Maybe it was too good to be true. For five consecutive months starting last December, the AIA’s Architectural Billings Index, a leading indicator of construction activity, was showing hopeful numbers about future architectural billings.
Then—wham!—the May ABI score came in at a measly 45.8, reflecting “a sharp decrease in demand for design services,” as the AIA put it. (Any score above 50 indicates an increase in billings.) And while the “new projects inquiry index” registered a promising 54.0, that was not enough to dispel the notion that architecture firms are going to have to keep scratching for every dollar.
“We see another global slowdown, with great downward pressure on fees,” said Ralph Hawkins, FAIA, LEED AP, Chair/CEO of HKS Architecture. “We are continuing to adapt to the economy with both our geographic and market sectors.” To that end, the firm recently opened offices in New Delhi and Singapore, having already expanded into Europe, China, the Middle East, North Africa, and India.
SCROLL DOWN FOR GIANTS 300 ARCHITECTURE & A/E FIRM RANKINGS
“Adapting” is what many Giants 300 architecture firms are being forced to do. With domestic billings down, Giants are setting up shop overseas, merging and forming joint ventures to make one plus one equal three, and creating new services.
NEXT STOP, SOMEPLACE EXOTIC
For Goettsch Partners, work outside the U.S. and Canada “accounts for 80% of our business,” says James Goettsch, FAIA, President. The firm just opened a new office in Abu Dhabi’s Sowwah Square and is active in more than 20 cities in China.
“We’ve been winning work internationally for the last 10 years,” says Guy Geier, FAIA, FIIDA, LEED AP, Managing Partner, FXFOWLE. “Currently, we have projects in design or construction all over the world, including Montreal, Istanbul, Riyadh, Mumbai, and Baku, Azerbaijan.”
Perkins Eastman recently converted its small Mumbai shop into a full-service operation. Coming soon: a permanent office in Hanoi. “We do work in 25 countries at any given time, and overseas revenues constitute up to 30% of our net billings,” says Chair/CEO Bradford Perkins, FAIA, MRAIC, AICP. International clients provide professional opportunities that are rare in the U.S. and Canada. “The skills we have gained on large, fast-paced, and complex international assignments have been invaluable in strengthening our North American practice,” he says.
Nadel Architects, with many years of experience in China and the Middle East, recently expanded work in Southeast Asia and parts of Africa, says Greg Lyon, Vice President/Director of Business Development.
“Global work is growing in importance for our firm,” said Phil Harrison, FAIA, LEED AP, CEO of Perkins+Will. “We significantly expanded our U.K. and Dubai operations with the addition of Pringle Brandon. We are likewise pursuing growth opportunities in South America and Asia.”
This year, LEO A DALY opened an office in Riyadh; another is in the works in Doha, Qatar. The firm has offices in Beijing, Istanbul, Abu Dhabi, and Hong Kong.
Populous, a creator of stadia and event venues, has operated globally for nearly 30 years. “As events like the FIFA World Cup and the Olympic Games begin to infiltrate into atypical areas of the world like the Middle East, we are seeing the potential for work,” says Earl Santee, AIA, Senior Principal.
MORE DOMESTIC OFFICES, MERGERS, NEW HIRES
In the past 18 months Perkins+Will acquired three practices, expanding its operations in the province of Ontario (Toronto, Ottawa, and Dundas), Seattle, London, and Dubai. The Boston office hired Robert Brown, AIA, IIDA, LEED AP, as Managing Director and Brian Healy, AIA, as Design Director.
Early this year, FXFOWLE formed a joint venture with CO Architects, combining FXFOWLE’s strength in urban planning, infrastructure, commercial, cultural, and education projects with CO Architects’ experience in healthcare and science and technology. The JV’s name: CO|FXFOWLE.
In late June, NELSON agreed to merge its Chicago/Midwest region operations with Torchia Associates, an architecture/interior design firm.
This year, Shepley Bulfinch opened an office, its third, in San Francisco, with Peter Schlosser, AIA, leading as Principal. Mario Vieira, AIA, was also hired as Principal in the Boston office.
Flad Architects unfurled its flag in New York City, as did EwingCole. Mark Hebden, AIA, LEED AP, EwingCole’s President, says the firm is “reevaluating and refining its service offerings, process, and deliverables to align with client business and leadership challenges.” The firm hired Steve McDaniel as Director of Science and Technology.
