approved by GISI and Hill boards of directors on August 16, 2022, merger terms were later amended to US$3.40 per share from US$2.85 after receipt of an unsolicited third-party proposal. Hill shareholders representing approximately 72.9 percent of outstanding common shares approved the combination on November 2. Hill International will continue to serve its customers under the Hill International brand as part of GISI’s Engineering & Consulting Services platform, along with sister companies The LiRo Group, GEI Consultants, J. Roger Preston Limited, and Asia Infrastructure Solutions. GISI is among the largest privately owned construction management companies in the commercial building, industrial and healthcare markets, and a leading
project/construction manager in the environmental and public infrastructure sectors. The Company provides the resources its partner firms may require to gain the competitive advantage for success. Through the dedicated efforts of our more than 12,500 employees, we generate annual revenues of approximately US$12 billion, with project backlog of more than US$23 billion. GISI’s employee shareholders are invested in contributing to, and benefitting from, the firm’s continued growth as GISI brings its unique value proposition to its clients and communities in more than 90 countries. Hill International, Inc. with more than 3,200 professionals in more than 100 offices worldwide, provides program management, project management, construction management, project management oversight, construction claims, dispute resolution, advisory, facilities management, and other consulting services to clients in a variety of market sectors. Engineering News-Record magazine recently ranked Hill as one of the largest construction management firms in the United States.
COMPLETE MERGER Global Infrastructure Solutions Inc. and Hill International, Inc. announced their strategic merger is complete after clearing final regulatory reviews. This merger presents enhanced opportunities for growth in global, for-fee infrastructure consulting markets. STRATEGIC “The completion of our merger with Hill International is GISI’s fifth strategic merger or acquisition during 2022,” said Rick Newman, GISI President and CEO. “Our employee-ownership model differentiates us and is an important feature of our growth, recruitment, and professional development initiatives. As a result, we believe that the GISI family of companies is well positioned to serve the needs of an expanding market requiring more technical and professional expertise than ever before.” Hill International CEO Raouf Ghali said: “Since our founding in 1976, Hill has grown into an industry-leading program, project, and construction management company. By joining the GISI family of companies, Hill is ready to continue to grow while enhancing the quality of our
in the design and construction process provides opportunities to reduce environmental impact – as long as sustainability is considered from the outset. At OAC, sustainability is one of our priorities. Carbon benchmarking, committing to the climate pledge, embracing technologies that create greater and greater efficiencies – these are just some of our areas of focus. We also have a sustainability task force that is made up of people who are passionate about staying up to date on advancements that reduce environmental impact. This task force is available as a resource to all our project teams and clients. We’re doing all this because we think it’s the right thing to do, but also because it’s smart business for clients. Every owner and developer wants to create buildings that last. Collectively, we all need to work toward ensuring those buildings have a planet that also lasts. The more we and our clients look for ways to help reduce the environmental impact of our projects, the better off we all are. Evan Ponto is a project manager, Joshua Cloud is a program manager, and Alana Schutt is a senior project manager at OAC, a national design and construction performance management firm. To learn more about them, visit oacsvcs.com.
PONTO, CLOUD & SCHUTT, from page 9
Additionally, experienced management teams can find ways to make project delivery much more efficient, and that efficiency leads to positive outcomes when it comes to environmental impact. “How do you ensure sustainability benchmarks will be met while still keeping the overall project goals in mind? The key is having a team in place, throughout a project, that has a rich background in sustainability coupled with strong project management skills.” Technologies that make designs as precise as possible before a build begins, for example, greatly reduce the time – and carbon expenditure – of breaking ground on a project. Similarly, utilizing data to source and track resources efficiently dramatically cuts down on waste. WALKING THE TALK. The point is, sustainability is about much more than reducing water and energy usage. Every step made
© Copyright 2023. Zweig Group. All rights reserved.
THE ZWEIG LETTER JANUARY 23, 2023, ISSUE 1473
11
FROM THE FOUNDER
The strategy of over-marketing
When used consistently, this strategy will allow you to grow faster, raise fees, shed bad clients, and ramp up your pipeline of job candidates.
I spend a certain amount of my time on LinkedIn. I like that it isn’t full of politics and conspiracy theorists, and, for the most part, people there are talking about business. I will say, however, that I see a lot of architects talking about how underpaid and overworked they are, along with a certain number of engineers complaining that they can’t get good fees. All of them are usually also griping about having too many hoops to jump through to get a project, and then when they do, they struggle with getting paid by their clients on time. Oh yeah – and don’t let me forget to mention the difficulty most companies claim to be having filling their job openings.
