As published in the February 1, 2013 Toledo Business Journal
Shaun Murray
TRACE
TRACE positioned to aid development
Toledo Business Journal recently interview with Shaun Murray, executive director of TRACE. He shared the following thoughts.
Toledo Business Journal: The Engineering / Architectural cluster of businesses in the region has been identified as a target growth area for economic development. Can you discuss this opportunity to advance the area economy and create new jobs?
Shaun Murray: This is the core idea behind the formation of the TRACE organization. The construction industry – inclusive of architecture, construction, and engineering (ACE) – is one of the pillars of the economy. Studies have found this cluster of industry pumps just short of $2 billion into the economy of northwest Ohio every year. With respect to the opportunity for growth in the ACE cluster, the reality is simple: northwest Ohio boasts some of the most impressive companies in the industry.
The economy in northwest Ohio is a diverse one, yet consistent with the ever changing dynamics of both continued industrial and new manufacturing. These industries require a great deal of retooling and infrastructure changes that our member firms have expertise with. Not only do these industrial environments represent further economic opportunity for growth, but there is also the public sector. Our current infrastructure in northwest Ohio, especially in Lucas County, is far beyond its time for improvement. The opportunity to improve our public assets coupled with the continued growth of our area universities provides a wonderful backdrop for economic advancement in the region. After all, when projects are under way – whether private or public – people are working.
TBJ: Can you provide an estimate of the number of people employed by area architectural and engineering firms, along with the average compensation and how this has changed over time?
SM: The Toledo Business Journal Greater Toledo Book of Lists 2012 includes the majority of architectural, engineering, and construction firms in the area with the number of employees and that total comes to more than 5,500 people. The average compensation is a really tough number to provide since there is such a variety of skill ranges within each of these firms. Top level engineers and architects are likely being compensated at six figures annually since they are responsible and liable for so much of their projects’ and firms’ success. On the construction side, there’s about 10,000 skilled trades workers in the area with salaries and wages range greatly from carpenters and pipe fitters, to electricians and iron workers. Then there’s the office side with business development, estimating, scheduling, and planning professionals.
The last few years have been very, very tough on our industry and we’ve seen the demise of more than a few stalwart firms within our sector. But things are on the upswing now, with some of our member firms working at maximum capacity and many busy beyond our area.
TBJ: Can you explain TRACE and its members?
SM: TRACE is an association of Toledo area architectural, engineering, and construction firms, capable of providing a full range of design and construction services to meet the needs of commercial, industrial, institutional, and governmental clients. We do this through collaborative alliances among TRACE members. We do our best to help facilitate any and all efforts as they relate to economic development in the Toledo region. At the end of the day the TRACE organization is simply a trade association comprised of the three facets of the construction industry you need to build something. Surprisingly, there is no other trade association in the country where architects, engineers, and contractors are equally represented.
Our members include A.A. Boos & Sons, Inc.; Bowser-Morner, Inc.; Buehrer Group Architecture & Engineering; The Collaborative Inc; DGL Consulting Engineers; GEM, Inc.; Industrial Engineering Technologies, Inc. (IET, Inc.); Industrial Power Systems (IPS); the jdi group, Inc; JDRM Engineering, Inc.; Jones & Henry Engineers, Ltd.; Lathrop; LeanTrak, Inc.; The Mannik & Smith Group, Inc.; Mosser Construction, Inc.; Munger Munger + Associates Architects, Inc.; Poggemeyer Design Group; R. Gant, LLC; Rudolph/Libbe Inc.; SSOE Group; TTL Associates, Inc.; and Vetter Design Group, Inc.
TBJ: What is the organization’s mission and how does it benefit members?
SM: 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.
It’s really interesting to see the members benefit just from coming together and talking. While we’re all in the same industry, it’s amazing to see the different viewpoints, needs and challenges within the disciplines. Having everyone in the same room to discuss a concept or a project provides wonderful opportunities to learn how similar and yet how completely different the challenges are for each firm – and how much they can help each other just by talking with each other.
TBJ: Can you discuss the issue of increasing “buying local” activity in the architectural, engineering, and construction business segments and what impact this would have on area economic development and job creation?
SM: The idea of “buying local” is nothing new to the region, however it has evolved as a major point of both interest and conflict. As a new transplant to the region, I am astounded by the lack of respect given to our local firms from both public and private owners. Each year, hundreds of millions of taxpaying dollars are going to benefit out-of-state firms for their work in our region, when the expertise and manpower to complete the job is right here in the Toledo region. Our member firms are working all over the nation and in many cases around the globe. The capabilities of the ACE community in northwest Ohio is world class. Our goal is to educate both public and private owners.
As it relates to public owners however, Ohio firms providing work on taxpayer-funded projects should be a no-brainer, as is the case in our neighboring state of Michigan. One of our members tracked the construction awards for Toledo Public Schools (TPS) “Building for Success” program and 17 of 45 of their school projects were awarded to Michigan contractors. Over $71 million (29% of the program by dollar amount) of Toledo taxpayer money went to contractors based in Michigan. If you look at it from the number of schools awarded it’s even worse – it’s 38%. This is an issue that needs to be front and center this year, and the TRACE organization intends to make it a priority through both education and multiple advocacy efforts.
TBJ: Can you discuss TRACE’s efforts involving construction reform?
SM: Did you know two of the three pilot programs for the construction reform process were right here, in northwest Ohio? Both of these involved TRACE members with projects at Bowling Green State University (BGSU) and The University of Toledo (UT). TRACE was among the first in the state of Ohio to educate our members and the community at large on the new laws enacted with a presentation by Jeff Appelbaum, one of the key people involved in the creation of the legislation. The changes are exciting and our members have been involved from the start.
TBJ: What key benefits might result from this initiative?
SM: We’re working hard to bring more business to the Toledo region and our collaborative efforts ensure a welcoming presence in the community. It really is important to emphasize there are no other communities with this resource – you won’t find collaboration like this anywhere else. Not only is the expertise and experience here, but also the ability to work together to entice organizations to come to northwest Ohio and build the future with us.
TBJ: Are there other initiatives that TRACE might undertake in the foreseeable future?
SM: Right now our members see the “buy local” issue as a top priority. We need to make sure that owners in the region understand the capabilities and the talent that our member firms possess. Another issue we are continuously working on is the need to retain and increase the number of professionals in our industry. We have an ongoing mentorship program working with TPS, aiding select students who have shown a talent in the classroom which would translate into a successful career in the ACE industry. We have plans to expand these efforts into the surrounding school districts as well as those private schools who may be interested. Greater professional development of our members and their employees also remains a top priority.
TBJ: Are there any other issues you would like to address?
SM: TRACE currently includes 22 firms representing a majority of the local ACE community and we are actively seeking additional members. Through our continued efforts to advance not only our member firms but also the entire Toledo region, TRACE provides many benefits as architectural, construction, and engineering firms collaborate. We look forward to including even more people in our work.