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Indiana Annual Meeting. Remarks by David A. Raymond June 12, 2008 Indianapolis, Indiana. Business Overview.
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Indiana Annual Meeting Remarks by David A. Raymond June 12, 2008 Indianapolis, Indiana
Business Overview National economy slowing. Current business generally stable, but future uncertain.Housing, land development markets down. Commercial markets softening. Rising energy and construction costs.ACEC financial condition strong. Dues and non-dues income stable.
Political Outlook Democratic control of Congress should enhance prospects for greater infrastructure funding. Tax and regulatory issues will create challenges. Trial lawyer, union influence on rise. Presidential outcome uncertain.
Challenges for ACEC • Build an “ACEC Majority”across partylines which (a) capitalizes on Democratic funding, (b) thwarts detrimental regulatory policies • Protect business environment during economicslowdown through aggressive advocacy and business programs. • Broaden the base of contacts within member firms to harness full strength of Council
ACEC Strategic Plan Goals Continue to Guide Council 1. Become Premier Legislative Advocate 2. Provide Premier Business Education 3. Become Voice of the Industry 4. Grow ACEC/PAC to $1 Million/Year 5. Grow Minuteman Fund to Serve the States 6. Grow Membership Annually: Firms by 2%; Employees by 3%; 90% ENR 500 FOCUSED, DIRECT, RELEVANT
Strategic Goal #1 – Advocacy Transportation: Fully funded SAFETEA-LU in ’08, and we’ll do same in ’09. GainedACEC priorities in National Commission Report on Transportation which defines parameters of debate on next bill. Thwarted unfair OIG audit on allowable overhead. Water: Overrode President’s veto of $24 Billion COE projects bill (WRDA). Killed challenge to Thomas Amendment. Passed $14 billion Clean Water SRF bill with QBS language in House, and we’ll do the same in Senate.
Advocacy – cont. Environment and Energy:Killed anover-reaching Wetlands bill. Supporting balanced energy agenda including new drilling, nuclear, use of alternatives, and “green” tax incentives. Tax, Education, Regulatory:A/E tax deduction goes to 9% in 2010. Repeal unfair 3% withholding (250 H. co-sponsors). Education loan forgiveness for eng’r students now in conference. Will secure: Cash Accounting, Good Samaritan liability protections, uniform Fed. BIM platforms.
Strategic Goal #2 – Education High Demand for ACEC Business Programs • BDC, SEI – sold out sessions • Forums (HR, IT, etc.) – upswing • Books and contracts – upswing • Green programs – “Green” returns • Coalitions (CASE, CAMEE, COPS, etc.) – growing • New Coalition on Land Development under study • New QBS study
Strategic Goal #3 –Industry Voice Communications Vehicles Win 2008 Awards: • Last Word – #2 (#1 or #2 for six years) • Engineering Inc. – #2 (third straight year) • Membership video – #3 (in video category) • IBM Brochure – #2 (in brochures) “ACEC is the all-time winner of our National Media Awards– winning the most awards in all categories.” Association Trends Magazine (2008)
ACEC/PAC Standing (2007) Top 1% • AFSME (union) $7,500,000 • AAJ (trial lawyers) 2,560,000 • AMA (doctors) 1,900,000 • ACEC Goal – 1,000,000 Top 4% • ABC 950,000 • ACEC 560,000 • AGC 537,000
Strategic Goal #5 –Minuteman Recent Actions: • Wisconsin – to enact QBS law • Georgia – to limit liability • Illinois – to defend risk allocation • Michigan – to repeal 6% prof. services tax • Iowa – to defend statute of repose • New York – to defend outsourcing War Chest of $1.5 Million
Strategic Goal #6 – Membership Member Firms 5,769 4.4% Growth Over 5 Years Employee Count 306,724 14.5% Growth Over 5 Years ENR 500 75% 4.6% Growth Over 5 Years CHALLENGES TO GROWTH: ECONOMIC SLOWDOWN, M&A
Key Challenges Ahead: • FOCUS on key priorities – advocacy, PAC… • INFUSE election year debate with ACEC issues • BUILD “ACEC Majority” in Congress • EXPAND grassroots reach within member firms • ACCELERATE membership recruitment