
he $1.2 trillion federal Infrastructure, Investment and Jobs Act passed in 2021 is expected to bring billions of dollars to Alaska over the next five years.
Many architecture, engineering, and construction, or AEC, firms are already seeing their best years on record. However, we cannot get complacent on business development. Though more work is on the horizon, the national economy shows indicators of recession, so we are also reminded that nothing is certain, and we must prepare our businesses to capitalize on federal investment while continuing to build a sustainable project pipeline.
Clients statewide are navigating this influx of funds and learning how to capture them. The grant mechanisms, criteria, and programs are evolving, and understanding these opportunities provides great value to clients.
Attend grant symposiums and federal presentations. These give you valuable knowledge and connections you can apply directly to getting your project pursuits funded. Helping your client solve their funding challenges in creative ways builds an instant trust that positions you for work in the future.
Ask lots of questions. Understand your client’s business or organization. Where do their projects come from? Who is setting the priorities? Where does the funding come from? What are their funding cycles? What do their stakeholders need? Who is your competition, and why?
Contractors, connect with your design partners. Relationships with the client are key, but architects and engineers are helping clients create the visions early on. Clients in every sector are spending millions on planning and design with these firms to apply for federal funds. Remember too that design firms influence your client when it comes to recommending a contractor.
Designers, connect with your contractors. More clients are using alternate delivery methods, so contractors are often already working with the client before you get the call. Be top of mind when the client asks for a recommended design firm for their next project.
Focus on your strategy. Don’t chase everything. Firms that are not focused and selective overcommit and overburden their teams, over-promise, and under-deliver. Use a disciplined go/no-go process and stick to pursuits for key client targets or ones that meet strategic firm goals.
Most importantly, develop a list of your top ten to twenty best clients (and potential clients) to pursue. Analyze revenue and profit potential, potential for future work, ease of working with them, strategic reasons for pursuing, impact of the work, and even which clients are the most fun to work with.
Remember this is a five-year infrastructure law. It is not too early to position your firm for work over the next five to ten years, which sets you up for long-term revenue and sustained success. You will also be ahead of your competition for that work when it does come out. Looking out on the horizon and filling your long-term pipeline of projects will also help prepare you if a current project is put on hold or canceled.