PSMJ Benchmarking, Financial, and Industry Trends

Posted by Shari Gardner on July 3, 2014

erp

A Synopsis of PSMJ Kate Allen’s Presentation at the Axium Training Workshop

One of the special guest speakers for the Axium Training Workshop Executive Roundtable session was Kate Allen, PSMJ Director of Industry Surveys.  Kate has been with PSMJ since 2005 and is well known in the A&E industry.

Kate’s presentation covered three key topics:

  1. Five Simple Steps of Benchmarking
  2. Conclusions from PSMJ’s 2014 Financial Performance Survey
  3. Industry Trends – PSMJ Quarterly Market Trends Report

In the first section, Kate provided an overview of PSMJ’s benchmarking survey program and the 5 key steps for benchmarking your firm.  For more than 30 years, PSMJ has been a resource for industry benchmarking data and tools.

The second section, the 2014 Financial Performance Benchmark Survey, reviewed what has happened in terms of some of the key A&E financial metrics (overhead rates, target multipliers, chargeability and gross revenues). The good news is revenue continues to grow, firms are hiring again, overhead rates are declining and profitability is up substantially.

The last section of Kate’s presentation, the Quarterly Market Trends Report, reviewed the impact of the Great Recession on the A&E market and what’s happening now. Overall, it was a positive picture; the private sector construction and commercial markets are beginning to pick up, and we’ve had 13 consecutive quarters of increasing A&E firm revenues since 2009.  The two critical market drivers for the A&E industry, energy/utilities and housing, are looking good as well.  Lastly, since the U.S. is becoming a low cost manufacturing country, we can expect to see a significant amount of manufacturing return to the U.S.

These are just some of the highlights of Kate’s presentation. For more detail or to see the actual reports, visit PSMJ’s Survey and Research tab on PSMJ’s website.