The 2025 Architecture & Engineering Benchmark Report

Curious how other firms are keeping projects on track and clients coming back? The 2025 A&E Industry Benchmark Report reveals what’s working, what’s not, and where the industry’s heading.

Summary

  • Projects are getting more complex, and over half of firms say at least a quarter go over budget. 
  • Strong client relationships matter, but 57% of firms aren’t formally measuring satisfaction.
  • 100% of firms using project management software report a noticeable boost in efficiency.

  •  Over half of firms have 1-3 months of work already booked, adding pressure to deliver faster.

The Industry is Shifting and So are the Firms Leading it

Projects are getting more complex. Clients are expecting more. And firms are feeling the pressure to deliver with less time, tighter budgets, and leaner teams.

In our 2025 Architecture & Engineering Industry Benchmark Report, we break down what’s really happening inside A&E firms today, from how they manage resources and profitability to how they attract talent, measure client satisfaction, and plan for the future.

We surveyed architecture and engineering professionals around the world. Here’s a quick look at what they had to say.

Architecture & Engineering Firm Profiles: Company Insights

The firms we heard from may differ in structure and location but the challenges are shared.

Whether juggling backlogs, managing multiple collaborators, or trying to protect time for design, teams are under pressure to deliver more with less.

  • 48% of firms spend more than 70% of their time on design but admin, approvals, and coordination still eat into their day.
  • Over half report 1–3 months of work already booked.
  • 61% say fewer than 25% of projects involve sub-consultants, suggesting many still prefer to manage projects internally.

As workloads grow, visibility and control are key to delivering consistently without sacrificing quality or creativity. 

Operational Efficiency & Workflow

Even firms focused on design are struggling to hold onto the time they need to do it well.

Admin tasks like chasing approvals, handling invoices, and managing internal communication continue to steal hours. While many firms have adopted software to help, disconnected tools still create friction.

  • Client communication and approvals were ranked the top time wasters by over a third of respondents.
  • 45% of firms report utilization rates above 70%.
  • Of the firms using project management software, 100% report a noticeable improvement in overall efficiency.

Firms that protect their design time with the right tools and smarter workflows are freeing up their teams to do their best work.

Project Management & Resource Allocation Strategies for Architecture & Engineering Firms

Staying on time and on budget is a constant balancing act.

While real-time tracking has become more common, many firms still rely on instinct, manual coordination, or post-project reviews to understand performance. The result? Overruns, overbooking, and missed opportunities to adjust early.

  • 52% of firms say at least one in four projects go over budget.
  • Scope creep is the top reason, followed by underquoting and poor tracking.
  • 54% still manage resources manually using spreadsheets or meetings.
  • 65% track profitability in real time using dashboards or software.

Firms that invest in connected project tracking and proactive resource planning are better equipped to protect margins and their people.

Financial Performance and KPIs for Architecture & Engineering Firms

Profitability is high for some, but many firms lack a clear view of how their time translates into revenue.

Tracking gaps in areas like realization, overhead, and payment cycles mean even high-performing teams might not know what’s driving their bottom line or how to improve it.

  • 48% of firms report net profit margins above 15%.
  • 41% don’t track realization or aren’t sure how much time is actually billed and paid.
  • 39% don’t track their overhead rate or are unsure of the number.
  • 51% collect client payments within 31–60 days of invoicing.

To stay financially healthy, firms need more than strong fees, they need a full picture of where time is spent, money is made, and revenue is lost.

HR, Talent Management, & Workforce Strategies in Architecture & Engineering

Behind every successful firm is a team trying to balance demand, career growth, and job satisfaction.

But with limited structure and resources, many firms are relying on culture and goodwill to retain staff, without formal paths for development or leadership succession.

  • 44% say their biggest staffing challenge is managing demand with current team levels.
  • 47% report staff turnover is below 5% annually.
  • Only 17% have a formal mentorship or promotion track in place.
  • 52% of firms invest 3% or less of their budget in professional development.

Firms that invest in training, development, and future leaders are building more than talent, they’re building longevity.

Business Development & Client Relationship Management for Architecture & Engineering Firms

Strong client relationships are a major source of growth but few firms are managing them with structure.

Word of mouth remains the top lead source, yet formal systems for tracking satisfaction or nurturing leads are often missing. This puts firms at risk of missing repeat work or losing touch with what clients really value.

  • 41% say 51–75% of their clients are repeat customers.
  • 57% have no formal method to measure client satisfaction.
  • Only 29% of firms use a CRM to manage leads or contacts.
  • 39% say fee pressure is the biggest challenge when trying to win new work.

Even simple processes like consistent follow-up or regular feedback collection can help turn strong relationships into steady revenue.

Technology Innovations & Software Solutions in Architecture & Engineering

Technology adoption is high across architecture and engineering firms, and the next step is making those tools work smarter together.

From project management and invoicing to BIM and time tracking, most teams are already using a range of platforms to support their workflow. But with many tools still operating separately, the opportunity lies in bringing everything into one connected system.

Firms that integrate their software are unlocking clearer insights, smoother collaboration, and more informed decision-making across every project.

  • 60% use project management software, with 100% reporting better efficiency.
  • 89% of firms use financial and invoicing software; 85% say it improves efficiency.
  • 69% use time tracking/resource management tools; 87% report benefits.
  • 55% of firms use BIM software, and 81% see improved workflows.

A&E firms are navigating uncertainty and spotting new opportunities on the horizon.

Many expect automation, AI, and evolving client expectations to reshape how they deliver work, build teams, and stay competitive. Some are focused on growth, while others are prioritizing stability and refinement.

  • 80% believe automation and AI will significantly impact design processes.
  • 47% say economic uncertainty is the biggest long-term challenge.
  • 77% say client service and responsiveness are their biggest differentiators.
  • 45% have no current plans to expand services or markets.

Those who plan ahead, rather than react, will be in the best position to adapt and thrive.

Ready to Learn More?

You’ve seen what’s holding firms back. Now learn how the right tools can move yours forward.

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