Mark Zweig
The answer to all of these problems – and more – could be solved over the long haul by employing a strategy I have only recently decided to start referring to as “over-marketing.” What is over- marketing, you might ask? I can describe it quite simply as consistently spending more and doing more marketing-wise than what would be considered “normal” for a firm of whatever type yours is. How much more? Let’s say one-and-a-half to two times what everyone else is doing. And for how long? Forever. That means you never stop. I have been a student, teacher, and active participant
in the AEC industry and entrepreneurship for most of my life. And I am going to make a bold statement: I have never seen a firm in the AEC business, or any industry that actually used this strategy over the long haul, fail to succeed well beyond its peers – ever! Let’s take a look at a “typical” architectural firm of about 20 people. Maybe it has a couple of owners. They do about $3 million a year in net service revenue. They have an effective labor multiplier of 3.2. They spend about 7 percent of net service revenue on marketing. The principals make a couple hundred
See MARK ZWEIG, page 12
THE ZWEIG LETTER JANUARY 23, 2023, ISSUE 1473
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BUSINESS NEWS SUFFOLK DELIVERS STATE-OF-THE- ART BOSTON UNIVERSITY CENTER FOR COMPUTING & DATA SCIENCES IN STUNNING AND SUSTAINABLE ADDITION TO BOSTON SKYLINE Suffolk, one of the largest and most innovative real estate and construction enterprises in the country, successfully delivered the Boston University Center for Computing & Data Sciences. The 19-story, 345,000 square foot facility, which is the tallest building on Boston University’s urban Charles River campus, is the university’s most energy-efficient building and one of the most sustainable buildings in all of Massachusetts. “We are honored and privileged to deliver one of the most sustainable and sophisticated buildings to the Boston University campus and city of Boston,” said John Fish, chairman and CEO of Suffolk. “This iconic building is a striking addition to the Boston skyline and a tribute to the leadership and prestige of Boston University, the world- class stature of the city of Boston, the importance of sustainable design and construction, and the future of research and education.” The facility itself is designed with
intellectual collaboration in mind, featuring an all-glass interior that creates transparency and invites light deep into the building. The unique design of the structure, which is composed of a series of floorplates shifted and cantilevered around the building’s central core, creates a vertically stacked and staggered layout of “neighborhoods” for each academic discipline. The Boston University Center for Computing & Data Sciences building is the first of its kind on the school’s campus and in the City of Boston. This unique, complex and sustainable building is one hundred percent fossil fuel free due to a geothermal bore system installed by Suffolk. The Suffolk team drilled and installed 31 bores, each approximately 1,500 feet deep into the earth, or approximately twice as deep as the tallest structure in Boston is high. The bores harness the thermal resources of the earth to heat and cool the building without the need to connect to a gas line, putting Boston University ahead of schedule for Carbon Free Boston, the city’s 2050 carbon neutrality goal. The new facility also features triple- glazed windows that help contain heat
inside the building, beautifully designed staircases that reduce elevator use and promote energy reduction, and terraces and green roofs that offer stunning views and reduce the urban heat island effect. The new building will be home to Boston University’s Faculty of Computing & Data Sciences interdisciplinary academic unit, as well as a number of other departments and faculty members from throughout the University. Suffolk is a national enterprise that invests, innovates, and builds. Suffolk is an end-to-end business that provides value throughout the entire project lifecycle by leveraging its core construction management services with vertical service lines that include real estate capital investment, design, self-perform construction services, technology start- up investment and innovation research/ development. Suffolk is a national company with $5.0 billion in annual revenue, 2,500 employees and main offices in Boston, New York, Miami, West Palm Beach, Tampa, Estero, Dallas, Los Angeles, San Francisco, and San Diego.
or won’t pay in a timely manner, move into new geographical markets or client sectors, and ramp up your pipeline of job candidates. This allows the firm to be more profitable and the owners to make more money and build a much more valuable firm because it is growing rapidly. “I have seen this ‘over-marketing’ strategy work in every type of AEC or environmental firm, as well as all manner of other businesses that serve proven large, mature markets. It can’t be used sporadically. It has to be employed consistently over many years.” You think this is an impossible fantasy? Think again. I have seen this “over-marketing” strategy work in every type of AEC or environmental firm, as well as all manner of other businesses that serve proven large, mature markets. It can’t be used sporadically. It has to be employed consistently over many years. And it takes faith and a higher risk tolerance than many professionals have. Mark Zweig is Zweig Group’s chairman and founder. Contact him at mzweig@zweiggroup.com.
MARK ZWEIG, from page 11
thousand a piece annually – a good living by most standards. They have an 80-day average collection period, close to a million dollar book value, and their firm, if they wanted to sell it, is worth about $2 million. Now I want to paint a picture of what one could do with this business. Let’s just say for the sake of discussion they kick up their marketing expenditures by 5 or 6 percent of NSR. This will allow them to do original research on specific client types, publish their research and get it out to specialized media as well as present it at industry conferences, mail 30 postcards annually, post original content three times a day on LinkedIn, implement a real CRM and do the training required to get everyone using it, hold an over-the-top open house at their office annually, participate in four major trade shows a year, and more. Let’s say they over-market like this for 10 years in a row. If they did, I would not be surprised if they had a 250-person company doing $40 million or more in NSR, growing by 20 plus percent annually with higher than average labor multipliers, making a 20 percent profit. It would not shock me if their principals were earning seven figures annually and their business was worth $40 million or more. My point is this: Consistently over-marketing will allow you to grow faster, raise fees, shed clients that are hard to deal with
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THE ZWEIG LETTER JANUARY 23, 2023, ISSUE 1473
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