Operating statistics survey reveals strong A/E market

October 2006 » Business Briefs
The 2006 Operating Statistics Survey for the Project-Focused Professional Services Firm reports a strong market period for project-focused architecture/engineering (A/E) and professional services firms, with upswings in key financial metrics. Net revenues and profits per employee, net multipliers, and net profit before taxes -- three primary indicators of the health of the market -- exceed, or are very near to, the highest levels ever recorded in the 20 years the survey has been conducted.
Deltek, a provider of enterprise management software for project-focused organizations, announced the release of its 2006 Operating Statistics Survey for the Project-Focused Professional Services Firm. The survey reports a strong market period for project-focused architecture/engineering (A/E) and professional services firms, based on information from more than 500 respondents across the industry.

According to Deltek, the 2006 survey findings, covering calendar year 2005, demonstrate the robust market conditions for professional services firms, with upswings in key financial metrics. Net revenues and profits per employee, net multipliers, and net profit before taxes-three primary indicators of the health of the market-exceed, or are very near to, the highest levels ever recorded in the 20 years the survey has been conducted. Indicative of the market growth, the number of firms describing themselves as "rapidly growing" has increased by more than 12 percent compared with the previous three years in the survey.

Profits on net revenues before taxes have also increased by nearly 14 percent compared with the previous survey year. Deltek's analysis indicates that with a higher demand for services, A/E and professional services firms are able to bid their project work at a higher dollar value and, at the same time, be more selective in pursuing those projects with a higher return on investment.

To order a copy of the comprehensive survey report, including an executive overview and comparisons to data from past years, call 800-779-4632, Ext. 0.

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