The ground is shifting beneath the feet of AEC firms and government contractors. With a new presidential administration comes changes in federal spending priorities, and the impacts are already being felt across the industry. Whether your firm works directly with federal agencies, relies on infrastructure funding from initiatives like the IIJA, or specializes in fulfilling DEI-related set-aside contracts, the writing is on the wall—things are changing, and not necessarily in your favor.
Some firms are already experiencing the fallout. One of our clients recently had to lay off nearly 300 employees because an entire federal agency they served was shut down. Even for firms that don’t rely heavily on federal dollars, the competition is about to get a lot tougher. The firms that lose their federal contracts will be aggressively seeking non-federally funded work, making an already competitive landscape even more cutthroat. At the same time, project funding may decrease, meaning there will be fewer opportunities to go around.
This is a scary time for many. In his best-selling book Who Moved My Cheese?, Dr. Spencer Johnson uses the metaphor of mice in a maze searching for their ever-moving cheese to illustrate how individuals and organizations must adapt to change. The core lesson is that those who anticipate and embrace change will thrive, while those who resist will struggle. The cheese has been moved in the AEC industry, but those who recognize the shift and adjust accordingly will not just survive—they will flourish.
Resilience Through CX: The Key to Stability and Growth
In times of uncertainty, firms that double down on Client Experience (CX) are the ones that endure. Instead of reacting with fear and desperation, they protect their existing relationships and position themselves to win new work through superior service and deep client alignment. Here’s how:
- Protect the Clients You Have
- Your current clients are your lifeline. In a time when competitors are more aggressive than ever, you can’t afford to give them an opening. The best defense is a strong offense:
- Measure CX Relentlessly. If you’re not consistently gauging client sentiment, you’re leaving blind spots that competitors can exploit. Use real-time feedback tools to understand client concerns before they become real problems. Your clients are going through just as much (if not more) uncertainty as you are. Checking in with feedback shows you care. Responding to their feedback lets you start a meaningful dialogue and lean in with them. The top driver of client retention and growth is "engaging as a partner." Use these conversations to really show what partnering can be.
- React to Issues Proactively. It’s not enough to collect feedback; you have to act on it—immediately. Address concerns, reinforce relationships, and make it clear that your firm is indispensable. This means going beyond just responding to complaints—anticipate needs, proactively offer solutions, and demonstrate your commitment to your clients' success. Consistently closing the loop on feedback shows that your firm listens, values its clients, and is dedicated to continuous improvement.
- Make It Hard for Clients to Leave. When you align so closely with your clients' needs and deliver such an exceptional experience, switching to a competitor feels like a downgrade. This is about creating deep, consultative partnerships that extend beyond contracts.
- Measure CX Relentlessly. If you’re not consistently gauging client sentiment, you’re leaving blind spots that competitors can exploit. Use real-time feedback tools to understand client concerns before they become real problems. Your clients are going through just as much (if not more) uncertainty as you are. Checking in with feedback shows you care. Responding to their feedback lets you start a meaningful dialogue and lean in with them. The top driver of client retention and growth is "engaging as a partner." Use these conversations to really show what partnering can be.
- Your current clients are your lifeline. In a time when competitors are more aggressive than ever, you can’t afford to give them an opening. The best defense is a strong offense:
- Ramp Up New Client Acquisition
- Even if your core clients remain, their budgets may shrink. That means you need to replace lost revenue. However, with fewer projects available, winning new work will be more challenging than ever. The firms that succeed will be those that leverage CX as a competitive advantage.
- Use CX as a Differentiator. Clients don’t just choose firms based on qualifications—they choose partners they trust. Firms that can demonstrate a proven track record of responsiveness, innovation, and value will outshine those that compete on price alone. The key to proving this is leveraging existing client feedback. By actively collecting and showcasing testimonials, satisfaction scores, and direct quotes from clients, firms can provide tangible evidence of their excellence. Case studies built on actual client experiences help potential clients see the measurable impact of a firm’s dedication to CX. Additionally, using client feedback to identify and act on improvement areas ensures continuous growth, reinforcing the firm’s reputation as an adaptable and client-focused partner. Firms that consistently engage with their clients through structured feedback programs will differentiate themselves by proving to new prospective clients that they are high performers worthy of being given a chance.
