As the world slowly adjusts to the "new normal," so too does the architecture industry. Data related to market size and workloads shows that the profession continued to grow even after the pandemic struck. Other statistics show how architects are starting to be hit by the present crisis – such as the fall in full-time work and rising unemployment. While these statistics could take one down a road of despair (or enthusiasm), there is more to the numbers: Mobility, digital and managerial competencies are framing the profession in the 2020's. Not only as data for the sector to approach the market and retain talent but also as strategies in the face of crises and technologies to come.
In the past two years, the architecture industry was introduced to various tools to ease the transition to remote working, reformulating leadership roles, work cooperation, and design objectives. Statistics and surveys from government and private associations such as The European and Indian Architecture Council, World Economic Forum, UIA Architectural, AIA, and Monograph, among others, have closely followed the industry's performance, productivity, profitability, and workforce, revealing substantial changes in methodologies, and scopes.
Therefore, AD gathered the essential data to review the industry's trajectory in a decade framed by a global pandemic, humanitarian crisis, and innovation.
As managerial competencies are required daily, project management, financial planning, and client experience are becoming some of the top concerns for architects. In 2021, more than 43% of firms surveyed by PSMJ Resources said they had experienced project delays and cancellations not only because of the pandemic but also by inefficiencies; 96.9% of architects said they had experienced burnout in 2021; More than 80% of architecture firms surveyed said 89.4% of operations fall on the shoulder of Principals/Executive teams. Although having a dedicated operational team or person can benefit any firm at a large scale and is a common practice, especially for smaller firms, it also prevents cross-training in other disciplines/areas of the business.
The Architecture profession is significantly more equal than in the past, but there is still progress to be made. Out of ninety thousand (registered) Architects in India, 47% are women, with an increasing rate in the past ten years. However, only 17% of female architects are entrepreneurs or in leading positions. The Architect's Council of Europe reports that 42% of architects are female in an industry where managerial roles are run by 40% of the total licensed. In the USA, there is one woman for every four registered men architects, with a 1% growth of female leaders from 2005 to 2020. From its inception, the discipline has not been accessible to all people, and managerial competencies as an architectural skill might challenge leadership roles this decade.
As the leadership role is being reformulated, client interaction needs to be shaped too. As a service-based business, client relationship is becoming the top key performance indicator, with 56.8%, above other factors like net revenue per employee. The experience starts at the client onboarding process, which only some architects implement in their firms (only 13%, according to Morphio). Increasing customer success strategies will become a possible axis in the industry in the following years. To provide an excellent experience, some specialists suggested that there should be a place for customer success in an architecture practice. This means a dedicated team that works with clients directly to ensure they get the support and advice to succeed when using architectural services.
As a service-based business, client relationship is becoming the top key performance indicator, with 56.8%, above other factors like net revenue per employee - Morphio
In terms of digital practices, technologies like CAD, BIM, AR, VR, XR, and drones show a steady transition worldwide. 34% of large architecture firms state they have five or more years of experience in using BIM. That is twice as much as small firms, representing only 16%. There are socio-economic factors: 51% of AEC (Architecture Engineering and Construction) companies report that their main obstacle in using Collaboration Solutions, among other emerging technologies, is the cost of the solution, followed by limited experience and training, which is often self-taught and not paid. On the bright side, this has opened a new window for established architects to get specialized and for a younger generation to lead the workforce.
From modelers to BIM managers, 46% of respondents included younger staff reporting better staff learning and a more diverse service catalog. This switch is vital for growing economies like Mexico and India, where around 51% of architects are 20-35 years old, meaning a young workforce equipped with digital tools but also eager to look for better alternatives overseas. India, expected to be the world's fastest-growing economy in 2023, produces only 20% of the national architect requirement. 'Brain drain' has resulted in a tremendous loss as small towns across the country expand and grow into cities requiring higher levels of infrastructure. The demand for urban freight is expected to expand by 140% over the next decade. In parallel, the country is expected to invest USD 1.4 trillion in infrastructure under the "National Infrastructure Pipeline" in the next five years.
India, expected to be the world's fastest-growing economy in 2023, produces only 20% of the national architect requirement - The Time of India
As optimism and economic activity return to the design and construction sector throughout 2022, architects are looking to mobilize and advance in their careers in an unprecedented scope. Nearly 2 in 3 professionals are considering resigning in the next 12 months solely in North America; in Europe, a quarter of the workforce quit over the decade. A skilled workforce from around the world is filling the gaps. Norway, North America, and The United Arab Emirates (UAE) show high demand for architects worldwide. Yet registration and immigration paperwork are barriers; the hybrid work mode supports seamless mobility. More firms (76.6%) implemented hybrid work in 2022; full remote work has dropped significantly from last year. A significant change compared to 2020, where only 39.1% of firms planned to stick with hybrid work.
Besides adopting new technologies, new competencies are vital to compete in this rapidly changing market. Data shows that 57 % of European architects design Low Energy buildings, framing private housing as the most crucial sector. Specialized fields like construction management, sustainable design, interior design, conservation, and heritage are in increased demand. 93% of American firms surveyed said clients want to invest more in healthy indoor environments in response to post-pandemic protocols and space re-usage. As an example of the trend, Tower in Sydney by 3XN won the International High-Rise Award in 2022. The tower integrates a large proportion of the existing 1970s high-rise structure into the new building saving nearly 12,000 tons of carbon dioxide compared to complete demolition and conventional new construction.
Data shows that 57 % of European architects design Low Energy buildings – Architects’ Council of Europe
93% of American firms surveyed by said clients want to invest more in healthy indoor environments in response to post-pandemic protocols and space re-usage - Ambius
Related to emerging competencies for architects, PR and marketing are becoming vital to promoting services and providing better customer service. According to the AIA, firms that use media platforms are significantly better at using digital marketing to drive new leads. Similarly, architect Evelyn Lee FAIA expresses in her Practice Disrupted podcast that media is a unique and evolving way of using an architecture degree and making things. Websites like Architonic, ArchDaily, Designboom, and other venues have opened up editorial content to various approaches, aesthetics, and authors. So, yes, this decade is also for expressing thoughts without the "correct" focus of the media and industrial establishment.
Despite the announced recession in 2023 and external effects like crisis and politics, the data collected show that architects are optimistic about the industry growth and eager to adopt new tools. As The profession continually finds ways of evolving, especially in unprecedented times, architects need to unite and call for change, starting from how we collaborate with peers and clients and the generation to come. Not only to improve the numbers but to adapt to crises and technologies to come.
This article is part of the ArchDaily Topics: Year in Review presented by Randers Tegl.
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