Hey, it’s Collin. Welcome to Engineering Echelons, a newsletter full of ideas and insights to help engineers excel at management.

Here’s what I’ve got for you this week.

• New and noteworthy news

• A management perspective to consider

• Leadership insights to delve into

• And more…

First time reading? You can subscribe here.

Alright, let’s get into it.

Noteworthy Headlines

February 2026 ABI (AIA)

Highlights:

• Architectural Billings Index still shows softness, with a composite reading of 49.4.

Manufacturing confidence rebounds in face of global volatility (Chief Executive)

Highlights:

• Current business conditions are rated at a 5.7 out of 10, an increase of ~4%

Construction input prices surged in February (ABC)

Highlights:

• Construction input prices increased 1.3% in February compared to the previous month.

• Overall construction input prices are 3.1% higher than one year ago.

• All three energy categories (natural gas, unprocessed energy materials, and crude petroleum) were all up in February.

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Management Perspective

It’s very common for people to think in nominal terms—and for good reason. Nominal numbers are straightforward. For example, if you make an investment and it returns 20% after a year, your nominal return is 20%.

But if inflation was 6%, your real return is 14%.

Real thinking requires a point of comparison. It’s harder, and, therefore, less common. However, it provides a clearer understanding of reality.

I believe this way of thinking can be applied elsewhere.

One such place is project delivery.

There are tons of metrics surrounding project delivery. Percent complete, scope creep, burn rates, profit margin, days outstanding accounts receivable, client satisfaction, and so on.

Project delivery teams endeavor to improve on these metrics with every project. And because so many of these metrics are quantitative, it’s easy to track changes over time.

However, the changes are typically in nominal terms.

For example, if the industry improved accounts receivable collection by 5% and your firm improved by 6%, your real rate of improvement is 1%.

If your company’s net promoter score increased by four points, but your competitors averaged a six-point increase, then your company notched a negative two-point real change.

For managers, the benchmark question then becomes: Compared to what?

Compared to last year’s performance? To industry averages? To the firms you’re competing against for the same clients?

The answer will vary by metric. And they should be used in conjunction with actual numbers, not just the change.

Thinking in this extra dimension separates high-performing managers from average ones.

Management Insights

Sam Zell (investor) on seeking simplicity:

“In addition to looking at worst-case scenarios, I look at how hard something is to execute. The simpler the goals and the steps to reach them, the more likely I’ll be successful. And if they aren’t simple to begin with, I look at how I can untangle the complexities.”

—

L. David Marquet (former Navy submarine captain) on taking care of your people:

“Taking care of your people does not mean protecting them from the consequences of their own behavior. That’s the path to irresponsibility. What it does mean is giving them every available tool and advantage to achieve their aims in life, beyond the specifics of the job.”

—

Jocko Willink (former Navy SEAL) on how relationships are a key part of leadership:

“Leadership requires relationships; good relationships with people above you, below you, and beside you in the chain of command are critical for a strong team. The better the relationships, the more open and effective communication there is, the stronger the team will be.”

Management Resource

Productive individuals don’t make productive firms (X)

In theory, AI has made individuals 10x more productive. But no company is 10x more productive. This article explores why.

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• Let me know if you’ve found something worth sharing.

• Let me know what challenges you’re having as a manager.

• Let me know what challenges you see other managers having.

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Looking forward to hearing from you. See you next time.

Collin

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