How Leading AEC Firms Are Winning the Megaproject Era
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The AEC consulting industry is undergoing a significant transformation, moving away from the legacy models that dominated for decades toward more sophisticated operational strategies required by today's mega-projects. Historically, firms grew steadily by following a familiar playbook of building client bases and scaling up over time; however, this traditional approach is no longer sufficient as projects have become exponentially larger and more complex. Leading firms are now expanding their global reach and integrating advanced technologies to handle technical, regulatory, and political challenges that were previously uncommon. The industry has matured significantly since the era when large engineering consulting firms operated with only a few thousand staff members; today's landscape features massive organizations capable of managing infrastructure projects that dwarf those from thirty years ago.
A primary driver of this added complexity is the sheer scale of modern infrastructure needs combined with evolving legal risks and regulatory environments, which require project managers to possess a diverse set of soft skills beyond pure technical expertise. Communication, negotiation, conflict resolution, and scope management are now critical competencies because the cost implications of errors on multi-hundred-million-dollar projects are far greater than in the past. Consequently, successful firms like GISI are investing heavily in upskilling their leadership teams to keep pace with these demands. This includes developing strong project manager programs that foster knowledge sharing across different geographic locations and ensuring that leaders can navigate complex client organizations effectively. The ability to cultivate entrepreneurial spirits within a large organization through employee ownership models further distinguishes top performers, creating cultures where staff are passionate about the future and dedicated to continuous improvement.
Artificial intelligence represents another pivotal trend reshaping how these firms operate, though its impact is viewed as an enhancement tool rather than a replacement for human expertise. Leaders emphasize that AI will increase the value proposition of engineers by making them more impactful when used correctly, leading to what is described as "expert plus AI." While large firms with deep financial resources can invest strategically in new technologies and agents, there is a strong caution against over-investing or chasing every emerging tool without clear strategic purpose. The consensus among executives is that the most prudent approach involves first maximizing existing tools like Microsoft Copilot before building custom stacks, ensuring that investments are disciplined and focused on improving decision-making processes rather than creating unnecessary complexity for clients who may not yet fully understand these technologies.
Looking ahead, the industry outlook remains robust due to a significant backlog of underfunded infrastructure projects in sectors such as transportation, water systems, energy, and digital roadways equipped with sensors. Despite challenges like talent shortages that will persist across all competitors, firms that prioritize succession planning and invest in developing effective leaders are poised for superior organic growth and successful mergers and acquisitions. The future belongs to organizations that can leverage technology to reduce operating costs while maintaining technical excellence, ensuring they remain trusted advisors capable of delivering on the massive scale required by modern society. Ultimately, those who fail to adapt their leadership models and embrace these evolving complexities risk falling behind in an industry where only a few will thrive amidst disruption.
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How do you see the AEC consulting
industry shifting away from kind of the
the legacy model firms used to run on
kind of like what you mentioned earlier
with the when the founders [music]
started here towards how leaders are
operating today?
>> When I started I I looked this up a
little while ago cuz I was interested
but at the time [music] they're going
over 30 years ago the largest
engineering consulting firm at that time
[music] I I believe had about 7,000
staff. So our engineering consulting
industry has really matured and
developed and continues actually to
mature and develop uh since [music] that
time. And now you know there's much
larger firms firms are operating and
what I see as I look into the future
[music] for our industry is really a
continuation of those trends. I see uh
firms continuing [music] to expand their
their global reach. I see firms in our
sector becoming [music] much more
sophisticated around technology.
Obviously there's a lot of discussion
around here.
>> For decades AEC [music] consulting firms
grew by following a familiar playbook.
Build the client base, take on more
work, and scale steadily over time. But
today's mega [music] projects don't play
by those same old rules and the firms
still clinging to that legacy model are
quietly falling behind the ones willing
to rebuild from the ground up. Joining
us today is Derek Amadon, licensed
professional engineer, chief operating
officer at GISI, and chief executive
officer [music]
at GISI Consulting Group.
GISI is a company that works on iconic
projects.
Derek has held senior leadership roles
at Tetra Tech, WSP, [music] Halff, and
Healian Aldrich and now leads strategic
planning, M&A activity, and long-term
growth initiatives across GISI's
operating companies.
