2021 Mid-Year Executive Outlook

2021 Mid-Year Executive Outlook

July 14, 2021

As the disruption and severity of the global pandemic continues to fade, A/E leaders across the country are ready to take on the challenges and opportunities left in its wake. We recently connected with several CEOs from coast to coast for our annual Mid-Year Outlook to glean insights as to what they’re facing today. We asked how they are handling office reopening efforts, what client and business opportunities are emerging, how the pandemic shaped them as leaders, and what their plans are for the summer.

Mark Adams

President & CEO

Sebago Technics

Sebago, ME

Tell us about Sebago Technics and your capabilities and markets. 


Sebago Technics is a multi-disciplinary firm with civil, transportation and environmental engineering, surveying (geomatics/reality capture/construction), landscape architecture, planning and permitting, GIS and natural resources services.  We are a 100% employee-owned company with approximately 100 employees located in 4 offices in southern Maine.  Our clients/markets are across the spectrum including commercial, residential, institutional (healthcare and education), industrial, public sector, non-profits, peer/partner firms, developers, attorneys, and real estate professionals.  We are intentionally capable of providing all site and permitting services for projects from existing conditions and design to permitting and construction.  Recent additions of robust 3D modeling, visualization and graphics also sets us apart from local and regional firms.


With offices across Maine, how have you planned and organized bringing Sebago Technics’ staff back to the office? 


During the initial shutdown in late winter/spring of 2020, we had all staff working remote.  Meanwhile we developed an aggressive and comprehensive Return to Work plan with physical enhancements and protocols for all of our operations.  We then began to bring folks back into the office in phases during the summer of 2020.  We still provided for remote work and flexibility.  We then took intentional extended periods of all remote work during holidays and surge periods.  We incentivized staff to become vaccinated and currently have more than 90% vaccination amongst employees. 


How does the second half of the year look and going into 2022? Any specific business or client opportunities or challenges?


The remainder of 2021 and first part of 2022 continues to look strong.  We have a significant backlog but due to our size and organization of work are able to take on new work when most other local firms are not.  The opportunities are across all economic sectors with no sign of letting up.  That said, the pace of development, materials costs/supply, and inability of contractors and businesses to find needed labor is anticipated to create both inflation and at least of leveling of new work at some point.


You have made two strategic acquisitions to start the year. Tell us about those and how have they benefited the organization overall? 


The acquisitions were strategic in two ways.  First, they provided us with greater access to a couple of geographic areas where there is opportunity but where we had not focused previously.  Second, both acquisitions were of firms that primarily provide surveying services.  There has been a steady decline in the number of individuals entering the survey profession coupled with a large cohort of licensed surveyors retiring.  Therefore, our strategy was also for talent acquisition. The results are that we now boast the largest and most-capable survey/geomatics services group of professionals in Northern New England. 


Overall, how has this pandemic experience impacted you as a leader? As CEO, what strategies or lessons have you taken away from the past year?


As with most leaders, the pandemic caused me to be chief operations planner, medical officer, cheerleader and workflow coordinator in ways and to degrees that I hadn’t previously.  It also placed extra importance on my ever-present concern for the well-being of our employees and their families.   And yet overall, it affirmed my belief that our employees are not only resilient and adaptable but that are committed to the needs of our clients, our business and their fellow owners despite the circumstances and unknowns we encounter.


What are your plans this summer for rest and relaxation?   


Rest and relaxation are not in my nature, however, we were fortunate as a family to be able to purchase a camp just prior to the pandemic.  It was a wonderful distraction and get away during the pandemic and continues to be a great focal point for family time and gatherings.


John Dreher

President & CEO

Rincon Consultants

Ventura, CA

Tell us about Rincon Consultants and your capabilities and markets. 


Rincon is a California-based firm entering our 27th year. While we focus primarily to support the California economy, we frequently entertain and perform services for select clients throughout the Western United States. We offer a comprehensive suite of environmental services and are heavily diversified across several key markets including infrastructure, water resources, utilities, land development, climate adaptation and sustainability planning. We are evenly split between public agency and private clients and enjoy the power of a large sized firm at over 400 people, yet the nimbleness of a small firm utilizing our streamlined approach to delivering client services with nearly all disciplines and service offerings under one roof. 


With offices across California, how have you planned and organized bringing Rincon staff back to the office? 


