Zweig Group

The latest The American Institute of Architects (AIA) Architectural Billings Index (#ABI) shows a decline in project inquiries - the first since the height of the pandemic. In times of uncertainty, firms often pull back on marketing spend. But the data shows that firms that invest in marketing strategically are the ones that thrive, not just survive. According to Zweig Group's Blueprint for AEC Success 2025, firms that invest in award-winning marketing are over 2X more likely to be fast-growth firms (20%+ annual revenue growth for three consecutive years). Even more compelling...71% of these firms are also highly profitable, compared to just 15% of the industry average. What does this mean for firm leaders? > The firms that prioritize growth, even in challenging times, outperform their competitors. > Strategic marketing investments correlate directly with higher profitability and faster growth. > Differentiation matters more than ever as project pipelines tighten. If you’re looking at your 2025 strategy and wondering where to allocate resources, the numbers speak for themselves: Intentional, aligned marketing investment is a proven driver of both growth and profitability. Is your firm set up to thrive? If not, DM me to discuss how we can change that! #AEC #MarketingStrategy #Growth #FractionalCMOforAEC

Hot off the press! Chad Coldiron, Principal and Director of Client Relations & Development at Zweig Group, explores the biggest takeaways from the 2025 Arkansas Mass Timber Conference—from groundbreaking projects to innovative design strategies. ?? Check it out in Civil + Structural Engineer Media: https://brnw.ch/21wRtkP #ISG #MassTimber #SustainableDesign #TimberConstruction

Join us for the webinar - ?????? ????????-?????????????????????? ??????????????????: ?????????????????? ??????????????, ??????????????, ?????? ?????????????????? ???????? ?????? ?????????????????? ??????????, where experts from sa.global and Zweig Group will share strategies to help architecture and engineering firms grow. Learn how to build high-performing teams, integrate cloud solutions, leverage AI for scale, and optimize data workflows for better decision-making. Our speakers include Casey Shea, Stefanie Richter, and Tom Godin, who will bring real-world insights and actionable takeaways to help your firm achieve measurable success. Don’t miss this opportunity—register now: https://lnkd.in/gEjXShkR #AEC #CloudSolutions

Join us for the webinar - ?????? ????????-?????????????????????? ??????????????????: ?????????????????? ??????????????, ??????????????, ?????? ?????????????????? ???????? ?????? ?????????????????? ??????????, where experts from sa.global and Zweig Group will share strategies to help architecture and engineering firms grow. Learn how to build high-performing teams, integrate cloud solutions, leverage AI for scale, and optimize data workflows for better decision-making. Our speakers include Casey Shea, Stefanie Richter, and Tom Godin, who will bring real-world insights and actionable takeaways to help your firm achieve measurable success. Don’t miss this opportunity—register now: https://lnkd.in/gEjXShkR #AE #CloudSolutions #AI #ActionableInsights #SeamlessOperations

"As responsibilities increase, the walls can seem to push in. You’re managing projects, supervising staff, and representing your firm — yet still feel limited in influencing hiring decisions or strategy." "I was there. I set the bar higher for myself than anyone else did. But eventually, burnout and imposter syndrome crept in." "Then something changed. My firm’s leaders nominated me for Zweig Group’s Rising Stars Award. That nomination — and the experience of attending the ElevateAEC Conference with our firm’s founders — transformed my confidence and strengthened key relationships. One year later, I have a voice in hiring decisions, lead key initiatives, and feel valued daily." In his recent feature in The Zweig Letter, Michael Makris, P.E., project manager at BHC and 2024 Rising Stars honoree, offers valuable advice for early to mid-career professionals: ?? Seek feedback from your leaders. ?? When you have something to contribute, make sure you ask to have a seat at the table. ?? Don’t be afraid to say you are overstretched and in need of additional resources. ?? Add to your circle of mentors. You have grown in your career, so should your circle of mentors. ?? Remember learning is ongoing, you don’t have gaps in your knowledge, just opportunities to refine your expertise. For firm leaders considering?nominating members of the team: ?? Nominate, but don’t wait for an award to recognize your Rising Stars. ?? Offer mentorship. ?? Ask and offer additional resources and support to those who are likely overstretched. ?? Celebrate the accomplishments of your Rising Stars. Read his full article, originally published on March 16, here: https://lnkd.in/gcHASNvp The 2025 Rising Stars Award recognizes young professionals in the AEC industry who demonstrate technical excellence, leadership, and community service. They are the future leaders of this industry — and they deserve to be celebrated. Nominate a young professional making an impact in the AEC industry by March 28th - link in our comments! #RisingStarsinAEC #TheZweigLetter #ElevateTheIndustry

In this issue of The Zweig Letter, AEC industry leaders explore key trends in valuation, leadership, and relationship-building for long-term success: ?? Firm Valuations Remain Strong – Kyle Ahern shares insights from Zweig Group’s 2025 Valuation Report, highlighting rising firm values, stable financial metrics, and the impact of market forces on AEC firm valuations. ?? Overcoming Imposter Syndrome – Michael Makris (BHC) discusses how mid-career professionals can navigate burnout and self-doubt through mentorship, leadership support, and proactive career engagement. ?? Delegation & Leadership – Mark Zweig stresses the importance of delegation in leadership, explaining how balancing hands-on involvement with trust in your team fosters collaboration and efficiency. ?? Marketing & Business Development – Sara Grayum explores how marketing and business development teams can work together to tell compelling stories, leverage social media, and enhance client engagement for firm growth. ?? Building Trust in Business Relationships – Duncan H. Robertson, CPSM (Tamarack Grove Engineering) highlights the power of authenticity in professional relationships, showing how trust and meaningful connections drive long-term success in AEC. Subscribe to The Zweig Letter and receive weekly insights delivered straight to your inbox: https://lnkd.in/gvw-CAm3

