July 16, 2024

It's hard to believe we're already halfway through the year and settling into the dog days of summer! Every July, we gather a distinguished group of A/E leaders nationwide to take their pulse on current business conditions as well as their thoughts on the remainder of the year. Our conversations spanned a variety of topics, from confronting a challenging hiring environment, offering career advice to the next generation, pursuing successful acquisitions, cultivating a successful company culture, and what's on tap for summer vacations and reading lists.

Tell us about Shive-Hattery and your capabilities and markets. 

Shive-Hattery is a 550-person A/E firm headquartered in Cedar Rapids, Iowa, with 16 offices throughout the United States. Our expertise is in higher education, healthcare, public buildings, public infrastructure, and industrial and commercial markets. The 100% employee-owned firm includes architects, interior designers, landscape architects, civil engineers, structural engineers, mechanical and electrical engineers, and land surveyors, among many other niche service experts. 

How does the second half of the year look and going into 2025? Any specific business or client opportunities or challenges? 

This will be another strong year for us. Backlog remains high while growing at a slower rate than it was two years ago. Our projects are balanced between public and private markets. Projects in privately financed markets are slower than public projects right now. Our diversity makes us resilient to these fluctuations. 

You've been with Shive-Hattery for over 20 years and assumed the President role in 2020. How would you describe your career progression? Any advice for a younger generation of A/E professionals? 

A lot has changed since I started working nearly 30 years ago. The same tools that helped me in my career still apply to people in the early years of their careers today. My advice to the younger generations: 

• Great relationships will drive the highest-performing individuals and firms
• Build good internal and external relationships from day one
• Be adaptable and an expert in change. Take a calculated personal risk. 
• Be a voraciously curious but skeptical consumer of information from diverse sources 
• Seek out your own mentors
• Selflessly mentor and teach others
• Teaching others to do what you do well is the fastest path to advancement

Shive-Hattery 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 are a much better firm today than we would be without those who have joined us through acquisition. They have elevated our design, brought new expertise and ideas, diversity in market or geography, innovation, and additional 'salt of the earth people' into our organization and firm leadership. Our integration success and the following growth are rooted in a great cultural fit. We look for firms whose leadership prioritizes their staff so that their staff can provide great experiences for their clients. They embrace servant leadership, and their staff is empowered in front of clients, taking on increasing levels of responsibility and development. These are all good signs of a cultural and value fit. 

We all know it's been a challenging recruiting market for architecture and engineering professionals. What steps has Shive-Hattery taken to attract talent and retain staff? 

Peter Drucker summed it up best: "Culture eats strategy for breakfast." No recruiting and retention strategy can overcome a culture issue. Creating a great workplace environment starts with leadership. Therefore, we invest much in selecting the right leaders and then equipping them with the tools and training they need to be great leaders. There are many other important recruiting and retention strategies we are investing in, such as continually improving Shive-Hattery University, a unique marketing and recruiting collaboration, and continuous employee feedback. But these are all rooted in a culture where our staff feels like they belong and have a voice, that they can grow and advance, that they have the opportunity to take risks and try new things, and can build their own business within the business. It is this culture, more than anything, that drives our low turnover and makes us a destination employer.   

What are your plans this summer for rest and relaxation?   

My husband and I prefer to travel in the spring/fall shoulder seasons to avoid the busy summer season. In summer, my relaxation comes from tending a large garden. Lots of sunshine, hands in the dirt, and an abundant harvest – bliss! I also find that the repetition of tending the garden allows my brain to process new ideas or challenging issues. Clarity often comes from the quiet monotony of pulling weeds.

Tell us about BSC and your capabilities and markets. 

BSC, founded in 1965, is a full-service consulting firm with expertise in ecological science and permitting; geomatics (land survey, GIS, and remote sensing); civil/site, transportation, structural, and environmental engineering; landscape architecture, climate resilience, and planning. We have successfully provided these services for energy, transportation, public, institutional, and private sector clients throughout the northeast for nearly 60 years.   

