Engineering Influence from ACEC
Episodes
Monday Oct 14, 2019
Monday Oct 14, 2019
Engineering Influence sat down with Erik Peterson, ACEC Oregon's National Director and Principal at Peterson Structural Engineering to discuss the importance of ACEC membership for firms engaged in the private marketplace.
Monday Oct 14, 2019
ACEC's Women in Leadership Group at the 2019 Annual Conference in Chicago
Monday Oct 14, 2019
Monday Oct 14, 2019
Engineering Influence sat down with ACEC's Women in Leadership Group at the 2019 Fall Conference in Chicago. The group discussed current trends in diversity and inclusivity at ACEC and in the engineering industry and the challenges that exist in creating a diverse engineering workforce.
Friday Sep 27, 2019
An Interview with Rep. Rodney Davis (IL-13)
Friday Sep 27, 2019
Friday Sep 27, 2019
We were pleased to sit down with Rep. Rodney Davis (IL-3), the Ranking Member on the Highways Subcommittee of the House Transportation and Infrastructure Committee. Rep. Davis shared his thoughts on the prospects of an infrastructure bill this Congress and discussed the challenges and opportunities for bipartisan compromise in the weeks ahead. Davis also discussed his participation in the biennial "Longest Yard" congressional football game for charity played by Members of Congress and the Capitol Police. The Members won the game, and both teams raised $300,000 for local police charities in the process.
Transcript:
Host: Welcome to another edition of Engineering Influence, a podcast brought to you by the American Council of engineering companies. I am very pleased today to be coming from you in really the, I guess the hideaway office of Congressman Rodney Davis of Illinois. I'm a member of the Transportation and Infrastructure committee, but more impo rtantly, the winner or, or the, at least the trophy holder of the 2019 a congressional longest yard football championship - which is a great achievement, which is a biennial football game being put on for charity by between the Capitol police and members of Congress. Tell us a little bit about the charity cause I don't think a lot of people realize that this happens outside of Washington, that this, this is a, this is a biannual event.
Rep. Davis: Well for other reasons the baseball game has gotten a lot more attention over the last few years after the tragic shooting that we all went through in June of 2017. But we also have a congressional football game for charity where instead of like in baseball where Republicans and Democrats play against each other, we play on the same team against the guards. It's kinda based on, as you said, the longest yard movie. Uwe're supposed to be the ones, the convicts, but we bring some pros into some former NFL pros that help us coach and, and play with us. Ubut we really appreciate what the guards do on a regular basis. But there's a Capitol police Memorial fund that was started after the death of two officers in the late nineties here in Washington, D C where they were killed by a mentally ill gunman who came into the Capitol before. We had a lot of the security protocols that we now see in place that Capitol Police Memorial Fund gets money from this football game of what we raise.
Rep. Davis: Also a couple of other charities that are dedicated to helping veterans who come home and maybe be suffering through post traumatic stress syndrome. These are the, the, the charities that are funded by the record, $300,000 plus that we raised last night.
Rep. Davis: Yeah, that's fantastic.
Rep. Davis: And I think it's a, it's a good lesson for everyone listening outside the beltway that at the end of the day members of Congress come together for a good cause. No, we really do. And, and in the midst of an impeachment inquiry beginning, we, Republicans and Democrats played together on a field last night for charity. And I just hope your listeners and the American people realize that there's a lot more of that than what you see and hear in the news on the 24 hour news cycle. That's a good thing. And I want to thank the Capitol police for what they do everyday.
Rep. Davis: They protect millions of people a year that come through this Capitol complex. I also saw the Capitol police officers firsthand when in the midst of a, a shooting in the midst of a tragedy those officers ran toward the gunfire while we were all running away. That's courage. But that courage that courage exists to every day. And we know they're doing what they're trained to do. But also last night it was a night that although I respect everything they do, I'm damn glad we beat, them.
Host: It's always good to bring the, bring the trophy home.
Rep. Davis: Oh yeah. No, I'm not carrying it by any of those Capitol police at the guard stations.
Host: Unless you have to get down on the floor of the house and do the special order to...
Rep. Davis: That'll be tomorrow, tomorrow.
Host: Um well like you said, you know, there's a lot going on in Washington right now.
Host: A lot of it is political, but there's one issue which of course I think is, is largely bipartisan. Um historically has been, and that of course - that is infrastructure. You serve as the ranking member on the highway subcommittee of the transportation infrastructure...
Rep. Davis: The largest subcommittee in Congress, 59 members, 59 members.
Host: And of course, right now everybody is looking to see what's gonna happen with infrastructure next. The Senate has moved on their version of service bill before they broke for August recess. And now that they're back, you know, that process continues. What's your perspective and view in the house? What, where do you see this process going and what would you like to see come out of the session?
Rep. Davis: Sure. I'm glad the Senate took the first crack at it because I think it sends a message to the democratic leadership who I believe are holding up Chairman DeFazio from being able to offer up a solution on the house side.
Rep. Davis: You know, Peter DeFazio's, a good friend of mine Eleanor Holmes, Norton, the treasurer of the subcommittee that I'm the lead Republican on. And then our ranking member, Sam graves. If we were just given a chance to sit down and across the table from each other, we could have a bill done in a matter of days, if not hours. We can do that. The Senate did that. They did their work. We had Senator Carper over to speak to our transportation stakeholders meeting that Earl Blumenauer and I run on a regular basis. He was there today talking about their successes. But again, it all comes down to two things. Now. Number one, it's how do we pay for it? Because that Senate bill, it addresses nothing in the pay force. I mean, we can put good policies together on the, on the the authorizing side just like they did, but the appropriating side and the tax writing side that's going to be the most, the biggest part of our discussion.
Rep. Davis: That's one issue that's holding up progress. The second one is impeachment. Look. I've been a staffer during the Clinton impeachment. I've never been here during an impeachment. And from what I remember, the 90s, nothing gets done during impeachment.
