Key Takeaways from the Latest Deltek Clarity A&E Study

Turning Insight Into Action: Key Takeaways from the Latest Deltek Clarity A&E Study

Performance is no longer determined by access to opportunity. It’s determined by the ability to execute.

Firms remain profitable and operationally capable, but softening metrics, rising costs and growing economic uncertainty are increasing pressure on how firms manage execution, decision-making and their approach to people, processes and technology.

Now in its 47th year, the Deltek Clarity A&E Industry Study is designed to help leaders understand the signals and identify opportunities for their firm to excel. It provides a data driven view of where the A&E industry stands, how peers are responding to growing constraints, and where execution gaps are most likely to surface. More importantly, it highlights where leadership focus can make the greatest difference and close the gap between strategy and results.

Big Picture: A Market in Transition

Across the data, several clear themes are emerging. Financial performance is stabilizing after several years of strong growth, while pressure to improve efficiency and protect margins is increasing. Firms are also accelerating adoption of AI and digital tools, but many are still struggling to measure the return on those investments.

At the same time, operational discipline and data-driven decision-making are becoming standard practice and shifting market conditions are intensifying competition.

Key Takeaway:

Firms that cannot translate data into faster, more confident decisions risk falling behind more disciplined competitors. Success will increasingly depend on how well firms prioritize, allocate resources, and execute, not just how much work they take on.

Technology Trends: Acceleration Without Full Clarity

Technology continues to evolve rapidly across the A&E industry, with generative AI emerging as a major force for change. Gen AI adoption is rising quickly with 78% of firms now reporting their firm is using it, but many are still working to translate that momentum into meaningful business impact. While some organizations are seeing efficiency gains, connecting those improvements to clear ROI remains a challenge.

At the same time, pressure to modernize is increasing. Firms recognize that falling behind in digital transformation could affect their competitive position, especially as cybersecurity risks continue to grow.

Taken together, these trends highlight a critical shift: technology adoption is not enough. Firms that align AI with clear business objectives and build a solid digital foundation will be best positioned to achieve ROI.

Key Takeaway:

Investing in AI and digital tools without a clear path to measurable outcomes can create cost without competitive advantage. Firms that define use cases, track performance, and embed technology into core workflows will be better positioned to turn innovation into real business impact.

Project Management: Balancing Complexity and Performance

Project management remains a central focus for A&E firms, but increasing complexity is putting added pressure on performance. Many firms report that project managers continue to struggle with balancing multiple responsibilities, stretching both time and resources.

While cost control remains relatively strong—with 75% of projects on or under budget—schedule performance continues to lag, with 40% of projects falling behind.

At the same time, shifts in backlog levels point to potential changes in demand and pipeline consistency, reinforcing the need for careful resource planning. Overall, firms are strong in areas like client relationships and scope definition, but challenges in scheduling and coordination are impacting outcomes.

Key Takeaway:

Limited visibility into schedules, resources, and performance can quietly erode profitability and client satisfaction. Firms that give project managers real-time insight and better coordination tools will reduce risk, improve delivery timelines, and drive more consistent outcomes.

Financial Trends: Strong, But Under Pressure

Financial performance across the industry remains solid, but signs of margin pressure are emerging. Operating profit on net revenue stands at 16.7%, signaling continued strength even as performance begins to normalize.

Other indicators suggest firms are navigating tighter conditions, with challenges in fully leveraging resources, tighter margins and increased labor costs. In response, priorities are shifting, profitability has become a top concern as firms contend with rising costs and increased pressure on the bottom line.

Key Takeaway:

As margins tighten, incremental inefficiencies will have a greater impact on profitability. Firms that lack clear financial visibility or control over project performance may see margins slip faster than expected, while those that optimize operations can maintain or improve performance even in a more constrained environment.

Human Capital Management: Powering Firm Potential

People remain a critical driver of performance in the A&E industry, but workforce pressures persist. Employee turnover has climbed to 13.8%, signaling ongoing challenges in retaining talent.

At the same time, firms are taking a more measured approach to hiring while navigating shifting workforce dynamics. Expectations are also evolving, with greater emphasis on broader skill sets beyond technical expertise.

As a result, leaders are placing increased focus on building resilient teams through improved workforce planning and development.

Key Takeaway:

Workforce challenges are no longer just about hiring—they are about alignment and productivity. Firms that fail to develop the right mix of technical, managerial, and digital skills risk limiting their ability to execute, while those that invest in adaptable, well-aligned teams will gain a competitive edge.

Business Development: Growth Amid Uncertainty

Business development remains a key driver of growth, but firms are navigating a more competitive landscape. Net revenue is projected to grow by 9.5%, reflecting steady, if slightly moderated, expectations.

At the same time, securing new work is becoming more challenging, with more firms competing for a smaller share of available opportunities despite increasing the volume of project proposals. Client concentration continues to be a factor, highlighting both the strength—and potential risk—of key relationships.

Looking ahead, to ensure success, firms will need a more deliberate, structured pursuit strategy.

Key Takeway:

Pursuing more opportunities is no longer a reliable path to growth. Firms that continue to increase proposal volume without improving strategy may see diminishing returns, while those that focus on the right opportunities and relationships will drive more efficient profitable growth.

What It All Means for Your Firm

Taken together, the findings point to an industry that is becoming more disciplined, more data-driven, and more competitive.

For many firms, the challenge is no longer identifying opportunities, but executing with the consistency and precision needed to deliver results. The firms that will outperform are those that can align strategy, technology, and talent into a clear, measurable path forward.

Go Deeper with the Full Deltek Clarity A&E Study

What you’re seeing here is just the surface.

The full Deltek Clarity A&E Industry Study goes further, helping you understand where your firm stands, where performance gaps may be emerging, and how leading firms are adapting to stay ahead.

Download the full report to:

• See how your firm compares to peers across key performance metrics
• Identify where you may be losing efficiency, margin, or opportunity
• Understand what top-performing firms are doing differently
• Turn industry trends into a more focused, data-driven strategy

The insights are clear. The next move is yours.