Architecture & Engineering
Industry Study

Architecture & Engineering
Industry Study

37TH Annual Comprehensive Report • 2016

Read More

This study provides the industry’s most comprehensive resource on financial performance and market outlook for A&E firms.

Tell Us About Yourself

What type of Firm do you represent?

small firm
(1–50 employees)

mid-sized firm
(51–250 employees)

large firm
(251+ employees)

You Represent a Small Firm!

See How others answered the same question:

Over

600 

Firms
Participated

to nearly 100 questions

small firms (1–50 employees) - 45.0%
mid-sized firms (51–250 employees) - 45.8%
large firms (251+ employees) - 9.2%

Back

You Represent a Mid-Sized Firm!

See How others answered the same question:

Over

600 

Firms
Participated

to nearly 100 questions

small firms (1–50 employees) - 45.0%
mid-sized firms (51–250 employees) - 45.8%
large firms (251+ employees) - 9.2%

Back

You Represent a Large Firm!

See How others answered the same question:

Over

600 

Firms
Participated

to nearly 100 questions

small firms (1–50 employees) - 45.0%
mid-sized firms (51–250 employees) - 45.8%
large firms (251+ employees) - 9.2%

Back

27.2%

Architecture
or A/E firms

62%

Engineering
or E/A firms

10%

Other 
firms

Financial metrics continue to stabilize, but A&E firms remain challenges by growing competition in the marketplace.

Finance

Financial Metrics Continue to Stabilize

Operating Profit on Net Revenue 
+1.0 YoY

28.3% for High
Performing Firms

Average Collection Period 
-2 YoY

72 Days for High
Performing Firms

Net Revenue / Employee 
+$9,353 YoY

$159,444 for High
Performing Firms

Utilization Rate 
+0.9 YoY

65% for High Performing Firms

Overhead Rate 

-4.8 YoY

YoY = Year over Year

Project Management

Firms experience dip in core project management metrics

Hover over each icon to learn more

% of Projects on Budget

70%

Firms reported that 70% of projects are currently on or under budget, a 5% drop from last year.

Project Status Reporting

53%

53% of firms say confidence in the accuracy of project status reporting is high or very high, up from last year.

PM Maturity

7%

Just 7% of firms say their PM discipline is very mature, down 6% from last year.

Top KPIs

3

The top three project management KPIs include profitability (95%), multipliers (84%) and average collection period (78%).

Business Development

Increasing Competition, Decreasing Relationship-Building Time

#1 Challenge for 2016:
Increased Competition

No. of firms with a formal Go/No Go process is...

70%

Test Your Knowledge

What do you think is the average win rate for Firms?

40-50%

60-70%

80-90%

CORRECT!

the Average Win Rate is...

45%

Back

Good guess, but…

The Average Win Rate is...

45%

Back

Predicted Hottest Markets for 2017:
Healthcare and Water, Wastewater, Storm Water

Top 3

Sources of
Opportunity

Client Relationships

Business Development Staff

Teaming Partners

Talent Management

The War for Talent is Heating Up

13.3% employee
turnover driven primarily by voluntary departures.

59% of firms
have the same number of open positions as last year.

70% of firms
rank talent acquisition as one of their top three most expensive HR processes.

Top HR challenges
include: performance management and succession/career development planning.

Test Your Knowledge

What % of firms have a formal succession plan in place for key leadership positions?

Greater than 36%
of firms

25%-35%
of firms

16% - 25%
of firms

Less than 15%
of firms

You Selected Greater than 36% of firms

See the results:

39%

Do not have a formal succession plan

30%

Have a formal succession plan for a select few employees

15%

Have a formal succession plan for some employees

16%

Have a formal succession plan for few employees
No Plan

39%

For a select few

30%

For some

15%

For all

16%

Back

You Selected 25%-35% of firms.

See the results:

No Plan

39%

For a select few

30%

For some

15%

For all

16%

39%

Do not have a formal succession plan

30%

Have a formal succession plan for a select few employees

15%

Have a formal succession plan for some employees

16%

Have a formal succession plan for all few employees

Back

You Selected 16%-25% of firms.

See the results:

No Plan

39%

For a select few

30%

For some

15%

For all

16%

39%

Do not have a formal succession plan

30%

Have a formal succession plan for a select few employees

15%

Have a formal succession plan for some employees

16%

Have a formal succession plan for all few employees

Back

You Selected less than 15% of firms.

See the results:

No Plan

39%

For a select few

30%

For some

15%

For all

16%

39%

Do not have a formal succession plan

30%

Have a formal succession plan for a select few employees

15%

Have a formal succession plan for some employees

16%

Have a formal succession plan for all few employees

Back

Want to Know More?

Download the full report to learn more, including performance benchmarks and historical analysis of A&E trends. See how your company stacks up and gain insight on strategies you can use to enhance performance.