The United Kingdom’s architectural, engineering, and consulting firms are approaching 2025 with renewed optimism, primarily believing that digital transformation will underpin their success. These firms are not only even anticipating substantial profit growth but also forecasting to spend considerably on technology and expand headcount considerably.
Bold Goals: Rising Profits and Headcount
UK-based, project-driven firms remain under negative economic influences yet have dynamically set strong goals for expansion for 2025. Remarkably, 83 percent of these firms plan to increase profit growth, while 42 percent are forecasting a significant increase in headcount.
Engineering Dominance: Firm High Profit Expectations
Engineering firms seem to outperform other sectors in projected profit growth. Sixty percent of engineering firms estimate that gross profit margins will increase by more than 10 percent in 2025, above the 44 percent average across all professional services industries that were surveyed.
Technology and Automation: Growth in the Rate of Return
The study points to technology as well as automation as the factors of interest for profitability in the forecast period. Firms claim that technology is just a matter of time, with 39% mentioning spending on new technologies such as AI and 37% concentrating on the proper application of new innovations, especially AI, for the achievement of financial objectives.
Cybersecurity: Emerging focus area
Apart from AI and automation, project-based firms also consider cybersecurity of utmost importance. More than a third (36%) of these companies now rank cybersecurity in the top three along with other priorities, compared to less than a quarter (23%) a year ago. This increase speaks volumes toward the changing scenario in safeguarding sensitive information and assets as digital transformation takes center stage.
Digitally Transformed: Quickly Evolving
The sector’s focus on technology is driving rapid digital transformation on a large scale. Research indicates that more than half (56%) of UK project-based companies have achieved a “Mature” or “Advanced” stage in their digital transformation journey. This is a remarkable increase from 2024, when less than a third (32%) had reported this level of achievement. The sharp increase in the rate of digital adoption demonstrates the readiness of companies to utilize technology to gain a competitive edge.
Accelerated Timelines: Digital Milestones Reached Sooner Than Expected
The milestones for attaining digital maturity have been dramatically shortened compared to the expected timeline of 2024. A considerable number of professional services firms have already achieved a sophisticated level of digitization, which was initially anticipated to be reached not before 2027. This acceleration showcases how quickly firms are adopting digital transformation.
AI and Automation: Addressing Key Challenges
In the UK, AI and automation are expected to play a major role in achieving project-based business KPIs. The research identifies increasing competition for talent (30%) and increasing complexity of projects (28%) as key pressures impacting project management over the next three years. To address these challenges, 40% of firms are prioritizing implementing AI and automation technologies to optimize project workflows, enhance process efficiencies, and increase productivity.
Confidence in Project Tracking: A Positive Trend
The research also reveals a new positive development: greater confidence tracking project profitability, cost, and client satisfaction. In 2025, 75% of respondents reported being able to track these metrics compared to 59% in 2024. This change is indicative that a digital transformation is enabling firms to more readily access and control their project data.
Expansion of the Workforce: A Distribution of Skills
In tandem with investments in technology, project-based UK businesses also aim at expanding their employee base. Surprisingly, a notable 76% of firms intend to expand their employee base within four years, representing a drastically positive shift from last year’s 58%. Engineering firms are particularly gung-ho about this, with 42% intending to scale their talent pool by over 10% in two years.
Straining Engagement: Solutions through Development
Firms at the same time are well aware of the problems in recruiting and retaining employees. The study shows that lack of upskilling investment (48%) and lack of employee engagement (34%) continue to hinder organizations. To address these concerns, firms are heavily focusing on fostering a culture of collaboration and innovation (51%) and active learning with up-to-date equipment (49%) to entice and enable young professionals.
A Technology-Driven Future
Through the United Kingdom’s project-based business sector, the research has described how a ‘diagnostic’ form of digital transformation is undertaken as a precursor for achieving growth and success. The focus on technology and automation, as well as developing expertise among the workforce, indicates a strategic response to contend with the contemporary challenges and opportunities in the business world. These firms will seek to realize their lofty ambitions within the global marketplace over the next few years and will depend on how successfully they utilize technology toward these ends.