How does the second half of the year look and going into 2025? Any specific business or client opportunities or challenges? 

Our outlook for the remainder of 2024/2025 is promising for BSC. With our backbone in energy/utilities and transportation services and markets and our diversity in the public sector, we continue to be strong and growing. While our current opportunities are rooted in infrastructure, we need to optimize internal talent and integrate new team members to support accelerated growth. Despite concentrated efforts, recruiting transportation engineers has been our most difficult challenge this year. Also, as is the case with many firms, we're still navigating uncertainty alongside our private sector clients. We remain steady and cautious. 

You were elevated into the President role in 2023. Have you made any broad company changes or spearheaded new initiatives or priorities?  

One of my favorite phrases of 2023 was, "It's a break it apart and put it back together kind of year." But this was less of a me and more of a we effort. Before I was selected for the President role, I worked with the "Transition Team" to evaluate new leadership and operational structures. While I could write pages on this topic and its nuances, we landed on our own unique version of "shared leadership ."As the President, I have the honor of functioning as the captain of the team. or the facilitator, but responsibilities typically delegated only to the C-suite in AEC firms are owned and shared by various members of the leadership team. In addition, corporate initiatives and decisions that used to land solely with leadership now incorporate our owners, including Senior Associates and Associates. Everyone has strengths and passions, and we are creating space for continued growth and learning from the entry-level to Vice President/Director status. As you can imagine, this change alone resulted in several large initiatives and shifts that have continued through 2024. 

BSC went through a refreshed brand, logo, and visual identity effort this year. What was the rationale behind that thinking and design approach? 

There were many reasons for the timing of BSC's rebrand, but some might say it was the growing internal rebellion over the continued use of "salmon" in logos and submissions (things were getting ugly – pun intended). But the main factors are as follows: in 2021, after an inclusive and layered team engagement effort, we launched our new Mission, Vision, and Values Statement, as well as our intent to foster a newly defined aspirational culture; in 2022, we underwent significant changes in leadership; and as we moved into 2023, we restructured and launched a new 5-Year strategic plan appropriately using our new Mission, Vision, Values, and Culture as a guiding light. 

While those changes alone scream, "Please rebrand us!" we wanted to capture the balance between BSC's growing non-engineering offerings (Ecology, Climate Resilience, and Landscape Architecture – to name a few) and our land survey and design roots. Our new logo represents the balance between our natural environment (the leaf) and the built environment (the square). It demonstrates our vision to transform the human and natural environment through inclusive, responsible, and purposeful actions. Our team truly identifies with the message it sends, and we're feeling energized! 

We all know it's a challenging recruiting market for engineering, environmental, and surveying professionals. What steps has BSC taken to attract talent and retain staff? 

As a people-focused company, one could argue that every step we take and the decisions we make (cue earworm) are rooted in talent. However, in addition to ensuring competitive pay and benefits, I would say our top three initiatives for retaining and attracting talent are our: 1. Unique and evolving shared leadership structure focused on talent optimization (aligning people with their strengths and passions) and creating space for growth at all levels 2. Flexible work environment and schedule. While we consider ourselves a hybrid work environment, BSC does not require set days in the office company-wide. Teams work with each other and their managers to establish schedules and office hours as needed. 3. Authenticity in culture. This means that our culture is what we say it is, and we cultivate it with intention. 

What are your plans this summer for rest and relaxation? 

I usually travel somewhere exotic for two weeks in August (as a birthday gift to myself), but thanks to overly ambitious home/yard improvement plans, I'll be putting the final touches on my natural swimming pool (pond) and its surrounding landscape features most nights and weekends this summer. While it's hard work, it's restorative to work with my hands instead of my head. My postponed travel will likely revolve around the Northern Lights instead of the summer sun. 

Tell us about BB&E and your capabilities and markets. 

