If 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.
