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 | Aug 17, 2017
Marcum Commercial Construction Index reports second quarter spending increase in commercial and office construction
Spending in all 12 of the remaining nonresidential construction subsectors retreated on both an annualized and monthly basis.
Industry Research | Aug 11, 2017
NCARB releases latest data on architectural education, licensure, and diversity
On average, becoming an architect takes 12.5 years—from the time a student enrolls in school to the moment they receive a license.
Market Data | Aug 4, 2017
U.S. grand total construction starts growth projection revised slightly downward
ConstructConnect’s quarterly report shows courthouses and sports stadiums to end 2017 with a flourish.
Market Data | Aug 2, 2017
Nonresidential Construction Spending falls in June, driven by public sector
June’s weak construction spending report can be largely attributed to the public sector.
Market Data | Jul 31, 2017
U.S. economic growth accelerates in second quarter; Nonresidential fixed investment maintains momentum
Nonresidential fixed investment, a category of GDP embodying nonresidential construction activity, expanded at a 5.2% seasonally adjusted annual rate.
Multifamily Housing | Jul 27, 2017
Apartment market index: Business conditions soften, but still solid
Despite some softness at the high end of the apartment market, demand for apartments will continue to be substantial for years to come, according to the National Multifamily Housing Council.
Market Data | Jul 25, 2017
What's your employer value proposition?
Hiring and retaining talent is one of the top challenges faced by most professional services firms.
Market Data | Jul 25, 2017
Moderating economic growth triggers construction forecast downgrade for 2017 and 2018
Prospects for the construction industry have weakened with developments over the first half of the year.
Industry Research | Jul 6, 2017
The four types of strategic real estate amenities
From swimming pools to pirate ships, amenities (even crazy ones) aren’t just perks, but assets to enhance performance.
Market Data | Jun 29, 2017
Silicon Valley, Long Island among the priciest places for office fitouts
Coming out on top as the most expensive market to build out an office is Silicon Valley, Calif., with an out-of-pocket cost of $199.22.