The Business of Architecture

MARKETS

Two booms: two recessions.

Architecture is a hugely cyclical market.

The last twenty years has seen huge variations in workloads. Back in 1989 the profession was riding high on the back of a boom fuelled by commercial offices. The early 1990’s were a miserable time, and work stuttered at subdued levels for some years. Not until the end of the 1990’s did workloads improve measurably, some of this being on the back of lottery and millennium projects. The new century brought an ever-expanding workload, with four consecutive years of successive all-time highs. Work began dipping, and then plunging, downwards in 2008/09.

Value of New Commissions received by Architects, 1989-2009

New commissions received by architects show how steep the fall was in 1990, and how steep the recent rises have been. It also shows that most of the long period from 1992 to 2007 saw year-on-year rises in workloads. This year’s fall is dramatic.

Changes in Architects’ Workloads, Construction Output and GDP, 1989-2009

This chart measures the industry’s peaks and troughs, comparing the annual changes in architects’ workloads, construction output and GDP. Architects’ workloads swing the most; construction output moves relatively mildly while the overall economy is the most horizontal.

Changes in the Share of Architects’ Workloads by Practice Size, 1995-2009

All practice sizes have benefited from rising workloads (data only available back to 1995). Regional Changes in Architects’ Workloads, 1989-2009 Greatest growth in architects’ workloads 1989-2009 has been experienced in London, the North and Scotland. The capital now accounts for 31 per cent of all work; up from 27 per cent in 1989. London’s share peaked in 2007 at 43 per cent.

Data Source: Architects Markets 2010, Architects Performance 2010

This research is split into four sections - to view a section click on a link below:

Reports from The Fees Bureau you might be interested in...