SlideShare a Scribd company logo
PAST, PRESENT, AND FUTURE ANALYSIS OF THE ARCHITECTURAL &
ENGINEERING DESIGN INDUSTRY
Prepared By:
William J. McConnell, J.D., P.E.
Chief Executive Officer
The Vertex Companies, Inc.
July 2016
P a g e | 2
VERTEX
Table of Contents
I. Executive Summary 3
II. Design Marketplace 4
III. Overall Industry Growth 4
IV. International Growth 5
V. Market Consolidation 7
VI. Employee OwnedAEC Firms 8
VII. Lifecycles of the Largest AEC Firms in the US over the past 50 Years 8
A. 24 Surviving Firms 11
B. 35 Firms that were Acquired 12
C. 41 Firms that Failed 12
VIII. Design Sector Growth 12
IX. Impact to Design Firms due to the Market Shift in the Hazardous Waste Industry during the 1990s 14
X. Technological Advances that AEC Firms Must Embrace to be Competitive in the Near Future 20
A. AEC Firms will Realize Additional Benefits of BIM 21
B. Use of Unmanned Aerial Vehicles(UAVs) to Capture Existing Conditions 21
C. Use of Laser Scanning to Capture Existing Conditions 22
D. Virtual and Augmented Reality 22
E. BIMProcesses Will Revolutionize Building DeliveryVia Prefabrication 23
F. Improved Energy Performance Modeling 23
G. Cloud Based Data Storage Will Improve Collaboration 24
H. 3D-Printed Architectural Models 24
I. Use of Composites in Construction 25
XI. Conclusions 25
P a g e | 3
VERTEX
I. Executive Summary
Thisreportprovidesamacro view of the architectural andengineeringdesignindustryinthe
U.S. inorder to understandstrategiesemployedbybothsuccessful andunsuccessfulfirmsoverthe past
50 years.It alsoevaluatestechnological trendsthatdesignfirmsmustembrace inordertomaintaina
competitiveedge movingforwardintothe future.
The majorityof the top20 designfirmsare publiclytradedandlooktoM&A activityto maintain
robustgrowthprograms. Largerfirmsoverthe past50 years that have ignoredstrategicM&A activity
have steadilyfallendownoroff ENR’stopdesignfirmlist.Lackof M&A oftenleadstoan
overconcentrationof workinfew marketsectors.Because marketsectorsebbandflow overtime,alack
of diversificationcausedseveral failuresof large designfirmssince 1965. Anoverconcentrationinoil and
gas workin the 1970s ledtomany failuresinthe 1980s. Similarly,anoverweighedfocusonhazardous
waste workin the 1980s andearly1990s ledto a numberof large bankruptciesandfire salesinthe late
1990s and early2000s. Thus,a keylessonfromthisstudyisthe importance of marketdiversification.
Overthe past twentyyearsthe growthof the top500 architectural andengineeringdesignfirms
has outpacedthe U.S. GrossDomesticProductby nearlytwopercentage pointsinlarge partbecause of
rapidgrowthin internationalwork.The average percentageof international revenue forthe top20
designfirmshasdoubledoverthe pasttwentyyears,from14% to 28%; thus,the large firmsmustnot
ignore international marketstomaintaincompetitiveness.
In additiontodiversificationandinternational expansion,designfirmsmustembrace
technological advancesinordertopositionforfuture work.Forinstance,BIMsoftware isutilizedon
nearlyall large designprojectsto,amongotherthings,coordinate the workof varioustrades—ignoring
thistrendis almosta bar to qualificationforlarge-scale work.Newertrends,suchasthe use of drones
and laserscanningtocapture existingconditions,cloudbasedstorage forimprovedcollaboration, and
3D-Printingtoprepare earlyarchitectural models,mustbe embracedtokeeponthe forefrontof market
P a g e | 4
VERTEX
adoption.Inaddition,architectsandengineersmustunderstandthe use of new productofferings,such
as compositestokeepdesignseconomicallyviable andawe-inspiring.
II. DesignMarketplace
The architectural and engineeringdesignmarketplace ismade upof approximately100,000
firms,butthe majorityof the industry’srevenueisgeneratedfromthe top500 companies.1 2
Like
construction,the overall designindustryisfragmented—onlytenpercentof all firmshave more than20
employees.3
Thispaperfocusesonthe largerdesignfirms,whichtraditionallyfall intoone of the
followingfive categories:
AEC: architect,engineering,andconstructioncompany
AE: architectand engineeringcompany
EC: engineeringandconstructioncompany
A: architectural company
E: engineeringcompany
Of the top20 rankedfirms,9 are EC, 5 are AEC,4 are AE,1 is A,and 1 isE; hence,the majorityof
top designfirmsalsohave aconstructioncomponent.Inaddition,the onlypure engineeringfirm(“E”) is
Tetra Tech,and it wascategorizedasan EC firmuntil lastyearwhenit droppeditsconstruction
program,whichis a trendthat I will discusslaterinthisreport.The revenue recordedbyENR,the
publicationthatranksthe top 500 designfirmseachyear,doesnotinclude constructionrevenue;thus,
the rankingispurelybasedondesignservices.
III. Overall Industry Growth
Domesticdesignrevenue forthe top500 designfirmsoutpacedboththe U.S.GDP and put-in-
place constructionrevenue overthe pasttwentyyears,withanaverage annual growthrate of 5.3%.
1
https://www.census.gov/epcd/susb/2002/us/US5413.HTM
2
https://research.stlouisfed.org/fred2/series/REV5413TAXABL157QNSA
3
https://www.census.gov/epcd/susb/2002/us/US5413.HTM#table1
P a g e | 5
VERTEX
International designrevenueforthe top500 designcompaniesgrew ata healthy9.8% withinthe noted
time frame.Combined, domesticandinternational designrevenuegrew atan annual rate of 6.1%.
Annual Growth
Category Rate (’95 – ’15)
Top 500 DomesticDesignRevenue: 5.3%
Top 500 InternationalDesignRevenue: 9.8%
Top 500 DesignRevenue(Domestic&International): 6.1%
US GDP4
: 4.4%
Put InPlace Construction(domestic) 5
: 3.6%
Overall designrevenueoutpacedconstructionrevenue andGDPfiguresfortworeasons.First,
the constructionandGDP figuresdonotinclude internationalexpenditures,which, asnotedabove,are
outpacingdomesticwork.Second,duringthe GreatRecessionof 2007-2009, manyownerscontinuedto
authorize designworkand,once complete,projectswereshelved,whichcausedagreatimpactto
overall constructionrevenue.Asaresult, the downturndidnotaffectdesignfirmsasseverelyas
contractors.
IV. International Growth
Large designfirmsmustlooktointernationalworktomaintaintheirpositionasa topplayerin
the marketplace.Onaverage,the top20 designfirmsgenerateone thirdof revenue frominternational
projects.Intermsof overall figuresfromthe top500 designers,international workpercentage has
doubledfrom14.6% in1995 to 28.3% in2015. The figuressuggestthatlarge AECfirmscan no longer
ignore the internationalmarketplace asasource of growth.
4
http://www.bea.gov/newsreleases/national/gdp/2016/gdp4q15_3rd.htm
5
https://www.census.gov/construction/c30/c30index.html
P a g e | 6
VERTEX
Domestic Int’l Overall % Int’l
Year Revenue Revenue Revenue Revenue
1995 $23,860 $4,090 $27,950 14.6%
2000 $33,200 $7,800 $41,000 19.0%
2005 $42,100 $10,900 $53,000 20.6%
2010 $59,200 $20,800 $80,000 26.0%
2015 $66,200 $26,100 $92,300 28.3%
Accordingto industryexperts,the future of internationalworkismore aboutcitiesthan
countriesdue tourbanizationandsustainablelivingtrends.The EconomistIntelligence Unit’sreport
titled“HotSpots:BenchmarkingGlobal CityCompetitiveness,”notesthatcompaniesshouldtargetcities
that have highrankingsinthe followingeightindicatorcategories:6
1. EconomicStrength
2. Human Capital
3. InstitutionalEffectiveness
4. Financial Maturity
5. Global Appeal
6. Physical Capital
7. EnvironmentandNatural Hazards,and
6
http://abyssglobal.com
P a g e | 7
VERTEX
8. Social and Cultural Character
Reportedly,citieswiththe highestcombinedrankings,basedonthe notedmetrics,provide sufficient
infrastructure andwork/life environmentfor“people toconducttheirlivesandbusinesseffectively.”7
V. Market Consolidation
Many of the large designfirmsrelyuponacquisitionsasthe primarymeansof growthforseveral
reasons.First,annual organicgrowthforlarge companiesistypicallylimitedtolow single digits,whichis
consideredtooslow bymostlarge companies.Second,manyof the topdesignfirmsare publiclytraded,
whichisunlike the topconstructioncompanies.Publiclytradedcompanieshave addedpressure togrow
and are valuedatmuch highermultiplesthanprivatelyheldfirms.Specifically,12of the top 20 AEC
firmsare publicandthe majorityof firmshave a P/E ratiointhe 15 to 20 range.Meanwhile,accordingly
to FMI, privatelyheldfirmsare typicallyvaluedatamultiple of 3 to 6 timesearnings.Hence,public
companiesoftenacquire privatecompaniesformuchlowermultiples,andwhenthe acquiredfirm’s
earningsare postedina publicsetting,the value doubles,if nottriples.Thisdifference invaluation
betweenpublicandprivate marketsdrivesdealflow.
As a resultof thisarbitrage,the marketshare of the top10 designfirms,inrelationtothe top
500 designfirmrevenue,continuestogrow.Infact, the top 10 designfirmshave a50.0% marketshare,
whichisup from30.2% in 1995. Companieslike AECOM,Jacobs,AMEC,TetraTech, Arcadis,andothers
continue togobble upmiddle marketplayers.
MarketShare of
Year the Top10 AECFirms
1995 30.2%
2000 40.5%
2005 44.2%
2010 50.4%
2015 50.0%
7
Id.
P a g e | 8
VERTEX
VI. Employee OwnedAEC Firms
As notedabove,the 12 of the top 20 designfirmsare publiclytraded.Of the remaining8firms,
7 are 100% employee owned.The onlyexceptiontothismodel inthe top20 listisBechtel,whichis
ownedbythe Bechtel familyandvariousinternallyelectedemployees;Bechtel isthe fifthlargest
privatelyheldcompanyinthe US.8
Basedonmy review of the ownershipmodel of the top100 design
firms,the mosteffectiveownershipstrategies,inordertopositionadesignfirmforgrowth,isthe public
marketplace or100% employeeownership.The publicmodeloffershighvaluationmultipleswhich
promotesgrowththroughacquisition,while the employee ownershipmodel providesdesignteamswith
additional motivationtogrow the businessinordertoincrease corporate valuation.
VII. Lifecyclesof the Largest AEC Firms in the US over the past 50 Years
Of the top100 designfirmsreportedbyENRin1965, 24 survived,35were acquired,and41
failed.Thisdataissimilar,butsurprisinglyabitbleaker,thanmyanalysisof the top100 contractors
listedbyENRin 1965 where 26 survived,41 were acquired,and33 failed.
Survived Acquired Failed
CurrentStatusof Top 100 DesignFirmsfrom1965: 24 35 41
CurrentStatusof Top 100 Contractors from1965: 26 41 33
While more designfirmsfailedwhencomparedtocontractors,the successrate of acquisitions
of designfirmsisconsiderablyhigherthanthe successrate of contractors. The vast majorityof the 35
designfirmacquisitionsweresuccessful,whileoverhalf of the 41 contractor acquisitionsfailedduring
the notedtime period.
Anotherinterestingfactisthatonly3 of the 8 survivingdesignfirmsthatwere listedinthe top
25 in 1965 remaininthe top 25 in2015. The five firmsthatslippedoutof the top25 made minimal, if
any,acquisitionsoverthe past50 years.Thissuggeststhatan acquisitionstrategyisnecessarytokeep
8
http://www.forbes.com/companies/bechtel/
P a g e | 9
VERTEX
pace (orabove) withthe industry. Designfirmsthatlackthe personnel, capital,and/oranappetite for
risk(vis-a-visM&A transactions) oftenfall downthe topdesignerlistovertime.A seeminglygoodexit
strategyfor large designfirmsthatfall intothiscategoryistobe acquiredbya large and diverse design
firm.
As notedinthe “Lifecycle of ConstructionContractors”study,anumberof AECfirmshave
startedto acquire pure contractors.The converse isnottrue—onlyone pure contractortriggereda
mergerwitha large architectural firm(The BeckGroup’smergerwithUrban Architecture in1999) based
on myresearch;thisis likelydue tolackof funding.
The followingisareview of ENR’stopdesignfirmlistof 1965:
1965 2015
Rank Rank CompanyName (AcquiringFirm)
1 10 CHAS.T. MAIN INC.(PARSONS)
2 2 SVERDRUP & PARCEL& ASSOCS.INC.(JACOBS)
3 33 MICHAEL BAKER INTERNATIONAL
4 20 HNTB
5 21 HARZA ENGINEERINGCO. (MWH)
6 1 TIPPETTS-ABBETT-MCCARTHY-STRATTON (AECOM)
7 44 SKIDMORE OWINGS& MERRILL LLP
8 12 BROWN & ROOT INC.(KBR)
9 1 DANIEL,MANN,JOHNSON & MENDENHALL (AECOM)
10 45 BURNS & ROE INC.(POWER ENGINEERS)
11 30 SARGENT & LUNDY LLC
12 1 FREDRIC R. HARRISINC.(AECOM)
13 2 GIBBS & HILL INC.(JACOBS)
14 25 LOUIS BERGER
15 16 PARSONS,BRINCKERHOFF,QUADE&DOUGLAS (WSP-PARSONSBRINCKERHOFF)
16 15 BLACK& VEATCH
17 FAILED
18 1 METCALF & EDDY ENGINEERS (AECOM)
19 65 SMITH, HINCHMAN & GRYLLS ASSOC.INC.(SMITHGROUPJJR)
20 10 DELEUW, CATHER & CO. (PARSONS)
21 207 AMMANN & WHITNEY
22 10 GILBERT ASSOCS.INC.(PARSONS)
23 4 LOCKWOODGREENE ENGINEERSINC.(CH2M HILL)
24 38 PERKINS+ WILL
25 FAILED
26 49 GANNETTFLEMING
27 1 WELTON BECKET & ASSOCIATES(AECOM)
28 322 HLW INTERNATIONAL
P a g e | 10
VERTEX
29 FAILED
30 FAILED
31 470 ALBERT KAHN FAMILY OF COS.
32 22 WILBUR SMITH & ASSOCS.(CDMSMITH)
33 1 WOODWARD-CLYDE-SHERARD& ASSOCS.(AECOM)
34 FAILED
35 1 CONSOER,TOWNSEND& ASSOCS.(AECOM)
36 66 STANLEY CONSULTANTS
37 70 RS&H
38 6 FOSTER WHEELER CORP.(AMEC FOSTER WHEELER)
39 39 SANDERS& THOMAS INC.(STV GROUP INC.)
40 1 ELLERBE & CO. (AECOM)
41 2 J.E. SIRRINECO.(JACOBS)
42 FAILED
43 FAILED
44 81 LEO A DALY
45 FAILED
46 1 J.E. GREINER CO.(AECOM)
47 94 JOHN GRAHAM & CO.(DLR GROUP)
48 1 DAMES AND MOORE (AECOM)
49 FAILED
50 133 SYSKA & HENNESSY
51 FAILED
52 17 BURNS & MCDONNELL
53 39 STV GROUP INC.
54 FAILED
55 FAILED
56 FAILED
57 114 WHITMAN, REQUARDT & ASSOCIATESLLP
58 FAILED
59 FAILED
60 1 BOYLE ENGINEERING (AECOM)
61 FAILED
62 FAILED
63 FAILED
64 FAILED
65 FAILED
66 FAILED
67 2 EDWARDS & KELCEY (JACOBS)
68 349 BUCHART ASSOCIATES(BUCHART-HORN INC.-BASCOASSOCIATES
69 477 EPSTEIN
70 247 FAY SPOFFORD& THORNDIKE
71 FAILED
72 FAILED
73 FAILED
74 FAILED
75 1 THE KEN R. WHITE CO.(AECOM)
76 FAILED
P a g e | 11
VERTEX
77 FAILED
78 41 ANDERSON-NICHOLS&CO. INC.(DEWBERRY)
79 349 BUCHART-HORN
80 FAILED
81 40 R.W. BECK & ASSOCS.(LEIDOS)
82 124 GEORGE S. NOLTE CONSULTINGCIVILENG’RSINC.(NV5)
83 FAILED
84 37 HOK
85 FAILED
86 FAILED
87 71 RUMMEL KLEPPER & KAHL LLP
88 FAILED
89 41 GOODKIND& O’DEA (DEWBERRY)
90 FAILED
91 2 VINCENTG. KLING& ASSOCS.(JACOBS)
92 FAILED
93 FAILED
94 127 ALFRED BENESCH & CO.
95 FAILED
96 4 CLAIRA. HILL & ASSOC.(CH2MHILL)
97 FAILED
98 FAILED
99 FAILED
100 FAILED
Summary:
24 FirmsSurvived
41 FirmsFailed
35 FirmsWere Acquired(5movedup list/19 moveddownlist)
A. 24 SurvivingFirms
The vast majorityof the survivingfirms,or19 of 24, moveddownENR’sTop100 AEC listover
the past 50 years.The five survivingfirmsthatactuallymovedupENR’slistincludedBlack&Veatch(#16
to #15), Burns& McDonnell (#52 to #17), STV Group (#53 to #39), HOK (#84 to #37), andRumel Klepper
& Kahl (#87 to #31).
P a g e | 12
VERTEX
B. 35 Firms that were Acquired
AECOM(publiclytraded)acquired12,or approximatelyone-third,of the top100 designfirms
that were acquiredoverthe past50 years—note the majorityof AECOM’sacquisitionstookplace over
the past twodecades. Jacobs(publiclytraded) hadthe secondmostacquisitionsat4,Parsons(100%
employeeowned) hadthe thirdmostat 3, and CH2M (100% employeeowned) andDewberrytiedfor
the fourthmost acquisitionsat2.
The remaining14 companieswere acquiredbyotherlarge designfirms.The successrate of the
acquisitionswasremarkable,particularlywhencomparedtothe successrate of acquisitionsinthe
constructionindustry.Asdiscussedfurtherbelow,acquisitionsmade bylarge,diverse,andpublicdesign
firmsappearto have more successthan designfirmswithonlyafew service offerings.The diverse firms
tendto performmuchbetterthroughleantimesthathitcertainindustriesatleastonce a decade.
C. 41 Firms that Failed
ENR didnot listthe namesof the faileddesignfirmsinitsanalysis;thus,Iwasunable toevaluate
the reasonsfor failure.Likelythe maincause of failure islackof diversificationand,asaresult,failure
due to shiftsinthe marketplace.
VIII. DesignSector Growth
ENR dividesdesignrevenueintonine sectors.The size andpercentof contributionof each
sectoris everevolving.In1995 the largestdesignsectorwashazardouswaste,now itranks fifth.Forthe
firsttime in20 yearsTransportationnow ranksfirst.Understandinghow eachdesignsectorebbsand
flowsiscritical tosurvival—particularlyfirmsthatlackdiversity.Thisissue isdiscussedindetail below.
P a g e | 13
VERTEX
Design Revenue Per Sector
Sector: 1995 2000 2005 2010 2015
General Building: $4,360 $8,004 $11,718 $16,594 $18,810
Manufacturing: $1,300 $1,358 $1,141 $1,674 $1,840
Industrial: $2,312 $4,099 $2,709 $3,144 $4,354
Petroleum: $3,468 $5,010 $7,183 $14,715 $18,141
Water: $1,210 $2,079 $3,542 $5,305 $5,584
Sewer/Waste: $2,320 $2,875 $3,907 $5,395 $4,794
Transportation: $4,280 $6,966 $10,800 $15,735 $19,033
HazardousWaste: $5,470 $5,110 $6,167 $7,370 $6,662
Power: $1,900 $3,543 $3,026 $7,766 $9,453
Telecom: $0 $0 $903 $587 $1,011
Overall: $27,950 $33,200 $42,100 $59,200 $92,300
Percent Market Share per Sector
Sector: 1995 2000 2005 2010 2015
General Building: 16 25 28 28 20 (+4)
Manufacturing: 5 4 3 3 2 (-3)
Industrial: 8 12 6 5 5 (-3)
Petroleum: 12 15 17 25 20 (+8)
Water: 4 6 8 9 6 (+2)
Sewer/Waste: 8 9 9 9 5 (-3)
Transportation: 15 21 26 27 21 (+6)
HazardousWaste: 20 15 15 12 7 (-13)
Power: 7 11 7 13 10 (+3)
Telecom: 0 0 2 1 1 (+1)
Overall: 100 100 100 100 100
Annual Growth Rate Between Periods
Sector: 1995 - 2000 2000 – 2005 2005 – 2010 2010 – 2015 Ave.(’95 – ’15)
General Building: 12.9 7.9 7.2 2.5 7.6
Manufacturing: 0.9 -3.4 8.0 1.9 1.8
Industrial: 12.1 -7.9 3.0 6.7 3.2
Petroleum: 7.6 7.5 15.4 4.3 8.6
Water: 11.4 11.2 8.4 1.0 8.0
Sewer/Waste: 4.4 6.3 6.7 -2.3 3.7
Transportation: 10.2 9.2 7.8 3.9 7.8
HazardousWaste: -1.4 3.8 3.6 -2.0 1.0
Power: 13.3 -3.1 20.7 4.0 8.4
Telecom: 0 0 -8.3 11.5 1.2
Overall: 3.5 4.9 7.1 9.3 6.2
P a g e | 14
VERTEX
IX. Impact to DesignFirms due to the Market Shift in the Hazardous Waste Industry during the
1990s
On average,the largestdesignsectorinthe 1980s and earlytomid-1990s was HazardousWaste,
primarilydue toCongress’passage of CERCLA legislation(Comprehensive Environmental Response,
Compensation,andLiabilityAct) in1980 and SARA (SuperfundAmendmentsandReauthorizationAct) in
1986. Federal andstate fundingforthisworkcreateda massive industryforengineersandcontractors
alike.However,inthe earlytomid-1990s fundingforthisworkstalled,whichcausedpoorperformance
or worse,failure,of manyfirms.
In 1990, 15 of the top 100 designfirmsinthe US derivedthe majorityof itsrevenue from
hazardouswaste relatedprojects.Nearlyall of the firmslackedthe properdiversificationnecessaryto
allow forproperrepositioningonce aninevitablemarketshiftoccurred,whichstartedtotake place in
the earlyto mid-1990s. Asa consequence, 11of the 15 firmseithersoldoutor wentbankrupt,asnoted
P a g e | 15
VERTEX
below.Moreover,the remaining4firmshave struggledtokeeppace withaverage designcompany
performance overthe pastthree decades. The followingisabrief reviewof the 15 firms.
#16 Dames & Moore, Los Angeles,CA(50% Haz. Waste workin1990)(Acquiredby URS in
1999): In the early1990s, as the hazardouswaste industrystartedtoshrink,Dames& Moore
wentpublicinorderto generate sufficientfundingtogoon an acquisitionspree todiversify
away fromthe hazardouswaste sector.In 1995 alone,Dames&Moore acquiredWalkHaydel &
AssociatesInc.(ProgramManagementfirmfocusedonthe Powerindustry),O'BrienKreitzberg,
Inc. (ConstructionManagementfirmthatfocusedonfederal buildingprojects),and
