Insights from the 44th Annual Deltek Clarity A&E Industry Study

We’re excited to share the latest findings from the recently released 44th Annual Deltek Clarity Architecture & Engineering Industry Study. This comprehensive report, conducted in collaboration with industry-leading organizations ACEC, ACEC Canada, AIA, and SMPS, provides a deep dive into the current state of the A&E industry, shedding light on key performance indicators, challenges, and future trends.

Based on a survey involving nearly 600 A&E firms in the United States and Canada, the study offers valuable benchmarks, industry-specific insights, and detailed analysis across various areas such as technology trends, business development, financial statements, project management, and human capital management.

Despite the industry facing increasing costs and talent challenges, the report reveals a continued positive performance and an optimistic outlook for the future. Let’s take a look at some of the key findings:

1. • 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.

1. • 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.

1. • 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.

1. • 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.

1. • 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.