Archive for the ‘Marketing’ Category

California Market Trends from The 2011-2012 AEC Market Guide to California

Wednesday, August 10th, 2011

For better or worse, California tends to lead the nation in nearly every fad, fashion and trend. This is true for our culture, but it is also true for our industry. With this in mind, The 2011-2012 AEC Market Guide to California begins with a look at some of the top trends in the California design and construction industry and among AEC firms doing business in the state. Here’s a glimpse at three of the trends analyzed in the book.

Integrated Project Delivery (IPD)

California is the birthplace of Integrated Project Delivery (IPD) in the U.S., but other than a few projects from devotees of the approach, it hasn’t really taken off here (or elsewhere in the country, for that matter).  What’s the true potential of this innovative approach to project delivery in California? We speak with owners who have used IPD and owners who have considered it and chosen a more traditional approach, providing you with first-hand advice and a better understanding of how IPD may or may not affect your firm and the projects you do.

Public-Private Partnerships (P3s)

Public-private partnership (P3) advocates are quick to point out that the practice has been a project delivery tool for centuries across the country and the globe. This may be true, but P3s often require owners, designers, contractors and everyone else on the project team to hold a different mindset and take a different approach in carrying out their roles on the project. P3 supporters also argue that these cooperative arrangements are a creative way to finance and successfully complete projects that might otherwise be delayed or abandoned, and that they will be a growing piece of the AEC landscape in the coming years. We research P3 projects and interview stakeholders to determine the outlook for P3s in California, as well as the most promising market sectors for this delivery system and what AEC firms can do to prepare for changes that P3s may potentially bring to their business.

Social Media Marketing

Social media marketing is a recent phenomenon, but one that is accepted and frequently applied in many business areas. For the AEC industry, however, the move toward social media marketing has been slow. This may be with good reason – if the audience for an AEC firm isn’t Tweeting or conversing via LinkedIn groups, why should that firm waste time with these new media? Or has the industry finally reached the point that Twitter, LinkedIn, Facebook and possibly even Google+ are as necessary an AEC firm marketing tool as a web site (or a phone number!)? Given the state’s status as the technological leader in the U.S., social media marketing is a growing factor in the California AEC market. In this section, we detail the who, why and how of social media marketing for AEC firms, and offer suggestions for getting into the social media game or ramping up your existing efforts. We also look at some business applications of social media that go beyond marketing and PR.

These are three of the topics addressed in-depth in The 2011-2012 Market Guide to California, published by The JAGG Group. You’ll also read about the potential uses of cloud computing, innovative project financing mechanisms, legislative issues affecting the industry and other trends in the California AEC markets.

This comprehensive research report also provides AEC firms with valuable strategic business planning guidance, including the short- and long-term outlook for major market sectors; information on the most prominent owners, projects and competitors; key resources and links, and much more. Satisfaction is guaranteed. The book will be available in late August.

Highway Trust Fund reauthorization in limbo

Tuesday, January 5th, 2010

On December 19, President Obama signed a third extension of the Highway Trust Fund legislation that would otherwise have expired on September 30, 2009. The latest extension is through February 2010.

This is the same exercise the legislative and executive branches go through every time federal surface transportation funding comes up for reauthorization. That we’re used to it now doesn’t make it any less painful or troublesome to the industry.

In my recent report, PSMJ’s 2010 AEC Firm U.S. Market Sector Forecast, I noted in the chapter entitled “10 Issues Likely to Affect Your Firm in 2010” that the reauthorization issue was also on the list in the 2009 edition, adding, “[Let’s] hope it doesn’t make the list next year as well.”

Here is an excerpt from that section of the PSMJ Forecast:

[Last fall,] Rep. James Oberstar (D-Minnesota) attempted to pass a $500 billion, six-year transportation plan that was eventually set aside amid the health care and climate change debates.

[Immediate Past President of the American Society of Civil Engineers (ASCE)] Wayne Klotz says the reauthorization issue is critical for firms across the industry, even those not in transportation, as its effects reverberate throughout the AEC professions.

“If they let the legislation expire and pass a continuing resolution, as they did at the end of the last bill, people will lose their jobs all around the country,” says Klotz. “It happened last time. That’s why we’re making such a strong push to get this done.”