DecisionQuest,Inc.(Behavioral Researchfirm).The acquisitionsprovedtobe toolittle toolate
as Dames& Moore soldout to URS in 1999 due to financial issues.
#20 ICF KaiserEngineers,Oakland, CA(42% Haz. Waste workin 1990)(AcquiredbyIT Corp. in
1998): SimilartoDames & Moore,ICF KaiserEngineerswentpublicin1991 inorderto generate
fundingforacquisitionstoallow fordiversificationbeyondhazardouswaste work.Specifically,
ICF Kaiserattemptedtoenterintomanufacturing,whichturnedouttobe unsuccessful asnoted
by the WashingtonPost,"the companyprovednotparticularlygoodatmanagingproduct-
orientedbusinesses."Thereafterthe companysoldoff manyof itsacquisitionsandrestructured
itsdebt.The company’spoor acquisitionstrategy,coupledwiththe continuallyshrinking
hazardouswaste work,ledtoICF Kaiser’ssale toIT Corp.in the late 1990s. The sale wasunusual
because ITCorp. wasin a similarpositiontoICFKaiser—overweighedfocusonhazardouswaste
work.As notedbelow,ITCorp.filedforbankruptcyin2002.
#24 IT Corporation, Torrance, CA (100% Haz. Waste work in1990)(FiledforBankruptcyin
2002): IT Corp.’sprincipal businessinvolvedthe disposalof industrialhazardouswaste.The
P a g e | 16
VERTEX
companyhad virtuallynodiversificationbeyondenvironmentalwork inthe early1990s.
Accordingly,ITCorp.ran intofinancial troublesinthe 1990s due to the shrinkingmarketplace
and a recklessacquisitionstrategy.Tomake mattersworse,the companywasnamedina
numberof highprofile environmentallaw suitsinthe early2000s. Accordingly,ITCorp.declared
bankruptcyin2002. Thereafter,the Shaw Groupacquiredsubstantiallyall of ITCorp.’sassets
and some of itsliabilitiesoutof bankruptcy.
#34 ENSR Corporation, Westford,MA(100% Haz. Waste workin 1990)(AcquiredbyAECOMin
2005): ENSR Corporation,like ITCorp.,wassolelyfocusedonhazardouswaste workinthe early
1990s. Asa result,ENSRstruggledthroughthe 1990s and early2000s due to the shrinking
marketplace forhazardouswaste work.Ultimately,ENSRsoldouttoAECOMin 2005.
#37 NUSCorporation, Gaithersburg,MD (40% Haz. Waste work in1990)(Acquiredby
Halliburtonin1992): HalliburtonacquiredNUSCorporationinthe early1990s as the hazardous
waste sectorstartedto compress.Halliburtonhadtrouble turningNUSCorp.around;therefore,
it spunNUS Corp.off to Tetra Tech Inc.in 1997. Over the pastdecade or so, TetraTech has
repositionedTetraTechNUSinto a technologyfirmthatisfocusedonthe environmental
industry.9
#38 Woodward-Clyde Group,Inc.,Denver,CO (33% Haz. Waste Work)(AcquiredbyURSin
1997): While Woodward-Clyde onlygenerated33% of its revenue fromhazardouswaste
projects,itsoverall focuswasenvironmentallydriven;thus,the company’sgrowthlanguished
9
http://isg.applications.tetratech.com/productGallery.aspx
P a g e | 17
VERTEX
throughthe earlyand mid-1990s.10
URS, a primarilybuildingandtransportationAECfirm,
acquiredWoodward-Clyde in1997 to diversifyitsservice offerings.11
In2012, URS spent$1.25
billioninitsacquisitionof FlintEnergyServices,whichcreatedanoverconcentrationinrevenue
and debtrelatedtothe oil and gas sector.Asa resultof URS’ subsequentpoorperformance due
to the compressionof the oil andgas sector,AECOMacquiredURS inlate 2014.
#46 The ERM Group, Exton,PA (85% Haz Waste workin 1990)(RemainsinBusiness):ERM
weatheredthe stormof the 1990s eventhoughalarge concentrationof itsworkwas focusedon
hazardouswaste.However,ERMhas struggledwithconsistentgrowththroughthe 1990s. To
helpboostgrowth,ERMaligneditself withprivate equityfirm,BridgeportCapital,inthe early
2000s. In2011, London-basedprivateequityfirmCharterhouse acquiredamajoritystake inthe
businessbybuyingoutCharterhouse’sshares.12
In2015, ERM partneredwithOMERSPrivate
Equityto take out Charterhouse.13
Basedonthisvolatility,ERMappearsto be strugglingwith
thisprivate equityformula.
#57 GroundwaterTechnologyInc., Norwood, MA (100% Haz. Waste workin1990)(Acquiredby
IT Corp. 1998): In 1996, Flour’ssubsidiary,FlourDaniel Environmental Services,Inc.,merged
withGroundwaterTechnologyInc.toformFluorDaniel GTI.14
The mergerdidnot workout as
10
http://www.solidwaste.com/doc/urs-acquires-woodward-clyde-group-0002
11
http://www.nytimes.com/1997/08/20/business/urs-to-pay-100-million-for-woodward-clyde.html
12
http://www.erm.com/en/news-events/news/erm-partners-with-omers-private-equity-to-buy-out-
charterhouses-investment-in-erm/
13
http://www.erm.com/en/news-events/news/archived-news-2011/erm-announces-that-charterhouse-is-to-
acquire-a-majority-stake-in-the-business/
14
http://investor.fluor.com/phoenix.zhtml?c=124955&p=irol-newsArticle&ID=14751
P a g e | 18
VERTEX
Flourexpected;therefore,FloursoldFluorDaniel GTI toIT Corp.15
in1998, lessthantwoyears
afterthe transaction.Asnotedabove,IT Corp.filedforbankruptcyin2002.
#59 Harding Associates,Novato, CA (80% Haz. Waste work in1990)(AcquiredbyIT Corp. in
1998): In 1998, Hardingemployedthe ITCorp.strategyandattemptedtoincrease its
marketshare of hazardouswaste work,despite the lackof growthinthissector.Inthe 1998
HardingacquiredABB EnvironmentalServicesInc. outof Portland,ME (#87 on ENR’sTop 500
DesignFirmsin1990).16
Harding’sgrowthstrategywithinthe hazardouswaste sectordidnot
workas two yearlaterit soldoutto Mactec Inc. fora discountedprice due topoorfinancial
performance.17
In2011, AMEC acquiredMactec.18
#70 ATEC AssociatesInc., Indianapolis,IN (45% Haz. Waste work in1990)(Survived;Dropped
off of ENR’sTop 500 list):Onor about 1995, ATC,an environmental firm,acquiredATEC. ATC,
like ERM, appearsto be havingtrouble withitsownershipstructure overthe pastdecade most
likelydue tosluggishmarketgrowth.In2012, Cardno Limited(Australia-basedglobalAECfirm)
acquiredATC.In 2015, a groupledby BernhardCapital Partners(energyfocusedprivateequity
firm),acquiredATCfromCardno.19
ATCwas not listedinENR’sTop500 DesignFirmin2015.
#79 Ecology and Environment,Inc., Lancaster, NY (90% Haz Waste workin1990)(Survived;
Droppeddownto #96 on ENR’sTop 500 list):EcologyandEnvironment,Inc.(“E&E”) wasable to
15
http://www.nytimes.com/1998/10/29/business/company-news-it-group-acquiring-fluor-daniel-gti-for-69-
million.html
16
https://zweiggroup.com/newsletters/checkout.php?id=1082
17
http://www.nytimes.com/2000/03/25/business/company-news-harding-lawson-agrees-to-takeover-by-
mactec.html
18
http://archive.amecfw.com/news/2011/amec-acquires-leading-us-engineering-and-environmental-services-
company-mactec
19
https://www.businessreport.com/article/bernhard-acquires-lafayette-based-environmental-consulting-
engineering-firm-atc-associates
P a g e | 19
VERTEX
slowlydiversifyitsserve offeringsoverthe past30 years—itnow offersenvironmental planning,
engineering, waterresources,anddue diligence services.20
AlthoughE&Ewentpubliclike many
of the othernotedfirmsinthe late 1980s, it didnot go ona recklessspendingspree that
saddledmanyof the othernotedfirmswithunmanageabledebtload.WhileE&Eremainsin
businesstoday(#96 inENR’sTop 500 DesignFirmlistof 2015), itsfinancial performance has
beenlackluster—E&E’scurrentstockprice remainslessthanhalf of whatitwas inthe 1980s.
#84 VERSAR Inc., Springfield,VA(40% Haz Waste Work)(Survived;Droppedoff of ENR’sTop
500 List):Aswas the trendinthe 1980s for environmental firms,Versarwentpublictofund
future expansion.AlthoughVersarremainsinbusinesstoday,itsfinancial performance hasbeen
poor evidencedbyitsstockprice,whichisat approximately15% of its highwatermark inthe
1980s.21
Versaris nolongerlistedonENR’sTop 500 DesignFirmlist.
#87 ABB Environmental Services,Inc., Portland, ME (95% Haz. Waste work in1990)(Acquired
by Hardingin1998 – IT Corp. acquiredHardinglaterthatyear):Little informationexistsabout
ABB Environmental Services,Inc.(nottobe confusedwithpowergiantABBGroup).Because
ABB wasprimarilyfocusedonhazardouswaste work,theylikelystruggledthroughthe 1990s,
whichlikelyledtoHardingAssociates’acquisitionof the companyin1998.
#89 Geraghty& MillerInc.,Plainview,NY(95% Haz. Waste workin1990)(Acquiredby Arcadis
in1993): Since itsincorporationinthe 1970s, Geraghty& Millerfocusedonenvironmental
20
http://www.ene.com/
21
http://www.versar.com/investors/corporate.html
P a g e | 20
VERTEX
remediationwork.The firmwentpublicin1988 inan efforttodiversify.Afterpoorresults, the
companysoldout to Arcadisin1993.22
#100 EMCON Associates,San Jose,CA (40% Haz. Waste workin1990)(Acquiredby IT Corp.in
1999): Similartoseveral of the firmsnotedabove,EMCON wentpublicinthe early1990s
(Nasdaq:MCON) inan efforttodiversifyintootherindustrysectors.EMCON’sresultswere
mixedandin1999 EMCON soldout to IT Corp., whichsubsequentlywentbankruptin2002.
Needlesstosay,designfirmswithanoverconcentrationof workina shrinkingmarketplace have
a verydifficulttime withsurvival.Seeminglythe bestsolutionforanAEC firminthissituationisto sell to
a more diversifieddesignfirm,similartothe exitstrategyof Woodward-Clyde Group,Inc.(URS) and
Geraghty& MillerInc.(Arcadis).A sale toanothernon-diversifiedcompanythatisstuckinthe same
industry(like ITCorp.inthe examplesabove) isclearlynotthe answer.The firmsthatsurvivedthe
compressionof the hazardouswaste industrydidsothroughdownsizingandslow butsteady
diversification.
X. Technological Advancesthat AEC Firms Must Embrace to be Competitive inthe Near Future
In orderto maintaincompetitive fornew work,designfirmsmustconsistentlyembrace
technological advancementsthatimprove efficienciesandbolstercreativedesigns. Firmsthatresist
change will have adifficulttime qualifyingforfuture workopportunities.The followingisalistof
technologytrendsthatare affectingthe waythe AECindustryoperates.
22
http://www.enr.com/articles/7551-james-geraghty-pioneer-of-groundwater-study-is-dead-at-90
P a g e | 21
VERTEX
A. AEC Firms will Realize Additional Benefitsof BIM
Overthe past decade,manyAECfirmsusedBIM software tobuild3D modelstocreate 2D
documents,muchlike theydidwithCADsoftware.While the productionof drawingssetsfromBIM
software isuseful,BIMinformationhasmanyotheradvantagesthatAECfirmsare startingto benefit
fromand thistrendwill continue inthe nearfuture.23
BIM can be usedto:24
• Visualizationthrough3Drenderings.
• Fabrication/shopdrawingspreparation(forinstance,sheetmetal ductwork).
• Quantitytakeoff foraccurate cost estimating.
• 3D constructionsequencingdemonstrations.
• Site logisticdemonstrations.
• Conflict,interference,andcollisiondetection(primarilyusedforMEP coordination).
• Forensicanalysistographicallyillustrate potentialfailures,leaks,evacuationplans,etc.
• Assistfacilitymanagerswithplanningforrenovations,space planning, andmaintenance
operations.
The economicbenefitsof afull use of BIMsoftware includesareductionof unbudgetedchange (due to
lessconflicts,etc.),more accurate costestimates,andschedule improvement.
B. Use of UnmannedAerial Vehicles(UAVs) toCapture ExistingConditions
A considerablecostinthe AEC industryiscapturingexistingconditionsof projectsites.Asthe
cost of UAVs continuestodecrease andthe relatedcapture technologycontinuestoadvance,AECfirms
will use UAVsandcapture software tocollectmassdata at a verylow cost witha highdegree of
23
http://www.architectmagazine.com/technology/seven-steps-to-bim-better_o
24
http://ascelibrary.org/doi/pdf/10.1061/(ASCE)LM.1943-5630.0000127
P a g e | 22
VERTEX
accuracy. The mostwidelyusedsoftware thatbridgesUAV datawithdesignsoftware isAutodesk’s
ReCap360.25
One constraintto expandedusage of thistechnologyisFAA regulations.
C. Use of Laser Scanning to Capture ExistingConditions
Historically,the capture of existingconditiondataisparticularlyexpensive onrestoration
projectsthatinvolve olderbuildingswithonlyhanddrawnplans(if that).SimilartoUAV technology,3D
laserscanningtechnologyismore andmore affordable.3Dlaserscannerstypicallysitonatripodand
record a site’sshape andappearance,andthenconvertthe conditionsintoacloudof data pointsthat
can be importedintoaBIMmodel.26
Large contractors suchas Gilbane andDPR have recentlyusedlaser
scanningequipmenttoefficientlycapture dataandcreate BIM modelsonprojectwhere limitedtono
data existedpreviously.27
D. Virtual and AugmentedReality
BIM software developersbelievethatAECfirmswill needtoadoptvirtual andaugmentedreality
as buildingownersandpropertymanagerswill wantto“experienceabuilding’sdesignbeforeitwas
everbuilt.”28
Virtual andaugmentedrealitywill gofarbeyondtoday’s360-degree visualizationsof a
project;once thisprocessgoesmainstream,ownerswill be able tosee whatisbehindwallsandin
closedspacesthroughheadmounteddisplayunits.29
Augmentedrealityisablendof virtual realityandreal life.Withaugmentedreality,userscan
interactwithvirtual contentinthe real worldandcan distinguishbetweenthe two.Virtual reality,on
the otherhand,makesit difficultforthe usertodistinguishbetweenwhatisreal andwhat isnot.
25
http://www.prnewswire.com/news-releases/microdesk-reveals-top-trends-for-2015-that-will-shape-the-aec-
industry-300003320.html
26
https://lineshapespace.com/how-laser-scanning-helps-a-building-company-save-time-and-money/
27
Id.
28
http://www.microdesk.com/Newsroom/Recent-Coverage/Details/ArticleID/850/Microdesk-Reveals-Top-Trends-
For-2015-That-Will-Shape-The-AEC-Industry
29
http://www.techtimes.com/articles/5078/20140406/augmented-reality-vs-virtual-reality-what-are-the-
differences-and-similarities.htm
P a g e | 23
VERTEX
E. BIM ProcessesWill Revolutionize BuildingDeliveryViaPrefabrication
Projectteamsare startingto use BIMto improve scheduleandcostby prefabricatingmany
buildingcomponentssuchasmechanical lines,plumbinginfrastructure,restroompods,framedinterior
partitions,andexteriorveneerpanels.30
The prefabricationistypicallydoneinanearbyfactor rather
than ona hecticjobsite.31
Thistrendhas takenoff inSoutheastAsia.Overthe pastsix years,Chinese companyBroad
Sustainable BuildingCompany(“BSB”) hascompletedthree recordbreakingprojectsdue toadvanced
prefabricationtechniques.In2010 BSB constructedArkhotel,a15 story building,in48hours.32
In 2011,
BSB erectedT-30, a 30 story hotel,in15 days.33
Andin 2015, BSB completedJ57,a 57 storiesmixeduse
building, injust19 days.34
One of BRB’s projects,SkyCity,iscurrentlyonhold.If thisprojectmoves
forward,BRB plansto constructthe tallestbuildinginthe world(220 floors) injust90 days.BRB is
startingto license itstechnologyworldwide.35
F. ImprovedEnergy Performance Modeling
Energymodelingsuchasdaylightingandairflow modelsistypicallyalengthyandcost
prohibitiveexercisethatisperformedbyspecialtyconsultants;thisischanging.New software by
AutodeskandSefairaisavailablethatallowsforenergymodelingduringthe conceptual phaseof design.
Thisallowsdesignerstomake subtle designchangessuchasdetailingshadingdevicesorotheroptions
basedon simulatedenergyperformance,whichpreventscostlyrevisionstowardsthe tail endof a
designprocess.36
Autodesk’sFormItsoftware allowsuserstocalculate “energy-performancefeedback
30
https://soundcloud.com/autodeskaec/phil-bernstein-commentary-your-next-building-wont-be-builtit-will-be-
manufactured
31
http://www.bdcnetwork.com/5-tech-trends-transforming-bimvdc
32
https://www.youtube.com/watch?v=Ps0DSihggio
33
https://www.youtube.com/watch?v=C2K53T81FEs&index=2&list=PLiwZ62tpFvnh4eNmGUVCFO4uj_hZJON3b
34
https://www.youtube.com/watch?v=veNf-bz99cI
35
http://www.constructionweekonline.com/article-19593-broad-sticks-to-90-day-worlds-tallest-target/
36
http://www.bdcnetwork.com/5-tech-trends-transforming-bimvdc#sthash.rJpWVpZ2.dpuf
P a g e | 24
VERTEX
on earlydesigndecisions,suchasbuildingorientation,thermal performance,andmassing.”37
Results
can be importedintoRevit.
G. CloudBased Data Storage Will Improve Collaboration
Historically,architectswouldstore BIMfilesonhisorher PC,whichtookup considerable hard
drive space.Now thatmore andmore data isshiftingtothe cloud,the sharingof projectdata is
becomingismore efficient.Software companiessuchasAssembleSystemsandPanzurahave developed
cloud-basedtoolsforadvanceddatamanagement,whichinclude datastorage,consolidation,archiving,
heightenedaccess,andsecurity.38 39
H. 3D-PrintedArchitectural Models
Ownersrarelyapprove fundingforarchitectural modelsdue tothe expense andtime required
for creation.However,withthe introductionof low cost3D printingtechnology,physical modelsare
now practical.Pricesfor3D printersrange fromseveral hundreddollarstoseveral thousanddollarsfor
lowertomidendmodels. Accordingly,the popularityof architectural modelswill rapidlyincreaseover
the nextseveral years.
The creationof architectural modelshasmanybenefitsincluding:4041
• 3D model provide avisual perspective thatcannotbe achievedwithblueprints,drawings,or
digital 3D models.
• Architectural modelscanbe 3D printedinfull-colorforinspiringpresentationsanddisplays.
• 3D modelshelpthe communicationbetweenarchitectsandcontractorsto betterensure desired
resultsthatcan helpavoidexpensivechangesduringthe course of construction.
37
http://www.bdcnetwork.com/5-tech-trends-transforming-bimvdc
38
http://panzura.com/products/global-file-system/
39
http://assemblesystems.com/
40
http://www.3ders.org/3d-printing.html
41
https://www.whiteclouds.com/blog/benefits-3d-printed-architectural-models
P a g e | 25
VERTEX
• Architectural modelsmake effective publicdisplaysthathelpmarketthe projecttoinvestors
and/ortenants.
• Architectural scale modelsquicklycommunicate designconceptsandallow people toeasily
comprehendaproject.
I. Use of CompositesinConstruction
Composite material istypicallyamix of glass,aramid,andcarbonfibers.Recentadvancesin
composite technologyallow partstobe curedat lowerpressuresandtemperatures,whichinturn
lowersthe costof productionandallowsforincreasingsizesof manufacturedparts.42
Thischange has
increasedthe use of compositesinthe buildingindustry.43
The benefitof compositesinclude:flexibility
of form,structural capacity,durability,andlife-cycle cost.
Typical applicationsof forcomposite material inconstructioninclude structural membersfor
bridges,hydraulicstructures,andcladdingmaterial.Composite claddingcanbe insulatedtoform
sandwichpanelsthathave efficientthermal,weatherbarrier,andsoundproperties.The maineconomic
benefitof compositesstemfromitslow-weight/high-strengthmaterial properties,whichcancause a
reductioninthe cost of supportingstructures.Asthe composite manufacturingprocesscontinuesto
improve sowill the adoptionof compositesintomore andmore constructionprojects.
XI. Conclusions
Diversificationisakeyforcontinuedgrowthof large AECfirms.Failure todiversifycausedmany
noteworthyfirmstofail overthe pastfive decades.Moreover, AECfirmsmustpositionthemselvesfor
international workinordertobroadentheirreachto maintainabove average revenueprogression.
Lastly,successful designfirmsembrace,notresist,technological advancessuchasthe evolutionfrom2-
42
http://www.azom.com/article.aspx?ArticleID=1425
43
Id.
P a g e | 26
VERTEX
D to 3-D draftingandnow to 4-D modeling.Changesintechnologyoverthe nextdecadeswill be drastic
and firmsthatignore the efficienciesandcreativityofferedbysuchadvancementswill be leftbehind.