Host: Everything just grinds to a halt.
Rep. Davis: Absolutely. And that's unfortunate because we ought to be able to come together on infrastructure. That's why I asked to be the ranking member on the highways and transit subcommittee. I, I know we've got a highway bill coming. We got to get together and come up with solutions.
Host: So even though, like you mentioned, things got even more partisan or more political last night with, with the announcement of this inquiry, there still can be work done by the committees by staff and the members. Um as you mentioned, T&I's an authorizing committee, you can only do so much when it comes to the question of funding.
Host: Yeah. How is we'll have a say in that funding source. Yeah. But what do you think is, is how is Ways and Means approaching this on, on the house side? What do you think.
Rep. Davis: They're not.
Host: They're not at all right now.
Rep. Davis: And that is a part of the problem.
Host: Do you think it's at least on their agenda or you think there's some reason why it's, it's being held up or frankly I can give you my perspective and my opinion on why it's being held up.
Rep. Davis: I think Nancy Pelosi in the Democratic leadership don't want to talk about infrastructure. They don't want to pass the USMCA right now because it gives president Trump a win against President Trump. Something to go talk about and being able to work together and get things done that matter to American families. And that's just as an ma matter to a group of engineers.
Rep. Davis: It just doesn't matter to a group of road builders. It just doesn't matter to a group of transit officials or members of Congress. It matters to every single American out there to have a better transportation network to get to and from work. But what matters in middle America sometimes doesn't matter to leaders in politics out here. And that's what sad. That's what I think is holding this up. It's just a sheer will of the Democrats not to give the president in a win. And that's unfortunate.
Host: Now I think going back home and, and for the perspective of your constituents back home, a lot of us talk about, and we hear all the time in Washington, the negative side of, of infrastructure, the roads are crumbling and the bridges are falling down. The flip side of that is what we could actually achieve if we actually invest in America's infrastructure. What kind of benefits would your constituents get from a well funded and longterm infrastructure bill?
Rep. Davis: Well, they're, they're going to see updates to their local transportation systems that they in many of their local officials have been calling for for years, if not decades. It's, it's being able to implement those longterm visions that have been part of a planning process that may be out dates even as long as we've been alive in many cases. You look at, you look at a us 67, for example, in the Southern part of my district, that long term project could be completed with an infrastructure bill. We could get the rest of US 67 funded and then the new and then the new Delhi bypass funded around Jerseyville that could really then complete that four lane corridor from you know, basically from the quad cities all the way down to st Louis.
Rep. Davis: That was a longterm goal that was put in place long before I ever got involved in politics and policy. But you don't have to look too far to see the benefits of what could happen. And we also can't forget how long of a, an outlook we have to have when it comes to infrastructure. Dave Bender and I have known each other for a very, very long time. And, and when I first started working right out of college, I was involved in an accident on route 29 that killed a young lady on December 23rd and I was a third car in the accident. I had went around, and got sprayed with debris, but that death of melody travelers started a group called project 29 in Taylorville, my hometown. And in 1992 and moving into 1993, when that group was started, if you would have asked us if we were okay with that project, finally getting done in 2016, we would have said, keep your money.
Rep. Davis: But we didn't. We got the first ever federal investment that was invested in 1998 that helped put that project on to governor Edgar's five-year plan. Then we had Illinois first, they invested more dollars to get four lanes on both ends of that 18 miles. It still need to be four lanes put in place. And then as we moved federal dollars into that project and as we moved more state dollars into that project, it finally got done in 2016. 1993 to 2016 but nobody in my hometown that drives that road says we regret investing in that project, but we got to be patient and we've got to continue to invest because eventually you get it done. And that's what an infrastructure bill can do.
Host: That's a really good point. And I think that the length of time from inception to project delivery is also something that is always on our minds.
Rep. Davis: Clearly the engineering portion, that's what keeps it. That's what it takes too long.
Rep. Davis: Do you see any, I'm moving on and making sure that we engineers don't have sense of humor. You didn't laugh at all. Terrible, terrible. A change order.
Host: But it's, it's, I guess the idea of cutting that project delivery timeline is something which the Senate address with one federal decision in, in, in their bill, in, in streamline of the environmental regulatory review process. How important will that be mirroring that or going further in the House?
Rep. Davis: You know, it's a step more than what we've already done. I mean, look, we have had so many successes in the six and a half years I'd been here when it comes to water infrastructure, when it comes to when it comes to water infrastructure, rail infrastructure, road infrastructure, we've done everything we can to really lessen the regulatory environment and speed up the permitting process.
Rep. Davis: Think about it with the Corps of engineers, when we first passed our first WRDA bill that we did when I got here to Congress in 2014, the average time it took from what I consider the paperwork process to the building process was 15 years average time. And I can only blame you engineer's for a portion of that. You know, so we, by law then what we did is we made sure that the Corps of Engineers knew that they had three years, three years. That's it. Otherwise, otherwise, you know, you're penalized. You got to three years by law to finish the project, that portion of the project. Then we get to the infrastructure investment itself much more quickly. Those are the types of things we've been able to do. So continuing down that process with what the Senate did I think is a great step. And we, we have to continue to identify where we lessen the regulatory burden and get to the point of laying concrete asphalt.
Host: I just have two more questions cause I wanna I want to make sure that we have votes coming up and I know you want to make sure that you hit them. The one question I have again on WRDA really is, is we're expecting that of course in 2020 and.
Rep. Davis: That will be my third WRDA bill when, I take full credit for finally passing where to bills because before I got here in 2013, nothing happened. It was Oh seven. So you're welcome.
Host: No problem. I guess question on process, and this might be speculative, but do you think that chairman DeFazio's going to keep the same process that chairman Schuster put in with the Chiefs Reports or you know, or that like that change?
