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/ .





No comments
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.
BIM coordination; MEP projects; NFPA 13; Data center Q&A; Networked lighting controls; 2017 Product of the Year finalists
Emergency lighting; NFPA 3 and 4; Integrated building systems; Smart lighting, HVAC design
Designing for energy efficiency; Understanding and applying NFPA 101 for mission critical facilities; Integrating commissioning and testing for fire alarm systems; Optimizing unitary pumping solutions
Tying a microgrid to the smart grid; Paralleling generator systems; Previewing NEC 2017 changes
Driving motor efficiency; Preventing Arc Flash in mission critical facilities; Integrating alternative power and existing electrical systems
Putting COPS into context; Designing medium-voltage electrical systems; Planning and designing resilient, efficient data centers; The nine steps of designing generator fuel systems
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.
click me