For the reason that onset of the pandemic, the AEC market has settled precariously on the sands of uncertainty. Struggle, conflicting financial alerts, a polarized political surroundings, and highly effective however horrifying AI applied sciences maintain us guessing. On the identical time, the labor pool isn’t getting any larger, and compensation ranges are rising.
However even in at present’s unpredictable world, there are indicators of hope: AEC corporations are rising once more. And there’s a subset of high-performing corporations—companies that thrive in virtually any surroundings—that may present you a manner ahead.
Earlier this 12 months, we launched our annual Excessive Progress Examine, together with an in-depth report on the AEC business. As we speak, we’d prefer to share a number of the key findings from this business report in an effort to higher perceive what’s occurring within the market and what the best-performing corporations do in another way.
A Fast Phrase Concerning the Examine
129 structure, engineering and building corporations participated on this ninth version of the Excessive Progress Examine, representing $23 billion in income. Within the determine under, you possibly can see how the AEC business stacks up towards different skilled providers.
Contributors represented corporations of all sizes, they usually performed enterprise in each area of the globe.
Within the examine, we grouped the taking part corporations into three classes: Excessive Progress (see definition within the part under), No Progress (people who skilled zero or detrimental progress), and Common Progress (the stability of the pattern).
Meet the Excessive Progress Companies
We outline Excessive Progress corporations as these corporations that obtain not less than 20% compound annual progress over a three-year analysis interval. We distinction these corporations towards people who skilled little or no progress over the identical time-frame. This enables us to determine methods and practices which can be related to quicker progress and better income.
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 corporations are additionally extra worthwhile than their slower-growing opponents. Excessive Progress corporations 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 corporations have a bonus. Better of all, you should utilize these to make changes at your personal agency.
1: High Performers Make investments (Barely) Extra in Advertising
The Excessive Progress group spends 25% extra on advertising and marketing than the No Progress cohort. Nonetheless, that quantities to simply 5% of income—and 7 proportion factors lower than we reported in final 12 months’s examine. Nonetheless, the clear takeaway is that these corporations are in a position to do extra with much less. Let’s learn the way.
2: They Know Which Advertising Strategies Work
Beneath is a listing of the top-five advertising and marketing strategies utilized by Excessive Progress AEC corporations. The very first thing that struck us was how standard most of those advertising and marketing strategies are in comparison with different expertise-based industries within the general examine. In reality, 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 gadgets on this checklist additionally pertain to dwell 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 strategies that Excessive Progress corporations depend on most frequently, they usually produce outcomes. Within the subsequent part, we get a glimpse into how their priorities could also be evolving.
(Be aware: for the whole checklist, in addition to a listing of the strategies that ship the best affect, see the complete report.)
3: They Plan to Spend money on Creating Content material this 12 months
Excessive Progress corporations by no means relaxation on their laurels. They’re at all times making an attempt new issues, testing completely different strategies and planning for the long run. Within the checklist under, we see what these corporations are planning to take a position on this 12 months. Topping the chart is creating content material. Content material is a confirmed option to entice new prospects (as an illustration, by writing Search engine marketing-optimized weblog posts), reveal your experience (by writing and talking about points your consumers care about) and convert web site guests into leads (by placing beneficial content material behind an internet type and selling it in related locations).
4: They Are Extra More likely to Conduct Analysis
The highest-performing corporations are extra doubtless than their No Progress counterparts to conduct analysis (see determine under). They’re additionally more likely to do it extra typically.
Analysis is efficacious for quite a few causes. It offers recent market intelligence that almost all opponents don’t have. This info lets you regulate to altering situations quicker and see rising alternatives sooner. It additionally offers beneficial insights you should utilize in your thought management—suppose weblog posts, speeches, and webinars—and to place your agency as actually understanding your viewers and it’s enterprise challenges.
5: They Get Extra Digital Leads
Again in #2 above we mentioned how Excessive Progress AEC corporations prioritize conventional advertising and marketing strategies over extra trendy ones. In reality, of all of the industries on this 12 months’s examine, the AEC business is available in useless final in terms of buying leads from digital sources. Nonetheless, Excessive Progress corporations recover from a fifth of their leads on-line—about 20% greater than common corporations (see determine under).
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 corporations are nonetheless underperforming or not sure 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 corporations’ high advertising and marketing priorities for 2024 (see #3 above), in addition to the strategies they use most frequently (#2 above). All the business is sluggish to adapt to altering purchaser behaviors, so it’s possible you’ll wish to put money into extra trendy digital strategies, as effectively (once more, #3 above will help).
You too can buy the complete AEC report, which incorporates a much more detailed take a look at Excessive Progress corporations’ advertising and marketing and enterprise improvement instruments, strategies and priorities.
As we speak’s top-performing corporations are wrestling with lots of the identical 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 possibly can start adopting their habits—and start having fun with a few of their success.
