Q&A talks about engineering firm’s increasing workload and workforce issues with Paul W. Brady, executive director of the American Council of Engineering Companies of CT.
Q: It seems like civil engineering firms are enjoying a steady uptick in business. Is that true? What’s behind the increased workload?
A: This is true both in Connecticut and nationwide. In the short term, the economic recovery is reflected in a better climate for businesses to build new facilities. Government agencies see a modest growth in tax revenues that can support starting projects that were on hold during the recession.
Looking at the longer perspective, our infrastructure (roads, bridges, sewer systems, electrical transmission grids, etc.) are in dire need of repair, replacement or upgrade. In many cases these assets have reached the point where it’s less expensive to build new structures than trying to patch the old.
According to TRIP, a national transportation research group, “Roads and bridges that are deficient, congested or lack desirable safety features cost Connecticut motorists a total of $4.2 billion statewide annually — as much as $1,900 per driver in some areas — due to higher vehicle operating costs, traffic crashes and congestion-related delays.” But the most important measure is safety. Approximately 10 percent of bridges in the state are structurally deficient (significant deterioration of the bridge deck, support structure or other major components).
And we have to rebuild much of our infrastructure to foster our economic growth. If we want to move goods efficiently and attract the best employees to Connecticut, we need a transportation system that is competitive in the 21st century.
Q: How would you assess competition within the industry for the available projects? Are many firms chasing after the same job, and if so how is that impacting project bidding?
A: There is still strong competition for projects by both design firms and construction firms. The industry became very lean during the recession and owners are still getting excellent value on projects.
Smart owners don’t select engineering and other design professionals by low bid. They use a qualifications-based selection process. That process may mean spending a bit more in design, but the owner saves much more on construction, operation and maintenance. However, smart owners still make firms sharpen their pencils when negotiating a scope of service and price.
Q: Most people would consider more work a good thing. What might be a problem associated with it?
A: I think the biggest problem is finding qualified staff. There is a nationwide shortage of engineers in all disciplines. Engineers can do well in any number of other professions. When the industry contracts in a recession, engineers frequently migrate to other parts of the country and other professions like finance and law. When the industry rebounds, finding experienced engineers is a problem.
Q: How does the industry deal with the workforce shortage, both in the short and long term?
In the short term, firms will have to pay more to attract qualified engineers from other parts of the country and the world. That will drive engineering fees higher. In the long term, we will have to attract more young people to the engineering profession. Engineers are among the most well-paid graduates with a bachelor’s degree, but engineering students have to study much harder than their peers. And we have to attract more women and minorities into the profession (and keep them from being pilfered by other industries).
Q: Are there any key legislative issues the engineering industry is involved in?
A: Our top legislative priority this year is supporting Gov. Malloy’s transportation initiative. It’s a bold plan that will mean tremendous growth for many of our members over a generation. The state Department of Transportation itself will also see growth in planning and managing these projects.
