Architects' Quarterly Workload Survey

1st Quarter 2010 Results

MIXED MESSAGES

There are mixed messages coming out of this quarter’s statistics. Confidence is returning to commercial work while private housing is looking more uncertain. Public work is strong. This may be nothing more than a reflection of access to finance; architects report that housebuilders and developers – previously with unblemished records – are arguing unsuccessfully with banks to obtain finance. Add to this the pre- and post-election uncertainty, it is perhaps not surprising that architects are split almost evenly in their confidence predictions: as many predict future work will rise as fall, with nearly as many saying ‘no change’. Uncertainty continues.

How architectural practices expect their workloads

will change over the next six months

SIGNS OF GROWTH

In an uncertain climate, there are signs of growth in both public and commercial work. First, the public sector. New commissions in both health and education are higher this quarter. In the case of education, the rise is huge. We’ve seen this type of large rise at this time of year before – it’s a cyclical rise, and even though it’s not the highest figure ever recorded the scale of the rise is bigger than ever before.

COMMERCIAL ON THE RISE

The second area of interest is commercial, and in particular offices. Workloads are starting to pick up; new commissions have doubled this quarter with a good balance between new build and refurbishment work. This quarter’s figure is the highest recorded in almost two years. Elsewhere in the commercial area we are seeing retail work holding up convincingly, with a substantial increase in production drawings work; and industrial commissions have soared on the back of refurbishment work.

Breakdown of new commissions by sector - Q1 2010

LEISURE AND HOUSING FALL

By contrast, leisure and housing workloads are edging down. For the last two years, leisure commissions have stayed high but now new commissions (but not production drawings) have fallen for six months. And finally, to housing. Always the largest source of architects’ work, new commissions have been falling back for the last six months and this quarter both new commissions and production drawings are lower by a quarter. 

Value of new commissions workloads received by architectural practices

2008-2010 Constant (2005) prices, £ millions

REGIONAL TRENDS

Workloads are up this quarter in London, the Midlands / East Anglia, Scotland and Northern Ireland. The Midlands records the largest rise, a doubling of last quarter’s figure. The rise in London is significant (30 per cent) given that this is the largest region in cash terms. New commissions are down this quarter in Wales and the South West. There is broadly no change in the South East and a small rise in the North.

Regional changes in the value of new commissions workloads received by architectural practices Q4 2009 to Q1 2010

Asked in April 2010 about expected future workload levels for the next six months, architects are most positive in London, the South East, North and Midlands / East Anglia. Highest levels of pessimism are recorded by practices in Scotland, Wales and Northern Ireland.

How architectural practices expect their workloads

will change over the next six months - by region

Minor Works 2011