In this episode, [music] we're going to
get into how the legacy model of AEC
consulting compares to how leading firms
operate today. [music]
What's driving the added complexity in
today's mega projects and where Derek
sees the biggest opportunities [music]
for growth ahead. Now, before I jump in
with Derek, I do want to tell you about
AECPM Connect, a series of in-person
events that we've created at EMI for AEC
[music] project managers and the leaders
who develop them.
If you want to stay on top of PM trends,
elevate your team, and deliver stronger
project results, [music]
these full-day events are built for you.
We're coming to Kansas City this
October. Learn more and register [music]
at aecpmconnect.com.
I'm your host Anthony Fasano, and
[music] this is The Civil Engineering
CEO.
>> [music]
>> All right. Now, I'd like to welcome our
guest onto the show for today. Joining
us today is Derek Amadon. Derek is a
licensed professional engineer, chief
operating officer at GISI, and chief
executive officer at GISI Consulting
Group.
Derek, welcome to The Civil Engineering
CEO.
>> Well, thanks, Anthony. I'm very uh glad
to be here on your show.
>> Now, we're happy to have you, and
I think a good place to start will be
tell us about GISI, and then I want to
hear your role there, but tell us how
it's structured, kind of your role in
the company, just to get us going here,
Derek.
>> Yeah, the GISI story is a fascinating uh
story.
I joined here about 3 years ago uh in
part uh because of the of the amazing
story here. So, if you roll back uh 10
years ago, uh some of the uh the most
well-known and most successful
entrepreneurs in the engineering
consulting
uh got together. Uh Dick Newman, Rick
Newman, John Denice,
and Jeff Kissel.
And they These are guys who had your
decades
your
40, 50 years of experience
uh in this industry. And they they got
together uh as I said 10 years ago,
and they uh they realized that they'd
learned many uh critical important
lessons over their careers. As they
looked at the industry, they thought,
you know what, there's a better way to
do business and engineering consulting.
They thought that these lessons that
they had learned could be put to good
use if they formed a new a new business,
which is exactly what they did.
And so from those kind of humble
beginnings 10 years ago,
we now have a business that is
on track to exceed more than 21 billion
dollars
in revenue.
>> Wow.
>> We're going to have pretty close to
17,000
staff.
So it's been quite a growth trajectory
over the past decade.
And I'll just tell you a little bit
about my role and a little bit about how
we're structured. So
the way we're structured is we have our
parent company is G&SI Inc.
And G&SI Inc.
has two platforms underneath it.
One is our construction platform, which
we call STOBG, and the other is our
consulting
project management and engineering
firm called G&SI Consulting Group. And
so my role is I'm the chief operating
officer for the entire enterprise, and I
also am the CEO for the consulting
group.
>> Okay, that's a great introduction for us
just for us to try to you know
understand the background and and being
someone who's a civil engineer and
entrepreneur myself when you were
rattling off the names of the founders,
those are like Hall of Famers.
>> I've heard of I've heard of all these
guys and they've done amazing things in
the industry. So
I'm not surprised. I mean, I'm kind of
surprised just cuz 21 billion is a
massive number, but I'm not surprised
when you understand you know the people
involved and kind of what they've been
able to do here.
Which I think is great. And before I
kind of dive in a little bit cuz we do
want to talk of course about the
business. I'm going to ask you some
questions about the industry. I want to
hear a little bit about your journey
because a lot of our listeners are civil
engineers Derek and
you know when you start your career as a
civil engineer, you don't know that
you're necessarily going to be CEO or
COO or kind of where you're headed in
your career. So I was wondering if you
could just take a few minutes to tell
our listeners a little bit about that
journey from kind of civil engineer into
leadership into executive leadership.
You know, what was it like for you? How
did it unfold? You know, was it
something that was kind of a goal of
yours from early on? Maybe you could
just share a little bit about your
journey.
>> Yeah, absolutely. So, you know, I I
decided to become a civil engineer about
35 years ago
in part because uh
my father gave me some advice about uh
the industry and that uh it was an
industry that was made up of that time
quite a few smaller firms.
And I remember my my father kind of
advising me saying, you know, this is an
industry where you can be both an
engineer and an entrepreneur.
And that's exactly uh the path that uh
that I've been on the last 35 years. And
so, I I started as as many civil
engineers do, very technically focused
uh early in my career.