More Related Content

What's hot

The Innovator #11
The Innovator #11The Innovator #11
The Innovator #11
The Innovator
 
Medi-Cube Final Event Komninos ppt
Medi-Cube Final Event Komninos pptMedi-Cube Final Event Komninos ppt
Medi-Cube Final Event Komninos ppt
URENIO Research Unit
 
Amsterdam 15 brochure
Amsterdam 15 brochureAmsterdam 15 brochure
Amsterdam 15 brochure
Chetan Solanki
 
"Nuevos Mercados y Trabajos para la transformación digital"-OCDE 2016-Cancún
"Nuevos Mercados y Trabajos para la transformación digital"-OCDE 2016-Cancún"Nuevos Mercados y Trabajos para la transformación digital"-OCDE 2016-Cancún
"Nuevos Mercados y Trabajos para la transformación digital"-OCDE 2016-Cancún
Maite Vizcarra
 
Mc kinsey quarterly_q1_2014
Mc kinsey quarterly_q1_2014Mc kinsey quarterly_q1_2014
Mc kinsey quarterly_q1_2014
Elson Lin
 
The Innovator #8
The Innovator #8The Innovator #8
The Innovator #8
The Innovator
 
The Innovator #6
The Innovator #6The Innovator #6
The Innovator #6
The Innovator
 
Cómo facilitar la transformación digital- Según la OECD Cancun 2016
Cómo facilitar la transformación digital- Según la OECD Cancun 2016Cómo facilitar la transformación digital- Según la OECD Cancun 2016
Cómo facilitar la transformación digital- Según la OECD Cancun 2016
Maite Vizcarra
 
Impact of technology on Global Value Chains
Impact of technology on Global Value ChainsImpact of technology on Global Value Chains
Impact of technology on Global Value Chains
Carenmutai2
 
Investment Thesis: Construction Technology
Investment Thesis: Construction TechnologyInvestment Thesis: Construction Technology
Investment Thesis: Construction Technology
Jeffrey Bantam
 
Nysia 2006 Digial Workforce
Nysia 2006 Digial WorkforceNysia 2006 Digial Workforce
Nysia 2006 Digial Workforce
Interactive Agency
 
M2M Journal Summit 2016
M2M Journal Summit 2016M2M Journal Summit 2016
M2M Journal Summit 2016
M2M Alliance e.V.
 
