Architectural Activities in the UK Industry Market Research Report Now Updated by IBISWorld

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Revenue in the Architectural Activities industry is expected to have declined at a compound annual rate of 7.0% over the five years through 2012-13, as the slump of investment in the commercial and residential buildings markets severely affected the demand for architectural services. Growth is expected to return from 2014-15 as participants benefit from the recovery of investment in downstream commercial and residential building markets but despite the favourable conditions, the industry is not expected to enjoy the record levels of the mid- to late 2000s.

IBISWorld industry market research
The industry struggles to rebuild after dramatic falls during the crisis

The Architectural Activities industry designs buildings, structures and landscapes to meet clients' requirements, applying specialist knowledge of design principles, construction procedures, zoning regulations, building codes and building materials. It is expected to generate revenue of £4.5 billion in 2012-13, down by 4.3% on the previous year as residential and non-residential construction activity continues to decline. Exports currently account for about 5.0% of industry revenue (£224 million), while imports satisfy 1.0% of domestic demand (£45 million in 2012-13).

According to IBISWorld industry analyst Iyman Uvais, “industry revenue is expected to have declined at a compound annual rate of 7.0% over the five years through 2012-13, as the slump of investment in the commercial and residential buildings markets severely affected the demand for architectural services”. The commercial building and residential building markets are estimated to have declined by an annualised 7.6% and 7.4% respectively over the period. The decline in non-residential building had a considerably larger influence on industry performance as it is the source of 60% of industry revenue. Increased competition from multidisciplinary building and engineering firms placed further pressure on industry performance.

The industry has a particularly fragmented structure, with over three-quarters of enterprises employing less than five people and generating annual revenue of less than £250,000. One-third of architectural firms have been in business for less than three years. The largest five players in the industry are estimated to have a combined market share of less than 5.0%

Industry revenue is forecast to decline in 2012-13 as commercial and residential construction activity continues to decline. Uvais adds, “growth is expected to return from 2014-15 as participants benefit from the recovery of investment in downstream commercial and residential building markets”. Revenue is anticipated to return to growth over the five years through 2017-18. Potential opportunities for architects that promote green building options will also positively influence industry performance. However, despite the favourable conditions, the industry is not expected to enjoy the record levels of the mid- to late 2000s.

The Architectural Activities industry in the United Kingdom has a very low concentration of ownership. 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 UK, Aedas 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 designing and drafting buildings, town and urban planning, and landscape architecture. It also supervises the construction of buildings. Architectural firms provide information on design and construction procedures, zoning regulations, building codes and building materials. Interior decorating services are not included.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalisation & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on many UK industries. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in London, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.co.uk or call (020) 3008 6568.

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Gavin Smith
IBISWorld
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