Breaking Ground: Trends in Architecture
Date:
March 13, 2024
Category:
Insights
Our CEO Michael Cherock, PE shares his thoughts on "Trends in Architecture" in the March/April issue of Breaking Ground.
The Rise of Private Equity Firms in the AEC Industry
“I get called almost every day by private equity firms. The amount of private equity that has come into the business buying up firms and consolidating the back of house is significant,” says Mike Cherock, CEO of AE Works. “Private equity firms come in and pull the business piece out, but they leave the firms as they are. Private equity owns 200 architectural and engineering firms around the country. If they do that with enough firms and treat them more like businesses, the profit margins will increase.”
Using Technology to Impact Value Creation
“There is tangible evidence that we’re going to be able to utilize technology in this industry in a way that impacts our value creation,” agrees Cherock. “One of those areas will be in documenting existing conditions in a rapid, accurate way. Technology that can dimensionally give you accuracy but also give you object identification. This is technology that can identify the type of ceiling grid or coating on a wall. Our business is about repeated documentation. The better we get at that, it helps everybody involved. The other area that can be improved is specifications.”