HKS established beachheads in Chicago, Indianapolis, San Diego, and New York. The firm continues to expand into S&T and urban design.
Cannon Design recently acquired Peter Ellis New Cities, an urban planning and design group based in Chicago and New Delhi. Peter Ellis now leads Cannon Design’s urban planning and city design practice.
Other major hires in the last year:
• Kenneth Drake, AIA, NCARB, to EYP Architecture and Engineering as Senior S&T Project Executive.
• John Whitaker, AIA, DBIA, to HKS as Principal of its federal market sector and design-build practices, and Rick Bond, AIA, FHFI, as Federal Healthcare Strategy Leader.
• Dan Viscardi, to LEO A DALY as Corporate Director of the firm’s aviation program, and Archie Aamoth as Corporate Director of the healthcare program.
• Mark Chen, to Heery International as Director of Design.
NEW CLIENT SERVICES
Perkins+Will has formed a joint venture with Construction Specialties for a building products labeling system. The firm is expanding its sustainability advisory services and combining many services into a single offering. “Speed of delivery, innovative technology, advanced sustainable design practices, integrated design services, and extreme collaboration are all defining our work,” says P+W’s Harrison.
Populous introduced a new design service, Populous Activate, to enhance the in-stadium experience. The goal: optimize sponsor partnerships while meeting visitor needs and desires, says Populous’s Santee.
Cannon Design’s products group has invented the eVap series of heat exchange/cooling units, which separates water used in laboratories from the poorer quality water of the main building’s cooling system.
SmithGroupJJR developed WorkSIM—programming software that connects to Revit and produces 3D programmatic space models and room databases.
In short, a frantic year for architecture firms, with relief in sight. +
ARCHITECTURE FIRMS
Rank | Company | 2011 Total Revenue ($) |
1 | Gensler | 731,360,500 |
2 | Perkins+Will | 365,781,000 |
3 | NBBJ | 181,636,000 |
4 | Kohn Pedersen Fox Associates | 143,880,000 |
5 | Perkins Eastman | 130,000,000 |
6 | Callison | 128,480,000 |
7 | ZGF Architects | 120,248,889 |
8 | HMC Architects | 87,973,699 |
9 | Populous | 86,000,000 |
10 | Corgan Associates | 79,500,000 |
11 | Fentress Architects | 61,920,000 |
12 | WATG | 60,839,000 |
13 | Ennead Architects | 52,200,000 |
14 | RSP Architects | 52,190,000 |
15 | SHW Group | 50,588,390 |
16 | MulvannyG2 Architecture | 50,172,283 |
17 | FKP Architects | 42,434,000 |
18 | LS3P Associates | 42,168,717 |
19 | Perkowitz+Ruth Architects | 39,000,000 |
20 | Cooper Carry | 38,005,433 |
21 | tvsdesign | 35,720,659 |
22 | KMD Architects | 35,143,453 |
23 | Payette | 33,582,508 |
24 | MBH Architects | 32,279,000 |
25 | VOA Associates | 31,337,853 |
26 | Swanke Hayden Connell Architects | 30,500,000 |
27 | Shepley Bulfinch Richardson & Abbott | 29,800,000 |
28 | Beyer Blinder Belle Architects & Planners | 29,700,000 |
29 | Solomon Cordwell Buenz | 29,610,000 |
30 | RBB Architects | 29,100,000 |
31 | FXFOWLE Architects | 26,666,523 |
32 | Ware Malcomb | 26,400,000 |
33 | NTD Architecture | 24,369,266 |
34 | NAC|Architecture | 24,199,811 |
35 | FRCH Design Worldwide | 24,100,000 |
36 | WHR Architects | 23,581,538 |
37 | Francis Cauffman | 23,205,403 |
38 | WDG Architecture | 23,080,297 |
39 | OZ Architecture | 23,053,928 |
40 | Goettsch Partners | 22,748,000 |
41 | Jerde Partnership, The | 22,500,000 |
42 | Cuningham Group Architecture | 22,134,253 |
43 | H+L Architecture | 22,034,014 |
44 | Smallwood, Reynolds, Stewart, Stewart & Associates | 21,642,757 |
45 | Gould Evans | 20,135,000 |
46 | Niles Bolton Associates | 19,830,000 |
47 | Good Fulton & Farrell | 19,581,000 |
48 | Morris Architects | 19,454,000 |