BB&E provides civil and environmental engineering and consulting services to clients on projects worldwide. Our primary business lines consist of civil/environmental engineering, program/project management (including design and construction management), and traditional environmental consulting services (including remediation, compliance, natural resources, and sustainability). We have 400+ employees in 37 states and 7 countries. We primarily serve the federal space, with over 85% of our revenue coming from the federal market. Agencies we serve include the Air Force, Navy, Army, NASA, Department of Interior, US Coast Guard, Defense Logistics Agency, National Guard Bureau, General Services Administration, and National Park Service.

How does the second half of the year look and going into 2025? Any specific business or client opportunities or challenges? 

The influx of Infrastructure Act dollars, particularly in the federal space, is creating growth opportunities for BB&E in program and project management services across the board. Agencies are less equipped to deal with the rapid influx of construction projects and spending. We are experiencing an increased need to provide qualified program/project managers, design engineers, and construction managers to our current clients and have focused efforts on establishing contract opportunities to provide similar support to new federal clients. We are forecasting a very strong end to the fiscal year 2024 and a quick start to the fiscal year 2025 as well. 

BB&E has a strong track record and reputation in the federal sector, working across various agencies at project sites worldwide. Is there any change to your strategic planning or positioning in an election year where budgets or priorities could shift? 

Election years always seem to make our strategic planning and positioning more challenging. Our program and project management business is heavily tied to government infrastructure spending. Once dollars at that level have been appropriated and committed, infrastructure spending is an area that both parties can seem to rally around (and claim credit for!). On the environmental side of our business, much of our work is within the Department of Defense, which helps mitigate the impact of elections. Defense budgets typically increase under a Republican administration, while environmental regulations and enforcement tend to be driven by a Democratic administration. This dynamic provides some insulation from the instability of an election year. The biggest issue for our business lines remains gridlock – particularly surrounding the passing of approved budgets and appropriations bills. 

BB&E formed and implemented an Employee Stock Ownership Plan (ESOP) in 2023. What was the rationale behind its formation? How have your team members received the rollout? 

The creation and implementation of the ESOP was the culmination of 8-10 years of ownership transition planning efforts. We evaluated numerous options, including internal transition, M&A, private equity investment, and ESOPs. The intent of the original partners was always to transition the company internally, and with our rapid growth, the ESOP presented the most financially feasible way to do this. Beyond this, however, we are passionate about employee ownership, and providing meaningful financial benefits to all team members was paramount to our decision. At a time when the closing of the wealth gap in America seems to be a prevalent topic, employee ownership provides a capitalistic model to achieve that initiative. I think the selling shareholders were motivated by an approach that began to transfer value to a larger number of individuals versus continuing to consolidate value to a few select owners. To date, the rollout has been well received by our team members, but communication of the common vision and goals of an employee-owned organization is paramount to the success of the ESOP.

We all know it's been a challenging recruiting market for engineering and environmental professionals. What steps has BB&E taken to attract talent and retain staff? 

Obviously, the ESOP has been instrumental in both attracting and retaining talent. While some firms out there will continue to spend more on compensation, we strongly believe that retention must be rooted in firm culture and opportunity versus engaging in a spending war. The ESOP has created a valuable platform to have discussions about culture and opportunity with our team members. Beyond the potential financial benefits, the ESOP allows us to involve team members in discussions about our culture of "Shared Ownership and Shared Vision" and the voice that our team members have in advancing the organization. 

Starting with onboarding, we engage our team members on the core values of BB&E and the steps we can take to continue to build a firm that reflects those values. Perhaps most importantly, our recruiters focus on identifying individuals that will fit our culture. Every firm needs to determine its core values. At BB&E, we have come to realize that personal interaction is paramount in building relationships and mentoring our team members, making in-office time crucial to our culture. We have learned that hiring fully remote workers, no matter how talented, often leads to a cultural mismatch. Focusing on recruiting culturally aligned team members has greatly improved our retention rates.

What's on your summer reading list? 

I'm a big proponent of leadership development. Every so often, I like to return to books I read years ago. I always find great nuggets that I somehow missed or didn't seem applicable the first time around. This summer, my goal is to re-visit eight Patrick Lencioni books from the past 10-15 years. I'm currently through three of them, and I can't believe all the new concepts that are applicable to me this time around!

