IN THIS ISSUE

** SECRETARY OF TRANSPORTATION HERSCHAL CROW TO SPEAK AT AUGUST CECO MEETING
** CECO BUSINESS PRACTICE SEMINAR SET FOR SEPTEMBER 6TH
** STATE BOARD OF REGISTRATION TO IMPLEMENT CONTINUING EDUCATION FOR ENGINEERS
** THANKS TO CONVENTION SPONSORS
** WE'RE GOING TO DISNEY WORLD!!!!!!!!!!!!!
** BUSINESS TRENDS: GROWTH AND SUCCESS
** TOP ACEC STAFFER TABBED BY BUSH ADMINISTRATION
** DESIGN FIRMS SCORE RECORD EARNINGS AND PROFITS

SECRETARY OF TRANSPORTATION HERSCHAL CROW TO SPEAK AT AUGUST CECO MEETING

Herschal H. Crow, Jr., the newly appointed Secretary of Transportation will be the featured speaker at CECO's August General Membership Meeting.

The meeting will be held on Thursday, August 23rd at the Ryan's Family Steakhouse, 74th and Memorial, in Tulsa. The business meeting will begin at 5:00pm, and will be followed by dinner and Secretary Crow's address.

Crow has served on the Transportation Commission since 1995, and has recently served at the commission's chairman. Keating stressed the importance of selecting the right person for the job because the state is in the midst of the Capital Improvement Projects (CIP), which will invest $1 billion in the state infrastructure.

Crow was a school teacher in Altus from 1957 to 1965. In 1968 he began his first term in the State Senate, where he served until 1982. During his time in the Legislature, Crow served as chairman of several committees including Agriculture and Appropriations. He is currently president and general manager of Lee Office Equipment in Altus.

During his time on the Transportation Commission, Crow supported the passage of CIP by holding summits around the state to rally support for the legislation. During his time as chair of the commission, rail service resumed between Oklahoma City and Ft. Worth, Texas, and realignment of the I-40 cross-town in Oklahoma City was planned and highway maintenance in Oklahoma City and Tulsa was privatized.

The August CECO General Membership Meeting will be the first under the new format adopted by the Board of Directors. As reported in last month's CECO Report, the Board decided to move the CECO meetings from area hotels to local restaurants in an effort to control costs to members. Under the new system, members will order and pay for their own meals at a cost much less than the $25.00 per person which CECO previously charged for the meeting.

With this change, CECO will not be charging a registration fee for the meetings. Approximate cost of the dinner, including tax and gratuity, is $10.00/person for the buffet.

CECO strongly encourages not only all members to attend, but to bring other members of your management team to the meetings. By doing this, it is hoped that attendance will be much higher while at the same time cost incurred by member firms will be controlled.

Mark your calendar now for the August 23rd CECO Meeting featuring Secretary of Transportation Herschal Crow.

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CECO BUSINESS PRACTICE SEMINAR SET FOR SEPTEMBER 6TH

CECO will host a professional development seminar on Thursday, September 6th at the Oklahoma Engineering Center in Oklahoma City. The three-hour seminar will begin at 1:30pm.

THRIVING BUSINESS, presented by business consultant Carl Potter, is a seminar designed to help design firm owners and managers understand how to motivate their employees.

During the seminar participants will learn the 5 Steps for gaining more clients, the 3 Ds for becoming a THRIVOR, and some tips and techniques for motivating and empowering their workforce.

Emotional intelligence and generational differences are also discussed during the seminar.

Design firm owners and managers who understand what motivates themselves and their employees are better equipped to deal with daily people issues. Carl's presentation will provide insightful information that educates and motivates individuals towards Continuous Personal Improvement and is full of Motivation, Humor, Wit and Wisdom, and Challenge.

Carl presented this seminar at a recent CEC/Missouri program, and got rave reviews from your counterparts in Missouri.

Carl Potter is a businessman, author, consultant, and speaker who is known for his approachable demeanor, encouraging attitude and commitment to learning. His mission is clear, he works with organizations that want thrive and not just survive and individuals who want to become a THRIVORTM and not just a survivor. Carl is known as an encourager and coach. With a passion to see others succeed, he encourages participants to grow through continuous personal improvement.

Registration fee for the seminar will be $150.00 per person, and each participant will receive 3 PDH's (professional development hours) which can be used for professional license renewal.

Registration information will be sent soon, so mark your calendar now for THRIVING BUSINESS, Thursday, September 6th.

