Because the onset of the pandemic, the AEC market has settled precariously on the sands of uncertainty. Struggle, conflicting financial alerts, a polarized political setting, and highly effective however scary AI applied sciences hold us guessing. On the similar time, the labor pool isn’t getting any greater, and compensation ranges are rising.
However even in immediately’s unpredictable world, there are indicators of hope: AEC companies are rising once more. And there’s a subset of high-performing companies—companies that thrive in virtually any setting—that may present you a approach ahead.
Earlier this 12 months, we launched our annual Excessive Progress Examine, together with an in-depth report on the AEC business. Immediately, we’d wish to share among the key findings from this business report in an effort to higher perceive what’s occurring within the market and what the best-performing companies do in a different way.
A Fast Phrase In regards to the Examine
129 structure, engineering and development companies participated on this ninth version of the Excessive Progress Examine, representing $23 billion in income. Within the determine beneath, you may see how the AEC business stacks up in opposition to different skilled providers.
Individuals represented companies of all sizes, they usually performed enterprise in each area of the globe.
Within the examine, we grouped the collaborating companies into three classes: Excessive Progress (see definition within the part beneath), No Progress (those who skilled zero or destructive progress), and Common Progress (the stability of the pattern).
Meet the Excessive Progress Corporations
We outline Excessive Progress companies as these companies that obtain at the least 20% compound annual progress over a three-year analysis interval. We distinction these companies in opposition to those who skilled little or no progress over the identical time-frame. This enables us to establish methods and practices which can be related to quicker progress and better earnings.
This 12 months’s Excessive Progress cohort grew at a mean fee of 30.7%—about 3 times quicker than their No Progress friends.
Excessive Progress companies are additionally extra worthwhile than their slower-growing opponents. Excessive Progress companies loved a mean revenue of 18%—twice the extent of the No Progress contingent.
Subsequent, we take a look at 5 causes these fast-growing companies have a bonus. Better of all, you should utilize these to make changes at your personal agency.
1: Prime Performers Make investments (Barely) Extra in Advertising
The Excessive Progress group spends 25% extra on advertising and marketing than the No Progress cohort. Nevertheless, that quantities to only 5% of income—and 7 proportion factors lower than we reported in final 12 months’s examine. Nonetheless, the clear takeaway is that these companies are capable of do extra with much less. Let’s learn how.
2: They Know Which Advertising Strategies Work
Beneath is a listing of the top-five advertising and marketing methods utilized by Excessive Progress AEC companies. The very first thing that struck us was how typical most of those advertising and marketing methods are in comparison with different expertise-based industries within the total examine. In truth, the AEC business depends on conventional, face-to-face networking greater than another phase—and it’s the most continuously used strategy of the Excessive Progress cohort. Two of the opposite 4 objects on this checklist additionally pertain to stay occasions: sponsorships and bodily branded supplies. Solely networking on social media is a digital method, although it’s arguably a web based equal of in-person networking.
These are the methods that Excessive Progress companies depend on most frequently, they usually produce outcomes. Within the subsequent part, we get a glimpse into how their priorities could also be evolving.
(Notice: for the entire checklist, in addition to a listing of the methods that ship the best affect, see the complete report.)
3: They Plan to Put money into Creating Content material this Yr
Excessive Progress companies by no means relaxation on their laurels. They’re at all times attempting new issues, testing completely different methods and planning for the long run. Within the checklist beneath, we see what these companies are planning to take a position on this 12 months. Topping the chart is creating content material. Content material is a confirmed method to entice new prospects (for example, by writing Website positioning-optimized weblog posts), show your experience (by writing and talking about points your patrons care about) and convert web site guests into leads (by placing precious content material behind an online type and selling it in related locations).
4: They Are Extra More likely to Conduct Analysis
The highest-performing companies are extra possible than their No Progress counterparts to conduct analysis (see determine beneath). They’re additionally more likely to do it extra typically.
Analysis is efficacious for various causes. It gives contemporary market intelligence that almost all opponents don’t have. This info lets you modify to altering circumstances quicker and see rising alternatives sooner. It additionally gives precious insights you should utilize in your thought management—assume weblog posts, speeches, and webinars—and to place your agency as really understanding your viewers and it’s enterprise challenges.
5: They Get Extra Digital Leads
Again in #2 above we mentioned how Excessive Progress AEC companies prioritize conventional advertising and marketing methods over extra trendy ones. In truth, of all of the industries on this 12 months’s examine, the AEC business is available in lifeless final on the subject of buying leads from digital sources. Nevertheless, Excessive Progress companies recover from a fifth of their leads on-line—about 20% greater than common companies (see determine beneath).
In case you are getting lower than 20% of your leads from on-line sources, look to the Excessive Progress for inspiration.
What Subsequent?
Whereas there are alerts that the AEC business is regaining its footing after a interval of instability, many companies are nonetheless underperforming or uncertain the place to take a position their restricted advertising and marketing {dollars}. We designed the Excessive Progress examine to assist.
One place to begin is with the Excessive Progress companies’ high advertising and marketing priorities for 2024 (see #3 above), in addition to the methods they use most frequently (#2 above). All the business is gradual to adapt to altering purchaser behaviors, so you might wish to spend money on extra trendy digital methods, as effectively (once more, #3 above might help).
You may as well buy the complete AEC report, which incorporates a much more detailed take a look at Excessive Progress companies’ advertising and marketing and enterprise improvement instruments, methods and priorities.
Immediately’s top-performing companies are wrestling with lots of the similar points as the remainder of the business, but they’re rising 3 times quicker than common. They’re additionally twice as worthwhile. Outfitted with insights into how these organizations maintain a aggressive benefit 12 months after 12 months, you may start adopting their habits—and start having fun with a few of their success.
