ACE Benchmarking 2011

ACE Benchmarking is the industry’s annual peer to peer survey and report, providing participating businesses with an in-depth analysis of the operations, revenue per fee earner, costs, staff turnover, marketing activity and competitiveness.

The 2011 ACE Benchmarking information brochure 

ACE Benchmarking is now in its 6th year, following a high level of interest from ACE members for performance based benchmarking information. 

The ACE Benchmarking programme has been designed for companies with a headcount of more than 50, and is designed to provide a comprehensive set on metrics to analyses all aspects of a company’s performance. Currently it provides approximately 550 metrics covering a wide variety of business operations.

If your company has a headcount of 50 or fewer and would like to participate in benchmarking, ACE has developed the Benchmarking Lite programme

In 2010 the ACE Benchmarking project expanded in Europe, to enhance the data and comparative indicators available to companies. Having international comparisons and data available to a company is important given increasing international competition and comparison. 

Working with ACE

Since 2005, The Centre for Interfirm Comparison (CIFC) has worked with ACE to design and operate the Benchmarking project for engineering and consultancy firms. Their significant experience and independence means that the ACE Benchmarking results are accurate and consise, providing an in depth analysis of companies performance.

In addition to providing the analysis in 2010, CIFC also attended the first European CEO Conference,as the Benchmarking exercise was expanded to include European Participants. The Benchmarking report and their expertise helped ACE to deliver a successful event with a wide variety of topics and key metrics explored by the participants over the two days.

For example, the 2010 benchmarking revealed:

Profitability 

• In 2010, if the amount of billable time was increased by 10 minutes per day, that would generate 2.3% extra revenue. Assuming that the extra ten minutes a day could be carried out at no extra cost in either staff or overheads, that could increase profits by 33% from the current level.

Winning work

• 36% of tenders were won by companies. These had an average value of £69,400. Subsequently the average number of projects won per fee earner in 2010 was only 1.5.
• For UK firms the average order book was 15% lower at the end of 2010. However, there were success stories, with a third of all companies reporting a higher order book. The average order book for European firms was practically unchanged, and 45% of firms reported a higher order book.

Controlling costs

• Medical insurance, pension contributions and other staff benefits averaged £2,700 per employee.
  
• Average support staff costs per head were 4% higher in the 2010 report than the previous year.

The European CEO Conference 2011

The CEO conference for 2011 is due to take place on the 9-10 November.

2010 saw ACE hold the first ever European CEO Conference in November, bringing together leading figures from engineering consultancies from across Europe. Chief executives came to London for the two day event from twelve different European countries to discuss issues facing the industry and how the sector is performing as a whole.

The European CEO conference provides:

• A platform to CEOs for high level financial and strategic advice to help position and direct their corporate vision, mission and business strategy
  
  
• Information and tools for business and scenario planning
  
  
• Factual evidence to plan and manage business portfolios and M&A activities
  
  
• A European forum for discussion and debate between CEOs in the consultancy and engineering industry in the UK and continental Europe
  
  
• An opportunity to discuss results of the Benchmarking analysis, comparing them on roughly 100 financial and business parameters
  
  
• Discussion on the impact of major events and developments within the economy, environment, and government

Comments from 2010 include:

• “It’s a unique experience and I don’t think one could pick up so much information about our industry anywhere else.”
  
  
• “I planned to leave after day one, but it proved too interesting so I had my ticket changed to fly out after the second day instead.”
  
  
• “It is noticeable the level of openness and honesty among what are at the end of the day competitors, so there is a benefit for us all in that.”