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STATE BOARD OF REGISTRATION TO IMPLEMENT CONTINUING EDUCATION FOR ENGINEERS

At their July meeting The State Board of Registration for Professional Engineers and Land Surveyors decided to implement mandatory continuing education for professional engineers in Oklahoma. The Board will now begin the rulemaking process and plans to submit the new rules for legislative approval during the 2002 Legislative session.

The State Board implemented mandatory continuing education for professional land surveyors many years ago, but held off on mandating continuing education for engineers until now. The Board plans on making the rule effective with re-registrations beginning in 2004, which will give registration two years to meet the continuing education requirements. It is expected that engineers, like land surveyors, will be required to accumulate 30 hours of continuing education over a two-year period.

CECO has strongly opposed mandatory continuing education efforts for engineers many times in past years. However, in reality, we knew that it was just a matter of time until mandatory continuing education came to Oklahoma.

The Board will soon begin drafting of the proposed rule. When the draft is completed, a public hearing will be held on the proposed rule at which time you will have your opportunity to express your opinions. CECO will make every effort to be involved in the drafting of the proposed rule, and will attempt to make the rule as unobtrusive as possible.

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THANKS TO CONVENTION SPONSORS

Company sponsorship helped hold costs down at the CEC Tri-State Meeting. This year the following companies helped sponsor various convention events. We thank them for helping and for their support of CEC/Oklahoma, ACEC/Arkansas, and CEC/Missouri:

¨ ACEC Business Insurance Center
¨ ACEC Life/Health Insurance Trust
¨ The Insurance Exchange
¨ Lockton Companies
¨ Ramsey, Krug, Farrell & Lensing
¨ Van Gilder Agency

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WE'RE GOING TO DISNEY WORLD!!!!!!!!!!!!!!

ACEC's 2001 Fall Conference is less than two months away and the Institute of Consulting Engineers (FICE) Host Committee, along with Mickey and Minnie Mouse, is putting the finishing touches on what promises to be an incredible meeting. The conference will feature an all new format, with separate days devoted to ACEC/PAC, leadership, education, and market opportunities. Highlighted speakers include Florida Governor Jeb Bush (invited), former NASA Mars Exploration Program Manager Donna Shirley, "Who Wants to be a Millionaire" gameshow winner Kevin Olmstead, Ph.D, and trends analyst Roger Herman. Another notable attendee at this year's conference will be Former Transportation Secretary Rodney E. Slater, who will be this year's recipient of ACEC's Distinguished Award of Merit.

Mark your calendars to attend the Private Sector Markets Conference on Saturday, September 22, at the Fall Conference. Three panels comprising representatives from industries that are experiencing expansion will describe their specific business plans and strategies to accomplish growth. Valuable insights can be gained into what's happening now and in the next few years and how to position your firm for future success. Janice Tuchman, Editor-in-Chief of ENR magazine, be a panelist.

Donna Shirley, former manager of NASA's Mars Exploration Program and the leader of the team that built the Mars Sojourner Rover, is the Keynote luncheon speaker on Friday, September 21. In her career at NASA's Jet Propulsion Laboratory, Shirley drew upon her skills and talent as engineer, entrepreneur, adventurer, strategist, manager, spokesperson, cheerleader, and bureaucratic warrior.

Optional functions include a tour of Celebration City, a behind-the-scenes at the Walt Disney World® Resort, and of course, Local Color Night, consisting of a Rock-n-Roll Beach Party at Pleasure Island, Disney's entertainment venue.

Registration information has been mailed to members, or you can also Pre-register on-line at www.acec.org, by August 31, 2001, to receive the $625 discounted rate.

Hotel reservations can be made directly by calling Disney's Yacht & Beach Club Resorts at (407) 934-3372. ACEC conference attendees receive a discounted room rate of $179 single/double, if reservations are made by August 20, 2001.

For more information on the Walt Disney World resort complex, visit the Disney web site at http://disneyworld.disney.go.com/waltdisneyworld/index.

It's going to be a "magical" Fall Conference. Hope to see you there.

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BUSINESS TRENDS: GROWTH AND SUCCESS

ACEC's 2001 Annual Business Trends Survey, once again, showed that the engineering industry has experienced a strong year of business. Of the approximately 600 firms that responded, fifty-six percent of principals reported their business was outstanding or excellent. This is especially great news, as the United States' economy begins a period of uncertainty. Even with this volatility, principals believe the outlook for the future is good, with 54% believing the U.S. market will continue to be strong for the next18 months.

There was also a jump in net revenue per employee, from $97,547 in 1999 to $106,395 in 2000. This amount remains fairly consistent with other industry figures, which set net revenue per employee at $100,000. However, profit margin as a percentage of net revenue, before taxes and discretionary distribution to owners, remained static at 16%, the same percentage as1999.

