And as Troy mentioned, we’ll laid out in more detail during our Investor Day, so look forward to that.
Andy Kaplowitz: Yes. No, that’s helpful, guys. And Troy, maybe just a little more color into your markets. Would you say the biggest drivers of growth are increasing IIJA-related funding? Or is it sort of larger program management jobs as you talk to like the Middle East? And have you attempted to disaggregate your markets, for example, how much is the market growing if they come growing 8% to 10%, are you growing 50% greater in the market? Like how do you think about that? And do you think you could continue to grow your backlog at current rates that you’re doing it?
Troy Rudd: Yes. So first of all, just a little bit of background on our growth. As I said earlier in the call, about 94% of our business is in our design business, and that includes program management, about 6% relates to construction management. And so our backlog in design has been growing rapidly. And I think I used the stat that our contracted backlog up 50% and again, our total backlog is up by a similar amount. And so when we look at that breakdown, we do see the strength across our markets because we’re seeing the pipeline of opportunities grow. I’m not certain that the pipeline of opportunities is necessarily driven the market, as you point out. I think it’s frankly us increasing our exposure to our client spend and that’s through program management.
So we’ve been growing program management at disproportionately fast rate, and those projects are actually large and chunky. And so I would say that we are contributing to actually taking more of that client spend as our clients continue to invest. So we’re probably doing a combination, too, which is a little market share and actually participate in our growth, which sort of puts us beyond where I would say the industry average would be.
Andy Kaplowitz: But, Troy to be clear, you still see good visibility to design backlog continuing to grow from here in ’24?
Troy Rudd: Absolutely. Yes. No, we absolutely do. You sort of look at where we are in terms of – I’ll just use the IIJA as an example. And it’s one example because across the world, we have our customer base actually continuing to invest strongly and announce even stronger investments in infrastructure. But on the IIJA, we started to see that come into the business. And so we’re seeing that come into funding projects across the business, including design, and we actually see that pace picking up as we go through the next few years. So yes, I don’t want to – if I did, I didn’t give the impression that design is not going to be growing at just as faster rate. But I think it’s our – again, I think we’re accelerating beyond what the market growth is because we are exposed to more of the client spend.
And then frankly, we are winning work at a disproportionately high rate. Our capture rate for the entire business has been over 50% for the last eight quarters. And capture rate – by definition, capture rate is for every $1 we bid, we win. And so we’re winning out of every $2 in $1 of work, which is an extraordinary rate and up substantially from where it had been in prior years.
Andy Kaplowitz: Appreciate all the color.
Troy Rudd: Yes. Thanks Andy.
Operator: Your next question comes from the line of Steven Fisher from UBS. Your line is open.
Steven Fisher: Thanks. Good morning. Just wanted to follow up on the program management discussion. Troy, how different does your program management pipeline look today versus a year ago?
Troy Rudd: So Steve, our program management pipeline is actually up year-over-year. And again, I don’t have the exact stat, but approximately up about 20%. And so – and in fact, that’s consistent with our overall pipeline being up 20% compared to the prior year. So sort of think about it this way is, the overall investment spend is going up consistently and program management is just a part of the client spend or part of the client’s budget. So we’re seeing – again, we’re sort of seeing that similar improvement in our pipeline across the board. And then what is different for us, though, is we obviously now spend more time in the marketplace focused on delivering program management, and that is growing at a much faster rate than the rest of our business.
Steven Fisher: Okay. That’s helpful. And Troy, you mentioned you’re trying to grow your energy advisory and digital practices. What would you say your specific ambitions for the energy advisory and digital advisory for 2024?
Troy Rudd: Well, so digital advisory is a – it’s a little bit different part of business. So we do have people that have provide you – provided what I call it digital solutions directly for clients. That the people that do that is have about 400 people that do it across the business. And that business grew almost 40% this year, and we see it growing at a double-digit pace. So it is a smaller business. But what that means is as part of our traditional projects, those skills, they actually become part of the traditional projects. And then they improve how we deliver projects or programs and they actually have a margin impact. So I wouldn’t focus on – again, digital consulting is an important growth opportunity for us, but it’s not incrementally going to send out in our results.
However, as a result of what we’re doing, we are continuing the progress of transforming how we deliver the work and that is contributing to our margin today, not in a way that is meaningful yet, but we see that eventually contributing to our margins in a very meaningful way. And in terms of the advisory business, we already do have a reasonably healthy advisory business today, but we see that there’s a market opportunity in energy transition. There are certainly a lot of organizations, our customers private and public, that are setting ambitions but they need the help to get there, and they need to help not from a traditional management consultant. But from someone that actually brings a real breadth of technical expertise and actually experiencing delivery and understanding of the technology that exists today and the technology that will be available in the future to develop a long-term energy transition plan.
And obviously, that’s all supported by infrastructure development. And so we’re in the process of building that group. We already have it up and running and operating but we would have similar ambitions that we do for program management to see that actually be a very significant business that we would call out in the future.
Steven Fisher: Thank you very much.
Operator: [Operator Instructions] Your next question comes from the line of Michael Dudas from Vertical Research Partners. Your line is open.
Michael Dudas: Good morning, Troy and Lara.
