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AE Industry Dashboard > Volume 14 issue 3
AE Industry Dashboard: Volume 14, Issue 3
Bringing you snapshots of key market sectors, business management ideas, and must-know information for managing and leading your firm.
In This Issue
Market Watch
Technology Corner
The New Workplace
Market Watch
Feds Award Billions for Bridges, Power Grid
A roundup of the latest construction funding news includes billions of federal dollars for bridge and power grid projects, a massive redevelopment project in Florida, and an infusion of money for Georgia transportation projects.
Large bridge projects receive billions
The U.S. Department of Transportation has announced $5 billion in grants to support the repair and reconstruction of 13 large bridges in 16 states. The project list includes $1.4 billion to replace two lift bridges on I-5 between Portland, Oregon, and Vancouver, Washington; $993 million to replace Cape Cod’s Sagamore Bridge; $550 million to replace the span carrying I-10 over Alabama’s Mobile River; $500 million to replace a bridge carrying I-83 over Pennsylvania’s Susquehanna River; and $394 million to replace a bridge on I-55 spanning the Mississippi River near Memphis.
DOE grants $2.2 billion for power grid resilience
The U.S. Department of Energy has announced a $2.2 billion investment for 8 transmission and energy storage projects in 18 states that will address growing threats from extreme weather and increasing power grid demands. With project sponsors providing $7.8 billion in matching funds, the grants issued through the Grid Resilience and Innovation Partnerships (GRIP) Program are the catalyst for nearly $10 billion in spending to upgrade more than 1,000 miles of transmission lines and add nearly 13 gigawatts of grid capacity.
Massive Tampa Bay project advances
Florida’s Pinellas County and the St. Petersburg City Council have both approved a $6.5 billion redevelopment project in the city’s Gas Plant District that includes a new 30,000-seat baseball stadium for the Tampa Bay Rays, which is estimated to cost $1.3 billion. The largest development project in Tampa Bay history also includes the transformation of the 86-acre site now housing Tropicana Field, the current home of the Rays, into eight million square feet of affordable housing, retail, hotel, and office space. Skanska USA Building has been named as the owner’s representative for the redevelopment and stadium projects.
$1.5 billion boost for Peach State transportation projects
Georgia Governor Brian Kemp has announced how the state will spend a one-time infusion of $1.5 billion in surplus funds that have been designated for transportation projects. The plan includes nearly $600 million to boost the Georgia Department of Transportation’s capital construction by 58%, $500 million for 18 projects devoted to freight-carrying infrastructure, and nearly $100 million for general aviation airports. In addition, state aid to cities and counties for local transportation improvement projects will more than double.
Technology Corner
Survey Details AE Industry’s Use of AI
Up for early adoption
Although artificial intelligence (AI) holds transformative potential for the AE industry, data from Deltek’s 2024 Clarity: Architecture & Engineering Industry Study show that most firms are still dipping their toes in AI’s waters before taking the plunge. More than half (52%) of the 652 U.S. and Canadian architecture, engineering, and environmental consulting firms surveyed by Deltek have yet to use generative AI and another 62% haven’t used machine learning. The results mean that it’s not too late for AE firms to become industry leaders by staying ahead of the technological curve and becoming an early adopter of AI technologies.
What’s the use?
How are AE firms that are using AI incorporating it into their operations? According to the Deltek survey, the most common use of AI is for marketing and proposal generation—reported by nearly one-quarter (24%) of survey respondents. Other common uses of AI are for summarizing document and/or drawing data (17% of respondents), developing 3D models or renderings (15%), data analysis and exploration (14%), and design concepts and/or testing design iterations (13%).
Future vision
Even AE firms that have yet to use AI foresee long-term benefits from the technology. Nearly two-thirds (62%) of respondents to Deltek’s survey predict AI will have the greatest impact in improving operational efficiency. Other areas of firm operation where respondents expect to see the greatest impact from AI are with project timeline and delivery improvements (52%), overhead cost reductions (35%), and internal firm communication improvements (28%). A separate survey from Autodesk, the 2024 State of Design & Make report, finds the top business use case for architecture, engineering, and construction firms employing AI is to increase productivity—cited by 44%. The other top reasons that firms are using AI include automating mundane, repeatable tasks (39%), producing informed design options (36%), and workplace safety and risk analysis (36%).
The New Workplace
Job Satisfaction Up. But for How Long?
The pursuit of happiness
American workers are the happiest they’ve been in decades, according to The Conference Board’s annual survey of job satisfaction. Of the 1,700 U.S. workers questioned by the nonprofit business research group, 62.7% said they were satisfied with their jobs. That marks the highest level recorded since the survey began in 1987 and the 13th consecutive year of growth since the number dipped below 45% in 2010. A deeper dive into the results, however, reveals warning signs for some employers.
Regrets, I’ve had a few
Many workers who changed jobs in the post-pandemic Great Resignation appear to be having second thoughts. Job satisfaction among workers who had been with their employers less than three years fell sharply—by 5.6 percentage points—in this year’s Conference Board survey and stands below that of workers in their jobs for more than three years. In addition, nearly half of all workers with plans to leave their jobs in the ensuing six months have been with their employers for fewer than three years. This not only means that firms should pay more attention to recent hires but that opportunities may exist to bring back former employees who could be realizing that the grass isn’t always greener.
Culture is king
The survey found that company culture aligns more closely with employee satisfaction than compensation. More than 75% of employees who intended to remain in their jobs were satisfied with the culture of their companies, but only 22% of those planning to leave their jobs felt the same. “This year’s survey results indicate that job satisfaction is about so much more than wages,” said Diana Scott, The Conference Board’s U.S. human capital center leader. “While wages and key benefits still matter, workers were more focused on positive work culture and experience. Provided pay and benefits are competitive, leaders will gain the most by offering strong growth opportunities, quality leadership, and work-life balance.”
Gap years
For the sixth consecutive year, women reported significantly lower job satisfaction than men. While 65% of men said they were happy with jobs, only 60% of women reported the same. The biggest gender gaps in satisfaction were connected to the financial aspects of employment such as wages, benefits, and bonuses. The Conference Board recommends employers take more steps to boost gender equality, which has been a particular challenge in the AE industry.
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