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Are Demographics Destiny?
The pension crisis and its attendant political infighting greatly affects the state’s economic
prospects and are daily staples in the news. Demographic changes are given less attention, but
one can argue that they are more revealing of trends which will have a greater long term effect on
our firm. Last month, the Western Interstate Commission for Higher Education published a report
entitled “Knocking at the College Door.” The centerpiece of the report is statistical information
documenting and projecting the number of high school graduates – nationally, by region, and by
individual state. This statistic is of interest to FGM because it has applicability to three of our practice
areas, reflecting student enrollment trends in PK-12 and Higher Ed and the more general population
changes which have an effect on our Municipal practice. A snapshot of the much more detailed
report, focused on the nationwide, regional and Midwest trends, is shown below:

The ten-year period captured above shows a national increase in the number of high school
graduates, but an overall decrease in the Midwest, with Illinois being one of the three states
contributing to the decline. With Missouri showing growth, the decision to open a St. Louis office is
validated, however, one notices the Missouri numbers are only about half of the Illinois numbers.
The 7% projected growth in the South, home to the most graduates, is also of interest.

As we seek to build upon the strengths of our current practice areas, demographic information
such as this, in concert with other considerations, informs our Geographic Expansion initiative.

Short Takes
Difficult times require difficult decisions, and, in July 2016, Shelley Simon, our Higher Ed Principal in
the Southern Region, left FGM as part of a layoff. With the St. Louis/Missouri market difficult to crack
and limited project opportunities foreseen, we determined stepping back from our proactive
business development in the SO Region was necessary. Our current plan includes calling upon a
portion of Steve Raskin’s time for limited proactive BD efforts and follow-up on any desirable RFQs or
RFPs.

Although we exceeded our sales goal for FY 2016, our net revenue was sluggish as projects went on
hold or were slowed down by our clients. As has been the case in the last five years, our profitability