Little has changed from previous years among core business issues impacting firms. Profitability (59%), cash flow (39%), and lack of qualified staff (37%) were the central issues of concern to firms this past year. When asked which expertise would benefit their firm most, nearly half of the principals answered Marketing (49%). Quality Management (34%), Leadership Development (30%), and Strategic Planning (27%) followed in importance.

A full, detailed report will appear in an upcoming edition of ACEC's ACE Magazine. Contact Joe Lyman (jlyman@acec.org) at ACEC, for more information.

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TOP ACEC STAFFER TABBED BY BUSH ADMINISTRATION

ACEC's veteran lobbyist Jack Kalavritinos has been appointed to the White House Office of Management and Budget (OMB) as Assistant Administrator of Procurement Policy; and Steven Hall, former Congressional Chief of Staff for New York Congresswoman Sue Kelly, has been appointed to direct government affairs operations.

"This is a win-win for both ACEC and OMB," says ACEC Chairman Steve Goddard. "Jack will have responsibility in the government for issues of high importance to our industry, and Steve Hall brings to ACEC remarkable depth of congressional experience and accomplishment."

Announcing the personnel transition, ACEC President Dave Raymond said, 'We couldn't have a better situation. Jack's appointment was anticipated and he worked closely with us on the selection of a successor. Our relations with the Bush Administration will be strengthened, and Steve Hall is a big coup for us. He is highly regarded in Washington."

Hall has served for more than a decade in senior legislative positions with several Congressmen for whom he handled issues of primary importance to ACEC including regulatory reform, environment, labor policy, infrastructure appropriations, and taxes. Washington political consultant Wayne Vallis told the Last Word that Hall "is a master at building legislative coalitions" and that "more than any other Hill staffer, he was responsible for passage of sound regulatory reform."

Raymond also announced that Tom Kern will be leaving ACEC to join a community service-related organization. "Tom has served us with diligence and distinction. We have appreciated his achievements, and we respect his desire to pursue another opportunity."

At the same time, Diane Mann, a lawyer and former director of business development at Donohoe Construction, joins the Business Affairs Department as director of project delivery systems and management practices.

CH2M HILL's Vice President and Vice Chairman of the Design Professional's Coalition Richard Corrigan noted that "ACEC continues to build one of the strongest and most effective staff operations in Washington. Members should feel exceptionally proud of developments over the past two years."

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DESIGN FIRMS SCORE RECORD EARNINGS AND PROFITS

Architecture, engineering, and planning firms achieved record profits and earnings in their most recently completed fiscal year, according to ZweigWhite's newly published 2001 FINANCE & ACCOUNTING SURVEY OF ARCHITECTURE, ENGINEERING & PLANNING FIRMS. Firms may have a difficult time sustaining that success in the current economic conditions, but the most recently completed fiscal year (2000 for the vast majority of firms) was the best year architecture, engineering, and planning firms have had in the five years since the survey was first conducted in 1997.

Net service revenue per total staff and per professional/technical staff reached their highest levels ever, according to the survey. Net service revenue per total staff reached $86,384, and net service revenue per professional/technical staff hit a record high of $104,513.

More importantly, profits were up: median net pre-tax, pre-bonus profit on net service revenue increased to 12.0% this year, compared with 9.0% in 1997. Net pre-tax, pre-bonus profit per total staff has nearly doubled from $5,981 in 1997 to $10,527 in 2001.

Ian Rusk, ZweigWhite's CFO and a financial consultant to the industry, says this improvement in profitability is even more notable given an increase in overhead costs over the past three years. Despite these higher costs, the firms surveyed were able to generate stronger than ever profit margins. Firms overcame these increased costs through stronger labor multipliers. The median net multiplier (net service revenue divided by direct labor cost) and median revenue factor (net service revenue divided by total labor cost) each reached five-year highs this year. "Each of these metrics point to the fact that firms were able to charge higher fees for their services than in prior years," says Rusk.

The 2001 FINANCE & ACCOUNTING SURVEY OF ARCHITECTURE, ENGINEERING & PLANNING FIRMS is available from the publisher for $275, plus $4 shipping and handling. Contact ZweigWhite, P.O. Box 8325, One Apple Hill Drive, Natick, MA 01760, tel: 508-651-1559, or visit their web site at www.zweigwhite.com.

ZweigWhite is the leading source of management consulting, information, and education for the design and construction industry. The firm is based in Natick, MA, and has additional offices in Oakland, CA; Washington, DC; Overland Park, KS; and Atlanta, GA.