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 | Nov 29, 2016
It’s not just traditional infrastructure that requires investment
A national survey finds strong support for essential community buildings.
Industry Research | Nov 28, 2016
Building America: The Merit Shop Scorecard
ABC releases state rankings on policies affecting construction industry.
Multifamily Housing | Nov 28, 2016
Axiometrics predicts apartment deliveries will peak by mid 2017
New York is projected to lead the nation next year, thanks to construction delays in 2016
Market Data | Nov 22, 2016
Construction activity will slow next year: JLL
Risk, labor, and technology are impacting what gets built.
Market Data | Nov 17, 2016
Architecture Billings Index rebounds after two down months
Decline in new design contracts suggests volatility in design activity to persist.
Market Data | Nov 11, 2016
Brand marketing: Why the B2B world needs to embrace consumers
The relevance of brand recognition has always been debatable in the B2B universe. With notable exceptions like BASF, few manufacturers or industry groups see value in generating top-of-mind awareness for their products and services with consumers.
Industry Research | Nov 8, 2016
Austin, Texas wins ‘Top City’ in the Emerging Trends in Real Estate outlook
Austin was followed on the list by Dallas/Fort Worth, Texas and Portland, Ore.
Market Data | Nov 2, 2016
Nonresidential construction spending down in September, but August data upwardly revised
The government revised the August nonresidential construction spending estimate from $686.6 billion to $696.6 billion.
Market Data | Oct 31, 2016
Nonresidential fixed investment expands again during solid third quarter
The acceleration in real GDP growth was driven by a combination of factors, including an upturn in exports, a smaller decrease in state and local government spending and an upturn in federal government spending, says ABC Chief Economist Anirban Basu.
Market Data | Oct 28, 2016
U.S. construction solid and stable in Q3 of 2016; Presidential election seen as influence on industry for 2017
Rider Levett Bucknall’s Third Quarter 2016 USA Construction Cost Report puts the complete spectrum of construction sectors and markets in perspective as it assesses the current state of the industry.