Mike Iosue, Director of Business Development, EM Structural

In an interview with Invest:, Mike Iosue, director of business development at EM Structural, discussed significant milestones for the firm, including new offices and a merger, their strategic adaptation to economic uncertainties, trends in efficient design, and the collaborative processes that strengthen client relationships.

What have been some key milestones and achievements for your firm?

The last couple of years have been incredible. We established new offices in both Charlotte and Charleston to service the growing number of clients we’re working with in those markets. Having “boots on the ground” allows us to more efficiently help them work through the design and construction process. 

We’ve also had success identifying energetic new talent to help lead our teams around the Mid-Atlantic/Southeast. Senior leadership in our Washington, DC, Charlotte, Raleigh and Atlanta office’s experience and vision continue to guide our company’s growth. The combination of new talent and Senior leadership allows us to achieve our commitment to  customer service, attention to detail and responsiveness.

How are you adapting to the economic environment?

I would define the current economic environment as “unusually unpredictable.” Post-COVID logistics have normalized, but construction supply costs remain significantly higher than pre-COVID levels. Although these costs aren’t fluctuating as wildly as before, labor costs have remained extremely high. Several years of unusually high demand have pushed the costs of all phases of construction increasingly higher.

We see about 150 people moving to Charlotte daily, creating a high demand for housing, but we also see an increased supply of multi-family housing developments delivering, resulting from design work done back in 2021 and 2022. While this supply is being absorbed quickly, recent studies showed Charlotte may have as much as a 4-year supply of apartments in 2024. Factors like rising interest rates, inflation, and an election year add layers of uncertainty as to how much design opportunity we’ll see in the near future.

To make matters more interesting, we’ve seen many projects in the last 12 months stall at the design development phase. If the Federal Reserve significantly drops interest rates, it could suddenly make these projects financially viable, leading developers to push forward. This could create a challenging scenario for those in design and contracting, as pent up demand would create a new surge. 

Sadly, we don’t have a crystal ball, but internally we’ve focused on smart growth and avoiding overextension. Despite having been awarded a large number of new projects, we’ve been cautious about bringing on new people too quickly. We need to balance the potential for rising fluctuating interest rates and inflation, which could slow down the number of projects, against the possibility of a rapid increase in demand if interest rates drop.

As I mentioned, we’ve reinvested significantly in our company, recently opening two new offices. This means we must maintain the right level of staffing to handle both potential downturns and sudden increases in project volume. One approach we’ve taken is more actively engaging with universities known for producing strong graduates, such as NC State, Virginia Tech, Georgia Tech, and Clemson. By building relationships with these institutions, we ensure that we can quickly onboard capable young professionals who can immediately contribute if demand spikes.

What are some of the key trends that you see in the field, and how are you leveraging these trends or preparing to introduce them into your products?

One trend in our current market is the push for more efficient design. We’re being asked to develop designs that are cost-effective to build and that minimize the time required to deliver the project. Teams must have the right balance of education and experience to achieve leaner designs.  

By designing structures that use less material, we can significantly reduce costs and shorten construction times, which in turn boosts profit margins for our clients. Our structural engineering firm’s design decisions can have a substantial impact on the project’s bottom line. For example, an efficient design that reduces the amount of concrete required can easily save six figures on a high-rise. This focus on efficiency is critical to our success and helps us deliver substantial value to our clients.

How do the collaborative processes you have with clients, contractors, architects, and civil engineers help create efficiencies and strengthen relationships?

The adage that relationships are everything holds true in our industry. The design process in commercial construction continues to evolve, and early-phase collaboration has become increasingly important. Approaches like Integrated Project Delivery involve the team investing time and effort before the project design even starts. This ensures that everyone is on the same page and understands the goals of the development team and the architect.

Spending this time upfront allows us to understand each other’s approach to design, which leads to efficiencies in the design process and saves time during construction. This reduces the number of Requests for Information and submittals typically seen in the design-build process. By discussing and understanding the details early on, we minimize misunderstandings and streamline the construction phase.

Our approach to business development is heavily focused on relationship development. When we work with people we truly understand on a personal level — knowing their interests, hobbies, and what makes them tick — problem-solving becomes much more effective. Challenges are addressed with more understanding and less frustration.

We invest time and money into developing genuine friendships with our clients. This involves taking clients away from the day-to-day hustle to spend quality time together, whether playing golf, fishing, or attending sporting events. These activities allow us to talk about what’s important to them outside of work. Knowing about someone’s family and personal interests deepens the relationship, making it a genuine friendship. This foundation of trust and understanding is invaluable when challenges arise, allowing for smoother, more collaborative problem-solving.

What is your outlook for the near term in Charlotte?

The future of Charlotte is very bright. The diversity of our business makeup and our geographical location play significant roles in this. We’re just a couple of hours away from both the beach and the mountains, and we have two fantastic lakes nearby. Charlotte boasts NBA and NFL teams, minor league baseball, hockey, and a vibrant theater scene. The city offers a great climate, friendly people, and favorable tax conditions. It’s no surprise that so many people want to move here.

The city is making the right decisions and efforts to attract great businesses, which in turn create job opportunities for residents. Recently, we saw Six Flags announcing their move here, adding to the variety of industries thriving in Charlotte. While we’re known for banking, we’re also seeing tremendous growth in tech, healthcare, entertainment, and sports. This multifaceted development ensures that Charlotte is on the right path. I feel very optimistic about the future of our city.