U.S. architecture firms have experienced a near complete recovery from the Great Recession, which has allowed firm leaders to reinvest profits back into their businesses. These findings, along with an in depth look at topics such as firm billings, staffing, and international work, are covered in The Business of Architecture: 2016 Firm Survey Report.
Key highlights include:
- Net billings at architecture firms were $28.5 billion at the peak of the market in 2008 and had nearly recovered to $28.4 billion by 2015.
- Percentage of firms reporting a financial loss declined sharply in recent years from more than 20% in 2011 to fewer than 10% by 2015.
- Growing profitability has allowed firms to increase their marketing activities and expand into new geographical areas and building types to diversity their design portfolios.
- Renovations made up a large portion of design work with 45% of building design billings coming from work on existing facilities, including 30% from additions to buildings, and the remaining from historic preservation projects.
- Billings in the residential sector topped $7 billion, more than 30% over 2013 levels.
- Modest gains in diversity of profession with women now comprising 31% of architecture staff (up from 28% in 2013) and minorities making up 21% of staff (up from 20% in 2013).
- Use of Building Information Modeling (BIM) software has become standard at larger firms with 96% of firms with 50 or more employees report using it for billable work (compared to 72% of mid-sized firms and 28% of small firms).
- Newer technologies including 3D printing and 4D/5D modeling are reported being used at only 11% and 8% of firms respectively.
- Energy modeling currently has a low adoption rate with 13% of firms using it for billable work, although this share jumps to 59% for large firms.
“In the coming years we expect firms will be adding technological dimensions to their design work through greater utilization of cloud computing, 3D printing and the use of virtual reality software. This should help further efficiencies, minimize waste and project delivery delays, and lead to increased bottom line outcomes for their clients,” says AIA senior director of research, Michele Russo in a press release.
Related Stories
Market Data | Oct 14, 2021
Prices for construction materials continue to outstrip bid prices over 12 months
Construction officials renew push for immediate removal of tariffs on key construction materials.
Market Data | Oct 11, 2021
No decline in construction costs in sight
Construction cost gains are occurring at a time when nonresidential construction spending was down by 9.5 percent for the 12 months through July 2021.
Market Data | Oct 11, 2021
Nonresidential construction sector posts first job gain since March
Has yet to hit pre-pandemic levels amid supply chain disruptions and delays.
Market Data | Oct 4, 2021
Construction spending stalls between July and August
A decrease in nonresidential projects negates ongoing growth in residential work.
Market Data | Oct 1, 2021
Nonresidential construction spending dips in August
Spending declined on a monthly basis in 10 of the 16 nonresidential subcategories.
Market Data | Sep 29, 2021
One-third of metro areas lost construction jobs between August 2020 and 2021
Lawrence-Methuen Town-Salem, Mass. and San Diego-Carlsbad, Calif. top lists of metros with year-over-year employment increases.
Market Data | Sep 28, 2021
Design-Build projects should continue to take bigger shares of construction spending pie over next five years
FMI’s new study finds collaboration and creativity are major reasons why owners and AEC firms prefer this delivery method.
Market Data | Sep 22, 2021
Architecture billings continue to increase
The ABI score for August was 55.6, up from July’s score of 54.6.
Market Data | Sep 20, 2021
August construction employment lags pre-pandemic peak in 39 states
The coronavirus delta variant and supply problems hold back recovery.
Market Data | Sep 15, 2021
ABC’s Construction Backlog Indicator plummets in August; Contractor Confidence down
ABC’s Construction Confidence Index readings for sales, profit margins and staffing levels all fell modestly in August.