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Is my employer healthy? 3

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VTengr

Structural
Feb 9, 2005
11
Here’s the Reader’s Digest version of my situation. I invite your comments on the health of the business model and the direction of the company. This discussion is independent of Covid.

My employer is in New England providing civil consulting engineering services including civil design, state and local permitting, storm water and septic engineering, surveying, traffic engineering, architectural services, and then there’s me with the structural engineering.

I’ve been with the firm for 25 years. I am the office’s sole structural engineer(PE). The firm has a good local reputation with repeat clients, despite increasing competition from neighboring areas. I run the technical part of my department largely autonomously. As an employee, things are pretty good with some minor gripes. What follows are my concerns. I just want to put out there that it is not all bad.

So here goes.
The firm has 12 employees. This includes two part time admins, one licensed surveyor, one site tech, four PEs and two soon-to-be PEs. One could describe the firm as “top heavy” with respect to the expensive PE and common business models. There’s no “workers” to support the PEs, really. With a big, beautiful office building, the firm has a fair amount of overhead.

The company is known to be expensive. The PEs get billed at similar rates equal to owners of other consultants. More and more often, the firm is loosing out to competitors on price.

The former owner is now a part-time employee with lots of info. A great way to transition into retirement. He deserves it. He sold the business to one of the employee PEs. This new owner appears to be loving the income and the company is running with the momentum established by the former owner. He was operating at a staff level engineer prior to the purchase. He has taken over the company but arrives late, leaves early, and doesn’t come in on weekends. He doesn’t appear to be doing anything to learn about how to run a business and doesn’t appear to be working to drum up more business. While waiting for the phone to ring, he complains about lack of work.
There are no sour grapes here; we all get along well.

Biggie: The architecture department has issues. It gets by but is rooted in basic, industrial “box-building” architecture. The architecture department will have major issues when the former owner fully retires in the near future. There isn’t the work to go full AE with the hire of an experienced, licensed architect. The architecture department was a happenstance “add on” to the company several years ago and is venturing into territory it doesn’t belong beyond industrial buildings because they are chasing dollars.

The summary, about me:
I’ve been working hard, including overtime while business has been slow. I’ve been successful and my clients are happy. I’m told little to no raises because the firm as a whole isn’t making the level of money the owners want. I’m floating the firm, financially.
NO other architects will hire me/us for structural engineering because we directly compete with them with our mediocre architectural department.
While I’m busting ass trying to make client’s happy, the mediocrity of the arch department may soil my name by association, I fear. This situation is only going to get worse with the departure of the old boss. The arch is in my office several times a day asking questions about architectural details just because I have experience he doesn’t. He fears asking the former owner. I’m not in a position to remedy this situation.

I worry about the health and business model of the firm it is unlikely to change. Maybe it will suffer until getting bought by a competitor. Hit me up with any questions. I couldn’t spell it all out here.

I look forward to your responses.


 
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Thanks, again, everyone.

I appreciate all of the input. I’ve naturally done a lot of introspection on this issue and I’ve made damn sure that I’ve presented my story above objectively. I know how when you make a case or describe a situation, it is only natural to present it in a way that reflects your feelings. I’ve re-read all of my posts (several times -ha!) and still feel it is presented accurately.

If you’ll indulge me again-
I wouldn’t mind working for my to-be former employer(FE) as a sub consultant. One scenario is I somehow manage to leave my FE amicably and my FE allows me to wrap up my active jobs at the time and maybe hires me for additional work. Remember, we are like a family and we are in a small town. I’d love your opinions on how to manage that situation. I don’t want to be at odds with my FE.

Truth is, my FE NEEEEDS me. They have almost no one in the office to do what I do, even though the place is full of civil engineers. Other area firms are having a hard time finding structural engineers, especially on my level that can run a whole department. This gives my FE incentive to play nice with me...

...and that is a scenario that would ease the short term challenges of starting up on my own, which is my biggest concern. I can handle everything else, I think.

Thanks, everyone. This thread and your replies are extremely helpful.
 
VTengr,

I've read this and far too many thoughts to write here. I own a small engineering firm in the northeast in a relatively small town/city area and focus on industrial process and associated structural and mechanical services.

In my opinion you should make plans to leave your present employer soon and here is my rationale. Over 10 years ago I was asked to help a multidisciplinary where the structural engineering manager left until they found a replacement. In a period of a few months I watched that firm disintegrate because the ownership was not active in marketing and client relations and one of the owners actually cost the firm work. 1-2 years before a senior owners had retired and there was a significant amount of overhead. That firm had what was essentially an add on architectural firm and as a hole the firm was expensive compared to their competitors. Other local firms were growing and keeping their costs low and firms from the larger cities were coming in and taking work at lower fees. Other local architects would not hire the structural, mechanical, or electrical disciplines of this firm due the presence of the architectural department and the architectural department brought in little of their own work and was used to supplement the other disciplines. The firm had work and was marketing itself for sale. I had the opportunity to sit in on a meeting with the most likely firm who would be the acquirer and basically they wanted the client list and a very few of the senior staff, withing 2 weeks the firm closed. What you wrote in your first post brought back watching that as an inside observer.

Regarding your latest question I don't think anyone can really answer your question without knowing the personalities. Even there is a close relationship your current employer (soon to be FE) may view this as an attack on the business; without knowing the personalities and relationships I don't feel comfortable providing advice on that aspect/specific question. My opinion is you need to be prepared to leave and find work on your own w/o counting on continuing the relationship. You need to have everything organized not done but organized so someone can pick it up and take over) so that when you provide notice if your current employer escorts you out the door someone can pick it up. If your current employer asks you to be their structural consultant then that should be a positive.

Patrick

 
Thanks, Patrick. Our stories are very similar!
 
Jessica Herron said:
Choose the right platform to discuss this. this is engineering forum.
What are you talking about? This is absolutely the correct forum to discuss this in...

Dan - Owner
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I agree with the ones who recommend starting your own business.

Everything stems from leadership. If the new owner gets there late, leaves early, is passive, and complains, then that's a really bad sign. Seems doomed, to be honest. It sounds like you would be fine on your own.
 
In this day and age approaching the owner is probably a bad idea. Egos are bruised way to easily. You have your escape plan in your head already. Just polish it up, then go quietly. Good Luck.
 
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