ACEC Maintains Bearings Discontented voters all sides of the political spectrum Fractious campaign to have major implications for House, Senate races Senate and possibly House could flip
M i l l i o n s 5.0% unemployment Construction spending up 10.3% over a year ago Private sector construction spending more than double public sector $900,000 $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 Housing starts up 31% over year ago Public Construction Private Construction Engineering Industry Strong
Qualified Engineers at a Premium 1.44 A/E Employment 1.44 Million 1.43 1.42 1.41 1.40
70.0 60.0 50.0 40.0 30.0 20.0 10.0 0.0 Engineering Business Index (EBI) Rating 64.0 Expansion Contraction 62.4 63.1 64.0 Backlog and profitability expectations
Employee Count Firm Count 700,000 600,000 500,000 400,000 300,000 200,000 100,000 0 5,300 5,200 5,100 5,000 4,900 4,800 Third Quarter FY16 (ended 3/31/16) Employee count: all-time quarterly high: 560,410 Firm count: 5,245 (currently ) ENR 500 firms: all-time quarterly high: 80%.
ASAG Energy (SC) Founder Gregg Hughes (left): Involvement with ACEC is an essential part of our plan to grow and succeed. AECOM Chairman/CEO Mike Burke (right): AECOM is proud to be an ACEC member We appreciate our partnership and the value of ACEC s programs. National Pay Directs 98%
38 states made goal in 15 $1 Million pace in 16 Bolsters ACEC s advocacy Early money critical for 2016 emphasis on preprimary donations, battleground races Working closely with states $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 Puts ACEC at the table, off the menu! 8
Recent infrastructure funding victories NC $2 billion bond referendum TX $2.5 billion sales tax MI $1.2 billion gas tax 35 MOs have benefited Dollar-for-dollar match Michigan Gov. Rick Snyder signs ACEC-backed infrastructure funding bill Scope of Issues Infrastructure funding Liability protection Indemnification Lien rights QBS Scope of duty Scope of services Prof. services tax Strength of ACEC Federation
Passed $305 billion FAST Act, first longterm bill in ten yrs.; 10% funding increase Killed anti-contracting out amendments Secured contracting out language Killed amendments to abolish QBS UP NOW: FAA reauthorization House bill boosts funding by 11%; ATC as non-profit (not in Senate bill) Key issue for ACEC citizen lobbyists REP. BILL SHUSTER (R-PA) CHAIRMAN, TRANSPORTATION & INFRASTRUCTURE COMMITTEE
2014 Last WRRDA bill SEN. JIM INHOFE (R-OK), CHAIRMAN, ENVIRONMENT & PUBLIC WORKS COMMITTEE UP NOW: Expansion of Water Markets Flint, Michigan situation helps spur new water legislation New WRRDA bill Increased SRF funding QBS for drinking water Superfund, other hazardous waste Expanded bonding authority for water New water trust fund
2015 Lifted 40-year ban on crude oil exports to expand energy markets Secured energy grid hardening in FAST Act UP NOW: House-passed Energy bill; Companion bill on Senate floor Modernizes energy grid transmission, distribution, storage Regulatory streamlining; energy efficiency Creates inter-agency coordinating committee on energy-water nexus Key issue for ACEC citizen lobbyists REP. FRED UPTON (R-MI) CHAIRMAN, HOUSE ENERGY COMMITTEE
2015 Secured 52 key tax extensions: Permanent R&D tax credit; higher expensing levels; Bonus depreciation; Renewable energy credits Strengthened engineering exemption in SEC municipal advisor rule Limited two-step DB to five competitors; Seeking to curtail one-step DB ACEC Testifying on Design-Build Reform, House Committee UP NOW: Kill proposed blacklisting rule Kill doubling of salary threshold in proposed FLSA overtime pay rule Key issue for ACEC citizen lobbyists Sen. Orrin Hatch Chairman, Finance Committee
2015 Won four-year renewal of Export-Import Bank lending and political risk insurance UP NOW: Lobbying Congress and USAID to use U.S. engineering firms in foreign aid projects (Appropriations bill) Bring MDBs in line with best procurement practices (World Bank reforms) Gain State, Commerce support for U.S. engineering firms Cuban trade officials meet with ACEC International Committee
STATUS REPORT: NYU study on State DOT costs vs. contracting out due June 30, 2016 (44 states in process) NYU has delivered results for 33 states; 23 have been delivered to states; remaining 10 are being reviewed for accurate DOT costs States already using results (e.g. Kansas) OVERALL FINDING: Private sector costs less than DOTs UP NEXT: similar studies to be undertaken on federal agencies (COE, NAVFAC, others)
Popular AASHTO Audit Guide Courses Completed in CA, MA, DC, PA, TX, WI; Will schedule for any MO upon request SEI 21 SOLD OUT; Class 22 filling fast Graduates lead 40 ENR 500 firms Coalitions continued success Membership up 6% overall; Land Development up 32%, CASE up 23% RCEP growing steadily Over 66,000 users; 128 providers 80,000 60,000 40,000 20,000 0 Educational Management System (RCEP) Users Excellent, Cost-effective Training Bill Stout, CEO, Gannett-Fleming
ACEC YouTube Channel InfrastructureUSA.org ACEC s partner with over 200,000 users ACEC Twitter Page Ad in Politico November, 2015
No QBS Rampant price competition, reverse auctions No contracting out only gov t left-overs Arbitrary caps on overhead and salaries No 9% A/E tax deduction or other allowances No cash accounting Unchecked cost recovery on overcharges No A/E exemption for PLAs Arbitrary gov t withholdings (3%-plus) Mandatory SEC filings for A/E projects Weakened legal protections, expanded liability Failed state infrastructure funding initiatives
QBS protected Contracting out protected FAST Act passed Liability protections Good business environment Revenues and profits growing Etc. etc. etc. Let s not take our accomplishments for granted; Let s continue to fight for our industry!