Franco-German Conference. Paris. July 2016
Franco-German Conference. Paris. July 2016Franco-German Conference. Paris. July 2016
Franco-German Conference. Paris. July 2016
SPINTAN
 
The Innovator #1
The Innovator #1The Innovator #1
The Innovator #1
The Innovator
 
3D Printing Market - MATERIAL (ABS, PLA, Photopolymer, Ceramics etc.), TECHNO...
3D Printing Market - MATERIAL (ABS, PLA, Photopolymer, Ceramics etc.), TECHNO...3D Printing Market - MATERIAL (ABS, PLA, Photopolymer, Ceramics etc.), TECHNO...
3D Printing Market - MATERIAL (ABS, PLA, Photopolymer, Ceramics etc.), TECHNO...
Akash Singh
 
The Innovator #5
The Innovator #5The Innovator #5
The Innovator #5
The Innovator
 
A SOLUTION TO THE DILEMMA BETWEEN R&D EXPANSION AND THE PRODUCTIVITY DECLINE:...
A SOLUTION TO THE DILEMMA BETWEEN R&D EXPANSION AND THE PRODUCTIVITY DECLINE:...A SOLUTION TO THE DILEMMA BETWEEN R&D EXPANSION AND THE PRODUCTIVITY DECLINE:...
A SOLUTION TO THE DILEMMA BETWEEN R&D EXPANSION AND THE PRODUCTIVITY DECLINE:...
IJMIT JOURNAL
 
TrendLab Telco Report 2012
TrendLab Telco Report 2012 TrendLab Telco Report 2012
TrendLab Telco Report 2012
Sasserath Munzinger Plus
 
The Innovator #9
The Innovator #9The Innovator #9
The Innovator #9
The Innovator
 

What's hot (19)

The Innovator #11
The Innovator #11The Innovator #11
The Innovator #11
 
Medi-Cube Final Event Komninos ppt
Medi-Cube Final Event Komninos pptMedi-Cube Final Event Komninos ppt
Medi-Cube Final Event Komninos ppt
 
Amsterdam 15 brochure
Amsterdam 15 brochureAmsterdam 15 brochure
Amsterdam 15 brochure
 
"Nuevos Mercados y Trabajos para la transformación digital"-OCDE 2016-Cancún
"Nuevos Mercados y Trabajos para la transformación digital"-OCDE 2016-Cancún"Nuevos Mercados y Trabajos para la transformación digital"-OCDE 2016-Cancún
"Nuevos Mercados y Trabajos para la transformación digital"-OCDE 2016-Cancún
 
Mc kinsey quarterly_q1_2014
Mc kinsey quarterly_q1_2014Mc kinsey quarterly_q1_2014
Mc kinsey quarterly_q1_2014
 
The Innovator #8
The Innovator #8The Innovator #8
The Innovator #8
 
The Innovator #6
The Innovator #6The Innovator #6
The Innovator #6
 
Cómo facilitar la transformación digital- Según la OECD Cancun 2016
Cómo facilitar la transformación digital- Según la OECD Cancun 2016Cómo facilitar la transformación digital- Según la OECD Cancun 2016
Cómo facilitar la transformación digital- Según la OECD Cancun 2016
 
Impact of technology on Global Value Chains
Impact of technology on Global Value ChainsImpact of technology on Global Value Chains
Impact of technology on Global Value Chains
 
Investment Thesis: Construction Technology
Investment Thesis: Construction TechnologyInvestment Thesis: Construction Technology
Investment Thesis: Construction Technology
 
Nysia 2006 Digial Workforce
Nysia 2006 Digial WorkforceNysia 2006 Digial Workforce
Nysia 2006 Digial Workforce
 
M2M Journal Summit 2016
M2M Journal Summit 2016M2M Journal Summit 2016
M2M Journal Summit 2016
 
Franco-German Conference. Paris. July 2016
Franco-German Conference. Paris. July 2016Franco-German Conference. Paris. July 2016
Franco-German Conference. Paris. July 2016
 
The Innovator #1
The Innovator #1The Innovator #1
The Innovator #1
 
3D Printing Market - MATERIAL (ABS, PLA, Photopolymer, Ceramics etc.), TECHNO...
3D Printing Market - MATERIAL (ABS, PLA, Photopolymer, Ceramics etc.), TECHNO...3D Printing Market - MATERIAL (ABS, PLA, Photopolymer, Ceramics etc.), TECHNO...
3D Printing Market - MATERIAL (ABS, PLA, Photopolymer, Ceramics etc.), TECHNO...
 
The Innovator #5
The Innovator #5The Innovator #5
The Innovator #5
 
A SOLUTION TO THE DILEMMA BETWEEN R&D EXPANSION AND THE PRODUCTIVITY DECLINE:...
A SOLUTION TO THE DILEMMA BETWEEN R&D EXPANSION AND THE PRODUCTIVITY DECLINE:...A SOLUTION TO THE DILEMMA BETWEEN R&D EXPANSION AND THE PRODUCTIVITY DECLINE:...
A SOLUTION TO THE DILEMMA BETWEEN R&D EXPANSION AND THE PRODUCTIVITY DECLINE:...
 
TrendLab Telco Report 2012
TrendLab Telco Report 2012 TrendLab Telco Report 2012
TrendLab Telco Report 2012
 
The Innovator #9
The Innovator #9The Innovator #9
The Innovator #9
 

Similar to PAST, PRESENT, AND FUTURE ANALYSIS OF THE ARCHITECTURAL & ENGINEERING DESIGN INDUSTRY (July 2016)

Modular Construction in MENA 2019
Modular Construction in MENA 2019Modular Construction in MENA 2019
Modular Construction in MENA 2019
Alexandra Tohme
 
FMAVoytekV3
FMAVoytekV3FMAVoytekV3
FMAVoytekV3
Kenneth Voytek
 
Construction Tech - Sifted Report / Leonard
Construction Tech - Sifted Report / Leonard Construction Tech - Sifted Report / Leonard
Construction Tech - Sifted Report / Leonard
Leonard
 
Key BIM Insights & Trends for the Global AEC Industry.pptx
Key BIM Insights & Trends for the Global AEC Industry.pptxKey BIM Insights & Trends for the Global AEC Industry.pptx
Key BIM Insights & Trends for the Global AEC Industry.pptx
ArpitGautam20
 
GCF - Présentation Industry - 1022.pdf
GCF - Présentation Industry - 1022.pdfGCF - Présentation Industry - 1022.pdf
GCF - Présentation Industry - 1022.pdf
Lucas518833
 
Urban world.- shifting of global business -mc kinsey & co- unus molla
Urban world.- shifting of global business -mc kinsey & co-  unus mollaUrban world.- shifting of global business -mc kinsey & co-  unus molla
Urban world.- shifting of global business -mc kinsey & co- unus molla
Prof Unus Molla
 
Revitalizing U.S. Manufacturing: What’s It Going To Take?
Revitalizing U.S. Manufacturing: What’s It Going To Take?Revitalizing U.S. Manufacturing: What’s It Going To Take?
Revitalizing U.S. Manufacturing: What’s It Going To Take?
Information Technology and Innovation Foundation
 
GCF - Présentation Industry - 1222_.pdf
GCF - Présentation Industry - 1222_.pdfGCF - Présentation Industry - 1222_.pdf
GCF - Présentation Industry - 1222_.pdf
HlnePEYRUSQUE
 
Laura - Construction Manager (Main), June 2016
Laura - Construction Manager (Main), June 2016Laura - Construction Manager (Main), June 2016
Laura - Construction Manager (Main), June 2016
Laura Lintott (Teodorescu)
 
The 10 best construction tech solution providers 2018
The 10 best construction tech solution providers 2018The 10 best construction tech solution providers 2018
The 10 best construction tech solution providers 2018
Insights success media and technology pvt ltd
 
Technology media and telecommunications 2010 bcg
Technology media and telecommunications 2010 bcgTechnology media and telecommunications 2010 bcg
Technology media and telecommunications 2010 bcg
Vladyslav Solodovnyk
 
World Building Information Modeling (BIM) Market is Expected to Garner $11.7 ...
World Building Information Modeling (BIM) Market is Expected to Garner $11.7 ...World Building Information Modeling (BIM) Market is Expected to Garner $11.7 ...
World Building Information Modeling (BIM) Market is Expected to Garner $11.7 ...
Allied Market Research
 
GCF- our added value in industry sector 0923.pdf
GCF- our added value in industry sector 0923.pdfGCF- our added value in industry sector 0923.pdf
GCF- our added value in industry sector 0923.pdf
sunclarisse
 
GCF- our added value in industry sector 0923.pdf
GCF- our added value in industry sector 0923.pdfGCF- our added value in industry sector 0923.pdf
GCF- our added value in industry sector 0923.pdf
HannahDerenbach
 
GCF- our added value in industry sector 0823.pdf
GCF- our added value in industry sector 0823.pdfGCF- our added value in industry sector 0823.pdf
GCF- our added value in industry sector 0823.pdf
HannahDerenbach
 
How to achieve productivity gains through digitisation (CIHT Annual Conferenc...
How to achieve productivity gains through digitisation (CIHT Annual Conferenc...How to achieve productivity gains through digitisation (CIHT Annual Conferenc...
How to achieve productivity gains through digitisation (CIHT Annual Conferenc...
Causeway Technologies
 
The Next Normal in Construction
The Next Normal in Construction The Next Normal in Construction
The Next Normal in Construction
Turlough Guerin GAICD FGIA
 
2017 ESSENTIALS
2017 ESSENTIALS2017 ESSENTIALS
2017 ESSENTIALS
VINCI Construction
 
THE IMPACT OF DIGITALIZATION ON THE MANUFACTURING INDUSTRY - TECH MAHINDRA
THE IMPACT OF DIGITALIZATION ON THE MANUFACTURING INDUSTRY - TECH MAHINDRATHE IMPACT OF DIGITALIZATION ON THE MANUFACTURING INDUSTRY - TECH MAHINDRA
THE IMPACT OF DIGITALIZATION ON THE MANUFACTURING INDUSTRY - TECH MAHINDRA
Tech Mahindra
 
Digital Transformation Iniciative
Digital Transformation IniciativeDigital Transformation Iniciative
Digital Transformation Iniciative
Miguel Mello
 

Similar to PAST, PRESENT, AND FUTURE ANALYSIS OF THE ARCHITECTURAL & ENGINEERING DESIGN INDUSTRY (July 2016) (20)

Modular Construction in MENA 2019
Modular Construction in MENA 2019Modular Construction in MENA 2019
Modular Construction in MENA 2019
 
FMAVoytekV3
FMAVoytekV3FMAVoytekV3
FMAVoytekV3
 
Construction Tech - Sifted Report / Leonard
Construction Tech - Sifted Report / Leonard Construction Tech - Sifted Report / Leonard
Construction Tech - Sifted Report / Leonard
 
Key BIM Insights & Trends for the Global AEC Industry.pptx
Key BIM Insights & Trends for the Global AEC Industry.pptxKey BIM Insights & Trends for the Global AEC Industry.pptx
Key BIM Insights & Trends for the Global AEC Industry.pptx
 
GCF - Présentation Industry - 1022.pdf
GCF - Présentation Industry - 1022.pdfGCF - Présentation Industry - 1022.pdf
GCF - Présentation Industry - 1022.pdf
 
Urban world.- shifting of global business -mc kinsey & co- unus molla
Urban world.- shifting of global business -mc kinsey & co-  unus mollaUrban world.- shifting of global business -mc kinsey & co-  unus molla
Urban world.- shifting of global business -mc kinsey & co- unus molla
 
Revitalizing U.S. Manufacturing: What’s It Going To Take?
Revitalizing U.S. Manufacturing: What’s It Going To Take?Revitalizing U.S. Manufacturing: What’s It Going To Take?
Revitalizing U.S. Manufacturing: What’s It Going To Take?
 
GCF - Présentation Industry - 1222_.pdf
GCF - Présentation Industry - 1222_.pdfGCF - Présentation Industry - 1222_.pdf
GCF - Présentation Industry - 1222_.pdf
 
Laura - Construction Manager (Main), June 2016
Laura - Construction Manager (Main), June 2016Laura - Construction Manager (Main), June 2016
Laura - Construction Manager (Main), June 2016
 
The 10 best construction tech solution providers 2018
The 10 best construction tech solution providers 2018The 10 best construction tech solution providers 2018
The 10 best construction tech solution providers 2018
 
Technology media and telecommunications 2010 bcg
Technology media and telecommunications 2010 bcgTechnology media and telecommunications 2010 bcg
Technology media and telecommunications 2010 bcg
 
World Building Information Modeling (BIM) Market is Expected to Garner $11.7 ...
World Building Information Modeling (BIM) Market is Expected to Garner $11.7 ...World Building Information Modeling (BIM) Market is Expected to Garner $11.7 ...
World Building Information Modeling (BIM) Market is Expected to Garner $11.7 ...
 
GCF- our added value in industry sector 0923.pdf
GCF- our added value in industry sector 0923.pdfGCF- our added value in industry sector 0923.pdf
GCF- our added value in industry sector 0923.pdf
 
GCF- our added value in industry sector 0923.pdf
GCF- our added value in industry sector 0923.pdfGCF- our added value in industry sector 0923.pdf
GCF- our added value in industry sector 0923.pdf
 
GCF- our added value in industry sector 0823.pdf
GCF- our added value in industry sector 0823.pdfGCF- our added value in industry sector 0823.pdf
GCF- our added value in industry sector 0823.pdf
 
How to achieve productivity gains through digitisation (CIHT Annual Conferenc...
How to achieve productivity gains through digitisation (CIHT Annual Conferenc...How to achieve productivity gains through digitisation (CIHT Annual Conferenc...
How to achieve productivity gains through digitisation (CIHT Annual Conferenc...
 