Rep. Davis: Well, certainly I'd like to go a step further. Look, I'd like to be able to have members of Congress try to address issues in their own district like we used to.
Rep. Davis: I think it's a tragedy that when we, that we can't ask for any language. When it comes to war to authorization authorization, we are only authorizing dollars to be spent. No dollars are attached to a WRDA request. But somehow before I got here, those requests were labeled earmarks when they have $0 dollars attached. And what that has led to is been zero investment on the locks and dams in the Illinois and Mississippi waterways because I couldn't ask for it during the Obama administration and the Obama administration wouldn't ask to spend any money on it. So we had no recourse. It's all executive branch driven. Thankfully the Trump administration began to invest in the Illinois, Mississippi waterways. They're spending millions to upgrade LaGrange now. Now the problem I have is our producers are worried they won't get done in time. I'm like, that's a good problem to have.
Rep. Davis: Yeah, wait, we actually worried about spending money instead of getting money.
Host: So the final question I have for you is, did we win the game? Yes, we did. We're champions. So let a little bit later we're going to be meeting with some of our executives, some of our senior executives, Institute members. Yes.
Rep. Davis: Couple of them got to ride up on the elevator with me holding it.
Rep. Davis: They already gave you the elevator pitch.
Rep. Davis: They know I'm a champion.
Host: Did you let them hold the trophy? That's the big question.
Rep. Davis: I let them touch it.
Rep. Davis: All right. There you go. Hey, did given the fact that we talk a lot about the value of engineering and kind of the broader context of its, you know, value to society what's going to be your message to them when you, when you talk to them.
Rep. Davis: That we won the football game and clearly that's all I'm going to talk about.
Rep. Davis: You know, my messages, engineers by nature, by job, our longterm planners understand that we wouldn't, as policymakers, we wouldn't expect an engineer to give us a product that was not a longterm solution for the project they're working on or the building they're building. Don't expect us as policy makers to settle for short term funding solutions that don't address the volatility and the lack of funding and the highway trust fund and the long term outlook for what are, what are our you know, systems of mobility are going to look like in the next 10 years, which is basically a fancy way of saying don't just tell us to raise the gas tax.
Host: Got it. Well, Congressman, I really appreciate you being on the show. This is, you are the first member of Congress to appear on our podcast and it's a great way to kick it off.
Rep. Davis: Congressman Rodney Davis, he's a leader on and off the football field and good luck today.
Rep. Davis: Can I give a special shout out to...
Rep. Davis: Please do.
Rep. Davis: Bender -
Host: David our director of political affairs here is sitting out on the, on the sideline here.
Rep. Davis: Well, David has been a longtime friend. You guys couldn't ask for a better advocate out here in Washington. Now. And I also want to give a shout out to his replacement. Kevin Hardell. Kevin and I have worked together for years. He's going to do a great job fill in the shoes that, that Dave left as big shoes to fill. But you know what? You guys couldn't have two better people representing you at the state and the federal level. And I appreciate being able to work with both of them and I know, I know what they're capable of. And you guys have got a long term bright future with association.
Host: Dave's been great. I've been working with them since they came on and it's just been a fantastic experience. So I appreciate your time and thank you very much.
Rep. Davis: Thank you. And remind Kevin, I'm a champion. I will definitely
Thursday Aug 01, 2019
Private Industry Brief Update: Public Private Partnerships
Thursday Aug 01, 2019
Thursday Aug 01, 2019
ACEC's Erin McLaughlin provides an update on the new Private Industry Brief focusing on Public-Private Partnerships in the engineering industry.
The Private Industry Briefs are available free to download on the ACEC website. Never miss an issue by subscribing here.
Thursday Jul 25, 2019
Government Affairs Update: Senate Surface Transportation Bill & Water
Thursday Jul 25, 2019
Thursday Jul 25, 2019
ACEC's Government Affairs Update for the week of July 22, 2019.
In this week's episode, Matt Reiffer and Steve Hall discuss the upcoming Senate Environment and Public Works Committee markup of the America's Transportation Infrastructure Act, as well as the current status of water related infrastructure bills in Congress.
Transcript:
Announcer: 00:00 Welcome to the first edition of the ACEC government affairs update for the week of July 22nd, 2019 we're coming into the last few days of session in Congress before the August recess and we're seeing action on infrastructure and water. Starting to heat up. Matt Riffer is our expert on surface transportation in our Washington office and he's here to give us an update on what's happening on surface transportation. Matt...
Matt Reiffer: 00:34 Thanks Jeff. After a year where we expected a lot of activity on infrastructure and series of fits and starts from congressional leaders meeting with the administration. And you know, we got all excited a couple of months ago about a top line number of $2 trillion that hasn't really materialized in any subsequent meetings or conversations. Uh, now this week we're finally, as you said, getting some real action and legislative productivity coming out. We are had meetings today with the senior staff from the Senate Committee on Environment & Public Works, that EPW Committee has primary jurisdiction over federal highway programs, uh, and they are and have been working on a reauthorization of federal highway programs under the Fast Act, uh, and they are set to release that bill, uh, next week Monday. And they briefed us and other stakeholders on some of the high level content of that bill today which is very exciting as it's a first step in a long process to reauthorize the FAST Act. The FAST Act doesn't expire until, uh, next year, September 30 of 2020.
Matt Reiffer: 01:47 But we want to get a head start on this, given the political dynamics of the election season and the time and effort it will take to get this over the finish line so that the EPW processes the first start, first step and it is a great first start. According to the committee, it's going to be a five-year bill authorizing highway programs at $287 billion, which is a 27% increase above the fast act level. It will also include, uh, a repeal of the rescission that's scheduled at the end of the fast act, which is gonna take 7.6, seven point $6 billion off the table from state and arbitrary. We lower the baseline for budget scoring, so that's an important step as well. And we're going to be supporting a standalone effort to get that done soon. The bill will be a threefold, a heavy emphasis on safety emphasis on, uh, bridges and on resilience.
