How to Increase Productivity and Profit During Uncertain Times

Posted by Deltek on November 6, 2019

European a and e firms

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The Architecture and Engineering (A&E) market is dynamic and has always seen positive change. As new design trends emerge, such as BIM, Digital Twins and Green Architecture, as well as efforts to reduce the problems associated with environmental disasters, the A&E market will continue to remain vibrant.

However, the industry has never been known as one of the faster-growing Professional Services markets. While it shows some positive signs in terms of profitability and growth, there are a number of underlining issues, such as employee attrition, smaller projects, lower billable utilisation and higher project overrun, which could impact the industry’s future development.

The 2019 Professional Services Maturity™ Benchmark report produced by Service Performance Insight (SPI), observed the European A&E market against its North American counterparts, identifying a significant number of differences and potential improvements.


 

SPI Maturity™ Benchmark Report


Benchmark your A&E firm against other European firms.


Download Report

 

Change = Growth

SPI suggests that over the past five-years, European firms have lagged behind North American firms in terms of growth and profitability. Regardless of the reported organisational size advantage, European revenue is growing at a mere 1% year on year, compared with the significant 5% growth experienced by US firms.

Service delivery is another critical area where Europe lags. With firms having sold smaller projects and delivered projects on-time less frequently than in North America, as well as operating at over 10% less project margin.

Despite this however, European firms do appear to be managing employee attrition far more effectively and delivering services with higher levels of billable utilisation than their American counterparts. The market is making steps towards positive growth, with many complex projects in pipeline to maintain Europe’s vast architectural history, as well as blend in with modern day buildings.

In order to become world-class however, SPI suggests that each firm must analyse their operational procedures and processes, and work to improve in all areas of their business. This task won't be easy, but the right information backbone, increased visibility and automation, will drive these organisations to their highest levels. Read the full research and recommendations here.

European ae firms

Information Is Both Power And Profit

A sophisticated and integrated information infrastructure is paramount to success in A&E according to SPI, with European firms embracing information technology more than other regions of the world.

Integrated Customer Relationship Management (CRM) and Professional Services Automation (PSA) provide the necessary automation and visibility for businesses to perform at their highest level. They enable greater collaboration among the different organisational units, which will make the firms more productive and profitable in the large, complex and exciting projects that help define the industry.

Deltek Professional Services Automation – The One Source Of Truth

The complexity in the architecture, engineering and construction of national infrastructure and the length of time required to complete major projects, mandates sophisticated project management practices.

Many successful firms have embraced Professional Services Automation (PSA) solutions, with their emphasis on improving project and resource management, time and expense capture and collaboration. In fact, SPI reported a 28% increase in profit margin from firms that have a PSA solution in place, compared to those who do not.

At Deltek, we're committed to helping A&E firms to improve productivity, boost collaboration and increase profitability. Our PSA solution Vantagepoint is a powerful, intuitive solution that helps your people manage your projects from start to finish.

With Deltek Vantagepoint, users gain a 360-degree view over projects, putting client, project and financial details in a single location. That all adds up to making well-informed tactical and strategic business decisions and a more efficient, productive and profitable company! 

 

"A sophisticated and integrated information infrastructure is paramount to success in A&E according to SPI."

 

About Deltek

Better software means better projects. Deltek is the leading global provider of enterprise software and information solutions for project-based businesses. More than 30,000 organizations and millions of users in over 80 countries around the world rely on Deltek for superior levels of project intelligence, management and collaboration. Our industry-focused expertise powers project success by helping firms achieve performance that maximizes productivity and revenue.

 

SPI Maturity™ Benchmark Report 

Benchmark your A&E firm against other European firms, and identify operational improvements.

Download Your Copy