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Deltek launches 41st annual state of A&E report

Deltek’s state of A&E report helps architecture, engineering, and dual-discipline firms understand the AEC business environment including KPIs.

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Deltek, a leading global provider of enterprise software and solutions for project-based businesses, lunched their 41st annual U.S. Architecture & Engineering Industry Study. The company annually produces this report in collaboration with AECO industry organizations, including the American Institute of Architects (AIA), American Council of Engineering Companies (ACEC), Society of Marketing Professional Services (SMPS), and others. 

Deltek A&E Report

The annual Deltek A&E Report covers a broad range of issues in the industry, including AEC technology, financial, business development, project management, and human capital management. Each of those issues is a major section in the five-section report, with quick glance statistics at the end.

Deltek AE Report

Deltek’s annual A&E report covers industry stats for the most recent year and useful data for helping AECO companies improve on their overall business performance.

Here’s a brief look at some sample findings from this year’s report:

  • 44% of high-performing A&E firms have a clearly defined project management process
  • Only 43% of firms had succession planning processes, posing a challenge to business continuity when new leaders are placed in roles without prior development
  • Career development plans were offered at only 29% of firms, impacting employee engagement, retention, and project delivery 

The Deltek A&E Report includes key financial performance information to help report readers to understand where their firm may compare among the data. Detailed income statements per employee indicate, for example, that architecture or A/E firms are currently generating income per employee substantially greater than engineering or E/A firms, with the former over $230,000 US per employee.

Importantly, for AEC industry firms not equipped with knowledge of what key performance indicators (KPIs) are for their industry, the Deltek A&E Report provides good examples with current data.

Current Economic Climate

Many architecture & engineering (A&E) firms reported most fiscal metrics were flat year-over-year, yet maintained strong financial performance. This compelled “increasing profitability” to be a top concern for financial management going into 2020, as well as the need to find and retain qualified staff.

Finding and retaining talented employees remains a challenge in the current client, with employee turnover averaging around 12.3% – 14%.

Deltek’s Solutions for AEC

While Deltek produces this annual report, the company is well known and well regarded in the AEC industry for its financial, management, and ERP software solutions for project-based industries like architecture, engineering, and construction (AEC).

Many architecture firms are familiar with Deltek’s Ajera software solution, which is designed for addressing the management of the entire project lifecycle. It functions for project accounting, project management, and business intelligence.

For larger AE firms Deltek Vantagepoint is a solution that offers more than Ajera, putting people and projects at the center of a firm’s business to maximize and increase profitability.

To get the Deltek Clarity A&E Report visit here.

To learn more about Deltek visit on them on the web.

Architosh Analysis and Commentary

This year’s Deltek Clarity A&E Report makes clear that firms are increasingly levering emerging technology trends. The top trend challenge is non-obviously cost. But completely equal to that challenge is knowing what emerging technology trends to prioritize. So 24% of all firms ranked cost as the top challenge with dealing with technology trends, but 24% ranked prioritization of emerging technologies (emTech) as the top challenge. 

AE firms everywhere can gain a lot of insight from subscribing to and reading Architosh’s free monthly newsletter focused on emTech in AECO. Our own data from our subscribers sheds light on where firms are most focused on emerging technologies.  [analysis written Anthony Frausto-Robledo]

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