Matt Reiffer: 02:56 Uh, there's going to be new programs, both formula based for states as well as discretionary funding, a directed to those initiatives. A lot of issues that ACEC and our member firms had been very active and engaged on. A, what we've been hearing so far is very positive based on the priorities that we have outlined. Um, next steps after EPW marks up their bill they'll have to work with the other committees of jurisdiction in the Senate. They only have highways. Uh, the banking committee has transit programs. The Commerce Committee has, uh, highway policy as well as commercial vehicles and safety programs. And then the most essential, uh, the finance committee has jurisdiction over revenues that flow into the highway trust fund. Uh, there is $100 billion hole in the trust fund over the next six years that needs to be filled plus the additional funding that would be authorized in this bill. Um, the EPW committee leaders, uh, are expressing confidence and optimism that they can pay for these funding increases with the user fee revenues coming into the highway trust fund and they'll be working with their finance committee colleagues and Senate leaders to get that done after the August recess. So again, first step, but a very important step, the first tangible legislative product that we've got to rally around as an industry, uh, and a top advocacy priority for ACEC. So it's a very exciting, uh, and encouraging, uh, development this week.
Announcer: 04:28 That's fantastic news and we're looking forward to seeing how the bill develops and what happens at the mark up and we'll be sure to hear about that more next week and leading into August. And Matt, thank you for that update. So FAST Act authorization is one of the highlight issues in Congress right now, but there are other issues moving forward, including water and related issues. And Steve Hall, our Senior Vice President of advocacy is with us to talk about those.
Steve Hall: 04:54 Yeah, so progress on the fast act is very encouraging as Matt indicated and at, as we've been talking about, uh, may be the vehicle that pulls a number of other priorities, uh, forward as a larger infrastructure package. But beyond surface transportation, Congress wants to do water through the Water Resources Development Act or WRDA they've got to finish the appropriations process. And we recently had a deal, a two year budget deal that plugs in some additional resources for appropriations and we hope and believe we'll at least maintain the increases in the infrastructure accounts from the last two year deal. Uh, but in addition to the fast act, individual water components are starting to move. Uh, the house has a bill that would reauthorize and significantly expand the clean water act, state revolving fund program or SRF program. $20 billion over five years. Uh, grants for combined sewer overflows and other issues.
Steve Hall: 06:01 They're still working through some issues with respect to, uh, the regulatory side, whether to extend, uh, permits from five years to 10 years. And we're providing some technical guidance to committee staff, uh, on that. Uh, there's other pending legislation that would create a water trust fund. All of these may find a home in a word, a bill that traditionally includes a new Corps of Engineers, project offer authorizations and other related matters, other things that are waiting in the wings. We have a legislation that would create a new category of private activity bonds for vertical projects. That's the sort of thing that could ride on a FAST Act reauthorization bill. We've got a couple of expired tax provisions that are critical for, uh, vertical projects, uh, and encouraging energy efficient building design. those need to be extended as well as another provision dealing with renewable energy projects. Again, these are the kind of things that could ride on a larger, infrastructure package. Uh, and then other issues, other priorities for ACEC...Reauthorization of the Export Import Bank. Interestingly, that was done in the context of the fast act in 2015. So could that be something that benefits from movement on a surface transportation in the house and the Senate shaping up to be a busy fall, uh, looking forward to getting some things over the goal line.
Announcer: 07:31 So a lot going on in Congress. They're going out of session, but we will not, we'll be following all of these issues with staff and the members throughout August. Uh, and always, always encourage our member organizations to do the same when the members are back in their districts. Uh, just because they're not in Washington doesn't mean they're not working and it's a good time to meet with them there. That's the first government affairs update from ACEC, one of the first of many. Thank you for joining us and happy August. [inaudible].
Thursday Jul 25, 2019
Engineering Business Index Update for Q2 2019
Thursday Jul 25, 2019
Thursday Jul 25, 2019
Announcer: 00:00 Last week, ACEC released its second quarter engineering business index survey or firm leaders. Gerry, what update do you have for us?
Gerry Donohue: 00:15 Well, the survey which is known in the industry as the EBI edged up slightly by 0.4 points to 62.6.
Announcer: (00:23) So a 62.6 score. What does that mean? Gerry Donohue: (00:25) The EBI is a diffusion index in which the responses of about 200 firm leaders to more than a dozen questions about the business market and financial performance of their firms are distilled down to a single number. A number above 50 signifies business expansion. All scores below 50 indicate contraction.
Announcer: 00:46 How does this score compare to past scores?
Gerry Donohue: 00:48 We've been doing the EBI for about six and a half years and it has moved in a relatively narrow band or my high of 68.9 in the second quarter of 2014 to a low of 58.5 in the fourth quarter of 2018 that pretty accurately tracks the market.
Gerry Donohue: 01:04 Over that period, business has generally been good for engineering firms and respondents. Concerns have focused on forces that create uncertainty. In the marketplace. For instance, the survey low in the fourth quarter of 2018 was due largely to worries about what tariffs and the trade war could do to the domestic market.
Announcer: 01:20 What are some of the other highlights?
Gerry Donohue: 01:22 Profitability and backlog are the big drivers in the Ebi and they reflect near term concerns, but long-term optimism, respondents expectations for firm profitability over the next three months and the next six months declined. But they're optimistic about increased profitability three years from now. Likewise, they reported that their backlogs have shrunk, but they expect them to grow over the next 12 months, which then feeds into those increased profitability expectations.
Announcer: 01:49 So we do ask questions about market sector. What do the private and public market sectors, what are they looking for?
