MIRZA & NACEY RESEARCH
Architects Markets A Survey of the Markets in which Architects operate
2020
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© Copyright Mirza & Nacey Research Ltd. All rights reserved. No part of this publication may be reproduced, distributed, or transmitted in any form or by any means, including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of the publisher, except in the case of brief quotations embodied in critical reviews and certain other noncommercial uses permitted by copyright law.
Architects Markets 2020 edition
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Background How the data is collected and analysed 4 Definitions 5
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Architects’ markets Markets have grown long-term 6 The cyclical nature of workloads 8 How the Great Lockdown might impact workloads 10 Relationship between New Commissions & Production Drawings 12
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Practice Workloads How workloads vary by practice size Workloads per practice and per head How workloads vary by sector
14 16 18
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Regional Workloads How workloads vary by region 20 Regional trends 22
Market sectors Architects’ predictions 2020 24 PrivateHousing 26 Offices 28 Retail 30 Leisure 32 Industrial 34 Public Housing 36 Education 38 Health 40
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Statistical tables 42-44 Published by The Fees Bureau, a division of Mirza & Nacey Research Ltd ISBN: 978-1-913403-06-5 © Mirza & Nacey Research Ltd 2020 06.05.2020 The information in this publication is based on a survey of architectural practices undertaken over the 12 month period ending in July 2019. Whilst every effort has been made to ensure the accuracy of information in this publication, Mirza & Nacey Research Ltd can accept no responsibility for any errors of fact, omissions, or opinions expressed. The information supplied should be used as an aid to decision making and not as the sole basis for taking such decisions. Architects Earnings is copyright Mirza & Nacey Research Ltd. No extract or quotation may be published or broadcast without prior consent. www.feesbureau.co.uk
MIRZA & NACEY RESEARCH
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Architects Markets 2020 edition
Architects Markets 2020 edition This year’s edition of Architects Markets is being put together during the Covid-19 crisis. Economists at the IMF call this period The Great Lockdown. While this undoubtedly colours our perspective, we have taken a detailed look at the wealth of data from the architects’ workload surveys to analyse past patterns and identify clues as to how the undoubted recession will eventually turn out. The architects’ workload data goes back to 1964. That gives us data for the architectural market that covers three major recessions, two of which – the 1973/4 oil price crash and the 2008 Financial Crisis – were relatively sudden events. The Covid-19 crisis was undoubtedly even more sudden and created a much larger shock to the economy. The experience of past recessions is that architects’ workloads fall quicker and further than both construction output and the economy overall. Typically, it takes about four years for architects’ workloads to start to pick up, that is a year longer than it takes for the economy as a whole. And if we’re looking to see how long it will be before we reach the pre-recession peak, there is little to celebrate. Examining data from the three major recessions shows that it takes an average of ten years for architects’ workloads to return to their pre-recession peak, about twice as long as it takes for the wider economy. The single positive is that, because the Covid-19 recession came on so very suddenly and rapidly, it may be that past patterns of recovery may experience an accelerated timeline. Careful monitoring of future architects’ workload statistics in our quarterly publication ‘Construction Futures’ will provide the answer.
Aziz Mirza Vince Nacey
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A cyclical marketplace Architects have experienced three major recessions and four booms since 1964 Value of Architects’ workloads has increased 4 fold by 2019
Growing workloads Declining workloads
1964
1970
High rise public housing
1975
1980
Commercial property boom Oil price rise & Stagflation
Early 1980s recession
Developer housing Lawson boom, rising house prices, economic activity surges
1985
Inner city regeneration
London Eye
1990
Early 1990s recession
1995
High interest rates, high inflation
Long sustained increase in GDP including rising house prices
The London Eye 2000
The Gherkin
Investment in public projects by Labour government, Lottery funding of Millennium/landmark architecture
St Mary Axe 2005
aker Tower Spinnaker Tower
The Shard
2010
Financial crisis
Low and falling interest rates make it cheap to fund loans, house price growth resumes
2015
2019 NHS
NEC Nightingale Hospital
Great Lockdown
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Architects Markets 2020 edition
background
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How the survey data is collected This report has been compiled using data collected from private architectural practices throughout the UK by way of the Architects Quarterly Workload Survey. The Quarterly Workload Survey has been undertaken continuously since 1964. Originally, this survey was conducted by the Royal Institute of British Architects. Since 1994 data collection was continued independently by Mirza & Nacey Research, who had been undertaking the survey for the RIBA since 1989. The same broad methodology has been employed throughout the life of this survey. Data is collected by way of a survey conducted amongst a sample of private architectural practices throughout the UK. This sample is skewed towards the larger practices on account of there being a very small number of large firms who nevertheless account for a disproportionate amount of architects’ work.
