Woburn, MA October 31, 2016— DiCicco, Gulman & Company LLP (DGC), a CPA and business advisory firm specializing in services to the architecture and engineering (A&E) industry, has released its 2016 Architectural Study and 2016 Engineering Report.
The Architectural Study and the Engineering Report are effective tools to benchmark a firm’s performance relative to industry averages. Firm leaders can also use these publications to identify strengths and weaknesses, to implement best practices, and to make more informed decisions about a firm’s financial and operational goals. The data includes firm billing rates, labor costs, overhead rates, and other key metrics that provide insight into profitability, staffing levels and how firms are managing the ups and downs of the economic cycle.
“The good news is the majority of architecture and engineering firms saw their top and bottom lines grow during 2015, marking six years of recovery since the great recession,” said David Sullivan, Partner and Co-leader of the A&E practice at DGC.
Profitability in 2015 for architecture firms dipped from 11.3% last year to 10.5%, while engineering firms experienced an increase from 10.8% to 12.4%. Results also revealed that attracting and retaining talent was a significant challenge for A&E firms in 2015 and continues into 2016. The average turnover rate was 15%, (up from 11% in 2014). The competition for talent has put upward pressure on wages which must be recovered to maintain healthy profit margins. Other market forces such as the commoditization of certain design services, intense competition for projects, and increased levels of standard of care are all factors that make balancing fee increases with rising labor costs a major challenge for firms.
“Overall, results of this year’s survey show that A&E firms reached target benchmarks in most areas, and had another positive year. We appreciate the participation by our clients in these studies, and the opportunity to continue to provide resources to help clients make informed decisions,” said Chad DaGraca, Partner and Co-leader of the A&E Practice at DGC.
To learn more and to download your copies of the 2016 Architectural Study and the 2016 Engineering Report, visit dgccpa.com/AEstudies2016.
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About DiCicco, Gulman & Company LLP
DiCicco, Gulman & Company LLP (DGC) is a CPA and business advisory firm with a dedicated A&E Practice. DGC specializes in services for privately held companies and high net worth individuals. Our depth of experience and industry expertise enable us to suggest new approaches and offer proactive, innovative solutions. As an independently owned firm we are nimble and focused on our clients’ needs—solutions are customized for each client. Through our offices in Boston and Woburn, Massachusetts, our team of over 125 collaborates with clients to understand their objectives, and position them for the future. For more information please visit http://www.dgccpa.com or call Katherine Freund at 781-937-5130.
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