Gerry Donohue: 01:56 Well, in the private sector, which is the, which accounts for about 80% of all construction firm leaders, expectations are mixed. They expect to see the industrial manufacturing education and land development sectors increase, but they're less optimistic about the energy and power, healthcare and building sectors and the public markets. They were more optimistic with five of the six sectors expected to improve. They said that the environmental sector and the building sector will improve the most followed by transportation, education and water and wastewater. They expect the healthcare sector to be flat.
Announcer: 02:29 You'll also ask firms to report on the impact of the 2017 tax cuts and jobs act. What are they saying?
Gerry Donohue: 02:35 Well, it's been over a year since the law took effect. It lowered the corporate tax rate from 35% to 21% and due in large part to ACEC lobbying created a new 20% tax deduction for pass through entities such as s corporations, partnerships and sole proprietorships.
Gerry Donohue: 02:51 More than a quarter of the respondents credited the new law with improving their bottom line. One said it was absolutely the right thing for business growth. While it's been made hiring harder and wages have gone up, profits have gone up as well. They also said that they've been able to increase investment in their firms. One firm leaders said that the lower tax rate incentivized his firm to retain more earnings and to improve their balance sheet. Other responses include, they've made new hires, they've grown their firm, and they've increased the value of their employee stock ownership programs. Something to note though, while almost all the comments on the new law were positive, several firm leaders were critical citing the subsequent rise in the federal budget deficits. One said the tax cut looks good in short term, but ultimately it's a terrible idea.
Announcer: 03:34 And you also ask from leaders about their biggest challenges of running an engineering firm. What did you learn?
Gerry Donohue: 03:40 Well, not surprisingly, more than 52% said that recruiting and retaining top talent is their biggest task. One said that they helped the economy and a talented high achieving, self-focused young workforce. Employee retention sits at the top of his worry list. Second was onerous contract demands from clients and owners. One firm leader said that clients increasingly viewing engineering services as a commodity and his firm constantly has to prove its value. Other challenges, we're distinguishing the firm from the competition, generating a suitable backlog, slow paying clients, and burdensome government regulations.
Announcer: 04:13 That's very interesting. So how do our members find the report?
Gerry Donohue: 04:17 Well, if you want to read the full report and look at the numbers behind the index, go to www.acec.org and scroll down to the engineering business index link.
Announcer: 04:26 That's great. So we look forward to your next update, Jerry, and thank you for coming in.
Tuesday Jul 02, 2019
The Chairman's Corner with Mitch Simpler
Tuesday Jul 02, 2019
Tuesday Jul 02, 2019
Jeff Urbanchuk sits down with ACEC Board Chairman, Mitch Simpler, for the first in a series of quarterly interviews that we like to call the Chairman's Corner.
Transcript:
Host: 00:18 We are pleased to be joined by Mitch Simpler, ACC board chair, in what we hope will be the first of many appearances on our podcast as the chairman's report or the chairman's corner. Kind of figuring out what we're going to call it, but a on a quarterly basis hopefully we can get a Mitch on to talk about what's happening at ACEC and in the engineering industry. Mitch, welcome to the show and happy 4th of July week.
Mitch Simpler: 00:55 Jeff, my pleasure to be here and the problem you're going to have in the future is not getting me on. It's getting me off.
Host: 01:01 That's fine. I'd rather have more content than less. Um we were just kind of talking before we went on a that were coming off of a series of leadership orientations here at headquarters where we had staff from our member organizations who got some one on one time with the DC staff to learn more about the organization and what we can offer. And then of course, what they can offer us. And there seemed to be a good deal of positivity and energy coming after those meetings. What was your take?
Mitch Simpler: 01:29 Well, my take was exactly the same thing. The energy was, was amazing. I've been to probably to at least a half a dozen of these orientations, uh, retreats as it were over the past half a dozen years or so. Clearly the energy level was significantly different and better. Um, and I attribute that certainly a lot of it to Linda and her team, which are just highly engaged and very engaging to the, to the participants. But probably the big difference was that it was not a monologue. It was a dialogue. The fundamental change that was made is that instead of lecturing in front of a room full of 50 people, Linda and her team broke it up into small groups of seven or eight and each of the group leaders from ACEC now had an opportunity to sit one on one with the various leadership, uh, people from the from the MOs. And they had a chance to have a dialogue. And that was really impressive to see how much the, the leaders were engaged in the process. And, uh, and the positive feedback that we got has been significant. And the clearly a home run for Linda and her team,
Host: 02:41 It was definitely a different dynamic sitting around with the table and just talking to everyone and just getting feedback. And especially in the media side, you know, talking about how people engage at the state level and, and how we can help them. And then of course the policy guys, then membership and all the different segments of ACEC Washington being able to interact was, was great and it did provide that back and forth and energy and it kind of goes into the idea of, of of what we have to offer and ACEC's strengths, um, you know, coming in as, as chairman, what do you see as ACEC's greatest strengths that we can leverage?
Mitch Simpler: 03:21 Our strengths has been and will continue to be certainly in the DC area is our advocacy program. But one of the things that we've changed this year, um, and Steve Hall leads an amazing group of lobbyists and policymakers, but the big change was we've added another team member who was really part of our outward facing, uh, group. And that's, Mr Dave Bender, who was the exec out of Illinois. Dave comes with 20 years plus experience in dealing with members of Congress, uh, understands what makes them tick. And he may be a party of one at this point that does, but, but he certainly does. And I think his addition to the team has been absolutely a monumental and I think will significantly change not only how we are able to interface with, with Capitol Hill, but also, um, how they will view us. They being Capitol Hill will now look to ACEC because they will have a face literally, at their disposal. Um, and I think that we'll have again, a significant impact on what already is one of our greatest strengths, which is our advocacy programs.
