Succession in AEC: Preparing for the next generation

Build formalized career paths before institutional knowledge walks out the door 

A new chapter is unfolding across the AEC industry. As the founders who shaped today’s firms begin to transition out of their roles, a fresh generation of leaders is stepping up. This shift presents a powerful opportunity. not just to preserve what’s been built, but to evolve it. 

The 2025 AEC Inspire Report points to a defining moment. Talent strategy has become central to long-term success, and succession planning is a key part of that equation. What firms do now will shape how they grow, compete, and lead in the years ahead. 

The opportunity to shape what’s next 

According to the report, 67% of firms cite talent acquisition and retention as a top business concern. But behind that challenge is a moment of potential.  

With the average workforce age now 41, the next generation is already in place. The question is how to support their development into future leaders. Many firms are taking important first steps. Two-thirds have begun building succession plans, and others are actively planning to follow.  

There’s a growing recognition that the time to prepare isn’t someday…it’s now. 

Building growth paths that work 

More than half of AEC firms say they need to improve how they define formal career paths.  

That’s not a weakness. It’s an invitation to design something better.  

When career development is intentional, it becomes a powerful retention and engagement tool. Professionals want to grow. They want clarity around how to advance. And they’re more likely to stay and invest in the company’s future when they can see how their role will evolve. By putting structure in place (from defined growth tracks to mentorship programs) firms can turn ambition into advancement. 

Preserving what works while creating room to grow 

Many firms have historically relied on experience and instinct to guide decisions. That instinct is valuable. It reflects years of knowledge about clients, markets, and project delivery. But that experience becomes even more powerful when it’s shared, documented, and woven into how the business operates.  

Today, only 40% of firms consistently use formal Go/No-Go processes for proposals. As firms move toward more repeatable systems, they’re finding ways to combine the best of both worlds: intuitive judgment and structured decision-making.  

The result is continuity without stagnation—new leaders carrying forward what works, while bringing fresh energy and ideas to the table. 

Laying the foundation for confident transitions 

Strong succession planning doesn’t happen by chance. It’s built through systems that track performance, identify potential, and create leadership readiness. Nearly 60% of firms report they need stronger professional development and training programs.  

By connecting those efforts to long-term talent planning, firms can prepare individuals to lead with purpose and clarity. You’re taking it a step past simply filling roles. You’re empowering people to step into them with confidence and alignment. 

Giving talent a reason to stay 

When employees know they have a future at the firm, they stay longer. They grow deeper roots, build stronger client relationships, and bring more to their work every day. Firms that prioritize career pathing see higher engagement and smoother transitions when leadership changes happen. And for founders preparing to pass the baton, that kind of continuity is invaluable.  

Some firms are already leading the way, increasing their investment in internal promotion and leadership development. Their example shows what’s possible when companies view succession not as an end, but as the beginning of something new. 

Looking ahead with optimism 

The transition from one generation of leadership to the next doesn’t have to be daunting. With the right planning, it can be energizing. AEC firms are filled with talented professionals who are ready to lead—they just need the support and structure to rise.  

This moment is a chance to reinforce the values that built the firm while embracing a future shaped by new ideas, new skills, and new perspectives.  

The firms that act with intention now will be the ones best positioned to grow with confidence and resilience. According to the Inspire Report, more firms than ever are recognizing the importance of aligning their workforce strategy with their vision for the future. Succession is no longer just a concern to manage—it’s a lever for growth. 

To learn more about what top AEC firms are thinking, read the full 2025 Inspire Report.