High-performing (HP) firms manage well, they have a loyal client base, and their leaders strive for sustainable success. Moreover, these firms monitor and measure performance, keeping their eye on key results.
According to PSMJ's 2016 A/E Financial Performance Benchmark Survey, HP firms report nearly twice the profit, 30.1 percent on net revenues, compared to the overall industry (a median profit of 16.2 percent in 2016). HP firm’s processes, systems, and practices lead to a level of profitability that allows them the ability to compensate staff to a level that average firms are just not able to reach. And compensation is only part of the story. These firms are able—simply put— to provide new opportunities for staff and new hires.
WHERE WE STAND
Let’s look at the latest numbers to see how much improvement the industry actually experienced in 2015 (see figure above). The overall results for the industry are very encouraging! Net revenues per staff are up, profit is up, overhead costs are down, and staff growth was positive. Yet, when we examine HP firms, the achievements are even better:
• Significantly higher net revenue
- Nearly $20,000 more per total staff
- Nearly $10 more per direct labor hour
• Overhead rate is nearly 23 percent lower than the industry median
• Growth in revenue, more than double the median at 22 percent
• Growth in staff, more than double the median at over 11 percent
For both groups, revenues and profits are continuing to rise faster than expenses and labor costs, while still experiencing growth, which is great news. We are looking forward the results of the 2017 A/E Financial Performance Benchmark Survey too see how architecture and engineering firms are performing today.
PARTICIPATE AND SAVE!
OUR 2017 A/E Financial Performance Benchmark Survey is open for participation.
Click the image below to learn more about the survey, download the questionnaire, and add the deadline to your calendar.
Why Participate?
Here are just a few great reasons to participate in PSMJ’s A/E Financial Performance Benchmark Survey:
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Your participation provides vital information for the entire industry. Only with your help will we be able to share the most current, accurate, and significant benchmarking data for 2017.
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This is the only way to enter into the running for the 2017 Circle of Excellence.
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For participating, you’ll receive a complimentary PSMJ Personalized© Benchmark Tool for your firm — we’ve already done all the work for you! You can compare your firm’s results to a wide range of peer groups with a click of your mouse!
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Participate and receive 40% off the retail price the 2017 Benchmark Survey(s) that you participate in.
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Opt-in here for survey participation updates, announcements, and more.
Learn more about benchmarking by checking out our free webinar series here.
For more details on participating in A/E Financial Performance Benchmark Survey, click on the icons above or the link below.