But fairly rapidly started to evolve.
Although,
technical the technical aspect of
project delivery has always been really
from from [clears throat] day one till
now
part of what I do, part of what I'm
focused on. But this focus on
growing businesses,
uh mentoring, developing staff,
and creating value for shareholders is
something that I've found very exciting
uh as a civil engineer. There aren't
that many industries where you can, you
know, essentially do it all. And that
that's one thing that's a little bit
unique about about civil engineering.
>> Yeah, absolutely. And
and it's just again, I think a lot of
civil engineers, they start their
careers, they just start designing,
right? Like you said, doing the
technical work and then one day maybe
you become a project manager, right? And
then, "Oh, I kind of like this." Then
maybe you become a department manager
and so on and so forth and it can kind
of unfold. So, I think the big message
to civil engineers out there listening
is just to keep working on those
non-technical skills, right? In addition
to your technical background, the
communication skills, the leadership
skills,
because to Derek's point, there's just a
lot of opportunities in our industry for
leaders, right? And as civil engineers,
there's huge infrastructure projects,
there's all kinds of opportunities for
you to grow those leadership skills and
I think Derek is a good example as we
dive into this conversation with him.
So, Derek, let's talk a little bit about
the industry. How do you see the AEC
consulting industry shifting away from
kind of the the legacy model firms used
to run on, kind of like what you
mentioned earlier with the with the
founders started here towards how
leaders are operating today.
>> Yeah, you know, when I when I started
and I I looked this up a little while
ago because I was interested, but at the
time, you know, they're again, over 30
years ago, the largest
engineer consulting firm at that time, I
believe had about 7,000 staff.
So, our our our engineering consulting
industry has really matured and
developed and continues actually to
mature and develop uh since that time.
And and now, you know, there's much
larger firms, uh firms are operating uh
globally in a way that they they didn't
at the beginning of my career.
And what what I what I see as I look
into the future uh for our industry
is really continuation of those trends.
I I see uh firms continuing to expand
their uh their global reach. I see firms
uh becoming in our in our sector
becoming much more sophisticated around
technology. Obviously, there's a lot of
discussion around AI.
Uh and I'm sure we'll get to that
>> at a later in our discussion today. So,
it is the single hottest topic uh to
talk about. But, you know, as as I there
again, as I look into the into the
future, I I see an industry that's going
to continue to present great
opportunities uh for new civil engineers
coming into the into the industry. And
as you'd mentioned, uh there's there's
different paths.
All right, there's that's the the one
thing I love about this industry is
there there's paths that are technical
for for staff. There's paths that are
for the leadership from a business
development perspective. Our our
our industry, our our business uh
is so complicated and sophisticated in
many ways that there's there's many
different roles and there's many paths
as
people work through their their careers.
And I and I see that kind of continuing
as we move into the into the future.
>> Yeah, absolutely. Yeah. And in the AEC
industry, skilled project managers are
the backbone of success.
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keeps your team sharp [music] and
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>> Before we do get into AI, cuz I do want
to go there,
what would you say is driving kind of we
see this added complexity in today's
mega projects, right? They're just they
seem to be so much more complex than
when I started in civil engineering, you
know, 25 years ago.
What is driving, you know, what what's
creating that added complexity? And and
how is that going to impact, you know,
the future of these projects? Meaning
like the infrastructure funding that's
going to come down the pipeline. Like it
seems like projects keep getting more
complicated and our infrastructure's
crumbling at the same time.
>> I think that's absolutely right. And I I
think, you know,
projects and client organizations, just
like as I mentioned in in our consulting
engineering industry, become larger and
more complex. Our clients have also
trended to larger and more complex.
>> Mhm.
>> And the projects that they tackle
have followed suit.
Right. So, if you if you look at kind of
average project size, there again, go
back at the beginning of my career
compared to now,
>> Right.
>> there's so many more project mega
projects, projects that dwarf, you know,
some you know, there's always been large
projects, of course.
>> Sure.
>> There's I think there's more large
projects
uh now, um and there's you know, there's
technical complexities that have emerged
for certain projects because they were
never tackled before. They're being
tackled now. There's there's complexity
politically. There's complexity from a
regulatory perspective.
>> Right.
