Top Challenges: M&A, Infrastructure Funding, Contracting Out, Regulatory Burdens
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2 Economic Outlook GDP projected at 3-3.5% for 2015 Engineering Business Index (EBI) CEO confidence high for 3rd straight quarter Federal Advocacy Making progress with opportunistic approach in face of government dysfunction Education Programs Participation rates up Top Challenges: M&A, Infrastructure Funding, Contracting Out, Regulatory Burdens
3 Clifton Larsen Allen LLP, Auditors: Council performance exceeded key trade association benchmarks for: (a) operating efficiency, (b) revenue growth, (c) revenue per employee. In this challenging business climate in which organizations must also meet higher standards of compliance ACEC has not only preserved its financial health but continues to meet and exceed these higher industry standards.
4 ACEC member services provide exceptional value to our company. John Dionisio, Executive Chairman, AECOM Over many years, ACEC has helped my firm close bigger, more profitable business. David Evans, Founder, David Evans Associates ACEC is helping my small firm achieve its maximum potential. Matthew Murello, President, Lewis S. Goodfriend & Associates
5 Latest Passed WRRDA expands QBS (in SRF); COE contracting out Restored short term solvency to Highway Trust Fund to 6/15 Extended EXIM Bank to 6/15 Killed FHWA Excessive Cost Recovery Strengthened eng. exemption in SEC Municipal Advisor rule Protected cash accounting Pending for Lame Duck Session Tax extenders (R&D, bus. expensing) and renewable energy NDAA procurement reforms on D/B, and reverse auction ban
6 FAR Compliance: Maryland Killed transit agency overhead caps Texas Killed limits on DOT prequalification North Carolina Expanded DOT reimbursement policy Recent Minuteman Grants: Illinois Fighting unfair labor practices Massachusetts Preventing repeal of gas tax increase Idaho, Georgia, Maryland Support for transportation funding initiatives Virginia, Metro Washington Protecting QBS
7 Infrastructure Funding Achieving bipartisan consensus for strong federal funding; leveraging private investment Contracting Out Building on advances in WRRDA; MAP- 21 incentive language; completion of national study Unreasonable Liability Shielding A/E from assuming owner and contractor risk, in legislation, court rulings Unreasonable Regulations Mitigating new labor, environmental, health care mandates, SEC rules, other regulatory threats
8 Goal Elect ACEC Majority Primaries: Active in 210 primaries (won 201) General Election: Active in 250 campaigns Washington Post: The candidate [is supported by heavy weights] including Norfolk Southern, Merck and the American Council of Engineering Companies.
9 Up 500% in 10 years Record fundraising pace 35% new donors states at goal $1,000,000 $900,000 $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $0 Goal Raised
10 100% of Goal 50-99% of Goal 25-49% of Goal 0-24% of Goal
11 Leverage PAC dollars to advance ACEC issues Achieve more widespread member giving Increase state engagement in PAC events, disbursement Goal: $1M in 2015
12 Participation Rates Up +60% over last yr. 12 webinars/mo. Educational management system (RCEP) +12% over 6 mos. (46,000 users) SEI 20 th Year 465 firm leaders including heads of 40 ENR 500 companies ACEC s business resources are second to none. Donald Stone, CEO, Dewberry
13 Outgun competition from private vendors, nonprofits, universities Collaborate with MOs who have diverse needs and capabilities Provide Value to members with inhouse education programs
14 To keep members informed and gain public support Awards Engineering Inc., Last Word win APEX awards for excellence Advertising Engineering Inc. growth: 36 to 56 pgs; increased advertising Magazine App Engineering Inc. on Apple Newsstand, Google Play, Amazon for Kindle Engineering Business Index gains trade press coverage as leading indicator Ads in Politico supported MAP-21 extension Social Media Expanded use of Twitter, LinkedIn, Facebook, YouTube
15 Heighten visibility of Council news and information Diversify content to appeal to wider audience Expand use of social media to support advocacy and business goals
16 FY 14 compared to FY 13: Firms: Up 2.9% to 5,159 Employees: Up 11.9% to 366,995 ENR 500: Steady at 77% First Quarter FY 15 Trends: Firm counts: Employees: Flat; trending up in 2 nd quarter Flat; expect M&A impacts Retention and Recruitment Retention: Pay Directs 96%; others 94% Recruitment: New materials (incl. private client brochure)
17 M&A Minimize adverse impact on dues revenue (unless acquired firm is nonmember) Employee counts Address underreporting by clarifying which employees are to be counted, and dues caps Branch membership Encourage large firms to have branches join in all states. Nat l to work with MOs to show value
18 The Council is in sound operational shape. It enjoys the loyalty of its members and the constructive engagement of its volunteer leaders. We can t rest on our laurels. We re only as good as our last win, but we aim to punch above our weight and exceed expectations. The Business of the Council is Business to protect and advance the business interests of our member firms and nothing less!
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