A lack of authorizing legislation could handcuff departments of transportation, forcing them to delay work on large, long-term projects. “Under our own state laws, DOTs can’t commit to a project unless they can show a revenue stream to fund it,” Klotz says.

The length of the delay will make a big difference in its impact on the industry, Klotz adds. “If they negotiate and can come up with something in March or April, that’s one thing,” he says. “But if it gets tied up in mid-term elections and shoved out until 2011, that’s a horse of a different color.”

Which is it going to be? Klotz says he has no idea. But, he says, the industry can’t even maintain the current, insufficient level of activity without a transportation funding mechanism in place.

Predictably, other AEC industry organizations are lining up to support passage of the new legislation. In a position paper, the American Council of Engineering Companies (ACEC) (Washington, DC) says, “While ACEC supported the investments for transportation in the American Recovery and Reinvestment Act, that funding has largely been directed to simple resurfacing projects, and much more needs to be done to address the serious backlog of more significant improvement projects.”

ACEC says that a new surface transportation bill, with dramatically increased multi-year funding guarantees, is necessary to allow states to invest in major design and construction projects.

The group cites a National Surface Transportation Policy and Revenue Study that says a minimum $225 billion in annual investment from all sources (including federal, state and local) for the next 50 years is necessary to upgrade existing systems to a state of good repair and create a more advanced surface transportation system. “The U.S. currently invests $85 billion annually from all levels of government, less than 40 percent of what is necessary,” ACEC says.

Oberstar’s bill would be a step in the right direction, but it won’t be an easy fight. For the transportation industry’s sake, we hope it won’t be a long one either.

“Selection Success!” should have a spot in your AEC firm library

Tuesday, September 8th, 2009

“Selection Success!” by Lori Stanley and Hilari Weinstein, is a thorough primer on the science and art of winning a qualifications-based selection (QBS) process. As with many of the “how-to” books you’ll find in our industry, the book offers its highest value to the novice, walking the reader through the fundamentals of submitting a statement of qualifications (SOQ), preparing and delivering a presentation, and shining in the interview. Yet, it also provides sparks of ideas and inspiration for even AEC firm veterans.

The authors, as expected, are industry veterans themselves. Stanley spent nearly two decades in the contracts administration section for the City of Phoenix prior to beginning her own consulting company, Selection Solutions Consulting. Weinstein, the principal of High Impact Consulting, is a speaking and presentation coach who writes for Southwest Construction magazine and serves on the American Council of Engineering Companies’ Leadership in Engineering Administration Program.

Writing in “Selection Success!” is crisp, clean and to the point. The authors also provide a useful notes section at the end of each chapter.

The book delivers solid advice on the go/no-go process…in particular, discouraging firms from submitting when they aren’t qualified to do so. It also offers excellent recommendations on how to develop a winning SOQ. A highlight in this section is the suggestion to use matrices to illustrate qualifications, both project and personnel, in the SOQ text.

A few things that may have added to the value in these areas — a more in-depth look at how different industry firms arrive at go/no-go decisions and a discussion of the distinction between requests for qualifications and requests for proposals.

The chapters on visual aids, rehearsing and presentation delivery are the sweet spot of “Selection Success!” In these three chapters, the authors’ true expertise comes out. Stanley and Weinstein impart concrete tips, in rapid fire, that range from the simple things we know but often forget to time-tested secrets of the speaking/presenting trade (e.g., control the audience’s gaze, keep an open stance).

I also like the way the book spends considerable time discussing the need to rehearse for presentations, debunking the usual excuses that team members consistently employ — excuses many of us have used.

A personal presentation pet peeve that isn’t addressed head-on in “Selection Success!” is the tendency of firms to rely on technological tools over strong content in presentations. I’m reminded of a recent municipal project in which the owner brought in all six applicants to present. The winning firm was the only one that didn’t use PowerPoint slides.

But that is nitpicking. “Selection Success!” should be in the libraries of most AEC firms, bottom line. You can find it on amazon.com and barnesandnoble.com. Published by Mill City Press, it is also available at www.selectionsuccess.com and lists for $44.95.