According to the 2026 Engineering Industry Benchmark Report, 100% of firms use referrals and word-of-mouth to generate new business, up from 93% in 2025.
For most engineering firms, the reliance on referrals means that quality work, delivered well, is the most effective marketing in an industry built on trust and long-term relationships.
The Business Development Paradox
In 2026, the data reveals an interesting contradiction: 78% of firms say repeat clients account for at least half of their revenue, yet 65% of firms have no formal method for measuring client satisfaction, and only 24% use a CRM system to manage client relationships.
For firms where most of their revenue depends on existing clients returning, this is a key blind spot. The client relationship is the asset, but most firms have no structured way of understanding the health of that asset until a client doesn’t come back.
Growth Intent is Rising
Growth intent has increased significantly across engineering. The number of firms with no expansion plans has dropped from 49% in 2025 to 27% in 2026. Of those planning to grow, 55% are expanding their service offering, 28% are targeting new geographies, and 17% are moving into new markets.
That ambition is running alongside a marketing budget that has continued to shrink: 51% of firms now allocate less than 1% of revenue to business development, up from 37% in 2025.
This means that in the current market, there’s more competition, more growth intent, and less resource dedicated to standing out. For firms that rely almost entirely on referrals and relationship maintenance, the quality and consistency of project delivery becomes the most important business development investment they can make.
How Does Your Firm Compare?
The 2026 Engineering Industry Benchmark Report draws on responses from engineering practices across the globe to give the sector a clear picture of how firms are operating right now, covering opportunities and challenges spanning everything from profitability, staffing, technology and growth.
For more insights, and to discover how your margins, utilisation and business development efforts compare to firms like yours, download the report here to see the full picture.
About Total Synergy (Australia)
Total Synergy is an Australian software company based in North Sydney, NSW, helping architecture and engineering practices across Australia improve project visibility, resourcing, and profitability with project management and practice management software. Try Total Synergy for free today and discover how the platform can transform your firm.
