Engineering Influence from ACEC

The Economic Report for July 2022

Welcome to ACEC’s July economic update. Each month, the ACEC team analyzes the latest industry data and provides insights for the engineering and design industry. 
Here are the top 4 things you need to know:
Number 1 —
Total design and construction spending was up nearly 10% this May, compared to the same time last year says the U.S. Census Bureau. The category remains driven by private residential spending up 19%. Private non-residential spending is still up, but not as much as previous months coming in up 3.7%). Public spending is now showing a slight decline down 2.7% year-over-year.
Number 2 —
The hottest market in the private, non-residential sector is manufacturing, which is up 23% from the previous year. On the other side, the coolest market is lodging which declined by 20%, based on data that was not seasonally adjusted from the U.S. Census Bureau.
Number 3 —
The possibility of a recession is still looming and labor shortages, supply chain disruptions, and inflation remain top concerns. According to Building Design+Construction industry leaders are worried that they may no longer be able to pass along price increases to their clients. This could result in project delays or firms taking on more financial risk to win work at lower margins.
Number 4 —
One more data point as we look across the business landscape… For the first time in three years startup funding is dropping. Investments in tech startups are at their lowest  level since 2019, dropping 23% over the last three months. This is according to figures released earlier this month by PitchBook, which tracks young companies.
There you have it. The economic update series is one of ACEC’s resources for media and members.
For a deeper dive, check out all of ACEC’s popular Private Industry Briefs and ACEC’s full slate of private market offerings at ACEC.org.
 

A Closer Look at QBS

The podcast welcomed researchers Gordon Kingsley from Georgia Tech and Paul Chinowsky with the University of Colorado, Boulder for a closer look at the ACEC Research Institute's newly released study on Qualifications Based Selection (QBS).  You can read the new study and access resources on QBS at ACEC's new QBS Resource Portal.

From the Ground Up: Stories and Lessons from Architects and Engineers who Learned to be Leaders

Leo MacLeod, is the author of the new book – from the ground up – stories and lessons from architects and engineers who learned to be leaders.  Leo founder of Training. Coaching. Pie., helps Architecture/Engineering/Construction (AEC) firms with coaching, training, and leadership transition. He regularly presents for the American Council of Engineering Companies and helped develop the Oregon chapter’s popular leadership program.
Leo speaks nationally on leadership development, emotional intelligence, and why baking pie is a great way to develop soft skills. With a BA in English with honors from Portland State University, he’s had a successful career as a freelance writer, fundraiser, and advertising executive and consultant. For many years, Leo has written columns for Zweig Letter, Daily Journal of Commerce, and The Business Journal.
Learn more about Leo MacLeod at https://leomacleod.com.
 
 
 

Project Spotlight: The Kalispell Core and Rail Redevelopment Project

Today, we're putting the spotlight on the Kalispell Core and Rail Redevelopment Project - a 2022 EEA National Recognition Award winning project from KLJ Engineering. 
In 2010, Kalispell received a Brownfields Area-Wide Planning pilot grant and launched a project to revitalize the Core Area, the City's traditionally industrial-focused hub with a rail corridor stretching across its center. Dubbed the "Core Area Plan", the initiative was unique in its public outreach. The Core Area includes 1,100 parcels of land held by 450 property owners. City staff held one-on-one meetings with one-third of the property owners whose holdings represented 60% of the land in the Core Area. Additionally, public meetings, open house events, and special presentations to community groups were held, and newsletters were produced throughout the process engaging the community at unprecedented levels. 
One particularly innovative aspect of the outreach included a five-day workshop soliciting community/business owner feedback, and culminating in “Speeder Car” rides for participating public (video here), offering a unique experience and perspective of the proposed trail, which was followed by surveys.
The Core Area Plan integrated community ideas and priorities, developed a vision, identified infrastructure needs and development limitations due in part to the brownfield sites, and then created specific strategies for revitalization. The City capitalized on the brownfields assessment and revolving loan fund grants paired with Targeted Brownfields Assessments (TBA) to carry out the community vision. In 2015, Kalispell was awarded a US Department of Transportation TIGER grant, further bolstering the effort to transform the City for the next 100 years.

