Universal Engineering Sciences: Evolution of a Universe

Construction
Written by Eric Slack
Thursday, 31 January 2008
Mark Israel leads this engineering consulting firm’s efforts to grow while remaining true to its roots. Not every business needs boots on the ground in far off locations to succeed. And many companies reserve all authority over decsionmaking to upper management. But for Universal Engineering Sciences, empowering employees and expanding its footprint were critical to positive results. Mark Israel, Universal’s President “Some business can operate globally from one central office. But we need to be on the ground in our markets,” said Mark Israel, Universal’s president. “To be successful in these various markets, we’ve had to open and focus there. At the same time, that creates opportunities for rising young employees.” Team approach Universal is an engineering consulting firm specializing in geotechnical engineering, construction materials testing and inspection, and environmental sciences. The company’s headquarters are in Orlando, and it has 18 total branch offices throughout Florida, and one in Atlanta. Founded in 1964 by Israel’s father, Seymour Israel, the company has more than 600 employees. Despite operating primarily in the Southeastern US, the company has been named an Engineering News-Record national top 500 design firm every year since 1985. Part of that growth can be attributed to the family mentality Universal maintains. Although the company is much larger than 40 years ago, it is still family-owned and has the feel of a smaller company. That is because its leadership understands first hand what Universal employees undergo in the field. Israel wasn’t just handed the reigns, he earned them, starting at the lowest level, as well as earning additional experience outside the family business. “After school when my friends were flipping burgers and cutting grass, I was down here throwing concrete around, working outside in the heat, and freezing in the winter,” said Israel, who has a bachelor’s degree in engineering and a master’s in business. “I’m not an autocratic leader. I try to be a consensus builder, since I understand sometimes the person pulling the rope on the end of the equipment has the right answer.” Universal’s commitment to its employees includes the opportunity for professional advancement and financial incentives. The company has a transparent performance pay program. Employees can see what they will earn if they reach their goals, as the numbers are posted on a wall in the office and are updated weekly. There is also a long-term capital appreciation program for key personnel, giving them the opportunity for a piece of the business as employee and company grow together. One of the reasons behind Universal’s branch expansion is to give people the opportunity to advance without leaving the company. Israel points to a labor shortage in the US as one reason the company prefers to promote from within. Universal also has its own accredited training academy for employees. Combined with branch expansion and profit sharing, the company has many incentives for new recruits to come on board, and for long-time employees to stay with the firm. “By opening new branches, we’ve created opportunities for young engineers. People can get their start with our company and have a chance to grow,” Israel said. “If they want to transfer to another branch, or if they want to earn a promotion, they have that opportunity.” Broad goals The expansion strategy extends beyond employees to future growth plans. Israel sees multiple locations and proximity to projects as another key component for Universal’s future. Getting its start first on Florida’s space coast, and then in Orlando, Universal was buoyed by Disney coming into its backyard. Not necessarily because the company does a lot of work with Disney, but because its presence helped the area grow, and presented more opportunities for Universal as a result. Expanding its footprint to include branches throughout the Southeast was a natural evolution of the business as it sought opportunity beyond the Orlando area. Since 2003, the company has opened eight new branches, including the Georgia office. The diversity in terms of location also coincided with a diversification in specialties. Avoiding the temptation to narrow its focus, today Universal’s largest client is less than 5% of its business. For example, homebuilding is an important part of its operations, but Israel estimated it to be less than 25% of Universal’s business. As the housing slump has worsened, Universal turned to its work for transportation departments, school boards, commercial development, national retailers, apartment complexes, and some international work to make up for lost revenue. The relationships the company built over the years via expanding its offices and its services kept the company profitable. As Universal rapidly approaches its 45th anniversary, the company has strategies in place to continue its decades of success. Recently, the company invested in a new enterprise resource software solution to upgrade its accounting and financial reporting systems. The new software is tied into its sales tracking systems to provide real time information. “We had a limited system, and things were not integrated, so it was difficult to pull information out and find out where we stood on all of our projects and personnel at a moment’s notice,” Israel said. “All of our branches and profit centers had to do a lot of work on their own to find information they needed.” Israel also points to Universal’s environmental stewardship as proof his company is ahead of industry standards. Although the green movement hasn’t had as much influence in Universal’s industry as in others, the company has recycled plastic cylinder molds and concrete samples for years. And more than two decades ago, the company even tried to convert its trucks from gasoline to propane, because it is domestic and burns cleaner. The effort was unsuccessful because the infrastructure and support wasn’t there, but it was a sign of a company willing to think ahead. “Anyone can go drill holes in the ground and test concrete, but we try to figure out ways to do it better,” said Israel. “We have that ability because of the entrepreneurial nature of our company.”

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