As published in the December 1, 2009 Toledo Business Journal
Don Warner, PE
Toledo Regional Architects, Contractors & Engineers (TRACE)
Cluster groups to aid development
Toledo Business Journal recently interviewed Don Warner, PE, who was a vice president for SSOE, Inc. until his retirement in early 2009. Currently, Warner acts as the lead champion of a cluster group of architects, engineers, and contractors. Warner shared the following thoughts.
Toledo Business Journal: Can you discuss the purpose and objectives of the Toledo Regional Architects, Contractors & Engineers (TRACE) cluster?
Don Warner: TRACE’s mission is to promote the economic development and prosperity of Toledo area architectural, engineering, and construction firms. Its strategic objectives are to create new business opportunities and promote internal growth for local firms, improve relationships among participating firms by fostering an exemplary culture of collaboration, attract and retain talented and dedicated professionals, promote the association in the marketplace, promote overall economic development and prosperity for the region, and act as responsible community members and stewards.
TBJ: Who are the current members of TRACE?
DW: TRACE presently has 26 participating firms. Among the firms are: The Collaborative Inc; Poggemeyer Design Group; The Mannik & Smith Group, Inc.; SSOE Group; the JDI group, inc.; Matrix Technologies; Munger Munger + Associates Architects Inc.; Buehrer Group Architecture & Engineering, Inc.; Thomas DuBose & Associates, Inc.; Spring Valley Architects; Bowser-Morner, Inc.; Jones & Henry Engineers, Ltd.; IET, Inc.; TTL Associates, Inc.; Hull & Associates, Inc.; Lewandowski Engineers; Bostleman Corporation; Rudolph/Libbe Inc.; Lathrop; The Douglas Company; LeanTrak, Inc.; Vetter Design Group; JDRM Engineering, Inc.; Willson Builders; IPS Contractors, Inc.; and DGL Consulting Engineers, LLC.
TBJ: What specific strategies and actions has TRACE identified to assist the growth of this segment of our economy?
DW: We have ten identified strategies, listed in no particular order. We will make and continually update a value-added case for keeping more local and regional AEC work for area firms. We intend to attract more outside work regionally, nationally, and internationally for area firms through collaborative efforts.
We will differentiate the association from competitors in the marketplace through innovative approaches to project delivery. We will also mutually promote the association and the region in markets served by area firms. Additionally, we will promote the association through unique branding.
We intend to connect with other organizations with which TRACE may have mutually beneficial opportunities related to our mission. We plan to identify and promote “niches” within the association and determine how to exploit them to the benefit of the association and the region. We will take steps to help “prime the pipeline” of technical and design talent in the region by promoting architecture, engineering, and construction (AEC) professions and businesses at the university and K-12 levels
We will encourage area firms and their employees to engage in professional, community, and charitable activities. Finally, we will promote and educate the public regarding responsible and environmentally conscientious design and construction methods and materials.
While we are still getting organized and developing detailed action plans for our strategies, we have accomplished a few specific things, thus far. For example, TRACE and its members have provided extensive support to BGSU’s architectural department in pursuing the implementation of a Masters in Architecture program.
Additionally, a number of member firms have joined together in certain cases to pursue projects together. This is primarily a result of becoming better acquainted through TRACE activities but clearly represents a group of actions consistent with our strategies.
TRACE members also presented on the subject of green and sustainable design. Titled “Green Means Business,” the presentation was made in March as a part of the Eggs N’ Issues series hosted by the Toledo Regional Chamber of Commerce. TRACE has also participated in regional economic development planning activities (previously referred to as The Meta-Plan for Economic Development) during the past year.
TRACE has been identified by the key organizations heading up this planning effort – The University of Toledo (UT), the Regional Growth Partnership (RGP), the Toledo Regional Chamber of Commerce, the Toledo-Lucas County Port Authority, and Toledo Metropolitan Area Council of Governments (TMACOG) – as one of the five focus industries for economic development in the region.
On September 1, our executive oversight board approved a three-year business plan and budget, authorizing the assessment of membership fees and implementation of plan strategies and detailed action planning, which is now under way.
TBJ: What major factors will impact the demand for architectural and engineering services in our region during the next five years?