>> So so the complexity is just kind of
naturally kept pace, I think with with
just as the world has become
more technologically advanced, as legal
risks have morphed and changed over
time. They're going to be beginning of
my career, I think back to the contracts
that we would negotiate on projects,
they were vastly different than the
types of risks that we take on contracts
today.
>> Yeah. Yeah, you know, it's a really good
point. I'm sure there's data out there
that if you were to look at an
engineering company, you know, 20, 30
years ago in terms of the number of
projects that they worked on that maybe
had a construction cost of over a
hundred million dollars or whatever,
pick a number, versus today, I would
imagine of course that that number today
is larger, which introduces a lot of the
complexities that you mentioned. And,
you know, at EMI, we do a lot of project
management development training and
programs and and also people leadership
programs.
And I always tell people when I started
the company 13, 14 years ago, you know,
that our phones weren't necessarily
ringing off the hook. And now they are.
And I think the reason is because of the
complexity of the projects also requires
your project managers to have many more
skill sets that maybe 20 years ago
weren't as important as they are today,
right? In terms of communication, you
know, presenting, handling difficult
conversations, negotiating with people,
you know, being on the lookout for scope
creep, right? Because scope creep on a
one million dollar project versus scope
creep on a hundred million dollar
project is a much bigger animal. And so,
I think that
the mega projects will require larger
organizations, right? Like your
organization and other organizations
that are out there that have all the
skill sets and technical expertise to
handle these projects, but they're also
going to ensure that these companies are
investing in their leaders and their
project managers to make sure that
they're well-rounded and they can handle
all of these complexities that are going
to be thrown at them because one thing
I'm sure about and I'm sure you'll
agree. I know when when we went to
undergraduate, they weren't teaching us
a lot of the skills you need for the
parts of the projects outside of the
technical pieces of them.
>> You know, Nathan, I think I think that's
very insightful and it you know, one of
the things that we've been focusing on
within GIS and GISI is building
uh stronger competencies with our
project managers and I I think that is
such a critical
effort for for every uh consulting
engineering firm that's that's you know
providing project management services or
working on large complex projects.
You've got to be able to develop your
staff to keep pace with that complexity
that you're referring to.
And that takes a lot of effort.
>> Yeah.
>> Many you know, civil engineers as you'd
mentioned, you know,
early in their career they aren't
exposed to certain things that as they
become a more senior project manager as
they work on larger projects that
they're going to get exposed to. And so
it's very uh I believe
strategically important for civil
engineering firms, engineering
consulting firms to
put a lot of effort and investment into
making sure that their project managers
have those skill sets to keep pace with
that that change.
>> Yeah, and and I love that you used the
word competencies. That's such an
important word when you think about
learning and development, right? Really
thinking through the competencies and
the different skill sets that your
professionals are going to need at every
level of your organization to deal with
these complex projects and clients as
you suggested, right? Your clients'
organizations are becoming larger and
more complex as well, especially if
you're dealing with government
contracts, federal contracts, right?
That's kind of a whole 'nother skill
set, if you will. So,
that's interesting to me. So, so let's
dive in a little bit here to AI, because
as you said earlier, it's one of the
hottest trends in the industry right
now. So, where are you seeing AI make
the biggest impact on
hiring, workforce planning, just I guess
the industry in general from from your
from GISI's uh perspective?
>> Yeah, you know, I I get this question
question asked a lot. It's It is, you
know, the hottest uh I think topic in
our in our sector.
You know, it
First of all, it's very uh challenging
to predict the future, right? It's It's
uh It's a high-risk uh game to crystal
ball the future. But, nonetheless, let
me try.
So, you know, as we look as we look at
at uh AI, you know, I just know my own
day-to-day routine, uh AI every day,
every week, is becoming a tool that I
rely on more and more and more.
Now, the thing that that I'm finding uh
for myself and I'm observing on our
projects and with our staff is at least
for right now, and I think for
you know, the foreseeable future for the
next few years, I I see
AI being there again, just a tool, an
important tool,
but not as you know, some uh
people have forecasted or predicted uh
you know, essentially the the complete
demise of the engineering consulting
industry. I I don't see that happening.
If it were to happen, it would be so far
out in the future that it's going to be
a long time before we get there. But, I
do see AI tools improving. I see that
essentially the power of of AI
becoming more important. But, there
again, as we've been talking about, you
know, earlier uh just in our comments,
our the projects have a lot of different
complexities. There's There's technical
complexities on projects that we deliver
in in our industry. There's permitting
complexities,
there's regulatory complexities.
