The industry struggles to rebuild after the economic crisis
London, UK (PRWEB) July 29, 2012
The Architectural Activities industry designs buildings, structures and landscapes to meet the clients' requirements while applying specialist knowledge of design principles, construction procedures, zoning regulations, building codes and building materials. The industry is expected to generate revenue totalling £4.5 billion in 2012-13, down by 4.3% on the previous year. There is a substantial global market for architectural design services and several local firms are major international players. Exports currently account for about 5.0% of industry revenue while import penetration accounts for about 1.0% of domestic demand. Industry revenue has trended sharply down since the onset of the recession and the subsequent slump in new building investment. Industry revenue is expected to decline at an annualised 7.0% over the five years through 2012-13. According to IBISWorld industry analyst Anthony Kelly, “this is in line with the contraction in total building construction, and particularly the sharp decline in office construction, which typically has a very high architectural design input”.
The industry has a particularly fragmented structure, comprising many small-scale operators. Direct industry employment is expected to total 57,500 people in 10,300 establishments in 2012-13. This represents a decline in industry direct employment by 10,500 people since the cyclical peak of 68,000. By contrast, the industry has climbed by about 1,000 establishments since the onset of the recession as architects are forced to set up independent consultancies or leave the industry. Kelly adds, “over the next five years, architects are expected to benefit from the cyclical recovery of investment into the housing and non-residential building markets”. Industry revenue is forecast to return to growth over the five years to 2017-18, expanding at a faster pace than UK GDP (2.0%).
Three-quarters of industry enterprises are very small-scale firms employing less than five people and generate annual revenue of less than £250,000. One-third of architectural firms have been in business for less than three years. The Architectural Activities industry in the United Kingdom has a very low concentration of ownership and is characterised by its fragmented structure. The industry includes a few large-scale multinational players and many small-scale firms operating in narrow markets. The four largest architectural consulting firms contribute less than 5.0% of industry revenue. Major companies include BDP International, Aedas, WS Atkins and Foster + Partners.
For more information on the Architectural Activities industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.
IBISWorld industry Report Key Topics
This industry is primarily engaged in the planning and designing of buildings, town and urban planning, and landscape architecture. Architectural knowledge spans design and construction procedures, zoning regulations, building codes and building materials. This industry also provides drafting services, supplies detailed layouts, plans and illustrations of buildings, structures and systems.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalisation & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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