Deltek Releases 43rd Annual Architectural and Engineering Industry Study Deltek Clarity Reveals Strong Outlook Despite Talent Crisis
Survey results suggest A&E companies are adapting after a reactive year to be more strategic and focused in projects and how they run their business
HERNDON, Virginia., May 19, 2022 /PRNewswire/ — DeltekCommentthe world’s leading provider of software and solutions for project-based businesses, unveiled the Results of the 43rd Annual Deltek Clarity Industry Study for architectural and engineering firms. The findings, based on a survey of nearly 550 A&E companies in United States and Canadaidentify key challenges affecting the industry, as well as highlight positives and forecast future trends.
Produced in collaboration with AICC, AICC Canada, AIAand SMPSThe Clarity study serves as a benchmarking tool to help companies understand the state of the A&E industry and provides in-depth insight and analysis of technology trends, business development, financial statements, management of project and human capital management.
The report found that filling gaps in personnel and technology will be needed to complete projects. Companies are very optimistic about pipelines and have large backlogs, but rising labor costs are impacting financial performance. Companies need to be more strategic in the projects they pursue while looking for opportunities to automate internal business processes through technology to achieve aggressive growth targets and remain profitable. Key findings include:
- Companies are optimistic about the pipeline, but need to be strategic about their business. Companies are very optimistic about revenue growth projections with growth expected at 17% over the previous year. This will force companies to be more strategic and resolute in pursuing their projects
- Filling the staffing gap by leveraging technology will be critical to the success of the project. To address short-term labor challenges, companies will need to invest strategically and in a targeted manner. Companies cannot simply fill all positions overnight and although 43% of companies identified hiring more staff as one of their top initiatives, companies will also need to look for efficiencies through to technology so that we can complete more projects with current staff.
- Businesses must continue to leverage technology to reduce manual and time-consuming tasks. As companies struggle to meet short-term workforce challenges, technology can help improve efficiency in all areas of the business. Businesses report that operations management and accounting and finance are still the most dependent on manual data entry and spreadsheets.
- Financial stability threatened by rising labor costs. While companies report an average backlog of nearly nine months, overall financial performance is down, impacted primarily by rising labor costs. Most companies are looking to PM training and business process improvement to meet financial challenges over the next three years.
“While the previous year presented many challenges for architecture and engineering firms, companies are very optimistic about the year ahead and are preparing for a more proactive and productive year. The Deltek Clarity report highlights the talent crisis affecting all areas of the business with increased turnover and the majority of companies citing more vacancies than last year.In addition, respondents face a technology dichotomy: businesses need to keep pace with technology trends and continue their digital journey, however, lack of time can be a major challenge to get there.The main themes we saw in this year’s report are the staffing issues, the need for business process automation, managing a strong backlog and pipeline, and leveraging technology to drive re a positive change,” said Megan MillerProduct Marketing Director at Deltek.
Better software means better projects. Deltek is the world’s leading provider of enterprise software and information solutions for project-based businesses. More than 30,000 organizations and millions of users in more than 80 countries around the world trust Deltek for superior levels of project intelligence, management and collaboration. Our industry-focused expertise fuels project success by helping companies achieve performance that maximizes productivity and revenue. www.deltek.com