Digital transformation to drive profit and headcount goals - report

Despite economic headwinds, 83 per cent of firms are looking to increase profit growth this year and 42 per cent expecting to increase headcount.

Engineering firms started the year with the most ambitious gross profit margins will growth, with 60 per cent predicting an increase of over 10 per cent in 2025 from last year. 

The research, conducted across UK-based engineering, architecture, and consultancy firms, identifies technology and automation as the top potential drivers of profitability.

The top two priorities for firms are investing in new technology (39 per cent) and the effective implementation of new innovations (37 per cent). Cybersecurity is also a high priority, with 36 per cent of project-based firms citing it as a top three priority for their business, compared to 23 per cent last year. 

As a result of the focus on technology advancements, 56 per cent of UK project-based firms are now at Mature or Advanced stages of their digital transformation development, up from 32 per cent in 2024. Deltek added that compared to 2024 predictions, timelines have been brought forward two years with many professional services already achieving a level of digital maturity that they had not expected to reach until 2027.