The Next Normal in Construction
The Next Normal in Construction The Next Normal in Construction
The Next Normal in Construction
 
2017 ESSENTIALS
2017 ESSENTIALS2017 ESSENTIALS
2017 ESSENTIALS
 
THE IMPACT OF DIGITALIZATION ON THE MANUFACTURING INDUSTRY - TECH MAHINDRA
THE IMPACT OF DIGITALIZATION ON THE MANUFACTURING INDUSTRY - TECH MAHINDRATHE IMPACT OF DIGITALIZATION ON THE MANUFACTURING INDUSTRY - TECH MAHINDRA
THE IMPACT OF DIGITALIZATION ON THE MANUFACTURING INDUSTRY - TECH MAHINDRA
 
Digital Transformation Iniciative
Digital Transformation IniciativeDigital Transformation Iniciative
Digital Transformation Iniciative
 

More from The Vertex Companies, LLC

The State of the Construction Industry - 2020
The State of the Construction Industry - 2020The State of the Construction Industry - 2020
The State of the Construction Industry - 2020
The Vertex Companies, LLC
 
State of the Industry Report Q4 of 2018
State of the Industry Report Q4 of 2018State of the Industry Report Q4 of 2018
State of the Industry Report Q4 of 2018
The Vertex Companies, LLC
 
Vertex annual state of the construction industry presentation 2018
Vertex annual state of the construction industry presentation   2018Vertex annual state of the construction industry presentation   2018
Vertex annual state of the construction industry presentation 2018
The Vertex Companies, LLC
 
VERTEX Annual State of the Construction Industry 2018
VERTEX Annual State of the Construction Industry 2018VERTEX Annual State of the Construction Industry 2018
VERTEX Annual State of the Construction Industry 2018
The Vertex Companies, LLC
 
State of the Industry Report 2017
State of the Industry Report 2017State of the Industry Report 2017
State of the Industry Report 2017
The Vertex Companies, LLC
 
Reasonableness of Construction Completion Costs
Reasonableness of Construction Completion CostsReasonableness of Construction Completion Costs
Reasonableness of Construction Completion Costs
The Vertex Companies, LLC
 
Vertex 2017 mexico habitat trip power point-8.28.2017
Vertex   2017 mexico habitat trip power point-8.28.2017Vertex   2017 mexico habitat trip power point-8.28.2017
Vertex 2017 mexico habitat trip power point-8.28.2017
The Vertex Companies, LLC
 
Construction of Manufactured Homes - Understanding the Hazards & Risks
Construction of Manufactured Homes - Understanding the Hazards & RisksConstruction of Manufactured Homes - Understanding the Hazards & Risks
Construction of Manufactured Homes - Understanding the Hazards & Risks
The Vertex Companies, LLC
 
PLRB - Hail Damage to Thermoset and Thermoplastic Roofing Membranes
PLRB - Hail Damage to Thermoset and Thermoplastic Roofing MembranesPLRB - Hail Damage to Thermoset and Thermoplastic Roofing Membranes
PLRB - Hail Damage to Thermoset and Thermoplastic Roofing Membranes
The Vertex Companies, LLC
 
Environmental Business Journal - VERTEX Growth
Environmental Business Journal - VERTEX GrowthEnvironmental Business Journal - VERTEX Growth
Environmental Business Journal - VERTEX Growth
The Vertex Companies, LLC
 
State of the Construction & Surety Industry Report (2008)
State of the Construction & Surety Industry Report (2008)State of the Construction & Surety Industry Report (2008)
State of the Construction & Surety Industry Report (2008)
The Vertex Companies, LLC
 
State of the Construction & Surety Industry (2006 2007)
State of the Construction & Surety Industry (2006 2007)State of the Construction & Surety Industry (2006 2007)
State of the Construction & Surety Industry (2006 2007)
The Vertex Companies, LLC
 
Lifecycles of Large AEC Companies
Lifecycles of Large AEC CompaniesLifecycles of Large AEC Companies
Lifecycles of Large AEC Companies
The Vertex Companies, LLC
 
State of the Construction and Surety Industry Report (2009)
State of the Construction and Surety Industry Report (2009)State of the Construction and Surety Industry Report (2009)
State of the Construction and Surety Industry Report (2009)
The Vertex Companies, LLC
 
State of the Construction Industry Report (2010)
State of the Construction Industry Report (2010)State of the Construction Industry Report (2010)
State of the Construction Industry Report (2010)
The Vertex Companies, LLC
 
State of the US Economy (2016)
State of the US Economy (2016)State of the US Economy (2016)
State of the US Economy (2016)
The Vertex Companies, LLC
 
State of the Construction Industry Report (2015)
State of the Construction Industry Report (2015)State of the Construction Industry Report (2015)
State of the Construction Industry Report (2015)
The Vertex Companies, LLC
 
State of the Construction and Surety Industry Report (2016)
State of the Construction and Surety Industry Report (2016)State of the Construction and Surety Industry Report (2016)
State of the Construction and Surety Industry Report (2016)
The Vertex Companies, LLC
 
State of the Construction and Surety Industry Report (2017)
State of the Construction and Surety Industry Report (2017)State of the Construction and Surety Industry Report (2017)
State of the Construction and Surety Industry Report (2017)
The Vertex Companies, LLC
 
VERTEX Construction Delays and Forensic Schedule Analyses
VERTEX Construction Delays and Forensic Schedule AnalysesVERTEX Construction Delays and Forensic Schedule Analyses
VERTEX Construction Delays and Forensic Schedule Analyses
The Vertex Companies, LLC
 

More from The Vertex Companies, LLC (20)

The State of the Construction Industry - 2020
The State of the Construction Industry - 2020The State of the Construction Industry - 2020
The State of the Construction Industry - 2020
 
State of the Industry Report Q4 of 2018
State of the Industry Report Q4 of 2018State of the Industry Report Q4 of 2018
State of the Industry Report Q4 of 2018
 
Vertex annual state of the construction industry presentation 2018
Vertex annual state of the construction industry presentation   2018Vertex annual state of the construction industry presentation   2018
Vertex annual state of the construction industry presentation 2018
 
VERTEX Annual State of the Construction Industry 2018
VERTEX Annual State of the Construction Industry 2018VERTEX Annual State of the Construction Industry 2018
VERTEX Annual State of the Construction Industry 2018
 
State of the Industry Report 2017
State of the Industry Report 2017State of the Industry Report 2017
State of the Industry Report 2017
 
Reasonableness of Construction Completion Costs
Reasonableness of Construction Completion CostsReasonableness of Construction Completion Costs
Reasonableness of Construction Completion Costs
 
Vertex 2017 mexico habitat trip power point-8.28.2017
Vertex   2017 mexico habitat trip power point-8.28.2017Vertex   2017 mexico habitat trip power point-8.28.2017
Vertex 2017 mexico habitat trip power point-8.28.2017
 
Construction of Manufactured Homes - Understanding the Hazards & Risks
Construction of Manufactured Homes - Understanding the Hazards & RisksConstruction of Manufactured Homes - Understanding the Hazards & Risks
Construction of Manufactured Homes - Understanding the Hazards & Risks
 
PLRB - Hail Damage to Thermoset and Thermoplastic Roofing Membranes
PLRB - Hail Damage to Thermoset and Thermoplastic Roofing MembranesPLRB - Hail Damage to Thermoset and Thermoplastic Roofing Membranes
PLRB - Hail Damage to Thermoset and Thermoplastic Roofing Membranes
 
Environmental Business Journal - VERTEX Growth
Environmental Business Journal - VERTEX GrowthEnvironmental Business Journal - VERTEX Growth
Environmental Business Journal - VERTEX Growth
 
State of the Construction & Surety Industry Report (2008)
State of the Construction & Surety Industry Report (2008)State of the Construction & Surety Industry Report (2008)
State of the Construction & Surety Industry Report (2008)
 
State of the Construction & Surety Industry (2006 2007)
State of the Construction & Surety Industry (2006 2007)State of the Construction & Surety Industry (2006 2007)
State of the Construction & Surety Industry (2006 2007)
 
Lifecycles of Large AEC Companies
Lifecycles of Large AEC CompaniesLifecycles of Large AEC Companies
Lifecycles of Large AEC Companies
 
State of the Construction and Surety Industry Report (2009)
State of the Construction and Surety Industry Report (2009)State of the Construction and Surety Industry Report (2009)
State of the Construction and Surety Industry Report (2009)
 
State of the Construction Industry Report (2010)
State of the Construction Industry Report (2010)State of the Construction Industry Report (2010)
State of the Construction Industry Report (2010)
 
State of the US Economy (2016)
State of the US Economy (2016)State of the US Economy (2016)
State of the US Economy (2016)
 
State of the Construction Industry Report (2015)
State of the Construction Industry Report (2015)State of the Construction Industry Report (2015)
State of the Construction Industry Report (2015)
 
State of the Construction and Surety Industry Report (2016)
State of the Construction and Surety Industry Report (2016)State of the Construction and Surety Industry Report (2016)
State of the Construction and Surety Industry Report (2016)
 
State of the Construction and Surety Industry Report (2017)
State of the Construction and Surety Industry Report (2017)State of the Construction and Surety Industry Report (2017)
State of the Construction and Surety Industry Report (2017)
 
VERTEX Construction Delays and Forensic Schedule Analyses
VERTEX Construction Delays and Forensic Schedule AnalysesVERTEX Construction Delays and Forensic Schedule Analyses
VERTEX Construction Delays and Forensic Schedule Analyses
 

Recently uploaded

Monthly Market Risk Update: July 2024 [SlideShare]
Monthly Market Risk Update: July 2024 [SlideShare]Monthly Market Risk Update: July 2024 [SlideShare]
Monthly Market Risk Update: July 2024 [SlideShare]
Commonwealth
 
Hamster kombat withdrawal date - what you need to know!
Hamster kombat withdrawal date - what you need to know!Hamster kombat withdrawal date - what you need to know!
Hamster kombat withdrawal date - what you need to know!
CRYPTO SPACE 🪙
 
学生妹丝袜【网芷:ht28.co】校服做爱下载app观看>>>[网趾:ht28.co】]<<<
学生妹丝袜【网芷:ht28.co】校服做爱下载app观看>>>[网趾:ht28.co】]<<<学生妹丝袜【网芷:ht28.co】校服做爱下载app观看>>>[网趾:ht28.co】]<<<
学生妹丝袜【网芷:ht28.co】校服做爱下载app观看>>>[网趾:ht28.co】]<<<
amzhoxvzidbke
 
Lucknow Girls Call Adil Nagar 08630512678 Available full Day
Lucknow Girls Call Adil Nagar 08630512678 Available full DayLucknow Girls Call Adil Nagar 08630512678 Available full Day
Lucknow Girls Call Adil Nagar 08630512678 Available full Day
annarivihqrika
 
Can I sell my hamster kombat tokens Now! (latest update - 2024)
Can I sell my hamster kombat tokens Now! (latest update - 2024)Can I sell my hamster kombat tokens Now! (latest update - 2024)
Can I sell my hamster kombat tokens Now! (latest update - 2024)
CRYPTO SPACE 🪙
 
is hamster kombat still worth mining (HMSTER - update)
is hamster kombat still worth mining (HMSTER - update)is hamster kombat still worth mining (HMSTER - update)
is hamster kombat still worth mining (HMSTER - update)
CRYPTO SPACE 🪙
 
how to sell hamster kombat on bybit crypto exchange.
how to sell hamster kombat on bybit crypto exchange.how to sell hamster kombat on bybit crypto exchange.
how to sell hamster kombat on bybit crypto exchange.
CRYPTO SPACE 🪙
 
How do I sell my Hamster kombat currency?
How do I sell my Hamster kombat currency?How do I sell my Hamster kombat currency?
How do I sell my Hamster kombat currency?
CRYPTO SPACE 🪙
 
What is the Secret way of selling hamster kombat tokens online?
What is the Secret way of selling hamster kombat tokens online?What is the Secret way of selling hamster kombat tokens online?
What is the Secret way of selling hamster kombat tokens online?
CRYPTO SPACE 🪙
 
Economic Risk Factor Update: July 2024 [SlideShare]
Economic Risk Factor Update: July 2024 [SlideShare]Economic Risk Factor Update: July 2024 [SlideShare]
Economic Risk Factor Update: July 2024 [SlideShare]
Commonwealth
 
How do I cash out hamster kombat tokens?
How do I cash out hamster kombat tokens?How do I cash out hamster kombat tokens?
How do I cash out hamster kombat tokens?
CRYPTO SPACE 🪙
 
how to sell hamster kombat tokens for USD.
how to sell hamster kombat tokens for USD.how to sell hamster kombat tokens for USD.
how to sell hamster kombat tokens for USD.
CRYPTO SPACE 🪙
 
When will I be able to sell my Hamster Kombat coins.
When will I be able to sell my Hamster Kombat coins.When will I be able to sell my Hamster Kombat coins.
When will I be able to sell my Hamster Kombat coins.
CRYPTO SPACE 🪙
 
how do I sell my hamster coins on OKX exchange.
how do I sell my hamster coins on OKX exchange.how do I sell my hamster coins on OKX exchange.
how do I sell my hamster coins on OKX exchange.
CRYPTO SPACE 🪙
 
How can i sell hamster kombat token on Binance exchange!
How can i sell hamster kombat token on Binance exchange!How can i sell hamster kombat token on Binance exchange!
How can i sell hamster kombat token on Binance exchange!
CRYPTO SPACE 🪙
 
OAT_RI_Ep21 WeighingTheRisks_June24_CommodityInflation.pptx
OAT_RI_Ep21 WeighingTheRisks_June24_CommodityInflation.pptxOAT_RI_Ep21 WeighingTheRisks_June24_CommodityInflation.pptx
OAT_RI_Ep21 WeighingTheRisks_June24_CommodityInflation.pptx
hiddenlevers
 
how do I sell hamster kombat at exchange price!
how do I sell hamster kombat at exchange price!how do I sell hamster kombat at exchange price!
how do I sell hamster kombat at exchange price!
CRYPTO SPACE 🪙
 
2024 Q2 Crypto Industry Report | CoinGecko
2024 Q2 Crypto Industry Report | CoinGecko2024 Q2 Crypto Industry Report | CoinGecko
2024 Q2 Crypto Industry Report | CoinGecko
CoinGecko
 
Surat Girls Call Surat 0X0000000X Payment On Delevery Cash Hot Premium Genuin...
Surat Girls Call Surat 0X0000000X Payment On Delevery Cash Hot Premium Genuin...Surat Girls Call Surat 0X0000000X Payment On Delevery Cash Hot Premium Genuin...
Surat Girls Call Surat 0X0000000X Payment On Delevery Cash Hot Premium Genuin...
seenaoberoi
 
20240710 Calibre Mining 2024 Investor Presentation.pdf
20240710 Calibre Mining 2024 Investor Presentation.pdf20240710 Calibre Mining 2024 Investor Presentation.pdf
20240710 Calibre Mining 2024 Investor Presentation.pdf
Adnet Communications
 

Recently uploaded (20)

Monthly Market Risk Update: July 2024 [SlideShare]
Monthly Market Risk Update: July 2024 [SlideShare]Monthly Market Risk Update: July 2024 [SlideShare]
Monthly Market Risk Update: July 2024 [SlideShare]
 
Hamster kombat withdrawal date - what you need to know!
Hamster kombat withdrawal date - what you need to know!Hamster kombat withdrawal date - what you need to know!
Hamster kombat withdrawal date - what you need to know!
 
学生妹丝袜【网芷:ht28.co】校服做爱下载app观看>>>[网趾:ht28.co】]<<<
学生妹丝袜【网芷:ht28.co】校服做爱下载app观看>>>[网趾:ht28.co】]<<<学生妹丝袜【网芷:ht28.co】校服做爱下载app观看>>>[网趾:ht28.co】]<<<
学生妹丝袜【网芷:ht28.co】校服做爱下载app观看>>>[网趾:ht28.co】]<<<
 
Lucknow Girls Call Adil Nagar 08630512678 Available full Day
Lucknow Girls Call Adil Nagar 08630512678 Available full DayLucknow Girls Call Adil Nagar 08630512678 Available full Day
Lucknow Girls Call Adil Nagar 08630512678 Available full Day
 
Can I sell my hamster kombat tokens Now! (latest update - 2024)
Can I sell my hamster kombat tokens Now! (latest update - 2024)Can I sell my hamster kombat tokens Now! (latest update - 2024)
Can I sell my hamster kombat tokens Now! (latest update - 2024)
 
is hamster kombat still worth mining (HMSTER - update)
is hamster kombat still worth mining (HMSTER - update)is hamster kombat still worth mining (HMSTER - update)
is hamster kombat still worth mining (HMSTER - update)
 
how to sell hamster kombat on bybit crypto exchange.
how to sell hamster kombat on bybit crypto exchange.how to sell hamster kombat on bybit crypto exchange.
how to sell hamster kombat on bybit crypto exchange.
 
How do I sell my Hamster kombat currency?
How do I sell my Hamster kombat currency?How do I sell my Hamster kombat currency?
How do I sell my Hamster kombat currency?
 
What is the Secret way of selling hamster kombat tokens online?
What is the Secret way of selling hamster kombat tokens online?What is the Secret way of selling hamster kombat tokens online?
What is the Secret way of selling hamster kombat tokens online?
 
