Engineers’ Rx for Taming Rising Costs: ‘Consumerism’ and Activism
Recent studies reflect how the cost crisis is becoming a key boardroom issue for design firm managers. EFCG Inc., a New York City-based financial consultant to mostly engineering firms, says that 80 CFOs it surveyed last spring report the average cost of individual employee health care insurance coverage at $4,200, up from $3,500 in 2003. Employee family coverage now is $10,800, up from $9,300.
"Those are whoppingly big increases when you think that engineers profitability is only between 7 and 10%," says firm President Paul Zofnass. "Medical costs are growing at twice the speed of revenue." Employers also did not shift more cost to employees, the survey points out.