Studies feature benchmarking data and industry insights for firms engaged in architectural and engineering activity
BOSTON, Oct. 31, 2022 /PRNewswire-PRWeb/ -- DGC, a division of PKF O'Connor Davies, LLP, one of the nation's largest accounting, tax and advisory firms, today announced the release of its 18th Annual Architectural and Engineering Studies. Launched on the heels of the 2022 Architectural & Engineering Summit, the two studies contain financial and operational data derived from the A&E firms that participated. The studies reflect the current state of the industry and provide important benchmarking data for firms to focus on to improve profitability and continue to grow and operate successfully in the current business environment.
"We're extremely proud to release the latest editions of these studies, which will serve as valuable resources for our clients and those they work with," said David M. Sullivan, Jr., Partner and Leader of the Architecture & Engineering Practice at PKF O'Connor Davies. "As these studies attest, the architectural and engineering industry has fared very well despite the economic turbulence of the last few years. Now more than ever, it's crucial that firms have the tools and talent in place to maintain a strong financial foundation and grow their businesses."
Through various measures of productivity and profitability, the studies provide an overview of the average firm's results from operations in 2021. Members of the Firm's dedicated Architecture & Engineering Practice have analyzed this data to identify trends in the industry using key indicators that firms can use to benchmark their performance against. This often leads to the identification of areas that firms can improve upon and best practices they should be adopting.
As the studies reveal, the average A&E firm saw an increase in the breakeven multiple and overhead rate as firms spent more getting back to normal operations; albeit in a hybrid working environment. In addition, the war for talent continues. Rising base compensation rates and staff bonuses to meet employment demands also contributed to the increased breakeven multiple and overhead rate. Overall project profitability, as evidenced by the billing multiplier, remained strong.
During 2021, firms continued to pursue the benefits provided by pandemic-relief programs, including the second round of the Paycheck Protection Program (PPP2) and the Employee Retention Credit (ERC). These benefits helped strengthen many firms' balance sheets, as evidenced by the strong working capital to net fee ratios depicted in this year's studies. Working capital is the lifeblood of an A&E firm, and this strong position will help many firms weather future economic challenges. Lastly, this year's studies also feature new statistics around IT, cybersecurity and remote working.
To access, download and read the 18th Annual Architectural and Engineering Reports in their entirety, visit the following links: Architectural Report and/or Engineering Report
About PKF O'Connor Davies, LLP
PKF O'Connor Davies, LLP, is a full-service certified public accounting and advisory firm with a long history of serving clients both domestically and internationally. With roots tracing to 1891, the Firm has 18 offices in the United States and abroad. In the U.S., offices are located across New York, New Jersey, Connecticut, Maryland, Florida, Rhode Island and Massachusetts, where PKF O'Connor Davies has recently merged in Boston-based DGC and expanded its footprint in the New England market. The Firm also has an office in Mumbai, India.
The Firm has a dedicated practice serving the Architectural and Engineering Industry across the country and employs more than 1,400 professionals who provide a complete range of accounting, auditing, tax and management advisory services. The Firm is led by over 150 partners who are closely involved in the day-to-day management of engagements, ensuring a high degree of client service and cost effectiveness.
The Firm is a top-ranked firm, according to Accounting Today's 2022 "Top 100 Firms" list and was recently recognized as one of "America's Best Tax and Accounting Firms" by Forbes. PKF O'Connor Davies was named one of Vault's 2022 Accounting 50, a ranking of the 50 best accounting employers to work for in North America and ranked among the top 50 most prestigious accounting firms in America in a complementary Vault survey.
PKF O'Connor Davies is the lead North American representative of the international association of PKF member firms. PKF International is a network of legally independent member firms providing accounting, tax and business advisory services in over 400 locations in 150 countries around the world. With its tradition, experience and focus on the future, PKF O'Connor Davies is ready to help clients meet today's ever-changing economic conditions and manage the growing complexities of the regulatory environment. For more information, visit http://www.PKFOD.com.
Media Contact
Kathleen O'Toole, PKF O'Connor Davies, 551-249-1730, [email protected]
SOURCE PKF O'Connor Davies
Share this article