Economic Risk Factor Update: July 2024 [SlideShare]
Economic Risk Factor Update: July 2024 [SlideShare]Economic Risk Factor Update: July 2024 [SlideShare]
Economic Risk Factor Update: July 2024 [SlideShare]
 
How do I cash out hamster kombat tokens?
How do I cash out hamster kombat tokens?How do I cash out hamster kombat tokens?
How do I cash out hamster kombat tokens?
 
how to sell hamster kombat tokens for USD.
how to sell hamster kombat tokens for USD.how to sell hamster kombat tokens for USD.
how to sell hamster kombat tokens for USD.
 
When will I be able to sell my Hamster Kombat coins.
When will I be able to sell my Hamster Kombat coins.When will I be able to sell my Hamster Kombat coins.
When will I be able to sell my Hamster Kombat coins.
 
how do I sell my hamster coins on OKX exchange.
how do I sell my hamster coins on OKX exchange.how do I sell my hamster coins on OKX exchange.
how do I sell my hamster coins on OKX exchange.
 
How can i sell hamster kombat token on Binance exchange!
How can i sell hamster kombat token on Binance exchange!How can i sell hamster kombat token on Binance exchange!
How can i sell hamster kombat token on Binance exchange!
 
OAT_RI_Ep21 WeighingTheRisks_June24_CommodityInflation.pptx
OAT_RI_Ep21 WeighingTheRisks_June24_CommodityInflation.pptxOAT_RI_Ep21 WeighingTheRisks_June24_CommodityInflation.pptx
OAT_RI_Ep21 WeighingTheRisks_June24_CommodityInflation.pptx
 
how do I sell hamster kombat at exchange price!
how do I sell hamster kombat at exchange price!how do I sell hamster kombat at exchange price!
how do I sell hamster kombat at exchange price!
 
2024 Q2 Crypto Industry Report | CoinGecko
2024 Q2 Crypto Industry Report | CoinGecko2024 Q2 Crypto Industry Report | CoinGecko
2024 Q2 Crypto Industry Report | CoinGecko
 
Surat Girls Call Surat 0X0000000X Payment On Delevery Cash Hot Premium Genuin...
Surat Girls Call Surat 0X0000000X Payment On Delevery Cash Hot Premium Genuin...Surat Girls Call Surat 0X0000000X Payment On Delevery Cash Hot Premium Genuin...
Surat Girls Call Surat 0X0000000X Payment On Delevery Cash Hot Premium Genuin...
 
20240710 Calibre Mining 2024 Investor Presentation.pdf
20240710 Calibre Mining 2024 Investor Presentation.pdf20240710 Calibre Mining 2024 Investor Presentation.pdf
20240710 Calibre Mining 2024 Investor Presentation.pdf
 

PAST, PRESENT, AND FUTURE ANALYSIS OF THE ARCHITECTURAL & ENGINEERING DESIGN INDUSTRY (July 2016)

