TZL 1442 (web)

May 23, 2022, Issue 1442 WWW.ZWEIGGROUP.COM

TRENDLINES

Equity value per book value

The rapidly changing economic conditions we’re experiencing are putting salary pressure on AEC firms. Things are changing – quickly!

FIRM INDEX DCA Construction..................................................4 Larson Design Group......................................... 6 Nelson-Rudie & Associates........................12 RS&H............................................................................ 10 Sevan Multi-Site Solutions, Inc..................8 W.E. O’Neil Construction ...................................4 MORE ARTICLES n AMANDA HARTMAN, HANNAH RICO & JULES ACKERSON: A firm- wide realignment Page 3 n Rethinking retail: Larson Design Group Page 6 n JUSTIN SMITH: The communication quarterback Page 9 n MARK ZWEIG: Things that made me happy as an owner Page 11 In Zweig Group’s 2022 Valuation Report of AEC Firms , firms were asked how fast they had grown by revenue and/ or employee size over the last three years. Growing firms reported a higher equity value per book value ratio relative to stable and declining firms. The median values for moderate-to- fast growth firms ranged from 1.91 and 2.06, which outpaced the overall median of 1.78. Participate in a survey and save 50 percent on the final or pre- publication price of any Zweig Group research publication.

T he U.S. economy grew 5.7 percent in 2021, the fastest rate since 1984, and a rate which only accelerated into 2022. A report from the the U.S. Labor Department in April 2022 stated that its consumer price index jumped 8.5 percent in March from 12 months earlier – the biggest year-over-year increase since December 1981. There’s no doubt that nearly everyone has felt the effects of increases in the cost of housing and price of gasoline. The AEC industry is not immune to these changes! Zweig Group released the 2022 Salary Reports at the beginning of this year. These reports were compiled with >Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12

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