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DiCicco, Gulman & Company LLP Releases 2006 Architectural Study—A comparative survey of statistics and trends in Architecture
Findings show profits for Boston Architectural Firms at highest level since 2002
Woburn, MA, October 24, 2006—Woburn-based CPA firm DiCicco, Gulman, & Company LLP, (DGC) (http://www.dgccpa.com), released its 2006 Architectural Study to the public today. Reflective of the demand for residential, commercial, and industrial projects, the survey found an overall profitability increase for the industry in New Englad.
The study provides historical statistics of operating performance of the participating firms over the past five years. The study is not based on a formal statistical survey; but rather, it is intended to provide useful information relating to the financial and operational performance of a sample of firms with operations in New England, however key statistics are relevant to all firms.
“The study indicates that firms were able to meet the challenges of the economy and increase profitability. The trends in the study are positive but firms continue to have to deal with pressure to keep fees constant and on a shortage of employees that has the effect of increasing wages,” stated David Wexler, a Partner at DGC.
Key statistics and trend findings:
• Business continued to strengthen in 2005.
• Employee compensation rates increased from $30.52 in 2004 to $31.90 in 2005, representing a 4.6% increase, the highest it has been in five years.
• Increased activity in commercial and residential sectors.
• Decline in profitability for firms specializing in local K-12 education sector.
• Average profit per direct hour increased from $3.86 in 2004 to $6.52 in 2005.
• Increase in demand for staff causing higher wage rates.
• Principals increased direct ratios from 44.4% in 2004 to 47.6% in 2005, reversing the downward trend since 2002.
• Increased workload combined with a shrinking employee labor market forced principals to spend more time on project-related work in 2005.
• Job profitability remained consistent; average billing multiple for 2005 and 2004 was 3.03.
• Operating profit as a percent of net fee income increased from 4.12% in 2004 to 6.81% in 2005.
About DiCicco, Gulman & Company LLP
DiCicco, Gulman & Company LLP is a CPA and business consulting firm specializing in the accounting and financial matters of closely held companies and high net worth individuals. The firm has a particular specialty in providing service to professional service firms. The firm serves both regional and national clients. DiCicco, Gulman and Company is headquartered in Woburn, MA with an additional office in Boston. For more information please visit http://www.dgccpa.com or call 781-937-5300.
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