Engineering Inc. - May/June 2013 - (Page 44)
Business Insights
Deltek-ACEC Study Shows
Steadily Improving Financial
Picture for Firms
The 2012 Deltek Clarity Architecture & Engineering Study, undertaken in collaboration with ACEC, revealed that A/E firms overall are experiencing improved profitability even in a slow-growing
economy.
The study compares 2012 data on the four most important
operating metrics for A/E firms: net labor multiplier, utilization
rate, overhead rate and operating profit rate. More than 200 U.S.
and Canadian A/E firms participated in this year’s study, the 34th
edition.
The net labor multiplier, a measure of markup on labor costs,
has been relatively flat over the past three years among surveyed
firms, fluctuating between 2.85 and 2.95.
The utilization rate (also known as chargeability), which measures the percentage of total staff labor charged to projects, rose in
2012 from 58.3 percent to 59.9 percent and now is up more than
5 percentage points since bottoming out two years ago. Yet, it still
has room for improvement—it was at 63 percent in 2004.
The overhead rate dropped by more than 10 percentage
points last year from its peak in 2011. Overhead is now at the
lowest rate since the recession began. The key drivers here are
increasing utilization, which decreases labor charged to overhead,
and a continued focus on cost control. The overhead rate is calculated by dividing total overhead (before distributions) by total
direct labor expense.
After reaching a decade low in 2009 at 8.35 percent, operating
profit rates continued to rise steadily to 10.13 percent last year.
Profitability Performance Trends
2010
2011
2012
Net Labor Multiplier
2.85
2.95
2.91
Utilization Rate
54.5%
58.3%
59.9%
Overhead Rate
165.0%
172.5%
161.6%
Operating Profit Rate
9.10%
9.26%
10.13%
surveyors to use in the daily running of their businesses.
In addition, COPS has released two more products. Baseline
6-4: Note to Property Owners will help firms explain why a survey is being done and make it easier to request information that
may help, such as maps and/or personal knowledge. Baseline 2-4:
Site Specific Safety Analysis identifies health and safety issues
and lists relevant procedures for project personnel to follow on a
per-site/per-project basis. The analysis gives all personnel a place to
communicate health and safety concerns and allows for documentation of proactive remediation. All of the COPSdeveloped products are available at www.acec.org/bookstore.
Engineers Explain Complex
Technical Issues in Judicial
Proceedings
Experts are vitally important to American jurisprudence. They
not only review and evaluate complex technical issues, but
explain them in simpler terms to juries/triers of fact. Hundreds
of engineers have been trained over the last four years in the
fine art of providing effective legal testimony through ACEC’s
Expert Witness Program. Though
many may think the training focuses
on what to do when being crossexamined by the opposing attorney,
Leverage Your Engineering Expertise
the bulk of the information covers
what occurs outside of the courtroom during discovery, depositions
and writing reports.
Become a Confident Engineering
Expert Witness takes attendees stepby-step through the ramifications
and expectations of serving as an
E
11 PDH !
expert witness. The course is for
engineers, architects and surveyors
interested in gaining recognition as an expert witness or adding
this to their client services. The next day-and-a-half course is June
20–21 in Chicago.
For the complete course outline and to register, visit http://
www.acec.org/education/eventDetails.cfm?eventID=1420.
June 20-21, 2013 • Chicago IL
Become a Confident Engineering Expert Witness
Developed exclusively for Professional Engineers, Architects and Surveyors
• Build Professional Reputation
• Expand Personal Opportunities
• Enhance Service Value
This unique 1-1/2 day intensive program will help
you increase the value of your expert testimony—
in and out of the courtroom
ARN
AND
Source: 2012 Deltek Clarity A&E Study
COPS Provides 7 Baselines
For Business Practices
Business management and safety risks are critical concerns for surveying firms. To address these issues, the Council of Professional
Surveyors (COPS) created Seven Baselines of Business Practices.
The seven baselines are (1) culture, (2) planning, (3) education, (4) contract documents, (5) policy and procedures, (6)
communications and correspondence, and (7) technical tools and
documents. Each includes worksheets and sample documents for
44
ENGINEERING INC.
MAY / JUNE 2013
S
CERTIFICATE OF COMPLETION
The ACEC Institute for Business Management provides
comprehensive and accessible business management education
for engineering company principals and their staffs.
Visit ACEC’s online educational events calendar at
www.acec.org/calendar/index.cfm or bookstore at
www.acec.org/publications, or call 202-347-7474, ext. 338,
for further information.
http://www.acec.org/bookstore
http://www.acec.org/education/eventDetails.cfm?eventID=1420
http://www.acec.org/education/eventDetails.cfm?eventID=1420
http://www.acec.org/calendar/index.cfm
http://www.acec.org/publications
Table of Contents for the Digital Edition of Engineering Inc. - May/June 2013
Engineering Inc. - May/June 2013
Contents
From ACEC to You
Market Watch
Legislative Action
2013 Engineering Excellence Awards
Annual Convention Wrap-Up
Mobile Power
Guest Column
Business Insights
Members in the News
Mergers & Acquisitions
Engineering Inc. - May/June 2013
https://www.nxtbook.com/nxtbooks/acec/engineeringinc_spring2020
https://www.nxtbook.com/nxtbooks/acec/engineeringinc_winter2020
https://www.nxtbook.com/nxtbooks/acec/engineeringinc1119
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0919
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0719
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0519
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0319
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0119
https://www.nxtbook.com/nxtbooks/acec/engineeringinc1118
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0918
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0718
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0518
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0318
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0118
https://www.nxtbook.com/nxtbooks/acec/engineeringinc1117
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0917
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0717
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0517
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0317
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0117
https://www.nxtbook.com/nxtbooks/acec/engineeringinc1116
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0916
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0716
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0516
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0316
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0116
https://www.nxtbook.com/nxtbooks/acec/engineeringinc1115
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0915
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0715
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0515
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0315
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0115
https://www.nxtbook.com/nxtbooks/acec/engineeringinc1114
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0914
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0714
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0514
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0314
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0114
https://www.nxtbook.com/nxtbooks/acec/engineeringinc1113
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0913
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0713
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0513
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0313
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0113
https://www.nxtbook.com/nxtbooks/acec/engineeringinc1112
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0912
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0712
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0512
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0312
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0112
https://www.nxtbook.com/nxtbooks/acec/engineeringinc1111
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0911
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0711
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0511
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0311
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0111
https://www.nxtbook.com/nxtbooks/acec/engineeringinc1110
https://www.nxtbook.com/nxtbooks/acec/engineeringincSeptOct
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0910
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0710
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0510
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0310
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0110
https://www.nxtbook.com/nxtbooks/acec/engineeringinc1109
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0909
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0709
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0309
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0109_v2
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0109
https://www.nxtbook.com/nxtbooks/acec/engineeringinc1108
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0908
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0708
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0508
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0308
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0108
https://www.nxtbook.com/nxtbooks/acec/engineeringinc1107
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0907
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0707
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0507
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0307
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0107
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0505
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0305
https://www.nxtbook.com/nxtbooks/acec/engineeringinc1105
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0306
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0105
https://www.nxtbook.com/nxtbooks/acec/engineeringinc1103
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0906
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0903
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0703
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0106
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0506
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0503
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0303
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0904
https://www.nxtbook.com/nxtbooks/acec/engineeringinc1104
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0704
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0504
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0304
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0905
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0705
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0104
https://www.nxtbook.com/nxtbooks/acec/engineeringinc1106
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0706
https://www.nxtbookmedia.com