- Deltek’s Digital Trends Unwrapped: Tech Powering Architecture and Engineering (A&E) Project Success in 2024 report reveals that 40% of A&E firms believe that investing in new technologies is key to profitability in 2024
- As one in five firms don’t have a clear defined strategy for achieving growth, technology adoption ambitions lead the way for next twelve months
- Nine in 10 firms believe that if they fail to make significant progress on their digital transformation journey, they will lose market share
London, December 12, 2023 – A new report from Deltek, the leading global provider of software and solutions for project-based businesses, has uncovered that while almost a fifth (18%) of architecture and engineering (A&E) firms do not having a clearly defined strategy for achieving steady growth, digital transformation will help unlock growth and profitability in 2024.
The report, Deltek’s Digital Trends Unwrapped: Tech Powering Architecture and Engineering Project Success in 2024, finds that 40% of A&E businesses believe that the key to building long term resilience in this fast-moving macro-economic environment is investing in new technologies – with IT infrastructure investment the biggest growth opportunity for engineering firms (44%). Currently, 42% of engineering and 33% of architecture firms describe themselves at an ‘advanced’ or ‘mature’ phase of their digital transformation journey. Where firms aren’t in this phase, there is still an ambition to implement digital transformation. Almost one in four (38%) of A&E firms state that they’re in an exploratory phase of their journey.
The report reveals that firms understand the importance of digital transformation on their bottom line. Post-Covid, there has been a global economic downturn, but the majority of firms (92%) believe that if they make significant progress in their digital transformation, they will not lose out on market share. However, despite a strong appetite towards using digital transformation to rejuvenate the market, firms are realistic about timelines.
Technology can significantly aid growth and profitability by helping firms understand their businesses better and make informed decisions based on real-time insights. One area likely to be prioritized is using technology in how KPIs are tracked and measured. Currently, confidence is low in this area, with over a quarter (26%) of A&E firms saying they track operating profit ‘badly’, while 18% say the same for tracking project profitability. Through better visibility provided by technology, these metrics can be more easily tracked and KPIs adjusted to ensure projects stay on track and remain profitable.
Neil Davidson, Group Vice President, Professional Services Sector at Deltek, said: “It’s reassuring that so many firms connect that digital transformation is intrinsically linked to long term resilience. With the right investment strategies, firms can make the most of limited resources while still driving their business forward in a way that aligns with a long-term strategy. Digital transformation, including AI adoption, does not happen overnight. Implementing the right technology tools, proven in the industry, will secure the insights and streamlined processes, invaluable to growth in the architecture and engineering industries.”
The report also revealed new priorities for firms. Nearly sixty percent (58%) of A&E firms surveyed believe that social responsibility should be at least equally important to their company as its profits are, while one in four (25%) said that, compared to the start of 2022, their firms are placing significantly more importance on Corporate Social Responsibility and ESG (Environmental, Social, and Governance) issues.
The Report can be viewed HERE