We are currently embarking on a soft reopening of all our offices based on desire and need. As with most initiatives here at Rincon, we avoid top-down, policy-driven mandates; so, we really rely on the local leaders to discuss with their team what works best for them. Our commitment to our team’s safety is our highest priority, and we have chosen to be slow adopters of the office reentry experiment. This is all driven by feedback as well as a keen eye on maintaining performance. As long as we can balance happiness/productivity while maintaining exceptional client service, I see no need to have absolute guidance, and we likely maintain a certain level of continued flexibility. One area we understand is of concern is long term affects for staff development. Training and mentoring will just need to take on a different form for now. Currently we provide very frequent mentoring sessions, trainings, and open calendar (door) office hours where staff can pretty much ask any question of their supervisor or even me. Socialization and comradery are our next focal areas and we are achieving this through onsite gatherings or meetings and offsite and off the clock functions like summer barbeques. 


How does the second half of the year look and going into 2022? Any specific business or client opportunities or challenges?


So far so good, and that is without the speculation of what the political arena may conjure up, meaning an infrastructure bill. Over the last few years, we have focused on long-term client relationships where we can grow with and demonstrate ability to be an indispensable partner. As a result, we have a consistent backlog, outstanding client loyalty, and more predictable results. This has really helped to steady our outlook beyond 18 months giving us the confidence to hire the best and brightest as well grow our rising stars internally. Anything out past 18 months is beyond my ability to predict. That said, I am highly confident in my team to continue to pivot. We have built our teams around the concept that everyone is responsible for business development and every project is an opportunity to build a relationship. 


How is Rincon adapting to a very challenging hiring market for talent? What positions are you looking for today? Any strategies for recruiting and retention? 


About five or so years ago, we felt a shift in our company culture where we transitioned from a firm that was seeking talented people to firm that was attracting talented people. We also employ staff from 19 different states, as well as one whose husband is stationed in Japan. Our focus on a people first culture provides a refreshing respite from the larger companies or those involved in M&A. We focus on running a healthy business to allow us to pursue interesting and challenging work. Additionally, we attract many from smaller firms where opportunities for advancement can be limited. We are usually always searching for the right person that can influence us and add value to our platform. Beyond new hires, our team members that have been with us for many years are provided the opportunities to grow and evolve with the needs of the organization. This attention to career advancement is most impactful to retaining talented people. 


Overall, how has this pandemic experience impacted you as a leader? As CEO, what strategies or lessons have you taken away from the past year? 


First, I have only been a CEO for three years, so the pandemic was my first major test. I was in the classic transition as a new CEO, managing both the future direction as well as the prior leadership transitions. The pandemic impacted me greatly and for the first time. Once I was able to channel my inner realist, I found my voice, and most importantly, my team. We worked non-stop to exhaust all options and layout contingency plans for nearly everything. I was surprised that so many wanted to hear from me, and with greater frequency. While I consider myself a straight shooter, a good crisis will tell you if others around you feel the same way you think you are. I think we are stronger as an organization because of the pandemic, and I am a stronger leader as a result, thanks to all those that believed and trusted in me (and us). 


What’s on your summer reading list?


I usually read 1-2 Harvard Business Review or industry articles daily, but have No Man’s Land, No Shortcuts and Dear White Friend on my list of inspirational books. 


John Dzarnowski

Chief Executive Officer

FGM Architects

Oak Brook, IL

Tell us about FGM Architects and your capabilities and markets


We build community at FGM Architects. Our mission is to help plan, design and build the facilities that make each unique place a community. Schools, places of worship, recreational facilities, defense, police, fire, ambulance, 911 and civic, higher education and trade school buildings define the character of each community. These are the facilities in which we specialize. 


With offices across various states, how have you planned and organized bringing FGMA staff back to the office?


Our return to the office plan is very cautious and deliberate. We have people in six offices across four states, each with potentially different Covid-19 scenarios at different times. Our physical office locations were closed until June 1, 2021 when we partially opened our offices. Fully vaccinated people are now allowed to work without masks or restrictions if they choose to do so, and unvaccinated people are allowed to work in the office while still complying with CDC and local health department guidelines. We have notified our people that we will fully open our offices in mid-September, and expect them to be working full time in the office at that time. We are in the final stages of modifying our remote work and flexible work policies to allow staff opportunities to work from home when needed, though we continue to promote a culture which encourages constant professional learning, mentoring, training, and teaching in a collaborative and inclusive in-person environment. 


How does the second half of the year look and going into 2022? Any specific business or client opportunities or challenges?


