THE PAST TWO YEARS HAVE BEEN FILLED WITH CHALLENGES and uncertainties for engineering firms. But looking ahead, the new 2022-2023 ACEC Executive Committee (ExCom) sees plenty of profitable industry potential.
Engineering firms are being presented with a variety of prospects, thanks in particular to the robust level of infrastructure funding that’s being generated by the Infrastructure Investment and Jobs Act (IIJA).
“The current business climate is a once-in-a-lifetime growth opportunity for engineering firms, and many ACEC member firms have already started to increase staffing in a variety of their market sectors in anticipation of higher levels of government and private sector spending on infrastructure,” says Vice Chair Thomas Cascino, vice president of transportation at AECOM.
The IIJA provides the industry with a chance to design and build projects that will be resilient and sustainable well into the future, says ExCom Chair Art Barrett, senior vice president of Gannett Fleming.
“The historic funding and language in the bill allow engineers to develop infrastructure projects which will enhance communities instead of isolating them,” Barrett notes.
The timing of the IIJA coincides with several states passing various forms of infrastructure funding increases over the past few years, says Treasurer and Vice Chair Daniel Larson, CEO of American Engineering Testing.
“The net result is a significant investment in our infrastructure,” Larson says.
With the significant amount of work coming out at both the federal and state levels of government, there’s a lot of competition for firms’ best teams, says Joe Fiordaliso, president of ACECNJ and president of the National Association of Engineering Council Executives (NAECE).
“Public and private market clients need to be cognizant of this competition and recognize that unless they have an attractive business climate, firms will take their A-teams elsewhere,” Fiordaliso says. “This reality opens the door for engineering firms and the ACEC federation to push for enhanced business practices and procurement policies that create a more favorable business climate for our firms.”
Greater demand for engineering and consulting services will allow firms “to hire and retain new staff, to increase and diversify professional service offerings, and to deliver projects using both traditional design-bid-build and alternative design-build and Construction Manager at Risk methods,” notes Vice Chair Gary Hartong, president of The Wooten Co.
Many markets are becoming more environmentally conscious, and that will also provide opportunities for the industry.
“They are tracking ESG, which is a system for how to measure the sustainability of a company or investment in three specific categories: environmental, social, and governance,” says ExCom Chair-Elect Jay Wolverton, executive vice president and chief growth officer at CHA Consulting.
Another growing market is renewable energy. “Renewable energy, often referred to as clean energy, comes from natural sources or processes that are constantly replenished,” Wolverton says. “Firms that are out in front of these initiatives should be positioned well for future growth.”
There’s a critical need for expertise to address complex problems in the world, and engineers are uniquely qualified to be the thought leaders in providing these solutions, says Immediate Past Chair Robin Greenleaf, CEO, Architectural Engineers, Inc., now IMEG.
“The engineering industry is poised for some of the most complex and futurelooking opportunities we have seen,” Greenleaf adds. “Climate change, resilience, sustainability, and the desire to achieve significant goals relating to net-zero energy and carbon reduction solutions will have impact across all of the built environment disciplines in engineering.”
There also is renewed interest in equitably rebuilding and enhancing infrastructure to improve mobility, according to Vice Chair John Rathke, principal at Mead & Hunt.
“Today’s technology enhances the accuracy in our designs through the creation of digital twins of our natural and built environments,” Rathke says. “This further provides an opportunity for firms to improve the nation’s buildings, infrastructure, water treatment and distribution systems, and energy production, providing a safe and sustainable future for all.”
Engineering firms can also make an impact on future generations by providing sustainable job opportunities and clearly defined career paths, says Vice Chair Ralph Guida, president of Guida Surveying.
He notes that “the past recessions and recent and anticipated attrition have created a vast need for young professionals to enter the A/E/C industry.” The infrastructure bill will create more roles to fill, Guida adds. “This is not just specific to transportation, but to improving our broadband infrastructure, climate change mitigation, electric vehicle chargers, and upgrades to water infrastructure.”
Engineering firms are uniquely qualified to serve as innovative leaders. “Beyond infrastructure rebuilding, over the next 20 years our talents will be essential in understanding how infrastructure and our communities can be more resilient to the effects of climate change,” says Vice Chair Janice Marsters, senior principal at Haley & Aldrich. “It’s an opportunity for engineers to bring our critical thinking skills to a complex and multidisciplinary problem. These issues have already begun to inform how and what we design, in addition to spawning unique projects to address critical situations.”
