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ENGINEERING INC. MARCH/APRIL 2015 G Vol MARCH/APRIL 2015 INC. www.acec.org ENGINEERING AWARD-WINNING BUSINESS MAGAZINE G PUBLISHED BY AMERICAN COUNCIL OF ENGINEERING COMPANIES >> Combating Commoditization >> Engineers in State & Local Government >> Black & Veatch Rebuilding Homes and Lives SENATOR >> Keys to Success In Asia-Pacifi c Market ORRIN HATCHTAKES ON TAX REFORM ENGINEERING INC. MARCH/APRIL 2015 G Vol. 26, No. 2 18 25 BREAKING THE MOLD 18 Commoditization: How to overcome a major threat to a firm’s success. APP TO ORDER 25 When an off-the-shelf app won’t meet your firm’s need, build one that does. MAKING A QUALITY-OF-LIFE DIFFERENCE 30 8 How Black & Veatch’s Christmas in October initiative Cover Feature is rebuilding homes and lives in Kansas City. SENATOR ORRIN HATCH 8 LEADING THE PAC The chairman of the Senate Finance Committee takes 39 ACEC/PAC smashes fundraising records with on tax reform. $835,000. Features 2015 ANNUAL CONVENTION PREVIEW 44 ENGINEER-ELECT 12 Join your colleagues at the 2015 Annual Convention Engineers who hold public office bring a knack and Legislative Summit in Washington, D.C., for problem solving to state and local government. April 19–22. Departments FROM ACEC TO YOU 2 GUEST COLUMN 46 MEMBERS IN THE NEWS 50 Stemming the tide of Land development eyes recovery WSP Global executive commoditization. from recession hangover. appointments following acquisition of Parsons Brinckerhoff. MARKET WATCH 4 BUSINESS INSIGHTS 48 Entry strategy for the Learn to successfully manage your MERGERS AND Asia-Pacific market. A/E business; CASE Standard of ACQUISITIONS 52 Care white paper. 2014 a record year for LEGISLATIVE ACTION 6 engineering M&A. Tax reform momentum builds; ACEC urges Congress to pass long- term transportation bill. COVER PHOTO: GARY LANDSMAN Engineering Inc. promotes the advocacy and business interests of ACEC by offering news, legislative analysis and business practice information to member firms, clients, opinion leaders and policy makers. The articles and editorials appearing in this magazine do not represent an official ACEC position or policy unless specifically identified as doing so. From ACEC to You ENGINEERING INC. THE OFFICIAL PUBLICATION OF THE AMERICAN COUNCIL OF ENGINEERING COMPANIES AMERICAN COUNCIL OF ENGINEERING COMPANIES Stemming the Tide CHAIRMAN Richard C. Wells PRESIDENT & CEO David A. Raymond Of Commoditization VICE PRESIDENT, Mary Ann Emely OPERATIONS VICE PRESIDENT, Steven Hall GOVERNMENT AFFAIRS he pernicious effects of commoditization are felt in virtually all VICE PRESIDENT, Marie Ternieden professions these days, but perhaps nowhere more acutely than in BUSINESS RESOURCES AND EDUCATION engineering. According to ACEC’s Engineering Business Index (EBI), T DIRECTOR, COMMUNICATIONS Alan D. Crockett members consider commoditization a critical threat to their firms’ success, AND MEDIA surpassed only by public funding constraints and an adverse economy. STAFF EDITOR Andrea Keeney The trend toward commoditization, which continues unabated, is driven [email protected] by a complex array of factors. How you can help your firm overcome those 202-682-4347 SENIOR COMMUNICATIONS Gerry Donohue factors and protect your bottom line is the subject of our feature article. WRITER (See page 18.) Tax policy also has a major impact on ACEC members, and our cover ACEC PUBLIC RELATIONS AND interview with Senate Finance Committee Chairman Orrin Hatch EDITORIAL ADVISORY COMMITTEE (R-Utah) reveals the challenges ahead in comprehensive tax reform. CHAIRMAN James Blake (See page 8.) McMURRY/TMG, LLC In addition, this issue highlights how ACEC/PAC Champions from MANAGING EDITORS Corey Murray, Christopher Brandon coast to coast applied creative strategies to help ACEC/PAC smash ART DIRECTOR Jeff Kibler fundraising records in 2014, with sights now set on the Council’s $1 PROJECT MANAGER Amy Stephenson Fabbri million goal. (See page 39.) A new regular feature looks at how member firms are excelling as ADVERTISING SALES corporate citizens in their communities. The first firm to be profiled in Leo Hoch ACEC this series, Black & Veatch, has developed a successful housing program 1015 15th Street, NW, 8th Floor that benefits the urban areas in which the firm operates. (See page 30.) Washington, D.C. 20005-2605 Finally, this issue includes a fascinating profile of engineers who serve in 202-682-4341 [email protected] public office. (See page 12.) Engineering Inc., Volume 26, Number 2 (ISSN 1539-2694), is published Richard C. Wells David A. Raymond bi-monthly by the American Council of Engineering Companies (ACEC), 1015 15th Street, NW, 8th Floor, Washington, D.C. 20005-2605. Periodicals ACEC Chairman ACEC President & CEO postage paid at Washington, D.C., and at additional mailing offices. Annual subscriptions are $24 for members (included in dues as a non-deductible amount); $45 for U.S. non-members; $65 for institutional subscriptions. Back issues are $15. POSTMASTER: Send address changes to Engineering Inc., c/o ACEC, 1015 15th Street, NW, 8th Floor, Washington, D.C. 