Taking a fresh approach to our annual market outlook article, we asked executives from structural engineering firms across the country to weigh in on the outlook for 2009. Participating firm leaders represent practices of all sizes, ranging from 24 to 650 employees. Several participating firms have branch offices, yet many do not. Firms represented offer services in all markets—several firms are highly diversified while others are specialists in a niche market. Despite all of the differences in the location, size, and types of firm that these executives represent, in October 2008 when we asked each to opine about 2009, all responded with cautious optimism.
Trends
A shift to public- versus private-sector work was described by most executives who were not heavily into public work already. Although this traditional shift in a weak economy may occur, many state and local governments are currently experiencing budgetary shortfalls. Walter P Moore President and Chairman of the Board Raymond F. Messer, P.E., cautions, "Although it appears that public-sector work may increase, time will tell what the new administration will do with respect to a public works economic incentive package, if anything."
When we asked executives about the change in value of contracted work for 2009 as compared with 2008, the group was evenly split between those firms that are up 20 to 50 percent over last year and those that are about the same as last year. Only one firm indicated a decrease in contracted work heading into 2009. Regardless of where your firm stands going into 2009, Thornton-Tomasetti Chairman Thomas Z. Scarangello, P.E., notes, "A significant challenge for 2009 will be to exit the year with an equally strong backlog going into 2010."
Fortunately, despite a looming economic downturn, most firms—67 percent—are still targeting growth for 2009 and remain challenged by the task of recruiting talented and qualified structural engineers. Forell/Elsesser Engineers President and CEO Simin Naaseh, S.E., warns, "The talent gap could compromise the long-term sustainability of some structural engineering firms."
Their outlook
While a few trends flow through many of the executives’ responses, depending on the type of services provided, regions of the country where they work, or personal opinion, many have different predictions of what is in store for this year regarding firm challenges, market growth potential, sustainable projects, integrated project delivery, and building information modeling. Read on to learn more about what these executives have to say about 2009.
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