The coronavirus pandemic accelerated a shift toward architectural design work on existing buildings that already had been underway. That shift presents new opportunities, but also challenges that manufacturers and other partners can help architects meet. But when it comes to designing sustainably, architects need to become more than just “passive advisors” who leave final decisions to clients.
These are some of the key findings from a new 43-page report, “Business Opportunities & Sustainability Trends Amidst a Pandemic,” that has been published by the American Institute of Architects (AIA) in partnership with Oldcastle Building Technology. The report is based on responses from 229 architecture firms that completed a survey that was in the field from October 20 through November 17, 2020.
The largest number of respondents was affected by the recession only moderately.
The study found 2020 to be “a tale of two markets,” with declining demand in most nonresidential sectors and increasing demand in residential sectors, especially single family. From March to September 2020, surveyed respondents reported an increase of 34% for single-family work and 12% for multifamily; and a net decrease in work in the nonresidential sectors including retail (down 49%), offices (-35%) and Higher Ed (-29%).
Demand for residential design was the one silver lining of last year's COVID-19 outbreak. And the nonres sectors that took it on the chin are likely to see most of their new work in existing buildings in 2021.
According to the AIA Consensus Construction Forecast released in January 2021, nonresidential building spending is expected to continue to decrease with a forecasted decline of 5.7% in 2021. Out of nonresidential building spending, the commercial sector is expected to continue to decline the most in 2021, by 7.1%, compared with 4% for the institutional sector.
Healthcare, higher education, and K–12 education are expected to have the greatest opportunities for growth in existing buildings in 2021, whereas there are declines expected in new building projects.
EXTERNAL COMMUNICATION WAS TOUGH DURING PANDEMIC
The pandemic's impact on client relationships was relatively minor. But budgeting was cited as the biggest challenge for architects working on existing buildings.
The two biggest challenges architectural professionals reported facing with existing buildings were budget/cost constraints (73% of responses) and field discovery that leads to scope creep (72%). Further, nearly half (48%) of those surveyed reported the challenges of inconsistencies between building plan documents and as-built, and problems from products/materials in existing buildings (46%).
Many firms shifted into a virtual work environment during the pandemic, and found it difficult to maintain productivity. Of the 71% of architects who reported negative impacts on construction, some of the reasons given were delayed timelines, price increases for materials or limited materials, lack of workers, COVID-19 restrictions, and difficulties with external communications.
A little over one quarter (26%) reported the pandemic negatively impacted their relationships with clients. The primary reason for that was also communication (reported by 63%, the top reason) but closely followed by more worsened collaboration. Difficult communications were also cited as the main reason for any negative impact on supplier relationships.
On the positive side, design quality was the only business aspect that showed no notable impact from the pandemic—with a vast majority (77%) reporting no impact. Other respondents were encouraged by technology, focus on design, and less distraction.
SUSTAINABILITY DEMAND CONTINUES TO EXPAND
Not surprisingly, Higher Ed is deemed by architects as being the nonres sector where sustainability innovation flourishes. The study found, though, that a sizable number of architects are still on the sidelines when it comes to moving clients toward sustainable project goals.
Architects were hopeful about their opportunities from sustainable design, especially in housing and healthcare projects. The majority of those surveyed reported that clients increasingly are willing to invest in design that leads to better occupant health and productivity (78%) and are willing to pay for design and materials that reduce disease transmission (61%). Additionally, 63% of respondents reported that sustainability concerns increasingly are important when specifying building products/materials and that they are seeing consultants increasingly focused on sustainability.
Across nearly all these measures, significantly higher shares of respondents from the largest firms (500 or more employees, which comprise a substantial share of architectural billings) reported client interest in sustainability.
By way of example, the report quotes a commercial owner in the Southeast who says that sustainability and wellness are “core principles for the group, and climate change is a fundamental consideration. Looking forward, our future projects will have similar sensitivity to the impacts of climate change.”
Even after the pandemic is controlled, data and history suggest that this concern will remain strong, given both owners’ desire to mitigate future risk and the historical strength of improved health outcomes as a driver to green building and sustainable design. Sixty-three percent of respondents also said sustainability is increasingly important in specification of building products and materials.
ARCHITECTS MUST LEAD THE CHARGE TOWARD SUSTAINBILITY
Construction, planning and project management were impacted by the pandemic's restrictions on physical presences on jobsites.