20005-2605. © 2015 American Council of Engineering Companies. All rights reserved. This publication may be copied, downloaded from the ACEC website, stored in electronic or hard-copy format, and disseminated to third parties for educational and information purposes. ACEC expressly disclaims any liability for damages of any kind in connection with such copying, downloading, storage, and/or dissemination. By copying, downloading, storing and/or disseminating this publication, the recipient of this publication expressly agrees to defend, indemnify, and hold ACEC, its officers, directors, employees, volunteers and agents harmless from and against any and all losses, damages, claims, causes of action and liabilities, including reasonable attorneys’ fees and costs, arising out of or resulting from the recipient’s use of this publication. Notwithstanding the above, no part of this publication may be altered, resold, licensed, or used for any other commercial purposes without the prior written permission of ACEC. Recipients may opt out of receiving the electronic version of this publication from ACEC by sending an e-mail with the subject line “Unsubscribe” to ACEC at [email protected]. Engineering Inc. subscribers: If you have a mailing address correction or need to add or remove an employee from the Engineering Inc. mailing list, please contact the ACEC Membership Department at [email protected] or call 202-347-7474 and ask for Member Records. WWW.ACEC.ORG Sutong Bridge Fred Hartman Bridge Taizhou Bridge Suzhou, China Houston, Texas Jiangsu, China With nearly 100,000 employees serving clients in more than 150 countries around the world, AECOM is a premier, fully integrated infrastructure and support services firm. Our people are united by a shared commitment to create, enhance and sustain the world’s built, natural and social environments. With revenue of almost $20 billion, AECOM is a leader in all of the key markets it serves, including transportation, facilities, environmental, energy, oil and gas, water and government. AECOM has provided engineering services on some of the world’s longest and most innovative bridges. Woodrow Wilson Bridge Washington, D.C. www.aecom.com MarketWatch By gerry donohue Entry Strategy for the Asia-Pacific Market ore than half of the enough to sustain a focused Davert. “You’re not going to Operating world’s population presence,” says Marshall just show up and compete Down Under Mlives in Asia—a Davert, MWH government successfully.” Australia has been a first port percentage that is forecast and infrastructure president MWH’s acquisition of the of call for many U.S. firms to increase. Asian GDP is for the Americas and Asia English firm Watson Hawks- heading to Asia. They have expected to grow by 5.6 per- Pacific. ley in 1990 brought with it a established a presence in its cent in 2015, and seven of the Kleinfelder President and network of established offices friendly confines, built up 10 fastest-growing economies CEO Bill Siegel tells of work- in numerous British Com- staff and knowledge and then are in Asia. ing on projects on a half- monwealth countries, includ- expanded into other markets. But the Asia-Pacific mar- dozen Pacific islands for a cli- ing Australia and Hong Kong, “It’s reasonable for U.S. ket is a study in contrasts. ent. “It wasn’t just a logistical as well as a Taiwan office, companies to be successful in It includes two first-world challenge,” he says, “but we which acts as a springboard Australia and New Zealand,” economies, Australia and had to register as a corporate into the Chinese market. says Davert. “It’s a relatively Japan, and a host of third- entity on each one.” CH2M HILL gained its large market, and the rule of world economies. It is home Registering can be a chal- broad Asian presence by law and contracting proce- to two huge fast-growing lenge. For example, in Brunei, acquiring the U.K. firm Hal- dures are similar.” economies—China and India, which Forbes magazine ranks crow four years ago. “Halcrow For most of the past decade, which are expected to gener- as the fifth-richest country in has supplied about 50 percent Australia’s market has been ate 25 percent of global GDP the world, half of the board of our Asia Pacific staff,” says strong, as it has provided the by 2019—and to the four members of a registered com- Nye. “That includes all the coal to power the Chinese eco- smallest economies, including pany must be Brunei residents. people in Hong Kong, half the nomic engine. But as Chinese Tuvalu, which has an annual “The importance of under- people in Australia and a good growth rates have slowed, the GDP of less than $40 million. standing the culture can’t be number in Malaysia.” Australian economy has fallen Many of these markets overstated,” says Davert. HDR Managing Direc- off. welcome foreign firms, while Several firm leaders caution tor of Australian Operations “Probably 50 percent of others, for all intents and pur- that certain legal and ethi- David Bell says, “We entered those revenues have dried up poses, are closed to foreigners.
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