As published in the June 1, 2007 Toledo Business Journal
Tony Damon
SSOE, Inc., CEO
SSOE projects continued growth
Toledo Business Journal recently interviewed Tony Damon, CEO of SSOE, Inc. He shared the following thoughts.
Toledo Business Journal: Your company is planning significant expansion. Can you discuss the growth that SSOE has experienced during the past several years and what you anticipate over the next several years for various segments of your business?
Tony Damon: With revenue growth topping 15% each of the last three years – including a 30% increase in 2006 – we are experiencing tremendous success in nearly every market we serve. In the past two years alone we’ve opened six new offices across the United States including a west coast hub in Phoenix to serve our growing base of retail and healthcare clients and an eastern seaboard office in Durham, North Carolina to support the growth of the Carolina region – particularly in the pharmaceutical, education, biofuels, and science and technology sectors.
SSOE is again projecting 20% growth for 2007, driven to a large extent by emerging industries such as biofuels, solar power, science and technology, and healthcare. We are also seeing steady growth in the automotive, chemical, energy, food, personal care, retail, and glass industries.
TBJ: To support this growth, can you discuss your hiring plans in the Toledo area?
TD: Right now, we have about 500 employees located in downtown Toledo. We currently have over 80 open positions in the Toledo office, and we are planning to hire 200 people across all of our offices before the end of 2007. SSOE’s total economic impact on the city is significant; the annual average base salary of an SSOE professional is over $60,000. Based on revenues of over $90 million a year and a local payroll of over $26 million, SSOE accounts for $1 out of every $156 dollars generated in the five-county area encompassing Lucas, Fulton, Ottawa, and Wood Counties in Ohio and Monroe County in Michigan. SSOE also supports an additional 400 jobs in ancillary businesses by just being based in Toledo.
TBJ: Will you be adding new facilities in the Toledo area or in other market locations?
TD: Recently, our Toledo growth necessitated the move of 30 corporate employees from our main building on 1001 Madison down the street to the Hylant Building, giving us additional flexibility locally. While we have no immediate plans for additional expansion, our growth remains steady both in Toledo and across the country.
Our two additional Ohio offices in Lima and Cincinnati have both experienced tremendous growth as well. We’ve opened six offices across the country and in China in the last 2 years. Most recently we’ve announced new offices in Cedar Rapids, Iowa and Raleigh-Durham, North Carolina.
While other locations are being evaluated for SSOE offices, we’re not ready to announce anything yet.
TBJ: SSOE currently has three offices in Michigan. What are your growth plans for your operations in Michigan?
TD: SSOE is planning at least 25% growth in each of its Michigan offices in the next year, despite the struggles of the state’s industrial base and an unemployment rate significantly higher than the national rate.
SSOE currently employs approximately 160 professionals in the state, 26% of whom were hired in the last 12 months. The firm’s growth in Michigan includes offices in:
- Midland, which recently experienced 50% growth; the office currently employs 25;
- Portage, which has doubled its office size to 6,500 square feet to accommodate the 40% growth in staff; a 25% growth is expected by year end; the current staff count is 22; and
- Troy, which within the past two years has increased staff by 30% and plans to add additional staff by year end; the office currently employs 116.
TBJ: Can you discuss SSOE’s use of college interns and any other programs that you have with academic institutions in our area?
TD: Our most successful means of recruiting new graduates are the co-op programs through which we partner with local universities to provide on-the-job training for technical students. SSOE’s three Ohio offices participate in the State-sponsored Third Frontier program, which reimburses a portion of the wages paid to technical co-ops as an incentive to retain this valuable expertise within the state.
The program uses state funds from the Governor’s Workforce Investment Act to create internships for Ohio students studying math, science, and engineering. SSOE is one of the leading participants in the program with more than 75 internships in the high-tech areas of advanced manufacturing, materials, and controls. This year alone, SSOE employed 54 University of Toledo (UT) students through co-ops or internships, and we awarded these students over $40,000 in scholarships. Currently we have 142 UT grads working for us.
