Uncertainty concerning the economic system, a conflict in Europe, and the combative political surroundings have all been a constant backdrop to AEC trade forecasts. And this yr’s forecast proves to be no completely different. The competitors for prime expertise continues to rage on. And, as if that persistent constraint weren’t sufficient, companies are confronted with the prospect of working with purchasers who’ve elevated expectations round their digital prowess.
Hinge’s annual analysis examine on the quickest rising AEC companies confirmed that whereas many companies tailored to the chaos brought on by the Covid pandemic, many had been hesitant to rejoice, and even successes might add pressure: pointing to ongoing labor and provide chain constraints and continued uncertainty surrounding U.S. laws.
Within the newly launched Excessive Development Research 2023: AEC Version, we dig deeper into how one distinctive group of AEC companies is continuous to seek out progress and profitability within the face of heightened uncertainty and threat. (You need to use the low cost code, GROW50, to avoid wasting 50% in your analysis report buy.)
Concerning the Research
This yr’s examine examined 120 Structure, Engineering & Building (AEC) companies, representing a mixed income of over $8 billion and greater than 22,000 staff. Companies of all sizes, world areas and key govt positions had been represented within the examine, with the overwhelming majority of companies doing enterprise in the USA.
Whereas advertising spend declined amongst AEC companies this yr, the examine confirmed their median progress charge elevated by nearly 50% over the earlier yr. Whereas the AEC trade has at all times proven a low funding in advertising relative to general income, the information suggests some companies are discovering methods to combat via the fog of uncertainty.
Know-how
Maybe one of many best benefits of Excessive Development AEC companies is relating to know-how. Merely put, the quickest rising AEC companies are extra digitally mature with greater than 50% of the companies surveyed automating or managing their principal processes with know-how.
Moreover, Excessive Development AEC companies are using advertising and enterprise growth applied sciences greater than their no progress friends—and particularly relating to buyer relationship administration (CRM), enterprise useful resource planning (ERP), and enterprise intelligence (BI). Excessive Development AEC companies are extra frequent customers of know-how to trace and attribute their advertising and enterprise growth actions than their No Development counterparts. In reality, they’re nearly twice as doubtless to make use of metrics to guage the success of their occasions and thought management content material.
And whereas they is perhaps extra frequent customers of know-how, this yr’s full examine confirmed that AEC companies are literally much less centered on automation and synthetic intelligence than different skilled service industries surveyed by Hinge.
It is going to be attention-grabbing to look at the influence of “tipping level” functions like ChatGPT have throughout skilled providers. Whereas these programs are unlikely to switch precise experience or high quality thought management content material, they might very properly democratize qualitative parts and supply alternatives for effectivity at scale. Many much less publicized, however equally highly effective instruments are already built-in into BI, communications and information platforms. This might be an necessary know-how to watch and probably harness for a aggressive edge as others adapt and undertake at a slower tempo. These applied sciences have already been transformational in B2C, B2B and media – skilled providers won’t be too far behind.
Technique
So how do excessive progress AEC companies and no progress companies differ as they give the impression of being towards the longer term? Whereas mergers and acquisitions (M&A) and succession planning will doubtless nonetheless play an element in AEC companies’ future progress methods, this yr’s examine discovered that Excessive Development AEC companies want to be taught extra about technology-driven matters and developments comparable to automation, synthetic intelligence, the web of issues (IoT), and sensible buildings. Their no progress counterparts are nonetheless centered on established tech, like BIM.
Along with know-how, excessive progress AEC companies are planning to focus extra efforts on far-reaching market developments like ESG (Environmental, Social, and Governance) and inexperienced infrastructure.
Advertising and marketing and Enterprise Growth
It comes as no shock that prime progress AEC companies are investing extra in advertising than their no progress friends with a view to drive their progress and profitability, however the place do they see probably the most bang for his or her buck? Let’s evaluate and distinction advertising priorities and utility of strategies to start our evaluation.
Maybe one of many best learnings from this yr’s examine is the place excessive progress AEC companies are prioritizing their time subsequent, as a result of in spite of everything, they should be doing one thing proper! Social media advertising, a low-cost, low-effort digital approach, was recognized as their prime precedence for 2023 whereas 3 times as many excessive progress AEC companies than no progress companies are using social media promoting. (See Utilization of Advertising and marketing Strategies) This focus comes because the trade continues to adapt to the after-effects of a world pandemic and its influence on in-person occasion methods. The quickest rising AEC companies are additionally prioritizing creating content material and search engine marketing. And companies are conducting extra key phrase analysis, utilizing a programmatic, intentional strategy together with publishing written weblog posts.
The AEC examine additionally discovered that the majority No Development AEC companies had low search engine marketing maturity whereas Excessive Development AEC companies had carried out a excessive performing search engine marketing program. This isn’t simply the reporting of “visitors will increase”, however the understanding of engagement and optimistic influence to enterprise KPIs (together with recruiting). Over 68% of the Excessive Development AEC companies surveyed rated their search engine marketing maturity at a mid or excessive degree. The search engine marketing applications at No Development companies, nevertheless, are largely undeveloped, unstructured, and ad-hoc.
Excessive Development AEC companies are growing the advertising group’s involvement in creating alternatives, researching goal audiences, and creating the agency’s employer branding as a result of entrepreneurs have the ability units to take action.
Expertise
This brings us to recruiting. Because the conflict for prime expertise has cooled barely in different skilled service industries, the problem maintains its #1 standing for AEC companies. However Excessive Development AEC companies are more and more extra centered on particular parts of the expertise problem comparable to: normal adjustments within the workforce/succession planning, managing a distant workforce, and the growth of recent opponents. Figuring out generational adjustments and the cultural, operational and skillset shifts they create is an particularly astute (and sensible) perception.
This yr’s examine additionally discovered that prime progress AEC companies are nonetheless extra more likely to seek the advice of with outdoors businesses and freelancers to make sure their advertising wants are met and so they can cowl any essential expertise gaps (e.g., design,technique, search engine marketing, copywriting.)
In Closing
Whereas some AEC companies have launched new instruments and strategies to deal with an more and more digital market, others proceed to battle, looking for the proper recipe to maintain progress.
However one factor has grow to be clear: relating to digital engagement, enterprise intelligence and alternatives for automation, having maturity, high quality and measurable efficiency in every of those areas is vital. These AEC companies that use extra digital advertising platforms and use them extra proficiently, are experiencing extra progress and at a quicker tempo.
(You need to use the low cost code, GROW50, to avoid wasting 50% in your analysis report buy.)