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The survey questionnaire comprises questions about staffing levels and other profiling data, plus sections for respondents to write in details of all new work received during the previous three months. This new work is identified as work entering two work stages during the quarter: New Commissions (work stage 2 in the RIBA Plan of Work 2020 and Production Drawings (work stage 4 in the RIBA Plan of Work. Data is produced by analysing regional ‘work per head’ figures and grossing these up to reflect the overall profile of architectural practices in the country. Thus total workload figures are an estimate of the total work received by all architectural practices in the UK. We acknowledge with grateful thanks the efforts made by survey respondents in providing the raw data upon which this research is based.
Definitions Architects’ workloads are measured in this survey at two work stages; the ‘New Commission’ stage and the ‘Production Drawing’ stage. The work stages are defined in the “RIBA Plan of Work” which ranges between Preparation and Brief (Stage 1) to Handover (Stage 6). See diagram below. New Commissions = ‘Concept Design’ also termed ‘Outline Proposals’. This is Stage 2 in the RIBA Plan of Work (2013 or 2020). At this stage, architects start to prepare outline proposals for structural design, services, cost information and issue the final project Brief. Production Drawings = ‘Technical Design’ also termed ‘Final Proposals’. This is Stage 4 in the RIBA Plan of Work (2013 or 2020), later than new commissions stage. The planning application will usually have been submitted and granted by the time this work stage commences. At this stage the detailed design of the building - technical drawings, services details, product information and specification will commence.
Private Architectural Practice A firm which provides architectural consultancy and is owned and/or staffed by one or more fully qualified architects. These exclude in-house architects’ departments, local authority architects’ departments and consultancy practices which offer architectural services but are not owned by, or do not employ, qualified architects (examples include building surveyors’ practices, or architectural technologists’ practices) Practice Size Measured in terms of the number of architectural staff, i.e. principals, directors, architects and technical staff, (as defined above) but excluding support staff and administrative staff.
Jobs may be abandoned or postponed between Work Stages 2 and 4.
CHART A-1 Design & construction process - simplified
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Architects Markets 2020 edition
architects’ markets
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Architects’ workloads have grown long-term
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In 2019, the UK’s architectural practices received more than £205 billion worth of New Commissions. This is an estimate of the building construction value of these jobs, expressed in current prices. That is more than twice the amount of work recorded in the year 2000, but if we adjust for inflation the growth since 2000 has been 15 per cent. Going back further, the volume of New Commissions has more than doubled in real terms since 1995 - the period 1995 to 2002 was a particularly rapid period of growth in work.
The possible impact of these issues can be minimised by analysing the later stage Production Drawings statistics. This is work which has been granted planning permission , so architects are working on the detailed design of the project. Naturally, a lower volume of work is recorded than at New Commissions but it remains a substantial number; £120 billion of work in 2019. Adjusting for inflation, this is 55 per cent higher than the amount of work recorded in 2000 and more than double 1995’s total.
The cyclical pattern of work is evident but what is also remarkable is the long-term growth in the value of architects’ New Commissions. There are some technical reasons behind some of this growth, related to the opening up of competition (and potential for double-counting) since the 1990s, or increased use of the Design & Build contract type where one practice might create initial designs while another practice takes the project over under Design & Build (again raising the potential for double counting).
However we examine the figures, architects’ workloads have grown over the long-term. This growth is entirely consistent with other measures we record such as practice turnover and architects’ earnings.
