Design firms are continuing their steady recovery from the recession but have yet to return to the level of financial strength they enjoyed prior to the downturn, according to the 2014 Deltek Clarity A/E Industry study.
Most "Key Performance Indicators" measured in the study inched ahead in 2014, but the rate of improvement is slowing. Operating Profit rose to 11.8%, the Utilization Rate increased marginally to 60%, and the Overhead Rate dropped to 160%. The Net Labor Multiplier declined slightly to 2.97.
The Clarity Study, prepared in collaboration with ACEC and the Society for Marketing Professional Services (SMPS), includes data from 386 U.S. and Canadian A/E firms and provides statistics and analysis on key performance indicators and market trends. This year, the survey was expanded to include questions relating to business development and project management.