Architecture & Engineering Firms

Deltek Clarity A&E Industry Study Insights

Posted on July 6, 2023 by

Kevin Johns

Kevin Johns

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A&E Industry InsightsIf you’re interested in learning about the latest opportunities, challenges and trends impacting the A&E industry, check out the 44th annual Deltek Clarity Architecture & Engineering Industry Study. The report includes responses from nearly 600 A&E firms from the US and Canada. Although many firms continue to face increasing costs and talent issues, most report positive performance. Learn more about the survey and key findings here:

Balancing Growth and Market Realities

  • Firms anticipate net revenue growth of 10.2% in 2023, down from 17.6% in the previous year.
  • Operating profit on net revenue has witnessed a significant increase of 5.6 percentage points year-over-year.

Technology as a Transformative Factor

  • A&E firms are placing great emphasis on digital transformation, with 82% expecting to reach the “advanced or mature” stages within the next five years, a notable increase from 69% in the previous year.
  • Two-thirds of respondents prioritize strategic technology implementation plans, aligning business strategies with IT plans.

Cybersecurity and IT Infrastructure Challenges

  • Cybersecurity ranks as the top concern for over one-third of A&E firms.
  • Implementing new security policies and procedures is identified as a priority in addressing IT operational challenges.
  • One-third of firms face difficulties migrating operations to the cloud or managing existing legacy systems.

Staffing and Talent Retention

  • Staff growth has doubled year-over-year, yet staffing shortages persist as the number one challenge for A&E firms over the next three years.
  • Candidate competition is identified as a concern for attracting and retaining talent.

Strategic Pursuit Planning for Strong Forecasts

  • Firms expect a 10% growth forecast for 2023, following a successful financial year.
  • Selectivity in project pursuit based on capacity and profitability is becoming crucial.
  • Nurturing client relationships proves to be a top challenge in pursuing continued success.

Megan Miller, Director of Product Marketing at Deltek, emphasized the need for process improvement, visibility, and collaboration to position A&E firms for success in the coming year. Learn more about this insightful study and its implications for the A&E industry!

Access the full Study for a deeper understanding of the industry’s performance and trends.

*This article was originally published on the Rhodium Digital website.

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Kevin Johns

Shareholder, Architecture & Engineering

Kevin leads the firm's architecture & engineering group, helping entrepreneurial owners build a better blueprint for growth.

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