Tell us about NV5 and your capabilities and markets. 

NV5, a publicly traded engineering consultancy (NASDAQ: NVEE), operates across six service verticals. We have more than 4,000 employees across over 100 offices worldwide. NV5 serves public and private sector clients with services across a project lifecycle. The company's primary business verticals include Testing, Inspection & Consulting, Infrastructure, Utility Services, Environmental, Building Technologies and Clean Energy, and Geospatial Technology. NV5's work lies at the intersection of engineering and technology, leveraging advanced capabilities like geospatial technology and remote sensing in conjunction with engineering expertise. 

How does the second half of the year look and going into 2025? Any specific business or market opportunities or challenges? 

The top drivers in the market include digitization, AI, infrastructure investments, decarbonization, increased energy demands, climate adaptation and nature-based solutions, and infrastructure asset management. NV5 is actively addressing our client's most pressing challenges across these various areas through engineering coupled with advanced technology. By detecting land subsidence through satellite imagery, creating digital twin solutions for efficient building operations that save energy and costs, engineering utility distribution and renewable power generation systems with storage, engineering data center solutions, implementing climate resiliency and hardening projects to safeguard communities, and working with Departments of Transportation nationwide to enhance our transportation infrastructure, NV5 experts are at the vanguard of technology and engineering. 

In addition to our award-winning infrastructure engineering projects, we are Platinum Partners with both Esri and Trimble (City Works) and have earned six Esri specialty designations. NV5's engineering, science, and program management capabilities, combined with our geospatial expertise, allow us to provide unique and comprehensive solutions across the lifecycle of client project needs. 

You've had a varied and distinguished career working as an executive in organizations both big and small. Looking back, how would you describe your career progression? Any advice for the younger generation of engineering and environmental professionals? 

Hindsight is always 20/20, isn't it? My career progression has aligned with a vision I created during my last year of college. In my final year of college, I interned at a start-up and really admired the CEO, who was recognized as someone who had not only successfully built and grown companies but also had a reputation for turning around struggling businesses. He had a strong servant-leader ethos, and that was a time when servant-leadership was not the trend or norm. He created a culture of performance and inclusion. If you worked around him, you wanted to succeed, and you understood what he expected. I decided during that internship that he was the role model for my future self and who I wanted to become. I have held him or an idealized version of him up in my mind ever since. What that meant to me in my career is that because I had a vision of who I wanted to be, I was able to attract the kind of opportunities and take career risks that provided opportunities aligned with the vision. 

The advice I would give to the younger generation of professionals is to take risks when they align with your vision of your future self. Always be willing to do more and be more. Find people you can admire and look up to and model the best of them as your future self. Be brave, bold, and willing to take calculated risks. Leverage the power of the written word and the podium to stand out and build a reputation as an expert. Always be a team player. Take care of your health and well-being. No one else can take care of it for you, and you cannot be at your best without your health. 

Work-life balance is a myth. As a mother who raised two boys into wonderful men, I can tell you from experience that I never fully felt balanced. You just do your best. I think of it as juggling balls. Some balls are glass, and some are stones. Do not drop the glass balls, you can pick up the stones later.   

Create visions, goals, and action plans. Write this stuff down. Nothing happens without a plan. Celebrate your wins, learn from your missteps, and always get back on the horse. Regularly stop and look back on how far you have come and look forward to your destination to make sure you are still on the right path for you. Write that stuff down. My last word is that you will get bucked off because life is always teaching you something. Be grateful for the lesson. You are remarkable and resilient. Dust yourself off and always get back on the horse. 

NV5 has been an active acquirer of engineering, geospatial, and environmental firms over the years. What are some of the areas or disciplines of continued strategic interest? What does NV5 look for in good partnerships with owners and companies? 

We are always looking for great companies to join NV5. The key word is partnerships. We are looking for organizations that can become partners as we grow the business. That means owners and companies with growth orientations who can embrace the vision of constructive collaboration and growth together in a larger enterprise. Culture and shared vision are important for future success and growth. 