- Take a Foothold Approach. Instead of focusing only on massive projects, prioritize getting in the door—big or small, every project is an opportunity to prove your value. Establishing credibility and trust with a new client, even on a minor engagement, positions you for larger opportunities down the road. The key is to deliver with excellence. This means elevating their expectations beyond what their incumbent vendors are doing, then exceeding those market expectations through proactive communication, anticipating client needs, and adding value beyond the scope of work. Firms that consistently deliver superior experiences create advocates within client organizations, making it difficult for competitors to displace them. By demonstrating reliability and impact on every project, no matter the size, you position your firm as the natural choice when larger contracts arise. You've won when your firm sets a new standard, and these clients expect you to outperform the competition by delivering more value, more consistently - even if it's at a higher fee.
- Win by Out-Delivering. In a tight market, the firm that consistently exceeds market expectations wins. Superior communication, proactive problem-solving, and a client-first mindset will separate you from the pack. However, when markets shift, what clients define as excellence also changes. Clients operating under suddenly restricted budgets may shift their priorities. Whereas they may have once valued technical innovation and cutting-edge solutions, they might now be laser-focused on efficiency, logistics, and execution. Firms that recognize and adapt to these changing expectations will have the edge. Winning means understanding your clients' evolving needs better than anyone else and aligning your delivery model to meet those shifting priorities. It’s about being flexible, listening actively, and adjusting strategies to provide what matters most to clients at any given moment.
- Use CX as a Differentiator. Clients don’t just choose firms based on qualifications—they choose partners they trust. Firms that can demonstrate a proven track record of responsiveness, innovation, and value will outshine those that compete on price alone. The key to proving this is leveraging existing client feedback. By actively collecting and showcasing testimonials, satisfaction scores, and direct quotes from clients, firms can provide tangible evidence of their excellence. Case studies built on actual client experiences help potential clients see the measurable impact of a firm’s dedication to CX. Additionally, using client feedback to identify and act on improvement areas ensures continuous growth, reinforcing the firm’s reputation as an adaptable and client-focused partner. Firms that consistently engage with their clients through structured feedback programs will differentiate themselves by proving to new prospective clients that they are high performers worthy of being given a chance.
- Even if your core clients remain, their budgets may shrink. That means you need to replace lost revenue. However, with fewer projects available, winning new work will be more challenging than ever. The firms that succeed will be those that leverage CX as a competitive advantage.
- Play the Long Game: Build a CX-Driven Growth Strategy
- Short-term survival is the priority, but firms embracing CX don’t just weather downturns—they emerge stronger. CX leaders outperform their peers in all market conditions because they create a foundation of resilience:
- They Retain More Clients. A firm that provides an exceptional experience builds long-term client loyalty, reducing churn and ensuring steady revenue.
- They Gain Market Share in Downturns. While competitors are focused on cost-cutting, CX-focused firms continue to invest in relationships, positioning themselves as the obvious choice when opportunities arise.
- They Attract Top Talent. The AEC industry has been in a talent war for years. As other firms downsize, those that maintain stability will have the rare opportunity to hire high-caliber professionals at a time when talent is readily available. This influx of skilled professionals not only strengthens your firm’s current capabilities but also positions it for long-term success. When market conditions inevitably return to a growth orientation, firms that have built a strong team during downturns will be poised to capitalize on new opportunities far more effectively than competitors that cut back. A strong CX strategy not only helps create an employer brand that attracts the best talent now but ensures that when the market rebounds, your firm is already ahead, equipped with the expertise and capacity to lead and win in the next era of growth.
- They Retain More Clients. A firm that provides an exceptional experience builds long-term client loyalty, reducing churn and ensuring steady revenue.
- Short-term survival is the priority, but firms embracing CX don’t just weather downturns—they emerge stronger. CX leaders outperform their peers in all market conditions because they create a foundation of resilience:
The Time to Act is Now
The AEC industry is at a crossroads. Firms that cling to old ways of doing business, hoping that stability will return, are putting themselves at risk. Those who embrace CX as a strategy—not just a buzzword—will not only survive but thrive.
The first step? Start measuring client sentiment today.
Your clients are facing uncertainty just like you are. Many of them are under pressure, dealing with their own funding concerns and trying to navigate an unpredictable landscape. The firms that take the time to listen, understand, and respond will be seen as true partners—not just vendors. Today, more than ever, is the time to be human and approach your clients and prospects with empathy. People are scared. You can be the reassuring presence they turn to in times of uncertainty.
If you haven’t already, ramp up your CX efforts. Start gathering real-time client feedback, use it to guide meaningful conversations, and position your firm as the one that helps clients navigate uncertainty—not just endure it.
The cheese has moved. The question is—will you chase it blindly, or will you build a strategy to thrive in the new reality?