By: Brian Sullivan
I will begin by paraphrasing a fellow entrepreneur in the Strategic Coach Program. He said that in his 30+ years in the business, he has never looked for a recession and he has never found one. To some extent, I subscribe to that philosophy; however, I do like to keep an eye on the economic indicators and make sure that we are setting ourselves up for success. Although for the most part, what appears to bring success in the good times is what breeds success in the down times.
With that being said, here’s what Sullivan Engineering anticipates for 2019 and beyond:
The Construction Industry
As stated in his Engineering Industry Outlook webinar hosted by ACEC, Greg Powell of FMI Capital Advisors stated that his outlook for the economy remains strong for 2019 and stabilizing in 2020 and 2021. Although many experts are anticipating an economic slowdown, the overall sentiment suggests the slowdown will not occur in 2019. Greg cites experts from Goldman Sachs, Moody’s, FMI, and others who predict that the deceleration will begin as early as 2020.
ENR recently published an article stating that the construction industry is also confident, however still struggling to find qualified workers. This issue was validated in FMI’s webinar, as they identified the unemployment rate to be at a 48-year low.
Building Envelope Restoration
We anticipate 2019 to be a strong year in the Building Envelope Restoration industry based on our backlog and the sentiment of our colleagues at both the local and national level.
In New York City, many building owners are addressing items identified in their 8th cycle FISP reports before the start of the 9th cycle. The advent of the 9th cycle will likely bring enhancements to the Facade Inspection and Safety Program, ensuring further safety for the public, but also potentially increasing inspection times and expenses.
Our Leadership team recently completed a two-day planning session with our EOS implementer Mark O’Donnell . During that time, we evaluated the lessons we’ve learned, did some intense planning, and drank some much needed scotch. At the end, we walked away with a solid plan for 2019 into 2022 and beyond. The following is some of what we anticipate for the future:
- We are again targeting significant revenue growth for 2019, even though we are aiming for a slightly lower rate (37% for ’19 vs 48% for ’18). To proactively prepare for this growth, we will continue to spend a disproportionate amount of time and resources on recruiting, hiring, on-boarding, and training. We also anticipate adding eight new team members in 2019, of which two have already been hired.
- Our in-house formal technical training courses are taking shape and being bolstered by our teams combined effort to teach a graduate level course at Manhattan College.
- Since we have several clients requesting our services on some of their projects located outside of the Tri-State region, we will likely be expanding into the Boston area. Sullivan Engineering has had a goal of expanding into and serving another city by 2020, and it looks like we may accomplish that a year early!
- Shameless plug: If you know anyone looking to be part of a great firm with an amazing culture, please send them our way!
If you have any feedback on ways we can improve, please share it with us. We would love to hear your thoughts. Here’s to a great 2019 for all of us!