Engineering Inc. - September/October 2007 - 44

OnE On OnE DPC Chairman Discusses the Engineer Shortage, Green Infrastructure and Political Responsibility I-35 bridge collapse, although a tremendous tragedy, nonetheless will increase the public awareness and political will to fund transportation infrastructure needs. The 3 percent withholding mandate is a current example of over-regulation. We also have had issues with government competition in the private sector, anti-outsourcing of private-sector work and various set-aside programs that do not allow all firms to compete for work. would withhold 3 percent of our fees only to pay it back, sometimes up to 15 months after the withholding. A. Q. Terry Neimeyer is chairman and CEO of KCI Technologies, Inc. and chairman of the Design Professionals Coalition (DPC). Q. What do you see as the major market challenges facing engineering companies today? A. Another major issue affecting the industry is the shortage of engineering talent. How has your firm confronted this challenge, in terms of both attracting new employees and employee retention? We’re seeing it happen more on the public schools and building side of our business. The private-sector site planning business has not caught the “green bug” yet. As counties and municipalities require their own buildings to be green and pass local tax laws incentivizing green construction, we expect to see more. Finding new people is a major challenge. Most of our firms have ample workload but have been unable to fill key positions (especially with experience) to do the work. A second challenge is retaining the key staff you have. Also, we need to refill the pipeline of engineering and science professionals as quickly as we can by letting people know how cool it is to be smart in math and sciences. Q. A. Q. As someone who’s very active with ACEC, including your service as the head of the Council’s large firm coalition—the Design Professionals Coalition—what do you see as the major public policy issues affecting our members today? As you know, one of ACEC’s major advocacy priorities right now is the repeal of the 3 percent withholding mandate on government contracts, which will affect any firm that does work for federal, state and even some local clients. While this withholding will be especially damaging to small firms whose cash flow could be wiped out, how do you view the impact on larger firms? A. A. The major issues always revolve around funding, for all types of infrastructure projects (transportation, water, wastewater, energy, et cetera) and over-regulation. The recent 44 EnGInEERInG InC. First, we would like to thank ACEC for taking a leadership position on this mandate. The larger firms also will have cash flow issues and in essence will be providing the government with a free short-term loan. My company is an S-corporation, which only pays taxes on the ownerlevel and not at the corporate level. Since we pay no taxes as a corporation, the government Talent attraction begins with a competitive salary and benefits package but requires a new and higher level of recruiting. Getting interns in their sophomore year (earlier than before) and offering fully paid tuition for the senior year of college is one technique we have used to enhance our recruiting. We find that providing them offers before they interview also is helpful. On retention, again, competitive salary and benefits are a minimum. We also send our people to ACEC’s Institute for Business Management education courses for important training on the business side of consulting. Q. You’re also very active politically, personally and by encouraging members of your firm to get involved. How important is it for firms to become political players in today’s business environment? A. Q. KCI recently announced a move into a new “green” headquarters building. To what extent is green infrastructure making its way into KCI’s various business lines? We have a duty and obligation to inform our political leaders about infrastructure needs and engineering solutions. Without our involvement, they are operating “in the blind” when making their decisions. In my own state, legislators might expand the state sales tax to include engineering services. With active involvement, you open up communication and assure that your views will be considered before a decision is made. If you haven’t responded to an ACEC Action Alert in the past six months, you are neglecting what I believe is your duty to yourself, your firm and your profession. n SEPTEMBER / OCTOBER 2007
Engineering Inc. - September/October 2007

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