ExCom members have various opinions on what will be the hottest new markets for engineering.
The COVID-19 pandemic will continue to drive improvements to existing buildings as air quality and social distancing needs remain a concern—and as companies rethink the role of the office. “With the disruption that COVID has caused to our everyday way of life, there may be a big need to repurpose existing and future buildings to keep occupants safe,” says Senior Vice Chair Melvin Williams, senior client development manager and vice president at Terracon.
Fiordaliso notes that the IIJA represents a historic level of investment not only in roads, bridges and transit, but also in broadband and water.
“The amount of formula funding New Jersey is slated to receive on the water side—for drinking water system upgrades, lead pipe replacement, and more—will have a transformative impact on New Jersey communities but also create significant new opportunities for A/E firms,” Fiordaliso says.
Although infrastructure such as highways, streets, airports, bridges, and water treatment and distribution is not a new market, “the increased emphasis makes this a hot market when combined with sensing technology, data analytics, and artificial intelligence,” Rathke says, adding that a firm’s ability to attract and develop professionals with skills in these areas is critical to fully leveraging advanced technology to improve planning, design, and construction.
Hartong points out that with continued aging of buried infrastructure and the increased competition for federal and state funding, the need for utility system owners to engage in active asset management will become increasingly important. “System owners need to understand where available funding should be prioritized to continue providing reliable customer service.”
Engineering firms “have ample opportunities to assist their client owners with enhanced data gathering, in-depth assessments, and making necessary operational adjustments,” he says.
Over the next few years, most traditional markets that engineering firms serve will be hotter than the past few years by all indications, Cascino says. “However, we see a particular increase on the horizon for engineering services to support green energy projects such as offshore wind development, installation of large-scale solar arrays, and electric vehicle charging stations, which will also increase the need to upgrade our overall electrical grid infrastructure.”
Williams mentions that with the growing popularity of electric vehicles, “there may be a great need to develop associated infrastructure such as battery plants and charging stations.”
Energy “is serving as the nexus between so many different sectors and continues to evolve rapidly,” Barrett says. “The world is grappling with the issues of sustainable energy sources, zero-carbon footprints, and microgrids, just to name a few, and the energy market is drawing upon traditional and new disciplines of engineering together to find solutions.”
Not only is the reduction of greenhouse gases and conservation of natural resources necessary, “it’s the right thing to do,” Larson says. “In this regard, the global warming discussion is acting as an accelerator for innovation in how we build, repair, and maintain our physical infrastructure. Engineering firms are uniquely situated to lead this effort, whether it’s utilizing low-carbon construction materials in a new roadway or renovating an office building to reduce its carbon footprint.”
In some cases, the hot markets are not so much new as redefined, Guida says. “For example, electric vehicle stations in addition to or instead of gas stations, the potential for vehicle miles traveled to replace the gas tax, and the use of unmanned aerial vehicles for mapping areas,” he says.
The private sector building market is also expected to continue along a path of strong growth, “as there appears to be greater interest in returning to urban centers post-pandemic,” Cascino says. “Of course, the infrastructure needed to support all of these growth areas will also require the modernization and rehabilitation of our many ports, railways, airports, sewer/water systems, dams, highways, and bridges.”
During a time rife with possibility, it’s important for A/E/C firms to keep the big picture in mind. “The greatest opportunity for our industry is to deliver the projects being funded by the IIJA,” Wolverton says. “Our entire society will be watching to make sure these dollars truly build back our nation’s infrastructure—both in a timely manner as well as getting the most out of every dollar funded.”
Reflecting on the opportunities that lie ahead, ACEC President and CEO Linda Bauer Darr says the views of the new ACEC Executive Committee accurately reflect an industry-wide optimism for the future, especially considering recent times.
“We have a ton of business acumen and practice expertise on the new ExCom,” she says. “This not only positions the Council to take advantage of opportunities from the increased investments, but also in opportunities to further enhance industry best practices and the regulatory environment for our members.”
Bob Violino is a business and technology writer based in Massapequa Park, New York.