  • 1. PAST, PRESENT, AND FUTURE ANALYSIS OF THE ARCHITECTURAL & ENGINEERING DESIGN INDUSTRY Prepared By: William J. McConnell, J.D., P.E. Chief Executive Officer The Vertex Companies, Inc. July 2016
  • 2. P a g e | 2 VERTEX Table of Contents I. Executive Summary 3 II. Design Marketplace 4 III. Overall Industry Growth 4 IV. International Growth 5 V. Market Consolidation 7 VI. Employee OwnedAEC Firms 8 VII. Lifecycles of the Largest AEC Firms in the US over the past 50 Years 8 A. 24 Surviving Firms 11 B. 35 Firms that were Acquired 12 C. 41 Firms that Failed 12 VIII. Design Sector Growth 12 IX. Impact to Design Firms due to the Market Shift in the Hazardous Waste Industry during the 1990s 14 X. Technological Advances that AEC Firms Must Embrace to be Competitive in the Near Future 20 A. AEC Firms will Realize Additional Benefits of BIM 21 B. Use of Unmanned Aerial Vehicles(UAVs) to Capture Existing Conditions 21 C. Use of Laser Scanning to Capture Existing Conditions 22 D. Virtual and Augmented Reality 22 E. BIMProcesses Will Revolutionize Building DeliveryVia Prefabrication 23 F. Improved Energy Performance Modeling 23 G. Cloud Based Data Storage Will Improve Collaboration 24 H. 3D-Printed Architectural Models 24 I. Use of Composites in Construction 25 XI. Conclusions 25
  • 3. P a g e | 3 VERTEX I. Executive Summary Thisreportprovidesamacro view of the architectural andengineeringdesignindustryinthe U.S. inorder to understandstrategiesemployedbybothsuccessful andunsuccessfulfirmsoverthe past 50 years.It alsoevaluatestechnological trendsthatdesignfirmsmustembrace inordertomaintaina competitiveedge movingforwardintothe future. The majorityof the top20 designfirmsare publiclytradedandlooktoM&A activityto maintain robustgrowthprograms. Largerfirmsoverthe past50 years that have ignoredstrategicM&A activity have steadilyfallendownoroff ENR’stopdesignfirmlist.Lackof M&A oftenleadstoan overconcentrationof workinfew marketsectors.Because marketsectorsebbandflow overtime,alack of diversificationcausedseveral failuresof large designfirmssince 1965. Anoverconcentrationinoil and gas workin the 1970s ledtomany failuresinthe 1980s. Similarly,anoverweighedfocusonhazardous waste workin the 1980s andearly1990s ledto a numberof large bankruptciesandfire salesinthe late 1990s and early2000s. Thus,a keylessonfromthisstudyisthe importance of marketdiversification. Overthe past twentyyearsthe growthof the top500 architectural andengineeringdesignfirms has outpacedthe U.S. GrossDomesticProductby nearlytwopercentage pointsinlarge partbecause of rapidgrowthin internationalwork.The average percentageof international revenue forthe top20 designfirmshasdoubledoverthe pasttwentyyears,from14% to 28%; thus,the large firmsmustnot ignore international marketstomaintaincompetitiveness. In additiontodiversificationandinternational expansion,designfirmsmustembrace technological advancesinordertopositionforfuture work.Forinstance,BIMsoftware isutilizedon nearlyall large designprojectsto,amongotherthings,coordinate the workof varioustrades—ignoring thistrendis almosta bar to qualificationforlarge-scale work.Newertrends,suchasthe use of drones and laserscanningtocapture existingconditions,cloudbasedstorage forimprovedcollaboration, and 3D-Printingtoprepare earlyarchitectural models,mustbe embracedtokeeponthe forefrontof market
  • 4. P a g e | 4 VERTEX adoption.Inaddition,architectsandengineersmustunderstandthe use of new productofferings,such as compositestokeepdesignseconomicallyviable andawe-inspiring. II. DesignMarketplace The architectural and engineeringdesignmarketplace ismade upof approximately100,000 firms,butthe majorityof the industry’srevenueisgeneratedfromthe top500 companies.1 2 Like construction,the overall designindustryisfragmented—onlytenpercentof all firmshave more than20 employees.3 Thispaperfocusesonthe largerdesignfirms,whichtraditionallyfall intoone of the followingfive categories: AEC: architect,engineering,andconstructioncompany AE: architectand engineeringcompany EC: engineeringandconstructioncompany A: architectural company E: engineeringcompany Of the top20 rankedfirms,9 are EC, 5 are AEC,4 are AE,1 is A,and 1 isE; hence,the majorityof top designfirmsalsohave aconstructioncomponent.Inaddition,the onlypure engineeringfirm(“E”) is Tetra Tech,and it wascategorizedasan EC firmuntil lastyearwhenit droppeditsconstruction program,whichis a trendthat I will discusslaterinthisreport.The revenue recordedbyENR,the publicationthatranksthe top 500 designfirmseachyear,doesnotinclude constructionrevenue;thus, the rankingispurelybasedondesignservices. III. Overall Industry Growth Domesticdesignrevenue forthe top500 designfirmsoutpacedboththe U.S.GDP and put-in- place constructionrevenue overthe pasttwentyyears,withanaverage annual growthrate of 5.3%. 1 https://www.census.gov/epcd/susb/2002/us/US5413.HTM 2 https://research.stlouisfed.org/fred2/series/REV5413TAXABL157QNSA 3 https://www.census.gov/epcd/susb/2002/us/US5413.HTM#table1
  • 5. P a g e | 5 VERTEX International designrevenueforthe top500 designcompaniesgrew ata healthy9.8% withinthe noted time frame.Combined, domesticandinternational designrevenuegrew atan annual rate of 6.1%. Annual Growth Category Rate (’95 – ’15) Top 500 DomesticDesignRevenue: 5.3% Top 500 InternationalDesignRevenue: 9.8% Top 500 DesignRevenue(Domestic&International): 6.1% US GDP4 : 4.4% Put InPlace Construction(domestic) 5 : 3.6% Overall designrevenueoutpacedconstructionrevenue andGDPfiguresfortworeasons.First, the constructionandGDP figuresdonotinclude internationalexpenditures,which, asnotedabove,are outpacingdomesticwork.Second,duringthe GreatRecessionof 2007-2009, manyownerscontinuedto authorize designworkand,once complete,projectswereshelved,whichcausedagreatimpactto overall constructionrevenue.Asaresult, the downturndidnotaffectdesignfirmsasseverelyas contractors. IV. International Growth Large designfirmsmustlooktointernationalworktomaintaintheirpositionasa topplayerin the marketplace.Onaverage,the top20 designfirmsgenerateone thirdof revenue frominternational projects.Intermsof overall figuresfromthe top500 designers,international workpercentage has doubledfrom14.6% in1995 to 28.3% in2015. The figuressuggestthatlarge AECfirmscan no longer ignore the internationalmarketplace asasource of growth. 4 http://www.bea.gov/newsreleases/national/gdp/2016/gdp4q15_3rd.htm 5 https://www.census.gov/construction/c30/c30index.html
  • 6. P a g e | 6 VERTEX Domestic Int’l Overall % Int’l Year Revenue Revenue Revenue Revenue 1995 $23,860 $4,090 $27,950 14.6% 2000 $33,200 $7,800 $41,000 19.0% 2005 $42,100 $10,900 $53,000 20.6% 2010 $59,200 $20,800 $80,000 26.0% 2015 $66,200 $26,100 $92,300 28.3% Accordingto industryexperts,the future of internationalworkismore aboutcitiesthan countriesdue tourbanizationandsustainablelivingtrends.The EconomistIntelligence Unit’sreport titled“HotSpots:BenchmarkingGlobal CityCompetitiveness,”notesthatcompaniesshouldtargetcities that have highrankingsinthe followingeightindicatorcategories:6 1. EconomicStrength 2. Human Capital 3. InstitutionalEffectiveness 4. Financial Maturity 5. Global Appeal 6. Physical Capital 7. EnvironmentandNatural Hazards,and 6 http://abyssglobal.com
  • 7. P a g e | 7 VERTEX 8. Social and Cultural Character Reportedly,citieswiththe highestcombinedrankings,basedonthe notedmetrics,provide sufficient infrastructure andwork/life environmentfor“people toconducttheirlivesandbusinesseffectively.”7 V. Market Consolidation Many of the large designfirmsrelyuponacquisitionsasthe primarymeansof growthforseveral reasons.First,annual organicgrowthforlarge companiesistypicallylimitedtolow single digits,whichis consideredtooslow bymostlarge companies.Second,manyof the topdesignfirmsare publiclytraded, whichisunlike the topconstructioncompanies.Publiclytradedcompanieshave addedpressure togrow and are valuedatmuch highermultiplesthanprivatelyheldfirms.Specifically,12of the top 20 AEC firmsare publicandthe majorityof firmshave a P/E ratiointhe 15 to 20 range.Meanwhile,accordingly to FMI, privatelyheldfirmsare typicallyvaluedatamultiple of 3 to 6 timesearnings.Hence,public companiesoftenacquire privatecompaniesformuchlowermultiples,andwhenthe acquiredfirm’s earningsare postedina publicsetting,the value doubles,if nottriples.Thisdifference invaluation betweenpublicandprivate marketsdrivesdealflow. As a resultof thisarbitrage,the marketshare of the top10 designfirms,inrelationtothe top 500 designfirmrevenue,continuestogrow.Infact, the top 10 designfirmshave a50.0% marketshare, whichisup from30.2% in 1995. Companieslike AECOM,Jacobs,AMEC,TetraTech, Arcadis,andothers continue togobble upmiddle marketplayers. MarketShare of Year the Top10 AECFirms 1995 30.2% 2000 40.5% 2005 44.2% 2010 50.4% 2015 50.0% 7 Id.
  • 8. P a g e | 8 VERTEX VI. Employee OwnedAEC Firms As notedabove,the 12 of the top 20 designfirmsare publiclytraded.Of the remaining8firms, 7 are 100% employee owned.The onlyexceptiontothismodel inthe top20 listisBechtel,whichis ownedbythe Bechtel familyandvariousinternallyelectedemployees;Bechtel isthe fifthlargest privatelyheldcompanyinthe US.8 Basedonmy review of the ownershipmodel of the top100 design firms,the mosteffectiveownershipstrategies,inordertopositionadesignfirmforgrowth,isthe public marketplace or100% employeeownership.The publicmodeloffershighvaluationmultipleswhich promotesgrowththroughacquisition,while the employee ownershipmodel providesdesignteamswith additional motivationtogrow the businessinordertoincrease corporate valuation. VII. Lifecyclesof the Largest AEC Firms in the US over the past 50 Years Of the top100 designfirmsreportedbyENRin1965, 24 survived,35were acquired,and41 failed.Thisdataissimilar,butsurprisinglyabitbleaker,thanmyanalysisof the top100 contractors listedbyENRin 1965 where 26 survived,41 were acquired,and33 failed. Survived Acquired Failed CurrentStatusof Top 100 DesignFirmsfrom1965: 24 35 41 CurrentStatusof Top 100 Contractors from1965: 26 41 33 While more designfirmsfailedwhencomparedtocontractors,the successrate of acquisitions of designfirmsisconsiderablyhigherthanthe successrate of contractors. The vast majorityof the 35 designfirmacquisitionsweresuccessful,whileoverhalf of the 41 contractor acquisitionsfailedduring the notedtime period. Anotherinterestingfactisthatonly3 of the 8 survivingdesignfirmsthatwere listedinthe top 25 in 1965 remaininthe top 25 in2015. The five firmsthatslippedoutof the top25 made minimal, if any,acquisitionsoverthe past50 years.Thissuggeststhatan acquisitionstrategyisnecessarytokeep 8 http://www.forbes.com/companies/bechtel/
  • 9. P a g e | 9 VERTEX pace (orabove) withthe industry. Designfirmsthatlackthe personnel, capital,and/oranappetite for risk(vis-a-visM&A transactions) oftenfall downthe topdesignerlistovertime.A seeminglygoodexit strategyfor large designfirmsthatfall intothiscategoryistobe acquiredbya large and diverse design firm. As notedinthe “Lifecycle of ConstructionContractors”study,anumberof AECfirmshave startedto acquire pure contractors.The converse isnottrue—onlyone pure contractortriggereda mergerwitha large architectural firm(The BeckGroup’smergerwithUrban Architecture in1999) based on myresearch;thisis likelydue tolackof funding. The followingisareview of ENR’stopdesignfirmlistof 1965: 1965 2015 Rank Rank CompanyName (AcquiringFirm) 1 10 CHAS.T. MAIN INC.(PARSONS) 2 2 SVERDRUP & PARCEL& ASSOCS.INC.(JACOBS) 3 33 MICHAEL BAKER INTERNATIONAL 4 20 HNTB 5 21 HARZA ENGINEERINGCO. (MWH) 6 1 TIPPETTS-ABBETT-MCCARTHY-STRATTON (AECOM) 7 44 SKIDMORE OWINGS& MERRILL LLP 8 12 BROWN & ROOT INC.(KBR) 9 1 DANIEL,MANN,JOHNSON & MENDENHALL (AECOM) 10 45 BURNS & ROE INC.(POWER ENGINEERS) 11 30 SARGENT & LUNDY LLC 12 1 FREDRIC R. HARRISINC.(AECOM) 13 2 GIBBS & HILL INC.(JACOBS) 14 25 LOUIS BERGER 15 16 PARSONS,BRINCKERHOFF,QUADE&DOUGLAS (WSP-PARSONSBRINCKERHOFF) 16 15 BLACK& VEATCH 17 FAILED 18 1 METCALF & EDDY ENGINEERS (AECOM) 19 65 SMITH, HINCHMAN & GRYLLS ASSOC.INC.(SMITHGROUPJJR) 20 10 DELEUW, CATHER & CO. (PARSONS) 21 207 AMMANN & WHITNEY 22 10 GILBERT ASSOCS.INC.(PARSONS) 23 4 LOCKWOODGREENE ENGINEERSINC.(CH2M HILL) 24 38 PERKINS+ WILL 25 FAILED 26 49 GANNETTFLEMING 27 1 WELTON BECKET & ASSOCIATES(AECOM) 28 322 HLW INTERNATIONAL
  • 10. P a g e | 10 VERTEX 29 FAILED 30 FAILED 31 470 ALBERT KAHN FAMILY OF COS. 32 22 WILBUR SMITH & ASSOCS.(CDMSMITH) 33 1 WOODWARD-CLYDE-SHERARD& ASSOCS.(AECOM) 34 FAILED 35 1 CONSOER,TOWNSEND& ASSOCS.(AECOM) 36 66 STANLEY CONSULTANTS 37 70 RS&H 38 6 FOSTER WHEELER CORP.(AMEC FOSTER WHEELER) 39 39 SANDERS& THOMAS INC.(STV GROUP INC.) 40 1 ELLERBE & CO. (AECOM) 41 2 J.E. SIRRINECO.(JACOBS) 42 FAILED 43 FAILED 44 81 LEO A DALY 45 FAILED 46 1 J.E. GREINER CO.(AECOM) 47 94 JOHN GRAHAM & CO.(DLR GROUP) 48 1 DAMES AND MOORE (AECOM) 49 FAILED 50 133 SYSKA & HENNESSY 51 FAILED 52 17 BURNS & MCDONNELL 53 39 STV GROUP INC. 54 FAILED 55 FAILED 56 FAILED 57 114 WHITMAN, REQUARDT & ASSOCIATESLLP 58 FAILED 59 FAILED 60 1 BOYLE ENGINEERING (AECOM) 61 FAILED 62 FAILED 63 FAILED 64 FAILED 65 FAILED 66 FAILED 67 2 EDWARDS & KELCEY (JACOBS) 68 349 BUCHART ASSOCIATES(BUCHART-HORN INC.-BASCOASSOCIATES 69 477 EPSTEIN 70 247 FAY SPOFFORD& THORNDIKE 71 FAILED 72 FAILED 73 FAILED 74 FAILED 75 1 THE KEN R. WHITE CO.(AECOM) 76 FAILED
  • 11. P a g e | 11 VERTEX 77 FAILED 78 41 ANDERSON-NICHOLS&CO. INC.(DEWBERRY) 79 349 BUCHART-HORN 80 FAILED 81 40 R.W. BECK & ASSOCS.(LEIDOS) 82 124 GEORGE S. NOLTE CONSULTINGCIVILENG’RSINC.(NV5) 83 FAILED 84 37 HOK 85 FAILED 86 FAILED 87 71 RUMMEL KLEPPER & KAHL LLP 88 FAILED 89 41 GOODKIND& O’DEA (DEWBERRY) 90 FAILED 91 2 VINCENTG. KLING& ASSOCS.(JACOBS) 92 FAILED 93 FAILED 94 127 ALFRED BENESCH & CO. 95 FAILED 96 4 CLAIRA. HILL & ASSOC.(CH2MHILL) 97 FAILED 98 FAILED 99 FAILED 100 FAILED Summary: 24 FirmsSurvived 41 FirmsFailed 35 FirmsWere Acquired(5movedup list/19 moveddownlist) A. 24 SurvivingFirms The vast majorityof the survivingfirms,or19 of 24, moveddownENR’sTop100 AEC listover the past 50 years.The five survivingfirmsthatactuallymovedupENR’slistincludedBlack&Veatch(#16 to #15), Burns& McDonnell (#52 to #17), STV Group (#53 to #39), HOK (#84 to #37), andRumel Klepper & Kahl (#87 to #31).
  • 12. P a g e | 12 VERTEX B. 35 Firms that were Acquired AECOM(publiclytraded)acquired12,or approximatelyone-third,of the top100 designfirms that were acquiredoverthe past50 years—note the majorityof AECOM’sacquisitionstookplace over the past twodecades. Jacobs(publiclytraded) hadthe secondmostacquisitionsat4,Parsons(100% employeeowned) hadthe thirdmostat 3, and CH2M (100% employeeowned) andDewberrytiedfor the fourthmost acquisitionsat2. The remaining14 companieswere acquiredbyotherlarge designfirms.The successrate of the acquisitionswasremarkable,particularlywhencomparedtothe successrate of acquisitionsinthe constructionindustry.Asdiscussedfurtherbelow,acquisitionsmade bylarge,diverse,andpublicdesign firmsappearto have more successthan designfirmswithonlyafew service offerings.The diverse firms tendto performmuchbetterthroughleantimesthathitcertainindustriesatleastonce a decade. C. 41 Firms that Failed ENR didnot listthe namesof the faileddesignfirmsinitsanalysis;thus,Iwasunable toevaluate the reasonsfor failure.Likelythe maincause of failure islackof diversificationand,asaresult,failure due to shiftsinthe marketplace. VIII. DesignSector Growth ENR dividesdesignrevenueintonine sectors.The size andpercentof contributionof each sectoris everevolving.In1995 the largestdesignsectorwashazardouswaste,now itranks fifth.Forthe firsttime in20 yearsTransportationnow ranksfirst.Understandinghow eachdesignsectorebbsand flowsiscritical tosurvival—particularlyfirmsthatlackdiversity.Thisissue isdiscussedindetail below.
  • 13. P a g e | 13 VERTEX Design Revenue Per Sector Sector: 1995 2000 2005 2010 2015 General Building: $4,360 $8,004 $11,718 $16,594 $18,810 Manufacturing: $1,300 $1,358 $1,141 $1,674 $1,840 Industrial: $2,312 $4,099 $2,709 $3,144 $4,354 Petroleum: $3,468 $5,010 $7,183 $14,715 $18,141 Water: $1,210 $2,079 $3,542 $5,305 $5,584 Sewer/Waste: $2,320 $2,875 $3,907 $5,395 $4,794 Transportation: $4,280 $6,966 $10,800 $15,735 $19,033 HazardousWaste: $5,470 $5,110 $6,167 $7,370 $6,662 Power: $1,900 $3,543 $3,026 $7,766 $9,453 Telecom: $0 $0 $903 $587 $1,011 Overall: $27,950 $33,200 $42,100 $59,200 $92,300 Percent Market Share per Sector Sector: 1995 2000 2005 2010 2015 General Building: 16 25 28 28 20 (+4) Manufacturing: 5 4 3 3 2 (-3) Industrial: 8 12 6 5 5 (-3) Petroleum: 12 15 17 25 20 (+8) Water: 4 6 8 9 6 (+2) Sewer/Waste: 8 9 9 9 5 (-3) Transportation: 15 21 26 27 21 (+6) HazardousWaste: 20 15 15 12 7 (-13) Power: 7 11 7 13 10 (+3) Telecom: 0 0 2 1 1 (+1) Overall: 100 100 100 100 100 Annual Growth Rate Between Periods Sector: 1995 - 2000 2000 – 2005 2005 – 2010 2010 – 2015 Ave.(’95 – ’15) General Building: 12.9 7.9 7.2 2.5 7.6 Manufacturing: 0.9 -3.4 8.0 1.9 1.8 Industrial: 12.1 -7.9 3.0 6.7 3.2 Petroleum: 7.6 7.5 15.4 4.3 8.6 Water: 11.4 11.2 8.4 1.0 8.0 Sewer/Waste: 4.4 6.3 6.7 -2.3 3.7 Transportation: 10.2 9.2 7.8 3.9 7.8 HazardousWaste: -1.4 3.8 3.6 -2.0 1.0 Power: 13.3 -3.1 20.7 4.0 8.4 Telecom: 0 0 -8.3 11.5 1.2 Overall: 3.5 4.9 7.1 9.3 6.2
  • 14. P a g e | 14 VERTEX IX. Impact to DesignFirms due to the Market Shift in the Hazardous Waste Industry during the 1990s On average,the largestdesignsectorinthe 1980s and earlytomid-1990s was HazardousWaste, primarilydue toCongress’passage of CERCLA legislation(Comprehensive Environmental Response, Compensation,andLiabilityAct) in1980 and SARA (SuperfundAmendmentsandReauthorizationAct) in 1986. Federal andstate fundingforthisworkcreateda massive industryforengineersandcontractors alike.However,inthe earlytomid-1990s fundingforthisworkstalled,whichcausedpoorperformance or worse,failure,of manyfirms. In 1990, 15 of the top 100 designfirmsinthe US derivedthe majorityof itsrevenue from hazardouswaste relatedprojects.Nearlyall of the firmslackedthe properdiversificationnecessaryto allow forproperrepositioningonce aninevitablemarketshiftoccurred,whichstartedtotake place in the earlyto mid-1990s. Asa consequence, 11of the 15 firmseithersoldoutor wentbankrupt,asnoted
