The ability to find and retain the best staff has emerged as the biggest threat to business success in the engineering and architectural consulting sector as an overwhelming majority now predict business growth in the coming years.

And according to a survey of international architecture and engineering business leaders, UK firms are feeling the pressure hardest with 77% expressing concern over how to find the staff to meet growth expectation compared to a 55% international benchmark.

“Firms will undoubtedly need to look for ways of attracting and retaining young professionals to meet the growing demand for employees” 

However, while maintaining efficiency and profitability remains hugely important, the survey of also uncovered a culture of “over-servicing and under-billing” in engineering and architectural consultancy, with 26% of billable hours not financially recovered by firms - a factor which has clear impacts on profitability.

“Over a quarter of billable time is being lost which directly impacts on revenue,” says the survey report.

Business software supplier Deltek questioned hundreds of architecture and engineering firms across Europe, Australia, New Zealand and South Africa, an exercise which it says attempts to “get to the very heart of the key issues, experiences and expectations from the very firms that make up this visionary and forever changing sector”.

Compared to previous years, the survey in 2014 showed that the majority of firms now have growth on their minds and are more optimistic about future prospects in general 

“Building a bond with customers is especially important at the pre-contract phase where a good relationship with clients  stands firms in good stead to influence the tender process and help win that all important new business” 

“The cautious optimism has switched to a level of considerable optimism,” says the report, highlighting that with 72% of firms now expected growth in 2014 compared to only 66% on 2013 “firms have put the recession years behind them”. 

Interestingly, firms in Denmark were the most optimistic with 90% expecting growth. However this contrast with views in the Netherlands and Germany where only 50% and 52% respectively expected to see growth in their businesses in 2014.

With such growth aspiration, it is significant that the report highlights firms as being increasingly concerned about hiring “the right people” and “the best talent” since, while 55% of firms highlighted staffing issues as their biggest threat, 95% said that having the right people and attracting talent was the most important business success factor.

“Firms will undoubtedly need to look for ways of attracting and retaining young professionals to meet the growing demand for employees,” says the report highlighting that across the globe compettiton for the best staff continues. 

Investment in the latest technology was also highlighted as an important way to underpin future profitability with 63% of leaders reporting an expectation to invest in new technology such as document management, mobile tools and BIM systems. 

“The cautious optimism has switched to a level of considerable optimism”

However, investment in customer and client relationships came even higher with 76% reporting that improving long-term relationships was business critical and half those surveyed saying that this was an area for investment.

“Building a bond with customers is especially important at the pre-contract phase where a good relationship with clients  stands firms in good stead to influence the tender process and help win that all important new business,” says the report. “During project execution, best practice means providing timely delivery, meeting expectations and building trust through effective leadership.”

To download a copy of the Deltek Trends and Challenges in Architecture & Design report click here