DW: The demand for new and renovated building space and manufacturing process updates, as well as the need for increased civil / infrastructure assets and improvements for roads, bridges, and water and wastewater treatment facilities, are the major drivers for design and construction business activity in the region. Government funding is the major factor for civil / infrastructure projects, while business investment in new and renovated facilities and processes is the biggest driver for building space and manufacturing process updates.
Right now, the market for AEC services in our region is weak and is expected to remain so for some time. This is why TRACE’s strategies are going to be critical to the successful pursuit of our mission. By bringing local firms that are traditional competitors together for certain projects, we hope to compete successfully against larger out-of-region firms to keep more local design and construction work with local firms and to go out and compete for a larger piece of the global design and construction pie, which is a very big pie (multi-trillion dollars annually).
This is not strictly hypothetical, as there are several recent examples of successful local collaborations of traditional competitors in design and construction in the Toledo area. Allied Toledo Architects, LLC (ATA) was a program-specific joint venture among several Toledo-area architecture / engineering firms in pursuit of the design portion of the Toledo Public Schools (TPS) building and renovation program. ATA successfully competed with large out-of-town design firms for the project work, keeping all of the design revenues circulating here in our economy. The “Fort-to-Port” highway project is another example.
TBJ: Are there any obstacles or issues that are hindering business growth in our region that need to be addressed?
DW: There are perceptions out there in the world of site selection and development that Toledo is not a business-friendly place. What you usually hear is references to labor issues, taxes, school systems, and energy costs as problem areas. While there has been amazing progress in changing the realities of these issues in the Toledo area, perception is also still a reality. We have a great deal of work to do to change that reality and to rebrand our region. This requires that we are able to see Toledo through the eyes of outsiders to understand their perceptions.
Attitude is sometimes another obstacle. As I have heard UT’s Dr. Lloyd Jacobs state on numerous occasions, we tend to become who we believe we are, how we act, or what we hold ourselves out to be. I believe his point is, if you want to be a winner, act like one, because it enhances your chances of actually being one. When we can bring the right people with good attitudes together who believe in each other as well as themselves, it exponentially increases the chances of winning.
It is frequently said that native Toledoans are their own worst enemies in terms of attitude about the city and the region. My personal experience is that non-native Toledoans do tend to appreciate and speak more fondly of our region and its many assets than natives do. On the other hand, I believe we should stop worrying about those who have negative attitudes, focus our efforts on engaging the many who have positive attitudes, and go about making things better. There is nothing like having a few wins under your belt to change everyone’s attitude.
TBJ: What support can the business community in our region provide to assist growth in this segment of the economy?
DW: Give us a look before hiring out of town firms that will take the fees and circulate the money in another city’s economy. Don’t hire a TRACE firm just because we’re your neighbors; hire us because you can get equal or greater value and quality. We have world-class AEC firms located right here, successfully competing for and doing work around the globe. Please remember, as local firms we will be living with the results of our work for many years to come, which gives us an even greater incentive to perform well.
If you decide to hire an out of town firm to get the kind of expertise or results you want, please consider requiring out of town firms to enter into partnerships, joint ventures, or sub-consulting / contracting relationships with local firms for portions of the work that can be just as effectively done here. An alternative would be to hire a local firm to subcontract with an out of town expert you want on a project.
TBJ: Are there any other issues that you would like to discuss?
DW: Business clusters can emerge for various reasons. Availability of natural resources, human resources, academic institutions and their research activities, real estate, capital, location and logistical assets, community culture, and climate are a few. In the case of TRACE, a strong AEC presence has emerged over time due to the positive presence of virtually all of these factors, not the least of which is availability of human resource talent through UT, BGSU, and Owens Community College. This talent “pipeline” provides the fuel that will drive growth in our cluster. As we move forward, we must engage P through 12th grade schools to keep the pipeline of qualified talent clear and flowing.
One of the expected outcomes of a cluster growth strategy is closer interaction between academia, community, and the private sector. TRACE’s goal is to create healthy interactions. There is great potential yet to be realized in the area of cross-sector collaborations. One of our future visions is the potential development of a design and construction technology R&D facility that represents a joint venture between TRACE members and academic institutions such as UT, BG and Owens Community College. This joint venture would also include technology providers, and other community stakeholders. Perhaps such a facility and venture could someday be viewed as the center of Computer Assisted Design and Drafting (CADD) and construction technology hardware and software development in the US.