Profits are Up for A/E Firms

08/12/2005


Architecture, engineering and environmental consulting firm profit levels have reached their highest levels since 2001, a new report shows. Data in ZweigWhite’s 2005 Financial Performance Survey Of Architecture, Engineering, Planning & Environmental Consulting Firms shows that the median pre-tax, pre-bonus profit margin on net service revenue for the firms surveyed has increased to 10.5%, after holding at less than 10.0% for the past three years.

Laura Rothman, managing editor of the report, explained that these profit levels are especially notable given firms’ recent increases in their overhead rates. “Overhead has reached its second-highest level in the past six years, at a median of 178.5% including bonuses, or 161.7% without bonuses,” she said. The survey calculates firms’ overhead rate as the ratio of overhead expenses (including general and administrative overhead, indirect labor and payroll expenses) to direct project labor.

Additional survey data shows that the median net service revenue per employee for these firms has reached a six-year high of $101,142, while pre-tax, pre-bonus profit per employee hit a high of $10,813.

For the complete survey, go to www.zweigwhite.com/store/ .





Consulting-Specifying Engineer's Product of the Year (POY) contest is the premier award for new products in the HVAC, fire, electrical, and...
Consulting-Specifying Engineer magazine is dedicated to encouraging and recognizing the most talented young individuals...
The MEP Giants program lists the top mechanical, electrical, plumbing, and fire protection engineering firms in the United States.
2017 MEP Giants; Mergers and acquisitions report; ASHRAE 62.1; LEED v4 updates and tips; Understanding overcurrent protection
Integrating electrical and HVAC for energy efficiency; Mixed-use buildings; ASHRAE 90.4; Wireless fire alarms assessment and challenges
Integrated building networks, NFPA 99, recover waste heat, chilled water systems, Internet of Things, BAS controls
Transformers; Electrical system design; Selecting and sizing transformers; Grounded and ungrounded system design, Paralleling generator systems
Commissioning electrical systems; Designing emergency and standby generator systems; VFDs in high-performance buildings
Tying a microgrid to the smart grid; Paralleling generator systems; Previewing NEC 2017 changes
As brand protection manager for Eaton’s Electrical Sector, Tom Grace oversees counterfeit awareness...
Amara Rozgus is chief editor and content manager of Consulting-Specifier Engineer magazine.
IEEE power industry experts bring their combined experience in the electrical power industry...
Michael Heinsdorf, P.E., LEED AP, CDT is an Engineering Specification Writer at ARCOM MasterSpec.
Automation Engineer; Wood Group
System Integrator; Cross Integrated Systems Group
Fire & Life Safety Engineer; Technip USA Inc.
This course focuses on climate analysis, appropriateness of cooling system selection, and combining cooling systems.
This course will help identify and reveal electrical hazards and identify the solutions to implementing and maintaining a safe work environment.
This course explains how maintaining power and communication systems through emergency power-generation systems is critical.
click me