Forward-thinking leaders will start planning for the next recession.
July 24, 2018 (Newton, MA)—PSMJ Resources, Inc., the worldwide leader for business information, training, and consulting for the architecture and engineering (A/E) industry, finds that median A/E firm profits reached 15.9% in 2017, the second-highest level in decades.
According to the recently published 2018 A/E Financial Performance Benchmark Survey Report, the highest median profit margin since 1994 was recorded in 2016 at only a shade higher—16.2%.
“The A/E industry in North America continues to fire on all cylinders, and this survey data is another indicator of this,” says PSMJ founder and CEO Frank A. Stasiowski, FAIA. “Of course, we all know that demand for architecture and engineering services follows a boom/bust economic cycle. While it may seem counterintuitive, this is the time to start planning for the ‘bust’ period that will certainly come at some point. When firm leaders get busy on projects, they often take their focus away from initiatives that are critical to long-term growth and success, such as ownership transition planning, business development, and strategic planning…and these are the firms that get hit hardest when market conditions shift. The need for good business strategy doesn’t go away in a good economy!” Stasiowski says.
With data from 361 A/E firms across the United States and Canada, the 2018 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 38th edition, the comprehensive report provides the most robust research and insight available for making critical decisions that affect the success of an architecture or engineering firm.
PSMJ’s 2018 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 more than 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:
PSMJ Resources, Inc.
10 Midland Avenue
Newton, MA 02458