LOCAL BUSINESS LEADERS Brad Brechwald Chief Executive Officer Wallace Group www.wallacegroup.us/ John Wallace President & Founder Wallace Group www.wallacegroup.us/ The EVC business leader interview series focuses on business leaders who are directly impacting our local economy. This month the EVC interviewed Brad Brechwald and John Wallace of WALLACE GROUP, a San Luis Obispo-based engineering firm celebrating 30 years in business. COMPANY BACKGROUND John Wallace formed John L. Wallace & Associates as a one-person, home-based business in 1984. From a small house in San Luis Obispo, California John L. Wallace & Associates has steadily grown into a multi-disciplinary engineering, design, surveying, and planning firm now known as Wallace Group. John started Wallace Group after a career in public works in both Los Angeles and San Luis Obispo Counties that spanned more than two decades. John’s extensive experience in the Los Angeles Flood Control District and as the Office Engineer of San Luis Obispo County earned his newly formed company a solid work base. He also shared his expertise as the Director of Public Works in the cities of Arroyo Grande, Pismo Beach and Atascadero. Wallace Group continues to work with these communities as well as additional community service districts along California’s Central Coast. In 2002, Wallace Group acquired Swanson International, an innovative wastewater treatment design company. Wallace Group is now an industry leader in the design and use of Advanced Integrated Pond Systems (AIPS) and other environmentally sustainable technologies for wastewater treatment. Over the years, the company has expanded to include services in Civil & Transportation Engineering, Construction Management, Landscape Architecture, Mechanical Engineering, Planning, Public Works Administration, Right-of-Way Services, Surveying/GIS Solutions, and Water Resources and employs over 50 people. The people of Wallace Group are at the heart of our success. As professionals and as contributing members of the communities we serve, we will continue to approach our work with integrity, quality and a dedication to service. _________________________________ Page 1 of 4 Mike Manchak: Congratulations, John, for celebrating your company’s 30th year anniversary. What a great achievement in any field. What inspired you to become an engineer, and become self-employed and create the company you have? John Wallace: Thanks Mike, the 30th Anniversary is a major milestone for me personally but more so for our employees and clients, many of which have been with us from the beginning. As for my early inspirations, I grew up as a kid watching space flight taking off and it was a great motivator to become an engineer. Later at the University of Florida I became fascinated with water resources and emphasized that in my studies and during my career as a civil engineer. In considering the overall engineering curriculum, civil has the broadest field of practice and therefore more career flexibility; that was attractive to me. My plan was to eventually work for myself as a private practitioner, but I first wanted to gain experience in the public sector. So I started out working for public agencies; however, I saw many situations on the other side of the counter where I felt I could help folks add value to their projects. So when I was offered a position as a consulting District Engineer for one of our local agencies, I made the move into private practice, and decided to represent both private and public clients. Mike: People often think of engineering firms being located more so in, and focusing on, larger metro areas of the state and nation. Why did you choose the central coast to grow your company? John: I worked for 12 years in Los Angeles but tried for the last five of those years to find a job in a more rural area. We had camped in SLO County for years and finally when the Office Engineer’s position opened up in the County Engineering Department, I jumped on it. I was very lucky to get the position as there were a number of applicants looking to come to SLO as well. Also, my sons were just starting school so it was a very opportune time to move. We were very excited to be moving to a wonderful environment that was a boost to our quality of life and challenging career wise. From the business perspective, SLO is a little isolated for the larger engineering companies to staff full time. I knew that by establishing our firm here, we could provide great personalized service to our clients that larger firms could not equal and at the same time, serve municipal clients more competitively than larger firms. That strategy still works today! Mike: In the ways that our society and technology have changed over time, how has your profession changed overall in the last thirty years? John: No matter how much our technology has changed and made us more productive in what we do, clients still want personalized service. Our firm is dedicated to service and creating value in what we do. When we started, plans were done by hand; today the technology is amazing and allows us to do much more with the tools and staff that we have. Obviously, the danger is to be so dependent on technology that the “obvious” is missed. We have continued through the years to apply new technology when appropriate but with a large dose of common sense and quality control. Societal changes have affected most all of our businesses. People expect instant answers to their problems and sometimes in that rush issues arise. I find that clear communication results in reasonable expectations on projects and creates a smoother collaboration. Another change Page 2 of 4 over the years is that the regulatory climate is exponentially more complex than 30 years ago, so staying current is a necessity in order to manage projects successfully. Mike: Particularly with such a prominent engineering university locally, what would you recommend to young people looking to engineering as a field of work? John: Mike, there is no substitute for working in the profession during your college studies. This not only helps support college expenses, but gives a young person a valuable perspective on the “real world”. I still use the experience I gained in my college years in my work today. I also recommend looking at different practice areas within engineering. That also helps focus your thoughts on a career and to build excitement for later work. ________________________________________________ Mike: In an area challenged with access to larger markets, what are the opportunities and challenges of an engineering firm on the central coast? Brad Brechwald: As a result of working in both the public and private sectors over the past 30 years, we have developed strong local relationships which give us the home court advantage when competing with larger outside firms. Often, clients come to us because they know we have the ability to understand their needs as well as what the local agencies require which allows us to shepherd their projects through the system more efficiently. We have worked on several projects out of State but most of our core work has been local to San Luis Obispo, Santa Barbara and Monterey Counties and we don’t have to go to LA to find interesting work. Mike: With your leadership as co-chair on the Building, Design & Construction cluster of the countywide economic strategy, what do you see locally as current and future challenges facing the region, such as infrastructure and workforce housing? Brad: The state of our infrastructure nationally is at a poor level and locally is only moderately better depending on agency’s ability to collect funds through bond measures, sales tax, finance districts or State and Federal Grants. It is so much more cost effective to maintain a road rather than to defer maintenance and have to replace it. That is the challenge local agencies face every day. But my real concern is workforce housing. Without it our economy suffers. Attracting and keeping our best and brightest minds on the central coast can only happen if they have a decent place to live. The implications and economic effects reach everyone from the pizza shop to the UPS driver. Think about how much impact one family brings to the area. They live here, buy their food, go to the movies, have their cars worked on, pay taxes and all the myriad of daily activities that stimulate these micro economies. Mike: What is your philosophy behind building the great team at Wallace? Brad: Hire good people who share our core values, give them interesting work, mentor and let them shine. We emphasize that we are a service oriented company and support a collaborative environment where employees support one another and this results in quality and excellence. Page 3 of 4 Mike: What would you like to see the central coast region do differently to help a more vital economy? Brad: We need to create incentives for businesses to want to be located in San Luis Obispo County. One of the biggest hurdles is the fact that many of the employees in these companies find it difficult to afford to live here due to housing costs. Through our efforts with the BD&C Cluster, we have presented the results of the workforce housing survey to several organizations and have been providing recommendations to local agencies on some of our findings that may help businesses work with developers and builders to move projects forward. The greatest challenge is the impact fees which are so high due to the lack of existing infrastructure. If fees cannot be reduced through infrastructure financing districts or through local sales tax revenues then additional ideas are needed. One recommendation includes deferring impact fees, where possible, to the building permit stage or occupancy which allows the developer to pay the fee at the time of actual impact. This assumes that needed infrastructure is installed to support the phase of project being completed. Mike: What motivates you personally to excel and help your team excel? Brad: I like what I do. There are many challenges in our business and I have always enjoyed providing solutions to these challenges. Besides work, my family is what matters in life and our co-workers seem to have that same philosophy. It takes very little prodding to motivate the people at Wallace Group to excel. They all are driven to be their best and to deliver their best to our clients. # # Page 4 of 4 #