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globalization, the new realityGlobalization is a murky term. It can refer to everythingfrom the interconnectedness of experienceto the rise in international ventures. For the design andconstruction instry, however, globalization is a trendthat means two things: increased opportunity and increasedcompetition.Some may assert that globalization is a phenomenontaking place in the nebulous “over there” and that it affectsonly the largest international players, the Bechtelsand the Kellogg Brown & Roots. Yet many domesticfirms content with operating within U.S. borders muststill contend with global forces. Anyone who thinks thatglobalization is far removed from our shores shouldthink again.The reality is that globalization already affects designersand contractors in Middle America almost as much asit does the instry’s biggest players. As foreign firmsunderbid for domestic construction work and purchasedomestic companies—and as domestic companies subcontractwork overseas—global forces can affect almostany design or construction firm. What globalizationmeans for the domestic designer or contractor dependson several factors. Very few instry sectors, in fact, areimmune to globalization. The largest U.S. contractorsmust compete with the world’s largest, among them London’sAMEC and the Dutch firm Nethconsult, whilemedium-sized contractors must constantly take advantageof opportunities and continue to manage change effectively.Even small firms will find challenges in retainingloyal customers that find they can contract similarservices for less money.Size and location are important but are definitely notthe only variables. Specialty services, market position,corporate culture, and a willingness to accept and managechange will all have a bearing on a company’s abilityto compete in the globalized future. Moreover, the globalproction of engineers has surpassed 1 million per year.While the United States remains a world leader in civilengineering ecation, many other nations can offertechnically proficient personnel at a fraction of the U.S.cost. Electronic global communication, virtual plans, andfree-trade initiatives will intensify the reach and scope ofglobal competition. In the 21st century, it will only becomeeasier to subcontract certain design functions toless-costly overseas firms, commonly referred to as designcenters.Aside from competition, globalization also presents opportunity.No one denies that the current U.S. economicboom has been good for the design and construction instry.While some sectors, such as retrofitting, havelagged, most have been healthy. We think that, as withall good things, this boom too must come to an end. Ormust it? When the U.S. economy slows, design and constructionfirms looking globally can continue to reap profits.Firms based in the United States can perform work inother countries, form joint ventures, or even offer consultingadvice on techniques and project management.Design firms looking to streamline can also consider settingup international branches to take advantage of lowerlabor costs.Despite these attractive opportunities, no design orcontracting firm should jump into the sea of internationalmarkets headfirst. There are inherent challenges and difficultiesassociated with any international endeavor, andeach project abroad will come with a multitude of peculiarities.While certain sectors of the world remainvolatile and daunting, others, such as Europe, Canada,and Mexico, remain stable.Engineers must embrace globalization as the new realityor risk losing their place in the economy of the future.There are others out there willing to do the work if wearen’t. Accordingly, this issue of J M E is dedicated toglobalization. It is a trend that our instry cannot affordto ignore.