Clients love to ask for “just one more thing.” But are AEC firms actually billing for those extras, or are they silently absorbing the cost? Are firms pushing back—or getting pushed around? We want to know. Zweig Group is collecting data for the 2025 Fee & Billing Survey, and we need your participation! By contributing, you’ll receive 75% off—a prime opportunity to benchmark your firm’s fees and billing practices at a fraction of the cost. Participate by March 22nd! Your input helps us build the 2025 Fee & Billing Report of AEC Firms, the industry’s most comprehensive analysis of fees, billing rates, and billing practices across U.S. AEC firms. The report covers these key fee markets: - Commercial development - Corporate facilities - Education (K-12 & Higher Ed) - Health care - Transportation & Infrastructure - Residential (Multi & Single-family) - Environmental (Public & Private) …and many more! We also dive deep into contract types and industry norms for fees as a % of construction costs for key disciplines: - Architecture - Land Planning & Landscape Architecture - Interior Design - Civil & Structural Engineering - MEP Engineering - Construction Management Ready to help us uncover the truth about AEC fees? Participate now and get 75% off - Link in the comments! #FeeAndBilling #ScopeCreep #AEC

In this issue of The Zweig Letter, Stuart McLendon emphasizes the critical role of CFOs in maintaining financial stability. Brad Thurman, PE, FSMPS, CPSM (Wallace Design Collective) highlights the importance of building authentic client relationships based on mutual benefit rather than transactional interactions. Mark Zweig urges firm leaders to break outdated industry norms and embrace innovative approaches. Michael Danko (Pennoni) underscores the foundational role of trust in fostering strong internal cultures, building client confidence, and ensuring sustainable business success. Ciro Cuono (Cuono Engineering, PLLC) shares how designing a clear company culture, career path structure, and ownership transition plan has fueled his firm’s growth and positioned it for long-term leadership stability. Subscribe to The Zweig Letter and receive weekly insights delivered straight to your inbox: https://lnkd.in/gvw-CAm3

Employees with 7-10 years of experience report the lowest workplace sentiment scores—higher burnout, less recognition, and dwindling mentorship. These professionals drive culture, engagement, and retention—so why are we pushing them to the brink? Companies must support middle managers with leadership development, better workload balance, and continued mentorship. If they struggle, the whole organization feels it. What are you seeing in your workplace? Let’s discuss. #Leadership #MiddleManagement #EmployeeExperience #Burnout #WorkplaceCulture

Zweig Group has released the?2025 Valuation Report of AEC Firms. This latest edition continues the firm’s more than three-decade commitment to delivering comprehensive valuation data and analysis to the industry. The 2025 Valuation Report highlights a?notable upward trend in firm values, as internal transition and pro-rata pricing begin to converge. The median firm surveyed consists of 45 full-time equivalents (FTE), six owners, and holds a book value of $2.6 million. Additionally, the data reveals a net service revenue (NSR) of $7.7 million, pre-bonus profit of $1,204,104, EBITDA of $1,357,946, and a solid backlog of $7.6 million. Compared to last year’s median firm profile, these figures reflect growth not only in human capital but also in overall firm value. The?value/EBITDA metric?rose slightly?from 4.23?to?4.28. Meanwhile, the?value/NSR ratio?remains relatively stable, moving from?0.64 to 0.63—keeping in line with its decade-long trend.?Revenue growth and firm valuation are intrinsically linked and this metric continues to shows stability. The?value/backlog ratio, also remained relatively stable, sliding to?0.63 from 0.65 in 2024. Despite?higher interest rates and tighter lending conditions, many firms delivering engineering services have experienced?significant?backlog growth. On the architectural side, institutional and healthcare related projects have remained consistent contributors to higher margins over the last few years. Outside investments in the AE industry continue to shake-up valuation expectations as owners are starting to evaluate their internal pricing methods next to the demands of the outside market. We are finding that the market is placing greater scrutiny on?revenue recognition, contract profitability, and risk management in deal making negotiations. Much of this can be defined, to a degree, when a buyer is evaluating a targets WIP and backlog. Hard backlog remains a?key valuation driver, reinforcing the importance of?contract management, cash flow management, and project execution strategies. The?equity value/profit ratio stabilized at 3.8?after peaking at 3.91, reflecting a more sustainable pace of industry growth. While rising material costs, tighter lending conditions, and workforce shortages pose challenges,?strong demand for infrastructure and energy-related projects continues to drive firm valuations. Public sector investments and the expansion of energy infrastructure remain key growth catalysts. In response,?firms are tightening financial discipline, leveraging automation, and adopting alternative project delivery methods to safeguard profitability. These strategies are helping firms maintain stability and resilience amid broader economic uncertainties. Zweig Group’s 2025 Valuation Report serves as a crucial resource for firm leaders, investors, and stakeholders seeking to understand the latest trends in AEC firm valuations. For more information or to purchase the report, visit?our website!