We have seen a steady growth in opportunities and projects since January. Changes in the economy affect all of our clients in varying ways, and we have to stay vigilant in identifying how these changes may affect us early. State and Federal grants have increased projects from many of our public education clients, though some of these projects have paused due to product and material availability, and the related increase in project budgets. 


FGM has selectively made strategic acquisitions over the years. What characteristics and cultural elements do you look for in firms and owners that join you?


We carefully assess how the prospective firm’s culture will mesh with our desired culture, and pay a lot of attention to the prospective firm’s mission and values. Most of our clients are public bodies, units of government, faith based or educational institutions – so finding a firm that is adept at working with this client type is critical, as they already know how to guide the clients in the design and construction process with patience and understanding.


Overall, how has this pandemic experience impacted you as a leader? As CEO, what strategies or lessons have you taken away from the past year? 


Learning how the pandemic affected every FGMA employee, their immediate and extended families, and how to translate that knowledge into making us all more accommodating and hopefully better as a team. Our FGMA community pulled together and had one of our best years as a company, just by being thoughtful of each other. 


What are your plans this summer for rest and relaxation?


Cycling with my wife, in good weather, is actually relaxing to both of us. We are trying to cycle 250 miles a month during the summer. And before our kids go back to college we are trying to spend as much time as we can with them, outdoors if possible, so our patio set is getting a nice workout this summer. 


Justin Kestner

Chief Executive Officer

Haag Global

Flower Mound, TX

Tell us about Haag and your capabilities and markets. 


Founded in 1924 and headquartered in Flower Mound (DFW), Texas, Haag is the oldest firm focused on failure and damage analysis in the U.S. We focus primarily on determining the cause and extent of damage, scope of repair, and cost to repair damage from events such as natural disasters, accidents, fires/explosions, and design/construction defects.  We have experts in engineering, construction/restoration, fire investigation, GIS, and other fields. Our clients include attorneys, insurance adjusters, contractors, manufacturers, government entities, AEC firms, and individuals. Haag also is a leading provider of continuing education within our industry, including certification programs for damage assessment to roofs and buildings.


With offices across the country, how have you planned and organized bringing Haag staff back to the office? 


We actually have opened in Toronto, Ottawa, Calgary, and San Juan since May.  Our physical offices in the U.S. fully reopened in July 2020.   About half of our employees work from home, and did so before the pandemic, because of the field work and travel involved.  Most employees working from a physical office can work from home at least two days a week (again, even before the pandemic). 


How does the second half of the year look and going into 2022? Any specific business or client opportunities or challenges?


Haag is building off perhaps the strongest first half of a year in our history, from an overall standpoint.  I expect to remain in growth mode through 2022 and beyond.  Our primary challenge is finding enough technical staff in the geographies and disciplines needed to expand our operations. Canada and Puerto Rico represent great potential markets for us. 


How is Haag adapting to a very challenging hiring market for talent? What positions are you looking for today? Any strategies for recruiting and retention? 


The pandemic has made hiring more difficult, as many candidates appeared to be somewhat leery of changing employers. We are actively seeking a number of forensic engineers, fire investigators, and construction consultants in various locations. We use a combination of a select number of recruiting firms, advertising/postings, and a robust employee referral incentive program.  Due to the tight labor market, we are hiring some staff with less experience than normal and ramping up training to offset that.  We are also continuing to look at acquisitions.


Overall, how has this pandemic experience impacted you as a leader? As CEO, what strategies or lessons have you taken away from the past year? 


My team and I have focused on maintaining connectivity and morale and preserving our rich company culture.  Communications have been more frequent, since virtual meetings are just not an indefinite replacement for face-to-face interaction.  We are bringing every employee in for company meetings and our 98th anniversary celebration in January to help restore connectivity.   The pandemic has reinforced in me the value of Haag’s operational flexibility, solid cash management, and technological investments. I will continue to advance our use of technologies and planning that promote efficiency and business continuity. 


What are your plans this summer for rest and relaxation?


My family was in Florida in June to enjoy some much needed downtime along the beach, and we are looking forward to seeing extended family in Pennsylvania (some whom we haven’t seen since before the pandemic) and spending time together in the Poconos, away from the Texas heat.


Dave Ruff

Chairman & CEO

Coffman Engineers

Seattle, WA 

Tell us about Coffman Engineers and your capabilities and markets. 