CHART 1-1 Architects’ estimated workloads, measured at New Commissions stage, 1995-2019 £ millions, constant (2005) prices 200000
150000
100000
50000
0
1995
2000
2005
2010
2015
2019
CHART 1-2 Architects’ estimated workloads, New Commissions and Production Drawings stage, 1995-2019 New commissions
Production Drawings
£ millions, constant (2005) prices 200000
150000
100000
50000
0
1995
2000
2005
2010
2015
2019
CHART 1-3 Growth in volume of architects’ workloads, 1995-2019 £100,000m £50,000m £25,000m
New Commissions
All figures are in current prices, this differs from charts 1-1 and 1-2 above
(current prices)
1995
2000
2010
2019
£43 bn
£149 bn
£104 bn
£204 bn
Production Drawings
(current prices)
1995 9%
2000 10%
2010 10%
2019 9%
£23 bn
£71 bn
£60 bn
£120 bn
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Architects Markets 2020 edition
The cyclical nature of architects’ workloads The architects’ workloads series began in 1964. This provides us with a data set showing patterns for well over fifty years. These figures show the profession’s workloads had a long, sustained period of increase since the mid 1990s. Three major boosts account for this continued rise; lottery and millennium funded projects in the immediate run-up to the new millennium; enhanced public spending on health, education and public housing from 1997 onwards; and the buoying-up of private housing as a result of high house price inflation. The falls in 2008 and 2009 began with the fall in house prices - which affected private housing, the largest sector but accelerated with the banking crisis and subsequent recession which affected the private sector, and, in particular, office work. The subduing effects of the financial crisis continued until 2013 after which workloads show strong growth followed by a period of consolidation. Workloads remained at a high, relatively flat level between 2015 and 2019.
What emerges from the long-term analysis is that architects’ workloads are very cyclical. There are periods of immense growth - such as the early 1970s, the late 1980s, the late 1990s. These are matched by periods of steep falls - the mid 1970s, the early 1990s, and 2008. The cyclical process is echoed in Construction Output statistics (Chart 2-5) and in the economy overall. Chart 2-4 shows just how close is the relationship between booms in architects’ workloads and Construction Output. Architects’ workloads tend to both lag behind the wider economy and anticipate it. Unfortunately for architects, the lag is when the economy is in recovery mode and the anticipation tends to be before the economy dives. So architects tend to be one of the first groups to go into a recession and one of the last to recover from one. Which is why the up- and down-swings are just so volatile and extreme.
CHART 1-4 Long-term trends in the value of architects’ New Commissions, 1964-2019 £ millions, constant (2005) prices 200000
150000
100000
8
2019
2015
2010
2005
2000
1995
1990
1985
1980
1975
1970
0
1964
50000
£ millions, constant (2005) prices
200000
150000
100000
Architects' workloads
2015
2010
2005
2000
1995
1990
1985
1980
1975
1970
1964
Index, 2000=100 150
2019
50000
CHART 1-5 Change in architects’ New Commissions, Construction Output 0 and GDP, 1964-2019
GDP
Construction Output
120 90 60
Oil price rise & Stagflation
Early 1990s recession
Early 1980s recession
2019
2015
2010
2005
2000
1995
1990
1985
1980
1975
1970
0
1964
30
Financial crisis
Great Lockdown
CHART 1-6 Long-term trends in the rates of change in architects’ New Commissions, Construction Output and GDP, moving average, 1964-2019 Architects' workloads
GDP
Construction Output
Annual % change 50 40 30 20 10 0 -10
2019
2015
2005
2000
1995
1990
1985
1980
1975
1970
1964
-30
2010
-20
10 5
-5 -10
2014 2015
0
1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
annual per cent change
Source: Architects New Commissions: 1964 to 1994 Royal Institute of British Architects, Quarterly 20 Statistical Bulletin / 1995 onwards Mirza & Nacey Research. Construction Output & GDP: Office for National Statistics www.statistics.gov.uk. Output /15GDP Forecasts for 2019: Mirza & Nacey Research estimates. All data has been converted to constant prices using deflators and then converted to an index.
