April 3, 2008

Architecture and engineering leaders foresee short-term downturn

ZweigWhite surveys 200 executives at United States firms

NATICK, MASS.

More than a third of architecture/engineering firm leaders in the United States believe the business environment will worsen this year, according to ZweigWhite's newly released 2008 Principals, Partners & Owners Survey of Architecture, Engineering, Planning & Environmental Consulting Firms.

Data collected one year ago showed only six per cent of firm leaders were pessimistic about the immediate business environment, the consulting firm said in a release.

“Our industry has enjoyed a robust record of growth over the last several years but in some market segments and geographies that growth has slowed considerably,” says John Doehring, senior vice-president and managing director at ZweigWhite.

Doehring, who leads the company’s strategic and financial advisory services group adds, “Many firm leaders expect 2008 to be a bit tougher than 2007 but most still expect their firms to perform better than the economy as a whole.”

More than 200 firm leaders participated in the survey.

Historically, firm leaders have had faith in their firms’ longevity, ZweigWhite said.

Among firm owners surveyed, 88 per cent feel their firm has been a better investment than a good mutual fund.

Half — 51 per cent — believe the rewards of firm ownership outweigh the risks compared with 35 per cent just three years ago.

“Most firm leaders are positive about the future, recognizing a silver lining in the current economic outlook,” says Doehring.

“A slowdown allows the firm to catch a breather, get better organized, train and retain staff and focus more attention on existing clients.

“Moreover, the positive nature and outlook of these leaders is a likely contributor to their sustained success. Simply said, these firms see opportunity where others don’t.”

DCN News Services

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