Issue link: https://industrialmanagement.epubxp.com/i/249982
Positioning for the future BY PETER GROSE EXECUTIVE SUMMARY Coming out of the Great Recession, businesses, particularly those involved in architectural and engineering services, need to rethink how they deal with both clients and employees. Seeking nontraditional sources of funding for projects, adding value in creative ways and transitioning younger staff members into valued contributors can move your company into a successful future. Recent years have been tough on many enterprises. The architectural and engineering industry suffered more than most during the Great Recession, and the slow (some would say excruciatingly slow) rate of economic recovery has many leaders scratching their heads and wondering when true economic growth will arrive. The bad news is that the economy seems to be in a holding pattern of sorts. While businesses in other industries are enjoying unprecedented profits, many architectural and engineering companies are still suffering from inertia. There are a number of reasons for this disconnect, but one of the biggest is that aside from the initial economic stimulus 28 Industrial Management of 2009, the federal government has not increased spending significantly, including appropriations for infrastructure. Likewise, many states are cutting back on infrastructure and related spending as state income and real estate tax bases continue to shrink. For corporations that rely largely or solely on public work, these developments have affected their bottom lines in a serious way. While the economy seems to be taking its sweet time to recover fully, it is growing. And architectural and engineering enterprises are sharing in that growth. According to a recent survey, the industry's top corporations enjoyed 6.6 percent revenue growth in 2012 (the latest year for which revenue Many companies are still suffering from inertia. data is available). Sure, that level of growth is modest, but it's a significant improvement over the disastrous economy businesses had to endure over the past few years. Obviously, challenges remain. Executives must figure out how to be among the leaders who are growing in this economy. For many, the answer can be found in rethinking how they serve their clients and how they manage their organizations. The slow pace of recovery dictates that leaders continue to promote the efficiencies and creativity that helped their enterprises survive the downturn. Still a buyer's market A recession always turns the economic