There's so many different complexities
that I see uh they're going to AI
helping to make engineers more impactful
and more valuable to and therefore being
more valuable to the clients. And and so
I see the end engineers value
proposition increasing, not decreasing,
if AI is properly used and is used
they're going to as as a tool. So we
have this saying it's expert plus AI.
And I think that's
at least for the foreseeable future,
that's how
uh
AI is going to impact this industry.
>> Yeah, I like that a lot. I think that
you can almost use it as another area of
thought leadership and expertise, right?
For you representing your client, right?
If Cuz a lot of our clients, let's be
honest, they don't understand the AI,
right? They may not know how to use it
effectively. And they may be looking to
us as the consultants to say, "Wow, you
can leverage AI to do this on our
project? You know, this is great. This
makes our lives easier. This gives us
more data, allows us to make better
decisions." And so I think that that's
another important thing. In fact, we run
some PM Connect events where we bring
project managers from different
companies together in the industry a
couple times a year and
we've been trying to do some AI
workshops to really hear about what
firms are literally actually doing with
the AI. So, you know, creating agents
for certain things. And I I really like
your point about being an expert plus
the AI because I think that
we forget that
we're the trusted advisor for our
clients, right? As consultants, as
engineers. So they're looking to us for
whatever value we can give them. And I
think part of that value is not just
doing the engineering work, but showing
them how the AI and some of these
technology tools can make their end
product even better.
>> Exactly. I think that that's that's
exactly it. Now, at GISI we're in a
little bit of unique situation, right?
Our our situation around AI is that we
have
deep financial resources, right? We're a
very substantive
firm.
>> Sure.
>> in terms of the scale of our business.
We have uh many opportunities to invest
in technology,
uh which we are uh doing, but we are
working to be very disciplined. I think
this is one of those uh situations where
you could over-invest
>> Mhm.
>> in AI technology, which is
>> changing, by the way, on a weekly,
monthly, growing
>> basis. You know, the tools are are are
developing, and we're really at the you
know, kind of early days here. Uh
and so, I I think for us,
the strategic focus has got to be
figuring out where to make investments,
how to apply AI tools, uh and to make
sure that we don't get kind of ahead of
ourselves and make investments that end
up being uh poor investments.
>> Yeah, it's a really good point, and I
appreciate you, you know, mentioning
that, you know, you have maybe some more
money to work with than some of the the
smaller firms leaders who might be
listening to this episode as well, where
they have to be, you know, they make one
wrong investment in AI, they could
literally be upside down, right? Or they
could lose a lot of money on that. So,
and you know, you're the second
executive in the last few weeks that
I've had the chance to talk to about
this. The other one being Kevin Heaney,
the CEO of Colliers Engineering and
Design. And he And he was along the same
lines as you, saying, you know, this can
be a black hole in a sense that you
could throw a lot of money into that
still there's a lot of unknowns, and
kind of he was mentioning how at CED,
they try to go with like, you know, if
there's like a Bentley, for example,
that has programs, and they're kind of
messing around with the AI, right? We
can kind of invest in their programs,
let them kind of vet the AI, and build
off of something that's trusted and
known, as opposed to something that
maybe is not as well known. So, I do
definitely think there's some strategy
around it, and I think your point is a
good one. Just because you have maybe
more money, or some money set aside,
doesn't mean you need to burn it all on
AI right away because to your point a
new program comes out tomorrow, right?
And then the program that we bought is
absolutely
>> That's right. And and so what we we've
been investing
a fair amount of resources is making
sure that we are upskilling our staff to
use existing AI tools that are
available.
>> Yep.
>> We're we're also, you know, developing
competencies around creating agents. So
we're creating a variety of digital
tools
through these agents. We're also, you
know, looking at GPT models as well. So
you know, we are putting, you know,
resources and effort and leadership
attention into improving our our
technology and our use of AI. But just
like you said, it's got to be prudently
done because you you can easily get
yourself kind of drunk with
with concern and
misunderstanding and and waste
substantial resources.
