Don’t Know Where to Grow Next? Use the “3C” Filter

Don’t Know Where to Grow Next? Use the “3C” Filter

You’ve got growth on your mind, and rightly so. Your firm can’t afford to stay still in today’s fast-moving AE industry. But before you sprint into new regions and markets, take a breath. Expanding without the right filter is like throwing darts in the dark—you might hit something, but it’s more likely you’ll waste a whole bunch of time, money, and energy. So, let’s get right to it: You need a clear, actionable framework to decide where to grow. I call it the “3C Filter”:

1. Core Strengths
2. Client Demand
3. Competitive Landscape

Here’s how you use it:

Core Strengths: Start From What You Do Best

Growth starts with knowing your firm’s DNA. Your core strengths—technical expertise, niche market focus, or standout project delivery—are your firm’s secret sauce. They’ve gotten you this far, and they’ll be the foundation for future success.

Ask yourself:

1. Where does your firm deliver undeniable value? Are you known for innovative designs in higher education? Stellar water infrastructure solutions? Bulletproof health care facilities? Focus on what’s proven.

2. Which services or solutions are scalable? If your expertise isn’t portable—whether due to regulatory, technical, or resource constraints—think twice before betting on it in a new region or market.

3. What’s your “X-factor” that competitors can’t easily replicate? Maybe it’s your design-build integration or a proprietary approach to energy modeling. Whatever it is, leverage it relentlessly.

Word to the Wise: Rank potential regions and markets based on their alignment with your strengths. If a new market demands skills you don’t have, don’t let the “shiny object” syndrome lure you into a bad fit.

Client Demand: Go Where the Money Is

Your clients—current and future—hold the keys to your growth. The best way to de-risk expansion is to follow demand. But client demand isn’t just about chasing the hottest trends; it’s about aligning opportunities with your capabilities and relationships.

Here’s how to gauge demand for your firm’s services:

1. Leverage existing client relationships. Are your national clients asking for services in specific regions? For example, if a trusted health care client wants you to design a new facility in a booming metro, that’s a green light.

2. Analyze market trends. What’s growing? For instance, it could be the surge in federal funding for infrastructure or the increasing focus on climate resilience projects in coastal regions. (We just so happened to have hosted our 2025 Market Intelligence Webinar last week—webinar recording and materials are available now!)

3. Assess unmet needs. Is there a shortage of specialized firms in certain areas? Being a “big fish in a small pond” can pay off—if the pond’s deep enough.

4. Identify high-value sectors. Some markets pay better and offer more stability—think federal contracts, life sciences, or energy. Are these sectors flourishing in your target region?

Word to the Wise: Avoid spreading yourself thin by chasing too many markets at once. It’s better to dominate a few sectors than dabble in many.

Competitive Landscape: Know What You’re Up Against

Even if a market aligns with your strengths and shows strong demand, you’ll need to outmaneuver competitors. The goal isn’t to compete head-to-head with well-entrenched firms but to find gaps and capitalize on them.

Here’s what to do:

1. Map the competition. Who dominates the market, and what’s their value proposition? If local firms have deep-rooted relationships and pricing advantages, you’ll need a compelling differentiation strategy.

2. Spot the gaps. Are clients underserved in areas such as sustainability, integrated project delivery, or advanced digital solutions? If so, you’ve found an entry point.

3. Evaluate barriers to entry. What’s the licensing, labor, or regulatory environment like? Some markets—think California’s energy codes or Texas’s water rights—require specialized knowledge that can slow your entry.

4. Weigh the cost of competition. Will you need to heavily discount fees to win work, or can you command premium rates based on your unique offerings?

Word to the Wise: Play to your strengths. If your firm thrives on complex, high-value projects, don’t undercut yourself to win routine work in a saturated market.

Putting It All Together: A Quick Case Study

Let’s say you’re the CEO of a 200-person engineering firm specializing in water and wastewater. You’re considering expanding into two regions: Region A is experiencing population growth and investing heavily in infrastructure, while Region B has a mature market with high competition but also significant federal funding opportunities.

1. Core Strengths:

• Region A: Aligns with your expertise in water infrastructure.
• Region B: Requires advanced digital modeling, which you haven’t fully developed.

2. Client Demand:

• Region A: Current municipal clients are expanding and need your help.
• Region B: No strong client relationships yet, but the funding could attract interest.

3. Competitive Landscape:

• Region A: Competition exists but is fragmented.
• Region B: Dominated by national firms with long-standing relationships.

Decision: Region A is the better fit. It aligns with your strengths, has established demand, and offers a manageable competitive environment. Region B might be a future opportunity but requires strategic investments to build capabilities and relationships first.

Your Next Move: Make It Systematic

Now you’ve got the 3C Filter. Use it. Evaluate every growth opportunity—whether it’s a new region, a market sector, or even a major client pursuit—through the lens of Core Strengths, Client Demand, and Competitive Landscape.

Here’s how:

1. Score potential opportunities. Create a scoring system (e.g., 1 to 10) for each of the 3Cs and rank regions or markets objectively.

2. Get your team involved. Use this filter in leadership meetings to vet opportunities. Let discipline leads and BD teams provide input, but don’t let emotions drive decisions.

3. Reassess regularly. Markets change. What looks like a green light today could turn red in six months. Build a process to revisit your growth strategy quarterly.

4. Test before committing. Pilot projects or small office setups can help you dip your toes without overcommitting resources.

Think About It

Growth doesn’t have to be a gamble. By applying the 3C Filter, you can focus your efforts on opportunities that truly align with your strengths, meet real client demand, and give you a competitive edge. And the best part? You’ll avoid costly missteps that come from chasing every shiny object that crosses your path.

Need help with where to grow next? Contact Mark Goodale at 508.254.3914 or [email protected].