  • 15. P a g e | 15 VERTEX below.Moreover,the remaining4firmshave struggledtokeeppace withaverage designcompany performance overthe pastthree decades. The followingisabrief reviewof the 15 firms. #16 Dames & Moore, Los Angeles,CA(50% Haz. Waste workin1990)(Acquiredby URS in 1999): In the early1990s, as the hazardouswaste industrystartedtoshrink,Dames& Moore wentpublicinorderto generate sufficientfundingtogoon an acquisitionspree todiversify away fromthe hazardouswaste sector.In 1995 alone,Dames&Moore acquiredWalkHaydel & AssociatesInc.(ProgramManagementfirmfocusedonthe Powerindustry),O'BrienKreitzberg, Inc. (ConstructionManagementfirmthatfocusedonfederal buildingprojects),and DecisionQuest,Inc.(Behavioral Researchfirm).The acquisitionsprovedtobe toolittle toolate as Dames& Moore soldout to URS in 1999 due to financial issues. #20 ICF KaiserEngineers,Oakland, CA(42% Haz. Waste workin 1990)(AcquiredbyIT Corp. in 1998): SimilartoDames & Moore,ICF KaiserEngineerswentpublicin1991 inorderto generate fundingforacquisitionstoallow fordiversificationbeyondhazardouswaste work.Specifically, ICF Kaiserattemptedtoenterintomanufacturing,whichturnedouttobe unsuccessful asnoted by the WashingtonPost,"the companyprovednotparticularlygoodatmanagingproduct- orientedbusinesses."Thereafterthe companysoldoff manyof itsacquisitionsandrestructured itsdebt.The company’spoor acquisitionstrategy,coupledwiththe continuallyshrinking hazardouswaste work,ledtoICF Kaiser’ssale toIT Corp.in the late 1990s. The sale wasunusual because ITCorp. wasin a similarpositiontoICFKaiser—overweighedfocusonhazardouswaste work.As notedbelow,ITCorp.filedforbankruptcyin2002. #24 IT Corporation, Torrance, CA (100% Haz. Waste work in1990)(FiledforBankruptcyin 2002): IT Corp.’sprincipal businessinvolvedthe disposalof industrialhazardouswaste.The
  • 16. P a g e | 16 VERTEX companyhad virtuallynodiversificationbeyondenvironmentalwork inthe early1990s. Accordingly,ITCorp.ran intofinancial troublesinthe 1990s due to the shrinkingmarketplace and a recklessacquisitionstrategy.Tomake mattersworse,the companywasnamedina numberof highprofile environmentallaw suitsinthe early2000s. Accordingly,ITCorp.declared bankruptcyin2002. Thereafter,the Shaw Groupacquiredsubstantiallyall of ITCorp.’sassets and some of itsliabilitiesoutof bankruptcy. #34 ENSR Corporation, Westford,MA(100% Haz. Waste workin 1990)(AcquiredbyAECOMin 2005): ENSR Corporation,like ITCorp.,wassolelyfocusedonhazardouswaste workinthe early 1990s. Asa result,ENSRstruggledthroughthe 1990s and early2000s due to the shrinking marketplace forhazardouswaste work.Ultimately,ENSRsoldouttoAECOMin 2005. #37 NUSCorporation, Gaithersburg,MD (40% Haz. Waste work in1990)(Acquiredby Halliburtonin1992): HalliburtonacquiredNUSCorporationinthe early1990s as the hazardous waste sectorstartedto compress.Halliburtonhadtrouble turningNUSCorp.around;therefore, it spunNUS Corp.off to Tetra Tech Inc.in 1997. Over the pastdecade or so, TetraTech has repositionedTetraTechNUSinto a technologyfirmthatisfocusedonthe environmental industry.9 #38 Woodward-Clyde Group,Inc.,Denver,CO (33% Haz. Waste Work)(AcquiredbyURSin 1997): While Woodward-Clyde onlygenerated33% of its revenue fromhazardouswaste projects,itsoverall focuswasenvironmentallydriven;thus,the company’sgrowthlanguished 9 http://isg.applications.tetratech.com/productGallery.aspx
  • 17. P a g e | 17 VERTEX throughthe earlyand mid-1990s.10 URS, a primarilybuildingandtransportationAECfirm, acquiredWoodward-Clyde in1997 to diversifyitsservice offerings.11 In2012, URS spent$1.25 billioninitsacquisitionof FlintEnergyServices,whichcreatedanoverconcentrationinrevenue and debtrelatedtothe oil and gas sector.Asa resultof URS’ subsequentpoorperformance due to the compressionof the oil andgas sector,AECOMacquiredURS inlate 2014. #46 The ERM Group, Exton,PA (85% Haz Waste workin 1990)(RemainsinBusiness):ERM weatheredthe stormof the 1990s eventhoughalarge concentrationof itsworkwas focusedon hazardouswaste.However,ERMhas struggledwithconsistentgrowththroughthe 1990s. To helpboostgrowth,ERMaligneditself withprivate equityfirm,BridgeportCapital,inthe early 2000s. In2011, London-basedprivateequityfirmCharterhouse acquiredamajoritystake inthe businessbybuyingoutCharterhouse’sshares.12 In2015, ERM partneredwithOMERSPrivate Equityto take out Charterhouse.13 Basedonthisvolatility,ERMappearsto be strugglingwith thisprivate equityformula. #57 GroundwaterTechnologyInc., Norwood, MA (100% Haz. Waste workin1990)(Acquiredby IT Corp. 1998): In 1996, Flour’ssubsidiary,FlourDaniel Environmental Services,Inc.,merged withGroundwaterTechnologyInc.toformFluorDaniel GTI.14 The mergerdidnot workout as 10 http://www.solidwaste.com/doc/urs-acquires-woodward-clyde-group-0002 11 http://www.nytimes.com/1997/08/20/business/urs-to-pay-100-million-for-woodward-clyde.html 12 http://www.erm.com/en/news-events/news/erm-partners-with-omers-private-equity-to-buy-out- charterhouses-investment-in-erm/ 13 http://www.erm.com/en/news-events/news/archived-news-2011/erm-announces-that-charterhouse-is-to- acquire-a-majority-stake-in-the-business/ 14 http://investor.fluor.com/phoenix.zhtml?c=124955&p=irol-newsArticle&ID=14751
  • 18. P a g e | 18 VERTEX Flourexpected;therefore,FloursoldFluorDaniel GTI toIT Corp.15 in1998, lessthantwoyears afterthe transaction.Asnotedabove,IT Corp.filedforbankruptcyin2002. #59 Harding Associates,Novato, CA (80% Haz. Waste work in1990)(AcquiredbyIT Corp. in 1998): In 1998, Hardingemployedthe ITCorp.strategyandattemptedtoincrease its marketshare of hazardouswaste work,despite the lackof growthinthissector.Inthe 1998 HardingacquiredABB EnvironmentalServicesInc. outof Portland,ME (#87 on ENR’sTop 500 DesignFirmsin1990).16 Harding’sgrowthstrategywithinthe hazardouswaste sectordidnot workas two yearlaterit soldoutto Mactec Inc. fora discountedprice due topoorfinancial performance.17 In2011, AMEC acquiredMactec.18 #70 ATEC AssociatesInc., Indianapolis,IN (45% Haz. Waste work in1990)(Survived;Dropped off of ENR’sTop 500 list):Onor about 1995, ATC,an environmental firm,acquiredATEC. ATC, like ERM, appearsto be havingtrouble withitsownershipstructure overthe pastdecade most likelydue tosluggishmarketgrowth.In2012, Cardno Limited(Australia-basedglobalAECfirm) acquiredATC.In 2015, a groupledby BernhardCapital Partners(energyfocusedprivateequity firm),acquiredATCfromCardno.19 ATCwas not listedinENR’sTop500 DesignFirmin2015. #79 Ecology and Environment,Inc., Lancaster, NY (90% Haz Waste workin1990)(Survived; Droppeddownto #96 on ENR’sTop 500 list):EcologyandEnvironment,Inc.(“E&E”) wasable to 15 http://www.nytimes.com/1998/10/29/business/company-news-it-group-acquiring-fluor-daniel-gti-for-69- million.html 16 https://zweiggroup.com/newsletters/checkout.php?id=1082 17 http://www.nytimes.com/2000/03/25/business/company-news-harding-lawson-agrees-to-takeover-by- mactec.html 18 http://archive.amecfw.com/news/2011/amec-acquires-leading-us-engineering-and-environmental-services- company-mactec 19 https://www.businessreport.com/article/bernhard-acquires-lafayette-based-environmental-consulting- engineering-firm-atc-associates
  • 19. P a g e | 19 VERTEX slowlydiversifyitsserve offeringsoverthe past30 years—itnow offersenvironmental planning, engineering, waterresources,anddue diligence services.20 AlthoughE&Ewentpubliclike many of the othernotedfirmsinthe late 1980s, it didnot go ona recklessspendingspree that saddledmanyof the othernotedfirmswithunmanageabledebtload.WhileE&Eremainsin businesstoday(#96 inENR’sTop 500 DesignFirmlistof 2015), itsfinancial performance has beenlackluster—E&E’scurrentstockprice remainslessthanhalf of whatitwas inthe 1980s. #84 VERSAR Inc., Springfield,VA(40% Haz Waste Work)(Survived;Droppedoff of ENR’sTop 500 List):Aswas the trendinthe 1980s for environmental firms,Versarwentpublictofund future expansion.AlthoughVersarremainsinbusinesstoday,itsfinancial performance hasbeen poor evidencedbyitsstockprice,whichisat approximately15% of its highwatermark inthe 1980s.21 Versaris nolongerlistedonENR’sTop 500 DesignFirmlist. #87 ABB Environmental Services,Inc., Portland, ME (95% Haz. Waste work in1990)(Acquired by Hardingin1998 – IT Corp. acquiredHardinglaterthatyear):Little informationexistsabout ABB Environmental Services,Inc.(nottobe confusedwithpowergiantABBGroup).Because ABB wasprimarilyfocusedonhazardouswaste work,theylikelystruggledthroughthe 1990s, whichlikelyledtoHardingAssociates’acquisitionof the companyin1998. #89 Geraghty& MillerInc.,Plainview,NY(95% Haz. Waste workin1990)(Acquiredby Arcadis in1993): Since itsincorporationinthe 1970s, Geraghty& Millerfocusedonenvironmental 20 http://www.ene.com/ 21 http://www.versar.com/investors/corporate.html
  • 20. P a g e | 20 VERTEX remediationwork.The firmwentpublicin1988 inan efforttodiversify.Afterpoorresults, the companysoldout to Arcadisin1993.22 #100 EMCON Associates,San Jose,CA (40% Haz. Waste workin1990)(Acquiredby IT Corp.in 1999): Similartoseveral of the firmsnotedabove,EMCON wentpublicinthe early1990s (Nasdaq:MCON) inan efforttodiversifyintootherindustrysectors.EMCON’sresultswere mixedandin1999 EMCON soldout to IT Corp., whichsubsequentlywentbankruptin2002. Needlesstosay,designfirmswithanoverconcentrationof workina shrinkingmarketplace have a verydifficulttime withsurvival.Seeminglythe bestsolutionforanAEC firminthissituationisto sell to a more diversifieddesignfirm,similartothe exitstrategyof Woodward-Clyde Group,Inc.(URS) and Geraghty& MillerInc.(Arcadis).A sale toanothernon-diversifiedcompanythatisstuckinthe same industry(like ITCorp.inthe examplesabove) isclearlynotthe answer.The firmsthatsurvivedthe compressionof the hazardouswaste industrydidsothroughdownsizingandslow butsteady diversification. X. Technological Advancesthat AEC Firms Must Embrace to be Competitive inthe Near Future In orderto maintaincompetitive fornew work,designfirmsmustconsistentlyembrace technological advancementsthatimprove efficienciesandbolstercreativedesigns. Firmsthatresist change will have adifficulttime qualifyingforfuture workopportunities.The followingisalistof technologytrendsthatare affectingthe waythe AECindustryoperates. 22 http://www.enr.com/articles/7551-james-geraghty-pioneer-of-groundwater-study-is-dead-at-90
  • 21. P a g e | 21 VERTEX A. AEC Firms will Realize Additional Benefitsof BIM Overthe past decade,manyAECfirmsusedBIM software tobuild3D modelstocreate 2D documents,muchlike theydidwithCADsoftware.While the productionof drawingssetsfromBIM software isuseful,BIMinformationhasmanyotheradvantagesthatAECfirmsare startingto benefit fromand thistrendwill continue inthe nearfuture.23 BIM can be usedto:24 • Visualizationthrough3Drenderings. • Fabrication/shopdrawingspreparation(forinstance,sheetmetal ductwork). • Quantitytakeoff foraccurate cost estimating. • 3D constructionsequencingdemonstrations. • Site logisticdemonstrations. • Conflict,interference,andcollisiondetection(primarilyusedforMEP coordination). • Forensicanalysistographicallyillustrate potentialfailures,leaks,evacuationplans,etc. • Assistfacilitymanagerswithplanningforrenovations,space planning, andmaintenance operations. The economicbenefitsof afull use of BIMsoftware includesareductionof unbudgetedchange (due to lessconflicts,etc.),more accurate costestimates,andschedule improvement. B. Use of UnmannedAerial Vehicles(UAVs) toCapture ExistingConditions A considerablecostinthe AEC industryiscapturingexistingconditionsof projectsites.Asthe cost of UAVs continuestodecrease andthe relatedcapture technologycontinuestoadvance,AECfirms will use UAVsandcapture software tocollectmassdata at a verylow cost witha highdegree of 23 http://www.architectmagazine.com/technology/seven-steps-to-bim-better_o 24 http://ascelibrary.org/doi/pdf/10.1061/(ASCE)LM.1943-5630.0000127
  • 22. P a g e | 22 VERTEX accuracy. The mostwidelyusedsoftware thatbridgesUAV datawithdesignsoftware isAutodesk’s ReCap360.25 One constraintto expandedusage of thistechnologyisFAA regulations. C. Use of Laser Scanning to Capture ExistingConditions Historically,the capture of existingconditiondataisparticularlyexpensive onrestoration projectsthatinvolve olderbuildingswithonlyhanddrawnplans(if that).SimilartoUAV technology,3D laserscanningtechnologyismore andmore affordable.3Dlaserscannerstypicallysitonatripodand record a site’sshape andappearance,andthenconvertthe conditionsintoacloudof data pointsthat can be importedintoaBIMmodel.26 Large contractors suchas Gilbane andDPR have recentlyusedlaser scanningequipmenttoefficientlycapture dataandcreate BIM modelsonprojectwhere limitedtono data existedpreviously.27 D. Virtual and AugmentedReality BIM software developersbelievethatAECfirmswill needtoadoptvirtual andaugmentedreality as buildingownersandpropertymanagerswill wantto“experienceabuilding’sdesignbeforeitwas everbuilt.”28 Virtual andaugmentedrealitywill gofarbeyondtoday’s360-degree visualizationsof a project;once thisprocessgoesmainstream,ownerswill be able tosee whatisbehindwallsandin closedspacesthroughheadmounteddisplayunits.29 Augmentedrealityisablendof virtual realityandreal life.Withaugmentedreality,userscan interactwithvirtual contentinthe real worldandcan distinguishbetweenthe two.Virtual reality,on the otherhand,makesit difficultforthe usertodistinguishbetweenwhatisreal andwhat isnot. 25 http://www.prnewswire.com/news-releases/microdesk-reveals-top-trends-for-2015-that-will-shape-the-aec- industry-300003320.html 26 https://lineshapespace.com/how-laser-scanning-helps-a-building-company-save-time-and-money/ 27 Id. 28 http://www.microdesk.com/Newsroom/Recent-Coverage/Details/ArticleID/850/Microdesk-Reveals-Top-Trends- For-2015-That-Will-Shape-The-AEC-Industry 29 http://www.techtimes.com/articles/5078/20140406/augmented-reality-vs-virtual-reality-what-are-the- differences-and-similarities.htm
  • 23. P a g e | 23 VERTEX E. BIM ProcessesWill Revolutionize BuildingDeliveryViaPrefabrication Projectteamsare startingto use BIMto improve scheduleandcostby prefabricatingmany buildingcomponentssuchasmechanical lines,plumbinginfrastructure,restroompods,framedinterior partitions,andexteriorveneerpanels.30 The prefabricationistypicallydoneinanearbyfactor rather than ona hecticjobsite.31 Thistrendhas takenoff inSoutheastAsia.Overthe pastsix years,Chinese companyBroad Sustainable BuildingCompany(“BSB”) hascompletedthree recordbreakingprojectsdue toadvanced prefabricationtechniques.In2010 BSB constructedArkhotel,a15 story building,in48hours.32 In 2011, BSB erectedT-30, a 30 story hotel,in15 days.33 Andin 2015, BSB completedJ57,a 57 storiesmixeduse building, injust19 days.34 One of BRB’s projects,SkyCity,iscurrentlyonhold.If thisprojectmoves forward,BRB plansto constructthe tallestbuildinginthe world(220 floors) injust90 days.BRB is startingto license itstechnologyworldwide.35 F. ImprovedEnergy Performance Modeling Energymodelingsuchasdaylightingandairflow modelsistypicallyalengthyandcost prohibitiveexercisethatisperformedbyspecialtyconsultants;thisischanging.New software by AutodeskandSefairaisavailablethatallowsforenergymodelingduringthe conceptual phaseof design. Thisallowsdesignerstomake subtle designchangessuchasdetailingshadingdevicesorotheroptions basedon simulatedenergyperformance,whichpreventscostlyrevisionstowardsthe tail endof a designprocess.36 Autodesk’sFormItsoftware allowsuserstocalculate “energy-performancefeedback 30 https://soundcloud.com/autodeskaec/phil-bernstein-commentary-your-next-building-wont-be-builtit-will-be- manufactured 31 http://www.bdcnetwork.com/5-tech-trends-transforming-bimvdc 32 https://www.youtube.com/watch?v=Ps0DSihggio 33 https://www.youtube.com/watch?v=C2K53T81FEs&index=2&list=PLiwZ62tpFvnh4eNmGUVCFO4uj_hZJON3b 34 https://www.youtube.com/watch?v=veNf-bz99cI 35 http://www.constructionweekonline.com/article-19593-broad-sticks-to-90-day-worlds-tallest-target/ 36 http://www.bdcnetwork.com/5-tech-trends-transforming-bimvdc#sthash.rJpWVpZ2.dpuf
  • 24. P a g e | 24 VERTEX on earlydesigndecisions,suchasbuildingorientation,thermal performance,andmassing.”37 Results can be importedintoRevit. G. CloudBased Data Storage Will Improve Collaboration Historically,architectswouldstore BIMfilesonhisorher PC,whichtookup considerable hard drive space.Now thatmore andmore data isshiftingtothe cloud,the sharingof projectdata is becomingismore efficient.Software companiessuchasAssembleSystemsandPanzurahave developed cloud-basedtoolsforadvanceddatamanagement,whichinclude datastorage,consolidation,archiving, heightenedaccess,andsecurity.38 39 H. 3D-PrintedArchitectural Models Ownersrarelyapprove fundingforarchitectural modelsdue tothe expense andtime required for creation.However,withthe introductionof low cost3D printingtechnology,physical modelsare now practical.Pricesfor3D printersrange fromseveral hundreddollarstoseveral thousanddollarsfor lowertomidendmodels. Accordingly,the popularityof architectural modelswill rapidlyincreaseover the nextseveral years. The creationof architectural modelshasmanybenefitsincluding:4041 • 3D model provide avisual perspective thatcannotbe achievedwithblueprints,drawings,or digital 3D models. • Architectural modelscanbe 3D printedinfull-colorforinspiringpresentationsanddisplays. • 3D modelshelpthe communicationbetweenarchitectsandcontractorsto betterensure desired resultsthatcan helpavoidexpensivechangesduringthe course of construction. 37 http://www.bdcnetwork.com/5-tech-trends-transforming-bimvdc 38 http://panzura.com/products/global-file-system/ 39 http://assemblesystems.com/ 40 http://www.3ders.org/3d-printing.html 41 https://www.whiteclouds.com/blog/benefits-3d-printed-architectural-models
  • 25. P a g e | 25 VERTEX • Architectural modelsmake effective publicdisplaysthathelpmarketthe projecttoinvestors and/ortenants. • Architectural scale modelsquicklycommunicate designconceptsandallow people toeasily comprehendaproject. I. Use of CompositesinConstruction Composite material istypicallyamix of glass,aramid,andcarbonfibers.Recentadvancesin composite technologyallow partstobe curedat lowerpressuresandtemperatures,whichinturn lowersthe costof productionandallowsforincreasingsizesof manufacturedparts.42 Thischange has increasedthe use of compositesinthe buildingindustry.43 The benefitof compositesinclude:flexibility of form,structural capacity,durability,andlife-cycle cost. Typical applicationsof forcomposite material inconstructioninclude structural membersfor bridges,hydraulicstructures,andcladdingmaterial.Composite claddingcanbe insulatedtoform sandwichpanelsthathave efficientthermal,weatherbarrier,andsoundproperties.The maineconomic benefitof compositesstemfromitslow-weight/high-strengthmaterial properties,whichcancause a reductioninthe cost of supportingstructures.Asthe composite manufacturingprocesscontinuesto improve sowill the adoptionof compositesintomore andmore constructionprojects. XI. Conclusions Diversificationisakeyforcontinuedgrowthof large AECfirms.Failure todiversifycausedmany noteworthyfirmstofail overthe pastfive decades.Moreover, AECfirmsmustpositionthemselvesfor international workinordertobroadentheirreachto maintainabove average revenueprogression. Lastly,successful designfirmsembrace,notresist,technological advancessuchasthe evolutionfrom2- 42 http://www.azom.com/article.aspx?ArticleID=1425 43 Id.
  • 26. P a g e | 26 VERTEX D to 3-D draftingandnow to 4-D modeling.Changesintechnologyoverthe nextdecadeswill be drastic and firmsthatignore the efficienciesandcreativityofferedbysuchadvancementswill be leftbehind.