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 | Jul 17, 2019
Design services demand stalled in June
Project inquiry gains hit a 10-year low.
Market Data | Jul 16, 2019
ABC’s Construction Backlog Indicator increases modestly in May
The Construction Backlog Indicator expanded to 8.9 months in May 2019.
K-12 Schools | Jul 15, 2019
Summer assignments: 2019 K-12 school construction costs
Using RSMeans data from Gordian, here are the most recent costs per square foot for K-12 school buildings in 10 cities across the U.S.
Market Data | Jul 12, 2019
Construction input prices plummet in June
This is the first time in nearly three years that input prices have fallen on a year-over-year basis.
Market Data | Jul 1, 2019
Nonresidential construction spending slips modestly in May
Among the 16 nonresidential construction spending categories tracked by the Census Bureau, five experienced increases in monthly spending.
Market Data | Jul 1, 2019
Almost 60% of the U.S. construction project pipeline value is concentrated in 10 major states
With a total of 1,302 projects worth $524.6 billion, California has both the largest number and value of projects in the U.S. construction project pipeline.
Market Data | Jun 21, 2019
Architecture billings remain flat
AIA’s Architecture Billings Index (ABI) score for May showed a small increase in design services at 50.2.
Market Data | Jun 19, 2019
Number of U.S. architects continues to rise
New data from NCARB reveals that the number of architects continues to increase.
Market Data | Jun 12, 2019
Construction input prices see slight increase in May
Among the 11 subcategories, six saw prices fall last month, with the largest decreases in natural gas.
Market Data | Jun 3, 2019
Nonresidential construction spending up 6.4% year over year in April
Among the 16 sectors tracked by the U.S. Census Bureau, nine experienced an increase in monthly spending, led by water supply and highway and street.