49 | GBBN Architects | 18,000,000 |
50 | Mithun | 17,686,000 |
51 | LMN Architects | 17,281,900 |
52 | Lee, Burkhart, Liu | 17,200,000 |
53 | Ziegler Cooper Architects | 17,054,105 |
54 | FGM Architects | 16,226,488 |
55 | Kirksey Architecture | 16,216,783 |
56 | BBG-BBGM | 15,978,000 |
57 | Hnedak Bobo Group | 15,889,341 |
58 | SRG Partnership | 15,757,000 |
59 | BLT Architects | 14,900,000 |
60 | Nadel Architects | 14,200,000 |
61 | Wight & Company | 13,370,900 |
62 | Lord, Aeck & Sargent | 12,150,916 |
63 | Carrier Johnson + CULTURE | 11,699,266 |
64 | Anderson Mikos Architects | 11,393,000 |
65 | Harvard Jolly | 11,175,348 |
66 | Legat Architects | 10,420,000 |
67 | ARCHITEKTON | 9,827,002 |
68 | Ashley McGraw Architects | 9,500,000 |
69 | SLATERPAULL Architects | 9,321,914 |
70 | SEI Design Group | 7,986,000 |
71 | DesignGroup | 7,397,440 |
72 | H3 Hardy Collaboration Architecture | 6,700,000 |
73 | Massa Montalto Architects | 6,224,932 |
74 | Omniplan Architects | 5,776,000 |
75 | JRS Architect | 5,575,000 |
76 | Adache Group Architects | 4,500,000 |
77 | api(+) | 3,330,000 |
78 | PHX Architecture | 1,750,000 |
79 | RDH Interests | 1,423,620 |
80 | AXIS Architecture + Design | 1,370,000 |
81 | Horn Design | 1,145,000 |
ARCHITECTURE/ENGINEERING FIRMS
Rank | Company | 2011 Total Revenue ($) |
1 | HOK | 447,435,170 |
2 | HDR Architecture | 364,100,000 |
3 | Skidmore, Owings & Merrill | 255,000,000 |
4 | Cannon Design | 231,000,000 |
5 | HKS | 213,212,437 |
6 | RTKL Associates | 201,932,903 |
7 | IBI Group | 196,186,927 |
8 | SmithGroupJJR | 177,100,000 |
9 | LEO A DALY | 132,483,964 |
10 | Hammel, Green and Abrahamson | 127,900,000 |
11 | DLR Group | 110,000,000 |
12 | PageSoutherlandPage | 91,950,000 |
13 | EYP Architecture & Engineering | 72,681,105 |
14 | HNTB Architecture | 70,510,849 |
15 | Flad Architects | 65,100,000 |
16 | EwingCole | 63,500,000 |
17 | Gresham, Smith and Partners | 54,245,261 |
18 | Heery International | 48,487,000 |
19 | Ballinger | 48,311,631 |
20 | LPA | 48,194,126 |
21 | BSA LifeStructures | 45,316,495 |
22 | CTA Architects Engineers | 44,316,300 |
23 | PGAL | 42,513,800 |
24 | Reynolds, Smith and Hills | 42,000,000 |
25 | NELSON | 41,046,070 |
26 | Little | 40,700,000 |
27 | S/L/A/M Collaborative, The | 39,475,964 |
28 | Moseley Architects | 38,069,206 |
29 | PBK | 37,700,000 |
30 | HLW International | 36,000,000 |
31 | WD Partners | 36,000,000 |
32 | Harley Ellis Devereaux | 33,660,000 |
33 | Fanning Howey Associates | 29,880,000 |
34 | FreemanWhite | 28,500,000 |
35 | Albert Kahn Family of Companies | 27,200,000 |
36 | SMMA|Symmes Maini & McKee Associates | 25,335,391 |
37 | Westlake Reed Leskosky | 25,000,000 |
38 | Tetra Tech Architects & Engineers | 21,536,000 |
39 | Sasaki Associates | 21,237,056 |
40 | RNL | 21,129,700 |
41 | Epstein | 19,923,242 |
42 | LawKingdon Architecture | 19,100,000 |
43 | Fletcher Thompson | 18,450,000 |
44 | Sherlock, Smith & Adams | 15,400,000 |
45 | CASCO Diversified Corp. | 15,000,000 |
46 | Fishbeck, Thompson, Carr & Huber | 14,900,000 |
47 | Goodwyn|Mills|Cawood | 14,136,833 |
48 | Baskervill | 13,868,700 |
49 | Taylor | 12,210,121 |
50 | Pearce Brinkley Cease + Lee | 11,498,000 |
51 | Integrated Design Group | 11,436,000 |
52 | Rosser International | 10,700,000 |
53 | KZF Design | 9,295,703 |
54 | TEG – The Estopinal Group | 9,081,012 |
55 | BBS Architects, Landscape Architects and Engineers | 8,100,000 |
56 | DLA Architects | 7,000,000 |
57 | Rule Joy Trammell + Rubio | 4,200,000 |
Related Stories
| Jan 4, 2011
Product of the Week: Zinc cladding helps border crossing blend in with surroundings
