PKF O’Connor Davies Publishes 20th Annual Architectural and Engineering Studies
Reports provide industry benchmarking data, trends and insights impacting firm profitability and productivity
PKF O’Connor Davies, one of the nation’s largest accounting, tax and advisory practices, today announced the release of its 20th Annual Architectural and Engineering Studies. Based on 2023 financial and operational data provided by a sample of participating architectural and engineering (A&E) firms, the studies reflect the state of the industry and enable firms to benchmark their performance against others as they seek ongoing profitability and growth.
For the first time, the studies provide a historical perspective, highlighting key milestones and industry trends that have shaped the A&E landscape over the past two decades. They also include firms’ current and future use of artificial intelligence, and expert insights on emerging trends. The studies present several key takeaways for the A&E industry, including:
- During 2023, profit as a percentage of net fee income reached its highest level in the past five years.
- Firms’ billing multiple increased slightly as they continued their focus on project management efficiencies.
- Firms’ breakeven multiple and overhead rate continued their upward trend, driven by increases in indirect labor, employee and fringe benefits, and computer and IT investments.
- Raises as a percentage of base compensation remain higher than historical averages, despite a year-over-year decrease.
“We are excited to release the 20th anniversary edition of the Architectural and Engineering Studies prepared by our dedicated team of industry specialists. These studies have provided valuable insights to the A&E industry and allowed firms to benchmark their results so they may assess their performance in order to continue to grow and improve profitability” said David M. Sullivan, Jr., Partner and Leader of the Architecture & Engineering Practice at PKF O’Connor Davies. “The A&E industry is going through a period of unprecedented changes. To fully capitalize on future opportunities, it’s crucial for industry leaders to have a strong understanding of industry trends.”
To access the 20th Annual Architectural and Engineering Studies, visit the following links: Architectural Study and/or Engineering Study.