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Architects Markets 2020 edition
How the Great Lockdown might impact workloads CHART 1-7 Recessions and the effects on architects’ New Commissions, Construction Output and GDP, 1964-2019 Architects' workloads
GDP
Construction Output
Index, 2000=100 150 120 90 60
Peak to trough: 64%
Peak to trough: 62%
Peak to trough: 46%
2019
2022
2015
2010
2005
2000
1995
1990
1985
1980
1975
1970
0
1964
30
Great Lockdown
CHART 1-8 How the latest recession might fit with the historical context of past recessions, 1964-2022 GDP
Construction Output
Architects' workloads
Forecast
150 120 90 60
Oil price rise & Stagflation
Early 1980s recession
Early 1990s recession
2022
2019
2015
2010
2005
2000
1995
1990
1985
1980
1975
1970
0
1964
30
Great Lockdown
Financial crisis
Forecasts: Mirza & Nacey Research forecasts for GDP, output and workloads.
TABLE 1-1 How far workloads, output and GDP fell in three major recessions
1973 oil crisis 1990s recession Financial crisis AVERAGE (mean)
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Architects’ Workloads Construction Output % fall % fall % fall % fall % fall length length peak- in first peak- in first peak(years) (years) trough year trough year trough
63.5 61.7 45.9 57.0
38.8 42.9 12.7 31.5
4 3 5 4
17.8 11.0 13.9 14.2
10.7 7.3 2.6 6.9
4 3 5 4
2.1 2.9 9.4 4.8
GDP % fall length in first (years) year 1.6 3.3 2.5 2.5
2 1 6 3
The three major recessions since 1964 have each had major implications for architects’ workloads. In each case, the fall in workloads from peak to trough massively exceeded the fall recorded by Construction Output and by GDP. Architects’ workloads fell by an average 57 per cent (averaged across all three recessions), compared with 14 per cent for Construction Output and an average 5 per cent peak to trough fall for GDP. Architects’ workloads and construction experienced recessions lasting about twice as long as the economy overall in 1973 and the early 1990s, while GDP fell for one year longer than construction during the financial crisis. One recession is not included here, which is the early 1980s
recession. that is because that recession mainly hit manufacturing industry and had very little effect on architecture or construction. We have devised a number of possible scenarios to model how the Great Lockdown recession might turn out. This is always a dangerous game, given (a) that at the time of writing we have only just entered the period of lockdown and there is very little economic data; (b) there is no evidence as to how effective precautionary measures will be and therefore the longterm consequences and (c) nothing comparable has happened in modern history so there is no precedent or example.
CHART 1-9 Three possible scenarios modelled, 2020-2022 The three scenarios modelled are based on the shape of the graph for GDP (the economy as a whole). 1: Short, sharp shock Assume a very sharp shock to the economy with a relatively short period of lockdown after which the economy will emerge and rapidly return to pre-crisis levels. Result: Architects’ workloads return to trend relatively quickly. A ‘V’-shaped chart, representing a quick recovery. 2: Sharp shock, slow unlocking Assumes a very sharp shock to the economy with a long period of lockdown during which parts of the economy will open up but much of the economy will remain restrained with lower than usual levels of activity. Result: Architects’ workloads remain subdued for longer and recovery is slower. A ‘U’-shaped chart, flatter than scenario 1. 3: Repeated lockdowns Assumes a very sharp shock to the economy with much of economic activity restrained accompanied by various periods of partial release from lockdown but also periods of further lockdown. Result: Architects’ workloads fall rapidly with further fall in year 2 and remain low for 2-3 years as investor confidence fails to recover. An extended ‘U’-shaped chart.
