July 6, 2017 (Newton, Mass.)—PSMJ Resources, Inc., the worldwide leader for business information, training, and consulting for the architecture and engineering (A/E) industry, finds that design firms increased gross revenues by 9% in 2016, the highest rate of increase since The Great Recession, according to its just-published 2017 A/E Financial Performance Benchmark Survey Report. However, operating profits (before discretionary bonuses and taxes) decreased from an all-time high of 16.2% in 2016 to 15.0% this year.
“It is certainly encouraging to see gross revenues trending upward,” says PSMJ’s Senior Principal Dave Burstein, P.E. “This increase reflects a strong North American economy.” Burstein’s analysis of the data reveals that the dip in profitability resulted from an increase in projects running over budget and failure to obtain more fees for additional scope. “Firm leaders must put an even greater emphasis on project management and talent development. When A/E firms are busy and growing, and good talent is in short supply, there is a tendency for project quality and overall efficiency to suffer. That shows up as lower profits on the income statement.” Burstein says.
With data from 360 A/E firms across the United States and Canada, the 2017 PSMJ A/E Financial Performance Benchmark Survey Report is the go-to industry resource for A/E firm leaders to see exactly how their firm matches up to the industry on dozens of financial and operating key performance indicators. Now in its 37th edition, the comprehensive report provides the most robust research and insight available for making critical decisions that impact the success of an architecture or engineering firm.
PSMJ’s 2017 PSMJ A/E Financial Performance Benchmark Survey Report is available individually or as part of a survey bundle here.
About PSMJ: For more than 40 years, PSMJ Resources, Inc. has been recognized as the world’s leading authority, publisher, and consultant on the effective management of architecture, engineering, and construction firms. With offices in the United States as well as the United Kingdom and Australia, PSMJ offers over 150 titles in book, audio, and video format. In addition, the company publishes a monthly periodical and delivers dozens of seminars, roundtables, conferences, webinars, and in-house training sessions every year for A/E professionals around the world. PSMJ’s sought-after consulting expertise covers a range of critical business areas such as strategic planning, project management, valuation, succession planning, and mergers & acquisitions.
For additional information please contact:
Gregory Hart
PSMJ Resources, Inc.
10 Midland Avenue
Newton, MA 02458
617-965-0055
www.psmj.com