The founding partner of SSOE, Al Samborn, promoted a philosophy of mentoring young professionals and encouraging innovation and leadership qualities within SSOE; this [philosophy] has established a strong foundation for us to flourish. In 1968, SSOE set up a scholarship program in Mr. Samborn’s name, which has provided over $50,000 in funds to the two highest-ranking juniors in the University of Toledo’s College of Engineering. Also established in his name is a distinguished lecture series at the University of Toledo in which select speakers address the subjects of professionalism and ethics in the field of engineering. In addition, SSOE funds a minority and female scholarship benefiting incoming engineering majors. Priority is given to minority and female graduates of greater Toledo area school systems.
TBJ: The Regional Growth Partnership (RGP) identified engineering services as a cluster segment for future growth. Can you share your thoughts on opportunities and potential for growth for our region in regards to this topic?
TD: Anyone currently engaged in the field of engineering will tell you that it is certainly in a growth mode. ENR, the recognized provider of rankings in the design industry, noted in their April 2007 issue that total revenues for the top 500 ranked design firms grew by 17.5% last year alone.
As our own recent growth proves, Toledo is certainly in a position to capitalize on this phenomenon. What used to be known as the “rust belt” now has an opportunity to reinvent itself as a leader in this new knowledge-based economy. Right now the name of the game in engineering is people; the engineering labor pool is very tight, so the region with the right talent is the one that will be positioned for growth.
Recognizing this [trend], SSOE is working together with the area’s top architecture, engineering, and construction firms and the UT College of Business Executive Center for Global Competitiveness to form an industry association that will be focused on attracting and retaining talent and work to the region. History has shown that through collaboration, local firms can compete and win work against larger firms. It is our hope that this organization will go further by benefiting the region as a whole through recruiting and retaining some of the nation’s top talent to live and work in our area.
One of the greatest assets in this region is our academic institutions. Bowling Green State University (BGSU) and Owens Community College both produce top-level graduates. The University of Toledo’s College of Engineering, recently recognized by Princeton Review as the nation’s 18th ranked graduate engineering program, has proven invaluable in providing SSOE with an excellent source of talent. It is also a leader in cutting edge research that is bringing recognition both to the university and our area as a whole.
TBJ: Are there any other issues you would like to discuss?
TD: SSOE’s recent success has allowed us to invest in both our people and technology. Recently we have focused on taking a more holistic approach to the “total employment value proposition” we offer our employees.
Compensation refers to more than just salary, and when we surveyed our staff we found they were interested in a more flexible benefits package. As a result, we have implemented a creative benefits program based on flexible credits that can be applied to design an individualized package based on each employee’s need. This credit-based system includes the ability to buy and sell vacation time, apply unused credits toward additional life insurance or long-term care insurance, and participate in a choice of three distinct health insurance plans. We have also placed an emphasis on programs that enhance work-life balance including free access to counseling services and lifestyle and disease management coaches through third party suppliers.
In addition, we have enhanced our training and development program, spending about 15% more than the industry average on programs that include in- and out-of-house training as well as tuition reimbursement programs for higher education. These advances recently earned us the distinct honor of being named one of Building Design & Construction’s 2007 Best Firms to Work For. This honor is awarded to the top five architecture, engineering, and construction firms in the nation and is an excellent third party endorsement of our efforts as we seek to attract and retain top talent to the area.
SSOE is looking toward the future with plans to invest $4.45 million in technology upgrades, including software, hardware, equipment, and consulting services in 2007.
We recently announced an initiative where by 2009, 100% of all SSOE projects will be executed using state-of-the-art 3D/Building Information Modeling (BIM) technology. BIM allows designers to use CAD-style 3D software to create complete, detailed models of buildings on a computer screen, enabling facility owners to “walk through” their buildings without ever taking one step inside the facility or creating a costly mock-up.
BIM takes designs from the drawing board to the virtual world, allowing clients to benefit from reduced construction costs, shortened project schedules, improved accuracy, and enhanced collaboration.