Architects
Construction
GDP
Index, 2000=100
150 120 90 60 30
2018
2020
2022
Index, 2000=100
150 120 90 60 30
2018
2020
2022
Index, 2000=100
150 120 90 60 30
2018
2020
2022
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Architects Markets 2020 edition
The relationship between New Commissions and Production Drawings workloads Architects’ workloads are measured at two different work stages. New commissions are where architects start work on outline drawings and Production Drawings are after planning permission and where work on detailed drawings commences. Clearly there is a very strong relationship between work levels at these two stages. Chart 1-10 shows trends in New Commissions stage work is very close to trends in later Production Drawings stage work. There will always be a level of work abandoned between these two stages, and jobs will continue to be abandoned after Production Drawings stage. Reasons for abandonment include an inability to fund the project, failure to get planning permission, clients putting jobs on hold, or simply a change of mind by the client. For the twenty years from the start of this time series in 1964, there was a very close
relationship between levels of workloads measured at the New Commissions and Production Drawings stages, as Chart 1-11 shows. But what has happened since the mid 1980s is a rapid widening of the gap between the level of workloads measured at New Commissions and Production Drawings stages. This gap became particularly wide in 1988 and again since the late 1990s. The level of Production Drawings work - measured as the ‘conversion rate’ - is currently 63 per cent of New Commissions work. There are two reasons for this increased gap. First, since the mid 1980s, government has encouraged an opening up of the architectural profession, to encourage competition. So fee scales are no longer mandatory, architects can advertise and practices can prepare competitive bids. It is therefore possible that more than one firm of architects is working on the
CHART 1-10 Long-term trends in the value of architects’ New Commissions and Production Drawings, 1964-2019 New Commissions
ProductionDrawings
£ millions, constant (2005) prices 200000
150000
New Commissions
ProductionDrawings
£ millions, constant (2005) prices 200000
100000 150000
50000
2019
2015
2010
2005
2000
1995
1990
1985
1980
1975
1970
0
1964
100000
50000
2019
2015
2010
2005
2000
1995
1990
1985
1980
1975
1970
1964
£ millions, constant (2005) prices CHART 1-11 0 200000 Long-term trends in the value of architects’ New Commissions and Production Drawings, 1964-2019
New Commissions always exceed Production Drawings
150000
£ millions, constant (2005) prices 200000
100000
New Commissions always exceed Production Drawings
150000
Conversion rate:
50000
63%
Conversion 100000 rate:
12
2019
2015
2010
2005
2000
1995
1990
1985
1980
1975
1970
0
1964
80%
2019
2015
2010
2005
2000
1995
1990
1985
1975
1980
Conversion rate:
1970
0
50000
1964
80%
Conversion rate:
63%
CHART 1-12 Annual rates of change in architects’ New Commissions, Production Drawings, and New Orders, 1965-2019 New Commissions
Production Drawings
New Orders
Annual % change 80 60 40 20 0 -20 -40
same New Commission during the life of a project, thus there is an element of double counting. This ‘competitive’ effect may be compounded by a greater willingness by clients to change architects in the early stages of a scheme - again, this is likely to result in more double counting.
CHART 1-13 Annual rates of change in architects’ New Commissions, Production Drawings, and new orders, 1965-2019
2019
2015
2010
2005
2000
1995
1990
1985
1980
1975
1970
1965
-60
The second reason may be due to an increase in the amount of speculative work. A very high proportion of speculative developments may not result in a start on site; while significant proportions will be completely re-designed (and so appearing as a New Commission twice) or postponed.
£ million
250 200 150 100
59%
50 0
conversion rate
New Commissions
Production Drawings
TABLE 1-2 % conversion rate, New Commissions to Production Drawings, 2010 to 2019 25
50
75
% conversion rate
2010
private offices housing 43 15
retail
leisure industrial
public housing 110
education 67
89
45
38
13
75
14
44
42
87
100
health 62
2011
56
43
2012
30
35
34
71
115
24
96
46
2013
59
145
6
24
36
32
41
118
2014
58
73
5
32
16
211
37
69
2015
48
49
9
35
35
163
118
56
2016
64
30
71
50
92
74
38
27
2017
59
9
78
54
31
35
57
55
2018
53
80
26
51
59
91
65
13
2019(est)
47
176
102
82
75
79
59
42
13
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Architects Markets 2020 edition
practice workloads
How architects’ workloads vary by practice size
Most of the UK’s architectural practices have fewer than 5 staff. These practices account for about 20 per cent of total workloads. The small number of very large practices have a 50 per cent share. this mismatch is typical of the profession, where a relatively tiny number of large practices easily outweigh the thousands of others. These larger practices have grown their market share, over time. In 1995 large
practices had 46 per cent of workloads; by 2019 this had grown to 54 per cent. By contrast the many thousands of 1 and 2 person practices have consistently undertaken between 9 and 10 per cent of the total profession’s work. The type of work undertaken varies by practice size more than the absolute number of jobs; projects will be bigger and more complex at large practices.