Host: 04:31 Yeah. Dave coming on the team has been a seamless transition. He's come on board and hit the ground running. And of course he's coming to us after a massive victory in Illinois. The governor, of course on Friday signed in the largest infrastructure investment in the state's history for about, 30 years. Um, they have not touched user fees and this the first time in 30 years they've actually taken a proactive step to invest. And that was largely due to Dave's hard work at the state level. And if, you know, the picture of the bill signing, there's some hard hats. And on those hard hats there was an ACEC logo at the bill signing so that shows that we had an impact. So that's, that's a really good point with Dave coming on board. Um, and the fact that it will help with the national footprint. Um, you know, you mentioned advocacy, that's still one of our main, focus points. And you know, we have the debate over infrastructure, you know, the work that's being done in Washington. But we have to think about beyond the beltway and how much does, our work here kind of translate to your world in New York, of course, in the private marketplace? And does it have that much penetration of people's attention elsewhere?
Mitch Simpler: 05:45 Well, so this kind of put it in a, in a bigger picture. So what ACEC is doing in, in the Metro area, particularly on Capitol Hill, is continuing beat the drum as to how important infrastructure is to the country, not just to ACEC and the members of ACEC, we implement the policies that get executed. The key is to get the policies executed in the first place and and we're there to remind all of the legislators at this is an important component to what makes our country great. And if we want to continue the growth that we're having, we need to invest in infrastructure. It doesn't just impact, um, you know, the, the horizontal and the, and the transportation people. It impacts all businesses at all levels. And so even though I am a private sector predominant proponent, because that's the business I'm in, my, my businesses, the people that I work for will all benefit by improved infrastructure, whether it's highways, bridges, tunnels, rails in a modal, transportation, sea ports, airports, all those things improve business.
Mitch Simpler: 06:56 And that's what we need to do as a country. We need to do as an industry and what ACEC needs to promote or certainly continue to promote how important all that infrastructure is. Um, and New York City is not exempt by any means. Then in fact, we have the same issues that the country has as a whole. New York City and all the metro areas have the same issues and that they have not been investing in infrastructure on a continuous basis. It has fallen behind. The disrepair is costing all of us time and money. So investment in our infrastructure will help everybody, private sector, public sector across the board. And uh, and so that message has gotten through loud and clear. Uh, not only is it loud and clear from the federal level and from ACEC national level, but at the local level, both the state MOs and then those states that have regional MOs, that message is being driven right down to the grassroots because it is that important. And, uh, and thank God ACEC is continuing to wave the flag as to how important it is for all of us in order for our businesses to succeed, for our country to be successful.
Host: 08:03 Absolutely. And you did mention the fact that you come from predominantly from the private marketplace and I know that one of your, key focuses is broadening ACEC's membership. Of course, you know, we have a lot of focus on firms that do work in the public sector. Um, a lot of, you know, the work in advocacy has a direct impact on state DOT's, and agencies like that. But who do you think is underrepresented and, how can we bring them into the ACEC family?
Mitch Simpler: 08:36 Well, as I said at the last podcast, certainly, uh, my focus is to raise the awareness of what the private sector can do. And I say private sectors, it's anybody in the engineering industry outside of the horizontal transportation, Intermodal Transportation Industry, which ACC has done a spectacular job of bringing to our table. But, but as I said previously, that represents only 20% of the built environment in the u s the other 80% is the private sector. Um, what we hope to do, what certainly my mission is, is to raise the awareness of private sector firms and that ACEC exists and what can we do for them and as much as what we can do for them, can they do for us as an industry to help raise our overall voice. Um, and I've mentioned this previously that certainly in New York, Metro New York in particular has a very, very strong, upwards of 50% of our membership is private sector.
Mitch Simpler: 09:39 Um, what we refer to as the vertical component. These are people that design buildings, hospitals, hotels, residential towers, um, and the university work institutional. Uh, hospitals and those, those kinds of of projects. Uh, and what is the value that we bring? Well, the fact is that we all have so much in common with all other engineering firms. ACEC becomes sort of the, the, the, uh, the common denominator for all of us to be able to communicate to network. Uh, in addition to the traditional value added, um, programs that ACEC brings to its members, whether it's access to the trust, uh, but the single biggest thing for the private sector is the networking component. And where firms can have an opportunity to meet, discuss, uh, joint ventures and combining team efforts, uh, to become, you know, a greater industry representative. And it has been hugely successful.
Mitch Simpler: 10:41 Um, the other big thing that the private sector brings to the table is other means by which you can do project work, particularly doing lump sum. And I know lump sum and a lot of conversations with our traditional membership is like a dirty word. But the fact of the matter is that lump sum does now give you an opportunity to be more innovative, more ingenious, and, and, and come up with better, more efficient ways to bring a project to to bear and to the marketplace for your client and make money at the same time. It's a win win for all sides, but it's a different way to approach a project. What we hope the private sector can do is to bring that experience to the table so that both the public sector and the private sector can benefit.
Host: 11:27 You've also mentioned, um, ACEC New York's success in becoming really the go-to organization for, uh, the city, uh, when looking at building codes and looking at new standards for construction in the city. Um, and how really the expertise of ACEC membership is brought to bear and is reflected in construction that the city. Do you find that in speaking to your peers and ACEC, do you see that as unique, or is that something that is, replicated or, or could it be a model for other MOs to follow?
Mitch Simpler: 12:07 It's certainly a model. Um, and, and if you, uh, go back and my sort of, my opening statement at the last pod conversation was, you know, what are my goals, my goal? And one of the reasons that we, we liked Linda and her team and, but Linda particularly when we brought her on board as our new CEO, was that one of our goals is to become the voice of the engineering industry. We've accomplished that in New York, in New York City in particular. The reason that the city comes to us is because they know that the members of ACEC are, singularly, the most knowledgeable and unbiased voices to provide technical expertise to the city. So the key example that we use is that the chairs of all of the major code committees, I'm chair of the Mechanical Committee, the structural, the fire alarm, the plumbing and fire protection, the elevator, all those committees are chaired by members of ACEC.