We all know it's been a challenging recruiting market for engineers, surveyors, and consultants. What steps has NV5 taken to attract talent and retain staff? 

We have had remarkable success in the past few years with top-talent recruiting. Things were slow during COVID-19, but they have improved, and we continue to hire and grow. NV5 is a wonderful place to build and grow a career. Our different verticals and diverse capabilities allow our employees to work on interesting projects and expand their skill sets. Our company is a high-growth organization that offers increased upward mobility and career advancement for the individual employee.   

What are your plans this summer for rest and relaxation? 

I had a great weeklong trip to Mexico in the late spring for fishing and golf. This summer, I do not have any planned time off, but I intend to make the most of my weekends in San Diego. I will attend the Friday summer night concerts in the park put on in my local neighborhood and hit the beach on the weekends. Living in San Diego, there really isn't much reason to leave for summer. 

Tell us about DBR and your capabilities and markets.

DBR provides mechanical, electrical, plumbing, and technology consulting services, with teams specializing in various building types, including commercial, healthcare, educational, and government projects. We have just over 200 people in 7 offices throughout Texas, and we currently have projects underway in about 20 states.

How does the second half of the year look and going into 2025? Any specific business or client opportunities or challenges?

We've consistently booked new work through the latter part of 2023 and the first half of 2024. As a result, we expect the second half of 2024 to be great for our firm. I am cautiously optimistic about 2025, but with the election in November and continued high interest rates, I will not be surprised if we see some slowing of new proposal activity in the latter part of 2024. As private development work has slowed, the bright spots for us have been public schools and healthcare projects.

You took over as DBR's CEO in 2023. Have you made any broad company changes or spearheaded new initiatives or priorities?

Our firm is on a strong growth trajectory, so there have certainly been changes. Fortunately, over the past several years, we have built systems and processes that make it easy for us to scale up. So, rather than make sweeping changes, I am reinforcing the values that have guided us to where we are. Shortly after becoming CEO, I began sending a weekly email to all employees on Friday mornings. This has become a great tool to share updates and communicate my vision for the firm.

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

Our firm has grown because we give our employees opportunities to take on responsibility, and then we hold them accountable. Self-motivated people thrive in this environment. So, we have learned that we are best aligned with firms where individuals are given a great deal of autonomy and the managers are good at delegating. We have found that it is challenging to integrate teams where the principal or project manager is holding all the cards and the other team members don't make their own decisions. That model works for some firms, but it's not how we operate, and it's a cultural shift that can make people uneasy. Ultimately, culture can evolve, so rather than try to find a cultural match, I think it's more important to find firms with similar values. If people share our values, then they are more likely to buy into our mission.

Texas has been booming with population shifts and new construction. We all know it's been a challenging recruiting market for MEP engineering and design professionals. What steps has DBR taken to attract talent and retain staff there?

We have an in-house talent acquisition team that is working hard to find candidates. There is no secret. It just takes a lot of hard work. Our strategy is to focus on recruiting at all experience levels, including hiring many recent college graduates and committing the resources to train and mentor them. Most engineers will tell you that they need experienced help and that they don't have time to train a new person. Unfortunately, experienced engineers are harder and harder to find. I believe that our firm is particularly good at training new engineers because we give young people as much responsibility as they can handle. 

When it comes to retaining our staff, we do all kinds of activities to get employees engaged and make them feel like they are part of a family. But at the end of the day, money talks. We are raising salaries as much as we can to keep pace with the market. Some of the largest A/E firms are paying crazy salaries for underqualified people. We can't expect to outspend them, but we need to make sure that we are taking care of our best employees.

What's on your summer reading list?

I recently finished Elon Musk by Walter Isaacson. I'm currently reading Think Faster Talk Smarter by Matt Abrahams. I'm also in the middle of Saints & Sinners: A History of the Popes by Eamon Duffy, and on deck is World Within a Song by musician Jeff Tweedy.