A Conversation with Risk Strategies

The Engineering Influence podcast sat down with Darren Black with Risk Strategies, a sponsor of the 2022 Annual Convention and Legislative Summit.  Learn how Risk Strategies can help you navigate a complex business environment at https://www.risk-strategies.com 

Gas Tax Holiday Won’t Ring up Relief at the Pump

Listen to an audio recording of the editorial penned by ACEC Board Chair, Art Barrett: "Gas Tax Holiday Won't Ring up Relief at the Pump."
Access the editorial on ACEC's Medium page. 
Earlier this month, President Joe Biden called for a gas tax holiday. There’s no doubt consumers need relief. Gas prices have hit a national average of nearly $5.00 per gallon but suspending the gas tax is not a serious approach to lowering prices. It’s a bad idea that would make America’s infrastructure problems worse without helping America’s working families or bringing meaningful relief at the pump.
Experience and data show that suspending the gas tax, also called a user fee, would have little impact on the cost of gasoline. According to budget modeling conducted earlier this year by Penn Wharton, suspending the federal gas tax for ten months from March to December 2022 would save less than $50 per person — between $16 and $47 to be exact. President Biden is proposing a three-month suspension at just a fraction of those already meager savings.
Just a handful of states have taken it upon themselves to pass their own state user fee suspensions, and still there is little bipartisan support in Congress for a federal gas tax holiday. The reason is simple — the state holidays failed to produce the desired effect while their coffers for roadway improvements suffered.
There’s bipartisan agreement that a gas tax holiday is not the right approach. Chair of the House Committee on Transportation and Infrastructure Peter DeFazio (D-OR) noted, “This policy would at best achieve only minuscule relief while blowing a $10 billion dollar hole in the Highway Trust Fund.” Republican Senator Roger Wicker from Miss., said, “A gas tax holiday would do next to nothing to relieve the pain Americans are feeling at the pump.” This is one of the few issues today that can bring together Mitch McConnell and Nancy Pelosi.
The minimal savings from a gas tax holiday will be temporary and even undercut new infrastructure investment in communities across the country. Infrastructure investment that is critical to restoring economic growth.
User fee revenues at the pump have a direct line of effect on the solvency of the Highway Trust Fund which is dedicated money to improve roads and mass transit. By suspending the gas tax, lawmakers would be further undermining progress on infrastructure improvements, which are already being hampered by inflation in the cost of construction materials and labor.
There are several initiatives the Administration could take but suspending the federal gas tax is not one of them. We need solutions like increasing refining capacity and efficiency along with new sources of oil from North America. Those actions will provide long-term relief and act as the bridge we need to transition to renewable sources of energy.
With rising prices at the pump, elected officials are desperate for ways to show that they are responding to consumers stretched thin by inflation. They are hoping Americans buy into simple soundbites rather than holding elected officials accountable. But Americans deserve better.
Now is the time for action to truly help families keep more of their hard-earned money, not more gimmicks.

A Conversation with Deltek at the 2022 Annual Convention

We sat down with Bret Tushaus, VP of Project Management at Deltek after the 2022 Annual Convention of Legislative Summit to discuss their offerings for the A/E industry when it comes to digital transition and project management for AEC firms.  Visit them at  https://www.deltek.com/en 

The June Economic Update from ACEC

Welcome to ACEC’s June economic update. Each month, ACEC’s Erin McLaughlin analyzes the latest industry data and provides insights for the engineering and design industry. 
Here are the top 4 things you need to know:
Number 1 —
Despite rising interest rates, Housing prices are up 20.6% year-over-year according to the S&P CoreLogic Case-Shiller Home Price Index, the most significant year-over year-increase since tracking began in 1987.
Number 2 —
Total design and construction spending was up more than 12% this April, compared to the same time last year, according to the US Census Bureau. It remains driven by private residential spending which up over 18%, and private non-residential up more than 10%.
Number 3 —
The five hottest markets for the first four months of the year are up compared to same time period last year are manufacturing, commercial, residential, conservation and development, sewage and waste disposal.  
Number 4 —
The coolest markets for the first four months of the year are down compared to same time period last year. The five coolest markets are public safety, lodging, religious, educational, transportation — as defined by the Census Bureau which does not include highway and streets.
There you have it. The economic update series is one of ACEC’s resources for media and members.
For a deeper dive, check out the full video on YouTube and all of ACEC’s popular Private Industry Briefs.
To learn more about ACEC’s full slate of private market offerings visit our website at ACEC.org.
Thanks, and we’ll see you again next month.