Zinc panels provide natural-looking, durable cladding for an administrative building and toll canopies at the newly expanded Queenstown Plaza U.S.-Canada border crossing at the Niagara Gorge. Toronto’s Moriyama & Teshima Architects chose the zinc alloy panels for their ability to blend with the structures’ scenic surroundings, as well as for their low maintenance and sustainable qualities. The structures incorporate 14,000 sf of Rheinzink’s branded Angled Standing Seam and Reveal Panels in graphite gray.
| Jan 4, 2011
6 green building trends to watch in 2011
According to a report by New York-based JWT Intelligence, there are six key green building trends to watch in 2011, including: 3D printing, biomimicry, and more transparent and accurate green claims.
| Jan 4, 2011
LEED standards under fire in NYC
This year, for the first time, owners of 25,000 commercial properties in New York must report their buildings’ energy use to the city. However, LEED doesn’t measure energy use and costs, something a growing number of engineers, architects, and landlords insist must be done. Their concerns and a general blossoming of environmental awareness have spawned a host of rating systems that could test LEED’s dominance.
| Jan 4, 2011
LEED 2012: 10 changes you should know about
The USGBC is beginning its review and planning for the next version of LEED—LEED 2012. The draft version of LEED 2012 is currently in the first of at least two public comment periods, and it’s important to take a look at proposed changes to see the direction USGBC is taking, the plans they have for LEED, and—most importantly—how they affect you.
| Jan 4, 2011
California buildings: now even more efficient
New buildings in California must now be more sustainable under the state’s Green Building Standards Code, which took effect with the new year. CALGreen, the first statewide green building code in the country, requires new buildings to be more energy efficient, use less water, and emit fewer pollutants, among many other requirements. And they have the potential to affect LEED ratings.
| Jan 4, 2011
New Years resolutions for architects, urban planners, and real estate developers
Roger K. Lewis, an architect and a professor emeritus of architecture at the University of Maryland, writes in the Washington Post about New Years resolutions he proposes for anyone involved in influencing buildings and cities. Among his proposals: recycle and reuse aging or obsolete buildings instead of demolishing them; amend or eliminate out-of-date, obstructive, and overly complex zoning ordinances; and make all city and suburban streets safe for cyclists and pedestrians.
| Jan 4, 2011
An official bargain, White House loses $79 million in property value
One of the most famous office buildings in the world—and the official the residence of the President of the United States—is now worth only $251.6 million. At the top of the housing boom, the 132-room complex was valued at $331.5 million (still sounds like a bargain), according to Zillow, the online real estate marketplace. That reflects a decline in property value of about 24%.
| Jan 4, 2011
Luxury hotel planned for Palace of Versailles
Want to spend the night at the Palace of Versailles? The Hotel du Grand Controle, a 1680s mansion built on palace grounds for the king's treasurer and vacant since the French Revolution, will soon be turned into a luxury hotel. Versailles is partnering with Belgian hotel company Ivy International to restore the dilapidated estate into a 23-room luxury hotel. Guests can live like a king or queen for a while—and keep their heads.
| Jan 4, 2011
Grubb & Ellis predicts commercial real estate recovery
Grubb & Ellis Company, a leading real estate services and investment firm, released its 2011 Real Estate Forecast, which foresees the start of a slow recovery in the leasing market for all property types in the coming year.