Unanet, the leading provider of project-based ERP and CRM solutions for the architecture, engineering and construction (AEC) industries, today released its 2022-2023 AEC Inspire Report providing fresh insights for AEC leaders to benchmark their firms against peers, and glean best practices for growing their business.
Based on a survey of almost 400 high-level decision-makers representing the full spectrum of AEC firms across the U.S., the report uses data to document several key storylines in the AEC industry, one of which speaks to the challenges firms face in maintaining elevated profitability. While 43 percent of AEC firms reported 2022 produced extraordinary profits, and 58 percent expected this profitability to continue in 2023, many firms also reported concerns about the rising cost of doing business, supply chain disruptions and economic uncertainty, along with continued challenges in hiring and retaining talent.
The 2022-2023 AEC Inspire Report also reveals a strong connection between a firm’s embrace of technology and its performance. Firms that are tech-forward — those using cloud-enabled software, data-driven strategies, mobile capabilities and integrated business applications — had significantly better business outcomes than firms that are considered ‘tech-static.’
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The report found that tech-forward firms hold advantages over tech-static firms in:
- Profitability in 2022 and expectations for profitability in 2023.
- Recruiting, staffing and retention levels.
- Capture rates of new business pursuits.
- Ability to leverage data for strategic decision making.
- Maturity of project and resource management.
“Plain and simple, it pays to be a tech-forward AEC firm,” said Akshay Mahajan, General Manager, AEC, for Unanet and one of the report’s co-authors. “In turbulent times, tech-forward firms have more tools at the ready to help guide them through uncertainties and work most efficiently with limited resources. This produces better outcomes for their clients, while ultimately benefitting the AEC firm’s bottom line.”
Another driver of success among tech-forward firms is the ability to maintain high productivity in hybrid and remote-work environments. More than half of AEC firms surveyed reported they have a policy that allows employees to work remotely at least some of the time, and those firms that embrace modern technology have more seamless business operations than tech-static firms.
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“For people to be productive in hybrid work arrangements, it’s essential that they have remote access to digital tools, systems and data,” said Lucas Hayden, AEC Inspire Report co-author and Director, AEC Strategy, for Unanet. “Web-enabled apps for time, expense, and project management are critical, particularly with remote work. Firms with these digital tools in place are poised for more success.”
“Sharing this data helps AEC firms benchmark against their peers and incorporate success strategies into their businesses,” continued Mahajan. “It’s another way Unanet invests in our customers, to always provide them with added value. It’s part of our unrelenting customer-first ethos.”