>> Yeah, totally. And I really like what
you just said there in that you're
investing in your people to be able to
use the existing AI tools, right? There
are so many tools already that exist
like in the Microsoft suite, right? Or
just the co-pilot, right? The the tools
that are right there on everyone's
desktop and they're not even using those
to anywhere near their maximum
productivity. So I think that's another
good point is before you start building
up your tech stack with all these new
programs and software
you have stuff, right? Are you utilizing
that stuff as best as you can um to
really be able to leverage it and then
you can and then you're also just kind
of building your AI skill, your AI
knowledge that you can then roll it into
other new tools and platforms as they
become available. But there's no doubt
that there's a lot there that we may not
even be maximizing today, quite frankly.
>> That's right. And and you know, we are
again ready when the time does come to
make, you know, more investments and to
move decisively and energetically.
But right now, you know,
like I said, we're putting a a lot of
effort into understanding and
upskilling, but doing it in a in a very
thoughtful prudent, but not that doesn't
mean in a kind of lackluster or slow
way.
Definitely uh prepared to we are moving
we're prepared to move quickly as uh the
technology develops.
>> Yeah, I think you said it, you know,
saying, you know, prudently, right?
That's the way to do it, right? Be
really smart about what you're doing.
That's great. So, let's talk a little
bit about acquisitions. You've obviously
had experience with this. You've been
involved in acquisitions.
What do you look for when you're
evaluating whether an acquisition is the
right strategic fit for GISI? And
honestly, it's kind of like we just
talked about investing in AI, there's a
lot of stuff out there. How do you know
what to invest in? There's a lot of
companies out there, right? When you're
thinking about acquisitions and where do
we go? So, tell us a little bit about
your evaluation process. I'm interested
in how you think about that.
>> Yeah, so so we we we call them mergers
cuz that word is better applies to how
we view uh
M&A.
>> Okay.
>> And so when we're looking for a what we
call a merger partner, uh you know, we
we look at the the things that many
firms do uh around strategic fit. Uh
we look at the strength of the of the
leadership. Uh we look at the the
technical competency of the staff. Those
are kind of normal things for most
companies or many companies to look at.
But in addition to those items,
uh we also look at certain cultural
things. So, one of the structures or
aspects of our business that's very
important to us is our employee
ownership. And so we're a little bit
they're kind of unusual because we're
we're such a large firm, but we're an
employee-owned firm. We have more than
4,000 employee owners.
And that that employee ownership, the
interest and the passion
for it is something that we look for.
>> Mhm.
>> Right. So, our our model is to to find
excellent firms who uh have great
tailwinds cuz they're in the right
sectors, the right you know, the right
markets, are offering the right
services, they're in the right
geographies,
but also who have the leadership team
who are passionate about the future
and who are very excited about becoming
uh a shareholder with us. And that
shared culture of each one of us being
an owner of the business
uh shapes our our culture, I think, in a
in a different way from, say, a a
PE-owned firm or a publicly traded firm.
And that And that
uh employee ownership i- is is uh an
aspect that has, I think, driven our
performance. Here, we have superior
organic growth to many in the industry.
We also have superior
uh success around M&A. Now, another
aspect that makes us uh different than
just about every other firm
>> [snorts]
>> is that we see a lot of value in
maintaining the brand and the culture
of firms that that join us.
And And I don't know of many other firms
uh that do this as as well. Uh so, when
a merger partner uh you know, joins us,
what we want to do our our preference
that we do this uh routinely is we uh we
make great uh efforts to to strengthen
in fact, the existing culture that they
have. Now, that doesn't mean that we
don't, quote unquote, integrate that
business,
uh but to us, the word integration means
something very different than uh you
know, some of our our fellow firms in
the in this sector. Right. So, I'll I'll
tell Sometimes when you say what you
don't do, that better explains what you
do do.
>> [laughter]
>> So, let me
tell you a few things that we don't do,
right? What we don't do is we don't
obliterate, you know,
decades uh could be 100 years of of a
brand. Uh we don't uh
go in and and come in with a, you know,
thousands of pages of policies and
procedures and cram them down the
throats of the new staff.
We don't require
uh you know, everyone that to uh kind of
change their their business card. But
what we do do is we we partner uh with
the firms that that join us. We help
them become better. We help fuel their
growth.
We help them focus investments on their
staff and on their project managers. One
of the things that we put a tremendous
amount of effort in is
our project managers.
