Engineering Inc. - September/October 2008 - 32

busINEss INsIGhts fRom ACEC’s INstItutE foR busINEss mANAGEmENt Trends survey reveals IndusTry Challenges; MakIng The Case for susTaInable engIneerIng Competition, higher standards of Care Join engineer shortage atop list of Industry Concerns Increased competition throughout the marketplace and higher standards of care were among the top practice challenges cited by engineers in preliminary findings from the American Council of Engineering Companies’ (ACEC’s) 2008–2009 Design and Construction Industry Trends Survey. For a second straight year, respondents also voiced concerns about a worsening engineer shortage—a problem many firms say makes it difficult to replenish employee ranks in light of massive baby boomer retirements. The annual survey, which includes statistics and trends for business performance and markets as reported by more than 200 ACEC Member Firms, sheds light on a range of industry-related topics: strategic planning, the outsourcing of business functions, and training and leadership, among other concerns. strategic Planning Fifty-two percent of firms that responded to the survey reported having strategic plans in place that look forward an average of 4.1 years. Nearly all firms (96 percent) with 200 employees or more reported having strategic plans. Small firms, however, were significantly less likely to have such plans. Just 64 percent of firms with 20 employees or fewer that responded to the survey had a strategic plan. outsourcing As competition heats up across the industry, many firms have taken to outsourcing certain business functions, freeing up time and resources to focus on client needs and areas of expertise. Key outsourced staff functions as reported by engineering firms that responded to the survey included: Payroll 38% Information Technology 32% Accounting 17% Design 4% Other 8% Training The No. 1 training need cited by firms of all sizes, regions and market concentrations was project management and project delivery. Smaller firms said technical, health and safety training was second in importance, while larger firms cited leadership and ethics as second and contracts and risk management as third. The complete survey will be published Oct.15. To place your order now, go to the ACEC Bookstore at store.acec.org. 32 ENGINEERING INC. sEptEmbER / oCtobER 2008 The business Case for sustainable engineering Over the past decade, the notion that our current economic development model is not sustainable has moved from extremist thinking into mainstream opinion. Driven largely by perceived symptoms of global climate change, the public is beginning to question broadly the current assumptions and approaches for our nation’s economic growth and prosperity. Making our development sustainable while maintaining and improving our quality of life is the critical engineering challenge of the 21st century, says Bill Wallace, founder and president of Wallace Futures Group. Taken to its fullest extent, achieving sustainability will require a complete overhaul of our facilities and infrastructure, incrementally replacing legacy materials, processes, systems and structures with those that contribute to a cleaner, more efficient means of operation. These replacements must use less resources than their predecessors and have a net positive impact on the environment and society. Regardless of a firm’s size or the markets it serves, business will be affected by this move toward sustainable performance. According to Wallace, here are some ways firms must change to succeed in a sustainable world: n Reframe the conversation about sustainable development. Simply telling clients they need to adopt sustainability principles won’t work. Firms must demonstrate how the lack of sustainability is seriously affecting operations and how becoming more sustainable will improve performance. n Move up the client’s project “food chain.” Waiting for the RFP is no longer a viable business development option. Savvy firms must successfully translate sustainability problems and issues into client needs and discuss them at high levels within clients’ organizations. n Develop tools and techniques for sustainable design. Improving sustainable performance means applying principles of life cycle assessment, sustainability audits and assessments, environmental and carbon footprinting, context-sensitive design for transportation, use of natural systems for water and wastewater management, whole systems design and more. Wallace will lead a course on sustainable engineering at ACEC’s upcoming Fall Conference in Montréal. n The ACEC Institute for Business Management provides comprehensive and accessible business management education for engineering company principals and their staffs. Visit http://www.acec.org/calendar/eventList.cfm for a complete listing of ACEC programs.

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Engineering Inc. - September/October 2008

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