Mitch Simpler: 13:05 Why? Because the the city came to ACEC and said, who should we use to chair these committees? Um, and it's because of their experience over the past 20 plus years that the ACEC team brings the best, most experienced, uh, people to the table to provide what needs to be provided to get this, in this particular case, a code rewrite completed. It would certainly be my hope that we can take that model and share that with all of the MOs so that at the end of the day, ACEC does become the voice of the engineering industry. That would be the ultimate end game. And, and then what it does for the membership is give them, um, insight in terms of the mechanisms and the thought processes for why things get done the way they do, whether it's in government, uh, whether it's for code purposes and just industry leadership in general from a business perspective. Um, and I think it is a absolutely realistic and doable goal. Um, it is something that, that we know will work. And the key is to be able to take what was done in New York and model that and get that out to the mos so that we can use that as an exemplar of what can be done.
Host: 14:23 And do you find there's a receptive audience among the MO executives to that kind of a message?
Mitch Simpler: 14:28 Oh, absolutely. And again, anecdotally, when we have conversations, we tell them this is the, this is what we do. And the Metro area, they said, boy, we would love to be able to do that. How do we do it? And the key is, and this is the beauty of the Federation of ACEC, is that we are able to share knowledge. Um, the NACE right, was just a national association executive, uh, directors for ACEC, the group of executive directors from all 51 MOs meet regularly. And the next focus is going to be what can we do in terms of best practices to be able to attract, the, the other, the non traditional, uh, ACEC firms and how do we leverage that to become a more vocal and respected member of our community so that the community then turns to ACEC as the voice of the industry and say, look, this is the issue. What do you think? Who Do you have on your, on your, on your Rolodex to be able to help us get to a solution? And that's, that's the place we want to be. And that's an enviable position to be sure. But something that is well within our reach.
Host: 15:41 And that goes right to Linda's idea that, you know, really it's not a question of being part of the conversation. It's to lead the conversation that we have the opportunity to do that. And it kind of goes back to the the leadership orientations that we've had, because we want to make sure that our membership, um, really takes advantage of all the tools that we have at our disposal between, um, the webinar educational series. Um, the advocacy of course, um, and just all of the different resources that are available to them to assist them in kind of developing themselves into being these, you know, being able to carry this message, uh, to their local governments, to, you know, their into their economies, uh, in their states.
Mitch Simpler: 16:25 Right. And again, we'll go back to where we started this conversation. And that was the issue of the leadership orientation. The big difference was now each of the, the MO leadership had an opportunity to meet with the various department heads on firstly a one to one basis and the veil of, you know, who is really the right person to talk to and who's, you know, what's the, what's the right conversation to take place? They were able to do that on a one to one basis. And, and, and because of that, the, the, the, uh, relationships started to develop between ACEC national and the MOs literally at the first meeting. And as the day went on, it became abundantly clear that there was clearly dialogues happening, that there was the MO leadership was less inhibited to ask questions. And one of the things that we mentioned that certainly, and, and, and, and I, and Charlie G who is the incoming chair and, and Linda, we were floaters. We just popped literally butterflies hopping from table to table to purpose to which we thought originally was to sort of be catalyst to help the conversation get started. And I will tell you with no exception, we walked into the middle of very active conversations and it was really, really rewarding to see how everybody was engaged. And my hope is as a result of that, that the mos will feel less inhibited about reaching out to national for information to, uh, to make sure they're not repeating a mistake that's already been made and for fresh ideas. And that I think was all the the takeaways from this orientation, which was all really positive and that will be a benefit to both sides.
Host: 18:05 Absolutely. Um, I do want to kind of pivot to another issue, which is also another hot topic. Um, both Linda and, and for yourself and really for the industry in general. And that's the commoditization of engineering. Uh, which is something, you know, we talk about internally, our members of course, talk a lot about, um, whether, whether or not that's actually seen as much by policymakers on the Hill. That's an open question which we have to work on. But you know, if you were meeting with, you know, let's say the chairman of the Transportation Committee in the house, you know, how would you put, how would you encapsulate the danger of commoditization for them to understand and what it means for, for just, you know, the economy for public safety, for everything?
Mitch Simpler: 18:51 Well, in the commoditization of professional services is probably singularly the one of the greatest threats to our industry. Because what it does, it does not reward innovation. Does not reward access and use of best available technology. It just lowers the quality of service and the performance and the product down to the lowest common denominator. Part of our job, our advocacy program is to educate not only the people on the Hill that make the decisions, but to raise the awareness of our own industry, of what we're doing to ourselves. We need to be sure that people understand that engineering is not a commodity in any way, shape or form. So treating professional services of engineering like a commodity is a huge mistake. Um, what we want to do is have them understand that we want, we want owners, we want, uh, uh, policymakers to appreciate that there are differences.
Mitch Simpler: 19:54 That's why QBS is so important because quality is a difference between firm to firm and we want them to pick the most qualified people. And what qualifies one firm over another? A, they're experienced certainly, but B, the way they do project works, how they approach it, what technology, what technology do they employ? Both internal for producing the documents but more employee. What technology do they employ in the actual design itself. If you want our infrastructure to proceed and a forward and upward way, you've got to, you've got to welcome technology, you've got to welcome innovation and commoditizing the fees is exactly the way not to do that. So part of our argument would be to explain to them, these are the types of differences that happen. This is why these differences exist and this is why you need to do QBS. And we are, we are, we are then the fact of the matter is we are the best people to have that conversation. Absolutely. I want to say the only people, but we're certainly the best.
Host: 20:58 I mean, well you are. Yeah. I mean, the best thing is that the member firms who are engaged with ACEC are the, uh, they are the people who are creating the innovation, who are breaking new grounds as we see in the engineering excellence awards every year of new standards of doing things, new ways of approaching problems. And uh, it's that work demonstrates the importance of engineers as the thought leaders and as professionals. And not just as, um, you know, providers of a service that can be just boxed up and replicated. And the idea that you can just easily just say, oh, let's in-source the work completely ignores the diversity, the innovation and the creativity of consulting engineers.