Uh we've developed a series of programs.
We have one program uh that we call the
Distinguished Project Executive uh
program. And these programs are all
around who we we think the most
important role in a consulting
engineering firm is the project manager.
Right, those are the individuals that
are at the tip of the proverbial spear.
They're out there leading the staff.
They're delivering the work. They're
interfacing with the client. Uh and so
we're looking for firms that
embrace that concept uh as well. That
embrace the concept of of, you know,
client uh service, technical excellence,
and are very growth uh focused as well.
>> Yeah, that's great. And I I first of
all, I love the end piece there about
project management, of course. I mean,
that's near and dear to our heart at
EMI. We do a lot of PM development work.
And it's great to hear when a company
recognizes the value of the PMs. And I
actually did do some
reading up about your DPE program. I
think I'm going to watch the video you
posted about it on LinkedIn, which I
think is great cuz I think one of the
biggest pitfalls of consulting firms is
that they do not share the knowledge of
their project managers across the entire
organization. And from what I gathered
about your DPE program is it puts a big
emphasis on bringing people from the
different offices and different
geographic locations together so that
they are sharing that knowledge because
I just think that that's the worst thing
we can do is if we have someone sitting
in Florida and someone sitting in
California with the same problem or you
know, one person solved it and the other
person doesn't know about it and it
seems like your program works really
hard to create the pathways to share the
knowledge.
>> That's right and and and that that
program I think is a good example of our
our view around this term integration,
right? So just exactly what you said. We
are
sharing knowledge across our nearly
11,000 staff in the consulting business.
We're we're setting kind of common
expectations around performance across
every one of our operating companies and
that that's what integration means to us
is really making helping us all be
better, helping us perform at a higher
level
uh and to be more successful
collectively than we would individually.
>> Yeah, absolutely. And for those of you
listening DPE stands for distinguished
project executive which is a program
that GISI has to bring their PMs
together and you know,
I won't go into the whole thing but you
get the point. It's it's really about
knowledge sharing which is like I said,
we find to be one of the biggest
pitfalls with all the organizations that
we work with when it comes to project
management and leadership development.
So it's great to see that and I really
like what you said about you know, the
shareholder piece of this, the
entrepreneurial spirit of your
employees. That obviously links back to
your founders like you said earlier and
you know, them I'm sure wanting to make
sure that that entrepreneurial spirit is
shared down throughout the organization
as it grows and it sounds like with that
ownership model, you really allow that
to happen. So that that's exciting and
that's that must be exciting for people
that join GISI as well which is great.
All right, so let's talk about
growth for a minute here and I know
before we talked about, you know, it's
dangerous to kind of look into your
crystal ball and make predictions but
I'm going to ask you just generally
speaking from what you're seeing in the
indicators that you look at as an
executive, what is your feel for our
industry as a whole going forward in
terms of growth? And then also for GISI,
cuz I would imagine when you're this
big, right, growing, you know, requires
something [clears throat] different than
if you're a 50-person company trying to
grow. So, can you talk a little bit
about like industry growth, your
company's growth, what what you think
that's going to look like going forward?
>> Yeah, that's something that's a topic we
think about every day. A good part of
every day is how do we maintain our our
superior growth rates?
Well, I I guess the first thing I would
say is, you know, I think the
fundamentals of our sector remain very
strong. Right, there's clearly
uh if we just look at infrastructure as
one example. Uh all kinds of
infrastructure, right? Transportation
infrastructure,
uh water infrastructure, energy
infrastructure, so forth.
We're under invested
in the US, we're under invested
globally. So, there's a there's a
backlog of work. Now,
we have also a shortage of engineering
talent.
>> Sure.
>> Every I I I assume all of our
competitors are in the same situation
that that we're in, in that we are
constantly uh on the hunt in the market
for talent.
We're constantly looking for the best
and the brightest uh to join us.
And
just by definition, when you're looking
for the best and brightest, there's not
a lot of them out there.
So,
uh those fundamentals of of strong
tailwinds,
uh kind of low supply of of talents in
the industry, or a lower supply,
I think is going to
continue to drive opportunity and
continue to drive
uh a robust market. Now, of course, as
we talked about AI is a factor here, uh
but there again, my my view, just to
reinforce it, is as it relates to AI, as
it relates to growth is I think
ultimately it's going to drive for some
firms more growth. Now there clearly
will be some losers. There'll be some
firms in certain parts of the market who
offer certain services
uh who are going to be significantly
disrupted. I I think that's clearly
going to happen.