Coffman Engineers was founded in 1979 by our namesake, Dave Coffman. We started as a structural firm in Seattle, performing projects on the North Slope of Alaska and then quickly added mechanical and electrical disciplines to provide a broader service offering. We have embraced the multidiscipline format and added civil, survey, corrosion, fire protection, commissioning, and acoustics (among others) to assist those clients that desire a one stop shop, or niche solutions for those unique requests. We serve a broad mix of markets including healthcare, life sciences, higher ed, department of defense, oil and gas, manufacturing, and alternative energy. 


With offices across the country, how have you planned and organized bringing Coffman staff back to the office? 


With our move Eastward into Atlanta, Washington DC, Raleigh, and Denver, we now have 17 offices across the U.S. I met with our team of office managers multiple times to map out a return to office plan that balanced protecting our people and perpetuating our business. We wanted to retain some of the quality of life improvements offered by working from home (WFH) and balance that with the long term needs of our business. Each office has developed an individual work from home strategy that strikes this balance, modified by their local circumstances, like commute times and local culture. Generally we are going to be in the office a bit more than at home. Determining the timing of returning to the office (with the post-Covid WFH schedule) has involved a mix of following the CDC/OSHA recommendations and state and local requirements. About 1/3 of our offices are back to 100% occupied, the remaining offices are expected to be fully occupied by the time schools open again.


How does the second half of the year look and going into 2022? Any specific business or client opportunities or challenges?


Remarkably, 2020 was a good year for Coffman as it was for many others in our industry. However, in the first half of 2021 we finally started experiencing what can only be described as Covid malaise. Backlog had softened slightly, not enough to cause concern, but there were signs that our team members were feeling isolation fatigue. Backlog is now strengthening and we expect that our performance will rebound with it in the second half of the year, after our teams get back together, and after some much needed vacations. As we look toward 2022, we are concerned about continued post-Covid effects that can’t be fully anticipated and the changes in policy at the federal level that take time to settle out in the market place. We don’t anticipate 2022 to quite reach 2019 or 2020 levels, but we do anticipate it being stronger than 2021.


Coffman has selectively made strategic acquisitions over the years. What characteristics and cultural elements do you look for in firms and owners that join you?


We position ourselves financially so we can move opportunistically if needed, but generally we are vetting for strategic and cultural fit. One of our main strategies is diversification to broaden our foundation and improve service to our clients. We bias our strategy toward those offices that have not yet achieved critical mass, but have enough presence to faithfully represent Coffman’s culture to the new team members. We spend quite a bit of time evaluating the cultural match between our firms. There are various ways to manage consulting firms, and the history of each firm uniquely shapes the culture. Cultures are not right or wrong, they are just different. Joining companies together creates enough change on its own without the additional strain of one company feeling like they have lost more than they have gained. Culture is the biggest influencer in that calculus.


Overall, how has this pandemic experience impacted you as a leader? As CEO, what strategies or lessons have you taken away from the past year? 


Leading through a crisis like Covid is easier at the beginning than in the middle and end. Rallying the team to “take the hill” is much clearer and compelling than convincing them to stay on top of the hill and not go down yet. Each person’s risk assessment and viewpoint from the vantage point of the top is unique with legitimate concerns about when and how to move on. I underestimated the amount of energy it would require to lead all-the-way through to the new normal. Each day presented a new challenge that potentially modified a decision we had just made the day prior. The old adage of taking it one day at a time certainly applied. Leaders must reserve the energy to face each day anew. Optimism is a vital component of leadership. But optimism can morph into specific expectations, and when those outcomes are not realized, can leave you with limited energy to shake it off, readjust, and inspire your people to adjust with you, again. I am reenergized and ready for whatever comes next; very hopeful, but with managed expectations.


What are your plans this summer for rest and relaxation?


I plan to take some trips on my adventure motorcycle. Pack up the camping gear on the bike, find some twisty forest service roads and get off the grid. I have already managed one short trip, but I am planning on a longer trip on Washington Backcountry Discovery Route. Riding a motorcycle is my preferred method of transportation in general, but also for unplugging. The wind in my face, the thrill of the ride, surrounded by wilderness is a sure way to refill my tank and prepare me for the next adventure leading Coffman Engineers!

About the Author

Steve Gido specializes in corporate financial advisory services with a focus on mergers and acquisitions. Steve has assisted architecture, engineering, environmental consulting and construction firms of all sizes across North America achieve their growth or liquidity goals through successful mergers & acquisitions. Steve has over 15 years of investment banking experience and holds the chartered financial analyst (CFA) designation from the CFA Institute.

sgido@rog-partners.com
p: 617.274.8051
m: 202.412.6882
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