Mitch Simpler: 21:53 Absolutely. Right. And by the way, I'll kind of circle back to what can, what can the private industry bring to the table for the, for the, for the more traditional ACEC member firms and the private sector, because we do work for lump sum, the vast majority of the time we are rewarded for being innovative, for being ingenious, for being efficient. And those techniques ultimately do work their way down the food chain and over into other aspects of the consulting industry. But by welcoming the private sector firms enter the faults sooner rather than later. That that technology transfer can happen a lot quicker. And I think, again, that would be hugely helpful for ACEC to act as that, I'll use that conduit to get that, uh, that, uh, education process in terms of getting the, what the private sector does every day into the hands of the people that do the more traditional transportation, horizontal work.
Host: 22:57 Absolutely. Technology in general is an issue which is always out there, but you think that, um, ACEC could be doing more to position itself as a recognized voice on technology, um, both, you know, as its own subject, but then also to kind of reach some of the younger professionals coming up.
Mitch Simpler: 23:21 The answer is yes. Um, technology is the buzz word and will be for the next probably a hundred years. Technology today is changing at a rate faster than ever before in history. And, uh, and I'm getting to be sort of an older dog and I am absolutely amazed at how rapidly technology is changing. Um, and it's not limited just to engineering, not limited to infrastructure. It's across the board in every aspect of life. It's how we train our staff. I mean, that is incredible. Um, the amount of technology that's being literally showered on us every day. Uh, what is ACEC's role in my mind, our role is to be out there and we don't have to become the experts in the, and the, uh, technology market, but we'll, we need to do is be aware of what's happening and act as the, I'll call it the clearing house to make sure that the information regarding technology, where it's being used, how it's being used, where innovation is being, uh, taking advantage of the best available technology and get that information through ACEC out to the Mos and ultimately out to the member firms, not on how to use it, but to be aware of that this is where it exists and this is how it's being applied, that point the, the engineers need to be the engineers and determine whether or not that technology is appropriate for them and how can they best leverage it for their business or their client's business.
Mitch Simpler: 24:53 But certainly ACEC's role is to be the clearing house to get that information flowing from those firms that are, that are on the, on the, oh, I'll call it the bleeding edge of technology for the firms that are on the, on the following edge so that everyone can learn and take advantage of the technology, uh, and the quickest possible way.
Host: 25:14 Absolutely. And that's again, kind of underscores the importance of ACEC membership both at the state level of course, because we can have a better pulse on what's happening closer to you. But then also the national level because we can serve as that clearing house and help get that best practice information spread as far and wide as possible. And that we can kind of hopefully, you know, a rising tide lifts all boats and more people take advantage of best practices, for these technologies, you know, technology and its implementation. Um, you're able to raise the prominence of the industry and, and, and show that it's not a commodity.
Mitch Simpler: 25:49 No, but you know, engineering in general, the general public looks to engineers as the people that are the innovative, creative problem solvers. And if ACC wants to be the voice of the industry, we have to be out there getting the information to our members before they go and just find it out through the more traditional, you know, read about it in the paper, read about it, the magazine. Um, we really need to be out there, sort of, you know, plowing and, and pushing the technology up at, back to our members as soon as it becomes available. At that point they become industry leaders. And I think that's something that we as an organization can be. We can be, thought of as our members, as the people that do help them become better businesses because we are availing them of whatever technology is, emerging and we need to do that. Uh, we've done it, we continued to do it. Um, and I think we can do it on a bigger scale going forward.
Host: 26:50 Very well put. Um, I guess that's, that kind of wraps up, um, you know, really what we have. I just wanted to see if you had anything else that you wanted to add at the end here. Um, really just kind of like your perspective as a board chair. Um, and of course we're getting ready, we're gearing up in October for our fall conference in Chicago. Um, you know, what do you see on the horizon? What are you excited about coming up in the next couple of months?
Mitch Simpler: 27:18 Well, just in general, what I'm most excited about is this, the level of enthusiasm and the feedback that we're getting at both the grassroots level and up to the MOs. Uh, there's clearly a perception that ACEC is, I'll use my term lifting the veil, uh, that, that national is, uh, open from business and we are there to support all of our mos in any way that we can in any way that we, we are able to. And I think that message is getting through. Uh, and it's really exciting for me when I meet with our MOs, with MO leadership. And member firms, um, that, that perception is really getting down to the grassroots. And I think that's very exciting. Um, I, I am looking forward to, and I have a number of trips planned, the most recent will be next week I'm going to be down in the deep south and have an opportunity to meet with their leadership and, and to get their feedback. But certainly the reviews that I got at the leadership orientation, we had over 50 people at the, at the the one last week. It was all very positive and it's very exciting to see that people do recognize that the change in leadership at ACEC has been for the, for the better and they are looking forward to and moving this thing even and do a greater clarity and more transparency. And that's really what our goal is.
Host: 28:50 Well, we definitely have something to say. We've got great messengers to say it and we have the energy to really get the message out. So I think that we're well poised and energized to get this done. So I really appreciate your time again on a holiday week and look forward to doing this on a regular basis. Like I said, we want to try to get a regular quarterly show that is set up for you to come on and talk about really the issues that you care about and really appreciate you being part of the kickoff.
Mitch Simpler: 29:23 Terrific. And it is my pleasure and I wish everybody a very happy, healthy, and safe 4th of July.
Host: 29:31 Wonderful. Thank you very much.
Friday May 31, 2019
The Outlook in Washington with Politico's Tanya Snyder
Friday May 31, 2019
Friday May 31, 2019
ACEC sat down with Tanya Snyder, Politico's congressional correspondent covering transportation and infrastructure issues in the House and Senate, for a frank discussion about the outlook for an infrastructure bill and recent events in Washington.