The AEC industry’s comprehensive, data-based resource on financial performance, departments, challenges, methodology, and practices now available in Zweig Group’s online shop.
Zweig Group is proud to announce the release of the 2024 Financial Performance Report of AEC Firms. This report serves as a useful resource for firms looking to benchmark their financial metrics, evaluate firm performance, and make strategic choices. The 2024 Financial Performance Report includes data such as key financial statistics, personnel costs, and trends of spending as well as additional topics such as financial and accounting software, rent and utility costs, credit, and more.
The 2024 Financial Performance Report was compiled using data gathered from participants during the 2023 fiscal year. According to this year’s report, the revenue factor remained steady at 1.87 percent, indicating a continued period of strong financial performance driven by substantial demand and effective backlog management. Despite softening in several private markets, backlog remained steady with more than nine months of work under contract. Still more, net service revenue per full-time equivalent increased by 3 percent to $171,376. Such trends indicate that efficiency in the use of labor should continue to accelerate in the coming years as automation and other technological advancements improve efficiency.
Other interesting trends in this year’s report shed light on financial performance as it pertains to ongoing questions about the labor market. According to the report, the staff turnover rate was 14.1 percent in 2024, which represents an increase from the reported 12.3 percent in 2023. Despite an increase in the turnover rate, the rate of staff growth increased from 5.3 percent in 2023 to 5.8 percent in 2024. As the labor market changes, firms are spending more in areas such vacation/holiday/sick leave as a percentage of total costs (up from 5.7 percent in 2023 to 6.5 percent in 2024) and less in other areas such as bonuses as a percent of total costs (down from 7 percent in 2022 to 4.9 percent in 2024).
By offering insight into the previous fiscal year, the 2024 Financial Performance Report of AEC Firms enables financial leaders to benchmark their performance against industry standards. Data from this year’s survey can be used to help set financial performance goals and benchmarks, compare costs and financial ratios, and examine the comparison of specific firms to industry-wide norms. This allows leaders of AEC industry firms to gain a unique perspective on where they stand relative to the industry.
For more insights or questions regarding the 2024 Financial Performance Report of AEC Firms, please contact Zweig Group’s research department at research@zweiggroup.com.
