Despite facing a litany of market impediments—the still-sluggish economy, construction labor shortages, the slow-to-recover education and healthcare markets—the majority of AEC firms saw revenues grow in 2015, and an even greater number expect earnings to rise in 2016, according to a survey of 337 AEC professionals by Building Design+Construction.
Nearly six out of 10 survey respondents (56.7%) indicated that revenues had increased at their firms in 2015, and 59.9% expect income from nonresidential building work to rise this year. This represents a slight uptick from 2014’s survey, when 54.4% reported higher revenue for the year.
About half of the respondents (45.7%) rated their firm’s 2015 business year as either “excellent” or “very good,” and just 2.1% said it was a “poor” year. Looking to 2016, 52.7% believe it will be “excellent” or “very good” from a revenue standpoint. Nearly three-quarters (71.4%) rated the overall health of their firm either “very good” or “good.”
Asked to rate their firm’s top business development tactics for 2016, strategic hiring (56.7% rated it as a top tactic for growth), marketing/public relations (54.6%), and technology upgrades (49.3%) topped the list. Other popular growth strategies include staff training/education (41.8%), a new service/business opportunity (32.9%), and a firm merger/acquisition (13.4%).
Among the top concerns for AEC firms are competition from other firms (58.2% ranked it as a top-three concern), general economic conditions (50.4%), managing cash flow (30.3%), and softness in fees/bids (27.6%).
HEALTHCARE SECTOR starting to REBOUND
Respondents were asked to rate their firms’ prospects in specific construction sectors on a five-point scale from “excellent” to “very weak.” Among the findings:
The multifamily boom continues, as the Millennials and Baby Boomers gravitate to rental housing and an urban lifestyle. Multifamily ranked as the most active sector, with 69.7% of respondents rating it in the good/excellent category, up from 62.3% last year and 56.1% in 2013.
The healthcare market is starting to stabilize and grow, as hospitals and healthcare providers adjust to the post-Affordable Care Act world. The sector ranked as the second most active; 68.0% gave it a good/excellent rating, up from 63.6% in 2014 and 62.5% the previous year.
Other active sectors include senior/assisted living (63.1% rated it in the good/excellent category), office interiors/fitouts (62.4%), data centers/mission critical (59.3%), higher education (48.6%), industrial/warehouse (46.7%), retail (44.9%), and government/military (42.5%).
Respondents to the BD+C survey include architect/designers (52.2%), engineers (19.6%), contractors (18.4%), consultants (5.0%), owner/developers (1.2%), and facility managers (1.0%).
BIM/VDC TAKES HOLD
The adoption of building information modeling and virtual design and construction tools and processes continues to grow in the AEC marketplace. More than eight in 10 respondents (82.1%) said their firm uses BIM/VDC tools on at least some of its projects, up from 80.0% in 2014 and 77.3% in 2013. About a fifth (20.3%) said their firm uses BIM/VDC on more than 75% of projects, up from 17.3% last year and 12.2% in 2013.
Respondents to the BD+C survey include architect/designers (52.2%), engineers (19.6%), contractors (18.4%), consultants (5.0%), owner/developers (1.2%), and facility managers (1.0%).
Related Stories
Mass Timber | Apr 25, 2024
Bjarke Ingels Group designs a mass timber cube structure for the University of Kansas
Bjarke Ingels Group (BIG) and executive architect BNIM have unveiled their design for a new mass timber cube structure called the Makers’ KUbe for the University of Kansas School of Architecture & Design. A six-story, 50,000-sf building for learning and collaboration, the light-filled KUbe will house studio and teaching space, 3D-printing and robotic labs, and a ground-level cafe, all organized around a central core.
Sports and Recreational Facilities | Apr 25, 2024
How pools can positively affect communities
Clark Nexsen senior architects Jennifer Heintz and Dorothea Schulz discuss how pools can create jobs, break down barriers, and create opportunities within communities.
Senior Living Design | Apr 24, 2024
Nation's largest Passive House senior living facility completed in Portland, Ore.
Construction of Parkview, a high-rise expansion of a Continuing Care Retirement Community (CCRC) in Portland, Ore., completed recently. The senior living facility is touted as the largest Passive House structure on the West Coast, and the largest Passive House senior living building in the country.
Hotel Facilities | Apr 24, 2024
The U.S. hotel construction market sees record highs in the first quarter of 2024
As seen in the Q1 2024 U.S. Hotel Construction Pipeline Trend Report from Lodging Econometrics (LE), at the end of the first quarter, there are 6,065 projects with 702,990 rooms in the pipeline. This new all-time high represents a 9% year-over-year (YOY) increase in projects and a 7% YOY increase in rooms compared to last year.
Architects | Apr 24, 2024
Shepley Bulfinch appoints new Board of Director: Evelyn Lee, FAIA
Shepley Bulfinch, a national architecture firm announced the appointment of new Board of Director member Evelyn Lee, FAIA as an outside director. With this new appointment, Lucia Quinn has stepped down from the firm’s Board, after serving many years as an outside board advisor and then as an outside director.
ProConnect Events | Apr 23, 2024
5 more ProConnect events scheduled for 2024, including all-new 'AEC Giants'
SGC Horizon present 7 ProConnect events in 2024.
75 Top Building Products | Apr 22, 2024
Enter today! BD+C's 75 Top Building Products for 2024
BD+C editors are now accepting submissions for the annual 75 Top Building Products awards. The winners will be featured in the November/December 2024 issue of Building Design+Construction.
Laboratories | Apr 22, 2024
Why lab designers should aim to ‘speak the language’ of scientists
Learning more about the scientific work being done in the lab gives designers of those spaces an edge, according to Adrian Walters, AIA, LEED AP BD+C, Principal and Director of SMMA's Science & Technology team.
Resiliency | Apr 22, 2024
Controversy erupts in Florida over how homes are being rebuilt after Hurricane Ian
The Federal Emergency Management Agency recently sent a letter to officials in Lee County, Florida alleging that hundreds of homes were rebuilt in violation of the agency’s rules following Hurricane Ian. The letter provoked a sharp backlash as homeowners struggle to rebuild following the devastating 2022 storm that destroyed a large swath of the county.
Mass Timber | Apr 22, 2024
British Columbia changing building code to allow mass timber structures of up to 18 stories
The Canadian Province of British Columbia is updating its building code to expand the use of mass timber in building construction. The code will allow for encapsulated mass-timber construction (EMTC) buildings as tall as 18 stories for residential and office buildings, an increase from the previous 12-story limit.