But I think as an industry as a sector,
overall sector, is going to benefit. And
we're going to become
continue to become more impactful and
more
uh important to our clients because we
will be more powerful in terms of our
technical prowess
and our ability to shape uh not only
design or construction costs but also
operating costs through through better
uh technical capabilities.
>> Yeah, absolutely. I mean I think to your
point I mean the
the infrastructure's not going to get
better over time, right? Especially the
existing infrastructure, we know that.
But to your point there's less people
that maybe can do the design if we're
not putting out the same number of
engineers, which is going to cause a bit
of a a challenge. But I think the tools
and the AI and some of the things that
you and I have already talked about
today could certainly help to close that
gap a little bit. Um not that it's going
to replace us uh people like we said,
but it's going to help us to maybe do
our jobs more effectively, maybe more
efficiently in certain ways. So I think
it'll be interesting to see how all of
that unfolds, but I think regardless
the industry, like you said, the sector
looks very strong with growth in terms
of the projects, these mega projects,
the complex projects that we're going to
continue to need. I mean water systems
are in trouble or water quality,
bridges, roadways. Um so it does seem
>> infrastructure.
>> Energy infrastructure, a huge one, of
course, absolutely. So um there's lots
to be And And there's even I tell people
this all the time.
There are jobs in our industry that
don't exist today, right? That are going
to exist soon with all the technology.
Like I interviewed someone recently who
was telling me about how now when you do
roadway construction a lot of these
roadways they're embedding sensors in
the roadway they're going to talk to
your cars. Right? I mean like these are
things that didn't exist then now we're
going to have more people in our company
that are focused on the sensors and the
technology and other things. So it's
going to create jobs
as well and that's something that I
think we need to we need to keep in
mind.
All right, Derek. Last question I have
for you for those firm leaders that are
listening today and they're thinking
about investing in their leadership team
to support the growth of their
organizations.
What do you think they should be
focusing on in terms of investing in
their leadership to ensure that those
investments translate into real business
results? I mean we do a lot of learning
and development training at EMI PM
development leadership development.
And it really you have to do it the
right way to make sure that you know
you're investing in people and it's
returning for them and for the
organization. What thoughts can you
share about that from what you've done
at GISI?
>> Yeah, I want to go back to something you
you said earlier in our discussion here
and that is
projects are becoming more complex,
right? And that also means that the
the industry that each company is facing
a more complex environment. So
my recommendation this is what we're
doing
is that
for firms that want to be successful in
this consulting engineering sector
they really need to upskill their
leadership teams and you need to have
very good succession planning.
Uh and it takes a fair amount of effort,
time
to develop truly effective and
entrepreneurial leaders. But the the
world uh
I think in almost every aspect
particularly in our engineering
consulting
uh arena
will just continue to get more complex
and if you don't have leaders who can
keep pace with that complexity
uh your organization is going to suffer
performance.
And so I that's something that you know
from our perspective uh
we are very focused on.
and in fact uh we're spending you know I
would say
a part of every week on that very topic.
How do we develop the next line of
leaders and how do we
help improve our existing leaders?
>> Well, that's interesting and I I agree
100%. I mean if you want to grow you
said it before as well in terms of the
project manager role and how important
that is at GISI and how much you invest
in that and the same with just
leadership beyond project management. Um
they are growing your organization um
especially when you have also you have
the employee owner angle which is also
great. I mean there's a lot of good
stuff that you have going there in terms
of supporting your growth. So once again
Derek Amadon. Derek is a licensed
professional engineer chief operating
officer at GISI and chief executive
officer at GISI Consulting Group. Derek
I want to thank you so much for spending
some time with us here today on the
Civil Engineering CEO.
>> Thanks Anthony. Delighted to be here.
>> I hope you enjoyed my conversation with
Derek. He's a great leader and GISI is
doing amazing things. [music] We're
thrilled to have him. I hope you enjoyed
the episode and if you did please
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out videos like this on a regular basis
help engineers and technical
professionals become better managers
[music] and leaders. I'll see you next
week.
>> [music]