The study revealed a net positive impact of the pandemic on innovation and finding sustainable solutions, with 34% of respondents reporting that the pandemic helped make it less difficult to innovate and 25% noting that it made it less difficult to find new sustainable solutions.
While architects are strong advocates of sustainability, the report states that there room for architects to take on more leadership roles as designers, educators, partners, and specifiers. When it comes to their role educating clients about sustainability, more than a quarter (27%) are on the forefront—integrating health and sustainability considerations into all projects. But nearly half (48%) act in more of an advisory capacity, with that split between those who serve as the decision-maker (16%) and those who defer decisions to clients (32%). And there is still a quarter who are either hands-off, offering options but not prioritizing sustainability, or reactionary.
The report’s findings are consistent with architects’ general approach to new product and material use. While there are a very small percentage of innovators and laggards, most fall into the middle, with 28% of respondents identifying as early adopters and 23% identifying as being in the “early majority,” or using new products after some use.
Related Stories
Office Buildings | Feb 9, 2023
Post-Covid Manhattan office market rebound gaining momentum
Office workers in Manhattan continue to return to their workplaces in sufficient numbers for many of their employers to maintain or expand their footprint in the city, according to a survey of more than 140 major Manhattan office employers conducted in January by The Partnership for New York City.
Giants 400 | Feb 9, 2023
New Giants 400 download: Get the complete at-a-glance 2022 Giants 400 rankings in Excel
See how your architecture, engineering, or construction firm stacks up against the nation's AEC Giants. For more than 45 years, the editors of Building Design+Construction have surveyed the largest AEC firms in the U.S./Canada to create the annual Giants 400 report. This year, a record 519 firms participated in the Giants 400 report. The final report includes 137 rankings across 25 building sectors and specialty categories.
University Buildings | Feb 8, 2023
STEM-focused Kettering University opens Stantec-designed Learning Commons
In Flint, Mich., Kettering University opened its new $63 million Learning Commons, designed by Stantec. The new facility will support collaboration, ideation, and digital technology for the STEM-focused higher learning institution.
Sustainability | Feb 8, 2023
A wind energy system—without the blades—can be placed on commercial building rooftops
Aeromine Technologies’ bladeless system captures and amplifies a building’s airflow like airfoils on a race car.
Codes and Standards | Feb 8, 2023
GSA releases draft of federal low embodied carbon material standards
The General Services Administration recently released a document that outlines standards for low embodied carbon materials and products to be used on federal construction projects.
University Buildings | Feb 7, 2023
Kansas City University's Center for Medical Education Innovation can adapt to changes in medical curriculum
The Center for Medical Education Innovation (CMEI) at Kansas City University was designed to adapt to changes in medical curriculum and pedagogy. The project program supported the mission of training leaders in osteopathic medicine with a state-of-the-art facility that leverages active-learning and simulation-based training.
Multifamily Housing | Feb 7, 2023
Multifamily housing rents flat in January, developers remain optimistic
Multifamily rents were flat in January 2023 as a strong jobs report indicated that fears of a significant economic recession may be overblown. U.S. asking rents averaged $1,701, unchanged from the prior month, according to the latest Yardi Matrix National Multifamily Report.
Giants 400 | Feb 6, 2023
2022 Reconstruction Sector Giants: Top architecture, engineering, and construction firms in the U.S. building reconstruction and renovation sector
Gensler, Stantec, IPS, Alfa Tech, STO Building Group, and Turner Construction top BD+C's rankings of the nation's largest reconstruction sector architecture, engineering, and construction firms, as reported in the 2022 Giants 400 Report.
Giants 400 | Feb 6, 2023
2022 Transit Facility Giants: Top architecture, engineering, and construction firms in the U.S. transit facility sector
Walsh Group, Skanska USA, HDR, Perkins and Will, and AECOM top BD+C's rankings of the nation's largest transit facility sector architecture, engineering, and construction firms, as reported in the 2022 Giants 400 Report.
Giants 400 | Feb 6, 2023
2022 Telecommunications Facility Sector Giants: Top architecture, engineering, and construction firms in the U.S. telecommunications facility sector
AECOM, Alfa Tech, Kraus-Anderson, and Stantec head BD+C's rankings of the nation's largest telecommunications facility sector architecture, engineering, and construction firms, as reported in the 2022 Giants 400 Report.