Martin Franks, Principal, Wold Architects & Engineers

In an interview with Invest:, Martin Franks, healthcare practice leader and Tennessee office director at Wold Architects & Engineers, discussed the evolving challenges and opportunities facing the architecture and engineering sectors. He highlighted the impact of economic fluctuations, labor shortages, and shifting client demands on project execution. “From a team perspective, our company continues to grow, but hiring in this market remains challenging,” Franks noted.

What changes have most impacted architects and engineers worldwide over the past year, whether in project mix, client focus, or internal operations?

From a team perspective, our company continues to grow, but hiring in this market remains challenging. We focus on seizing opportunities to recruit strong team members while prioritizing internal promotion and fostering a tight-knit culture, particularly in our Tennessee office, to support projected growth. On the market side, conditions fluctuate. We maintain a solid backlog and emphasize planning, especially in the healthcare, government, and education sectors. Our work serves many suburban and rural communities around Middle Tennessee, aligning with our mission to create a lasting impact in diverse areas, rather than focusing solely on metropolitan Nashville. Recently, grant-funded projects, especially smaller or rural ones, face challenges due to federal administrative changes, causing delays but not necessarily cancellations. This particularly affects healthcare projects reliant on consistent funding, requiring us to seek alternative financing when funds are disrupted. 

While we’ve had success with larger healthcare and government clients, moving projects from planning to construction can be challenging, as costs remain high and financing is not cheap. State initiatives, like upgrading county health departments and technical schools, have spurred projects, but rising costs and competition for subcontractors, especially with mega projects like the new Tennessee Titans stadium in development, drive up expenses and complicate securing high-quality subcontractors.

How has the national economic climate impacted both your work and client expectations?

Material and labor costs continue to impact the industry significantly. While the extreme cost increases from three to five years ago have slowed, the overall rise over the past five to six years remains substantial, driven by inflation, material costs, and labor expenses. This creates challenges for large projects, which can take a year or more for planning, a year and a half for design, and two to four years for construction, spanning a three- to five-year timeline. Projecting cost escalation over such periods is difficult, especially for phased projects where costs can rise significantly by completion, complicating financial planning and funding models. 

In Middle Tennessee’s tight labor market, competition for staff drives up wages for architects and project managers, adding to project costs. Owners, aware of rising construction costs, push to cut expenses, intensifying pressure on design and labor budgets. This dynamic, while not new, has become more prominent due to the unprecedented cost jump over the past five to six years compared to prior decades, making it a constant challenge to balance budgets and timelines in a competitive environment. 

What sectors are driving the strongest demand for your team’s services, particularly in Middle Tennessee?

Demand for healthcare projects remains strong in Nashville, a recognized healthcare hub, and we continue to see steady activity from both for-profit and not-for-profit providers. Government and education projects also show consistent need, particularly in high-growth or metropolitan areas where investments in schools deliver long-term community benefits.

In more rural communities in Middle, West, and East Tennessee, funding remains a challenge as hospitals and schools, often the largest employers in these communities, rely on county commissions to allocate limited tax dollars across facilities. While this creates hurdles for smaller projects, it also underscores the essential role Wold plays in helping leaders plan strategically and maximize every dollar. 

How are you seeing higher education clients shift their priorities?

Investments in campus infrastructure continue, particularly in higher education, driven by aging facilities and competitive pressures. Universities must allocate routine capital to update infrastructure to maintain parity with peers, especially as population growth in Middle Tennessee and beyond intensifies competition for students and staff. Modern, appealing facilities play a critical role in recruiting both employees and students, much like in healthcare, where updated facilities attract providers and patients. The appearance and functionality of these spaces often influence decisions to engage with an institution. While I’m not fully immersed in the higher education market, the demographic influx and competitive landscape suggest that facility upgrades are a key driver for organizations aiming to stand out. This mirrors healthcare’s focus on infrastructure to remain competitive in a growing region. 

What overall industry trends are top of mind for your team right now, from design innovations to shifts in supply chain or sustainability?

Artificial intelligence is dominating discussions in our market, as it likely has in your interviews. Its potential is vast, yet practical applications remain limited in architecture and engineering today. People speculate about possibilities, but real-world examples are scarce, partly because businesses guard competitive advantages and partly because the technology is still in its early stages. Despite rapid advancements, it’s challenging to fully grasp AI’s trajectory. 

For us, the focus is on exploring how AI can support design and project delivery, while also understanding its broader impact on our industry and the sectors we serve, like healthcare, education, and government. While I experiment with AI, its complexity makes it hard to predict. By next year, the landscape will likely shift dramatically, and this evolution will continue to reshape how we operate and compete. 

Your firm’s survey found that 86% of Americans believe mental health should be a top priority in designing community buildings. How is that impacting your designs?

Mental health is a significant consideration across all projects, particularly in healthcare, but it arises in every community we serve. It’s not just about addressing extreme behavioral health cases but recognizing that everyone faces mental health challenges, influenced by balancing professional and personal life. 

Internally, we prioritize open communication to support team members who feel stressed or overworked, as workplace culture directly affects mental well-being. In our projects, mental health considerations range from designing respite spaces for staff to take breaks to creating specialized units for inpatient behavioral health needs, especially in emergency departments where timely assessments can prevent harm. 

Increased awareness has highlighted the scale of the issue, affecting everyone to varying degrees. By keeping mental health at the forefront, discussing it openly, and addressing it through both design strategies and workplace practices, we aim to stay on the right path, though it remains a complex challenge to tackle effectively. 

Looking ahead, how do you envision Wold’s role evolving in Nashville and Middle Tennessee, and what will be your top priorities?

We aim to deepen our community engagement, not only in our office’s local area but across all Tennessee communities we serve, aligning with our mission to make a meaningful impact. Additionally, we prioritize team development, fostering a strong, connected culture within our office and across our company’s additional locations. 

Despite being a sizable architecture and engineering firm, we maintain a small-firm feel, a quality frequently noted by our clients and partners over the years. Preserving that unique culture, while continuing to grow and expand our impact in Middle Tennessee, will remain one of our top priorities.