virtual teaming may commoditize the industry to a high degree. “Our greatest concern is that we may be shut out of the best international opportunities because we are too expensive,” he says. Prentice of Stantec also is seeing a disconnect between the pricing of Western firms and some Asian firms, which are offering lower rates. He says this could lead to a change in client expectations about pricing and impede Western firms’ ability to compete fairly. The recession is adding to this pricing pressure. “We are seeing a lot more competition and panic pricing in some sectors,” says Apostolidis of GHD. Minhinick of SMEC has noticed more projects won at extremely low prices, “which suggests that companies are possibly deciding to drop their margins in order to keep their staff employed.” Some large Chinese engineering firms are a beneficiary of this competitive pricing for design services. “Compared to European and American countries, we have some competitive advantages, such as low cost, and our engineering technologies and management standards nearly reach the level of those European and American companies,” says Zhang Gang, international business development director for China Chengda Engineering Co. Two issues concerning many large design firms are political and economic transparency in much of the developing world. Mohammed Fahmy, vice president of Egypt’s EHAF Consulting Engineers, says markets in many nations in central and southern Africa are difficult because “those countries’ systems are not yet well established and lack transparency.” He adds, “If Africa opens, the consulting industry landscape will change.” However, some designers see encouraging signs. “We are optimistic about the long-term international market because of the global push toward accountability and transparency,” says Prentice. “We have seen increased transparency measures put forward by the World Bank and the Inter-American Development Bank.” He says this will help to ensure money put toward infrastructure actually gets spent
on the projects as intended. Prentice also praises the work by the Swiss-based International Federation of Consulting Engineers in guiding international designers toward better and more responsible business practices. This helps all firms compete for work “on an even playing field and gives clients reassurance they are getting the best service and quality projects,” he says. Some large international design firms
worry the global recession will cause some countries to erect trade barriers. “Protectionism and bureaucracy tend to stifle international exchange of expertise and professional service,” says Nick Burns, chairman of Hong Kong’s P&T Group. “Our biggest concern would be an increase in protectionism.” Smith of Ingenium says he is worried about the pushback that might be felt if the “Buy American” attitude that has been
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