AI, Talent and Record Profits: What the 46th Annual Deltek Clarity A&E Study Reveals About the Architecture & Engineering Industry

HERNDON, Va., May 13, 2025 /PRNewswire/ -- Deltek, the leading global provider of software and solutions for project-based businesses, has published its 46th annual Deltek Clarity Architecture & Engineering (A&E) Industry Study. Based on a comprehensive survey of nearly 700 firms across the United States and Canada, the report offers critical benchmarks, identifies emerging challenges, and provides insights into future trends shaping the industry.

The Deltek Clarity A&E study is a vital resource for firms navigating the evolving industry landscape. It delivers detailed analyses across key areas, including financial performance, project management, business development, human capital management and technology trends.

The latest report reveals that firms achieved record profitability, reaching their highest operating profit margins in a decade, even as economic pressures and labor costs persisted. A stronger financial footing enabled A&E leaders to focus on operational discipline, strategic technology investments and ongoing workforce development. As AI adoption and digital transformation continue to accelerate, firms are sharpening their focus on efficiency, resilience, and long-term growth.

"Firms are cautiously optimistic with strong profitability numbers while facing ongoing labor pressures and economic challenges. We're seeing firms make more disciplined decisions – being more strategic in their project pursuits, investing in AI, and focusing on operational excellence to drive lasting results," said Megan Miller, Director of Product Marketing at Deltek. "It's promising to see the industry's progress in digital transformation, as more firms are adopting new technologies and maximizing their current tech investment to create a more automated and integrated tech stack. As firms look ahead, continued investment in upskilling teams, increasing visibility into their projects, and leveraging the full value of their technology stack will be essential for their sustained growth and resilience."

Key Findings from the 46th Annual Deltek Clarity A&E Study

• A&E firms sustained historic profitability despite ongoing economic and labor cost pressures.
  • Operating profit on net revenue reached a 10-year high of 21.4%, with net revenue per employee rising 11% year-over-year.
  • Firms are forecasting net revenue growth of 9.6% for 2025, signaling continued optimism in most areas, with some firms expecting a decline.

• AI adoption surged across the industry, with 53% of firms leveraging AI tools – up from 38% last year.
  • Use cases include proposal development, project planning, business development and data analytics.
  • However, a gap remains between intent and full integration, as many firms are still heavily reliant on manual processes for core functions like accounting and resource management.
  • Digital maturity is among firms' top tech priorities, with 38% now rating themselves as digitally mature or advanced, and 74% expecting to reach that stage within three years.

• Business development strategies have shifted from volume to value. 
• Proposal volume dropped 38%, but the value of awarded work grew by 52% year-over-year, and the median win rate increased to 50%.
• Firms are being more disciplined, focusing on opportunities that best fit their expertise and strategic goals.
• "Fit for the type of work" overtook existing relationships as the top factor influencing pursuit decisions, reflecting a more deliberate, ROI-driven approach to new business.

• Talent remains a critical challenge. 
• While year-over-year headcount growth has slowed, the competition for high-value talent remains fierce: 59% of survey respondents cite the availability of qualified candidates as their top talent acquisition challenge.
• Rather than relying solely on recruitment, firms are investing in upskilling, technical training, and career path development.
• Reductions in force were also prevalent, which could be the result of high M&A activity, strategic workforce planning, or a slowdown in some markets.

"This year's Clarity study shows that workforce strategy has become mission-critical for A&E firms," said Jason Dorsey, Deltek Trends Advisor and Workforce Expert. "As generational change continues to reshape the talent pool, leaders must be intentional, creating opportunities for engagement, fostering career growth, and understanding the unique perspectives different generations bring to the table. Firms that take a proactive approach to developing their people and adapting to these ongoing shifts will be best positioned to drive innovation and achieve long-term success."

The full report is now available to download. To learn more about this industry-leading research, join the Deltek Clarity Architecture & Engineering webinar on May 15^th at 2 p.m. ET.

About Deltek
Better software means better projects. Deltek is the leading global provider of enterprise software and information solutions for project-based businesses. More than 30,000 organizations and millions of users in over 80 countries around the world rely on Deltek for superior levels of project intelligence, management, and collaboration. Our industry-focused expertise powers project success by helping firms achieve performance that maximizes productivity and revenue. www.deltek.com

SOURCE Deltek