Although there is still a significant amount of uncertainty surrounding the country’s economic recovery, industry executives are optimistic about 2013.
With expected increases in revenue, gross margins and headcount for 2013, A&E firms are seeing signs of improvement, according to the 2013 A&E Market Outlook Survey Results produced by Zetlin & De Chiara & Grassi & Co.
The two companies conducted a survey of architecture and engineering executives to collect information regarding current market dynamics and trends and to then provide the results as a market intelligence tool and resource to those in the industry.
The survey found that 50% of executives predict that a full A&E market recovery will take place in 2014.
71% of the executives surveyed reported that their revenues are expected to be higher in 2013 than they were in 2012, while less than 10% reported they expect their revenues to decrease from 2012.
More than 75% of respondents said they expect their headcount to increase in 2013, specifically at the professional and general administrative levels.
Half of the executives believe an verall A&E market recovery will not occur until 2014.
More than 50% of the respondents anticipated their 2012 internal revenue growth to be 10% or greater.
Expansion of business offerings and expansion of geographical reach were recorded by a majority of executives to be primary business strategies that were a focus in 2012 and will continue to be a focus in 2013.
A significant number of the respondents indicated that their top business goals for 2013 and 2014 include increasing profitability, containing costs,hiring key staff and improving A/R collections.
More than 60% of executives reported that they are looking to invest in business and infrastructure as well as design (BIM and modeling integration)technology in 2013.
The survey results were released at “The A&E Market Outlook Briefing: Planning for 2013 and Beyond” on April 2 at the Center for Architecture, an event co-hosted by Grassi & Co. and Zetlin & De Chiara LLP, where a panel of industry executives shared perspectives on the current and future state of the A&E market.