CHART 2-1 Share of total New Commissions workloads, 2019, analysed by size of practice
1 to 2
3 to 5
6 to 10
31+
11 to 30
1 to 2 arch staff
£ millions, constant (2005) prices 200000
150000
100000
14
50000
3 to 5 arch staff
6 to 10 arch staff
11 to 30
over 30 staff
1 to 2
3 to 5
31+
6 to 10
11 to 30
CHART 2-2 Share of New Commissions workloads, 1995-2019, analysed by size of practice 1 to 2 arch staff
3 to 5 arch staff
6 to 10 arch staff
over 30 staff
11 to 30
£ millions, constant (2005) prices 200000
150000
100000
50000
0
1995
2000
2005
2010
2015
2019
CHART 2-3 Volume and share of New Commissions received by smallest and largest practices, 1995-2019 All figures are in constant prices,
£100,000m £50,000m £25,000m
1 to 2 staff 1995 9%
2000 10%
2010 10%
2019 9%
£3.8 bn
£8.5 bn
£9.6 bn
£18.4 bn
1995 46%
2000 41%
2010 34%
2019 54%
£31 bn
£50 bn
£34 bn
£76 bn
31+ staff
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Architects Markets 2020 edition
Architects’ workloads per practice and per head Average annual practice workloads rise in line with practice size. The figure increases from £1.6 million for a one person practice, to £50 million for a practice with between 6 and 10 architectural staff (table 2-1). The average practice New Commissions figure is nearly double this again for larger firms, but given the wide variation in practice sizes here this figure is only indicative. The lower and upper quartile figures are more important here, as they give an indication of the spread in practice workloads. Table 2-2 shows average workloads per head, calculated as practice workloads divided by
the number of architectural staff (architects, principals, assistants and technologists). This increases in line with practice size, with one exception, and doubles per head in each practice size up to 10 heads. The data in this section analyses average workloads (i.e. the total construction contract value of the work) for practices of different sizes. The base for this is New Commissions reported during the four quarters of 2019. Chart 2-4 shows the relationship between practice size and average annual workloads.
CHART 2-4 Relationship between average (mean) construction contract value of New Commissions received per practice Average new commissions received per practice, £m 600 500 400 300 200 100 0
0
10
20
30
40
50
Number of architectural staff
16
60
70
80
average practice fee earnings, £s
CHART 2-5 Average (median) construction contract value of New Commissions received per practice, 2019, analysed by size of practice 1 architect
2 arch staff
3 to 5 arch staff
6 to 10 arch staff
11 to 30 arch staff
31+ arch staff 0
20000
40000 60000 80000 Average value of new commissions, £m
100000
TABLE 2-1 Average (median) value of New Commissions received, 2019, per practice, analysed by size of practice practice size (number of architectural staff)
New Commissions per practice, contract value £000s current prices lower quartile
MEDIAN
upper quartile
1 architect
1,072
1,632
2,824
2 arch staff
1,360
2,736
7,596
3 to 5 arch staff
2,168
4,200
12,760
6 to 10 arch staff
5,076
49,860
72,272
11 to 30 arch staff
17,808
47,840
112,400
31 or more arch staff
67,936
83,956
219,980
TABLE 2-2 Average (median) value of New Commissions received, 2019, per head, analysed by size of practice practice size (number of architectural staff) 1 architect 2 arch staff 3 to 5 arch staff 6 to 10 arch staff 11 to 30 arch staff 31 or more arch staff
New Commissions per head, contract value £000s current prices lower quartile 1,072 2,088 2,020 3,056 2,848 5,588
MEDIAN 1,632 3,820 4,720 7,308 5,188 7,260
upper quartile 2,824 5,820 10,348 14,172 9,164 21,632
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Architects Markets 2020 edition
How architects’ workloads vary by building sector More architectural practices are involved with private housing work than any other sector. Private housing also stands out as being the source of more work than any other sector and has consistently been the largest single sector for workloads.
to be more popular during the recovery periods of the economic cycles. Workloads from both parts of the public sector have increased since 1995, although public ‘other’ (principally education and health) have expanded at a much greater rate than public housing.
Leisure is currently the second largest sector, competing with commercial (offices and retail) over the survey period. The volume of ‘other’ private work - which includes mixed developments - has gradually become more significant over the decades. Mixed developments appear
The majority of workloads relate to new build, consistent with past trends. In 2019, 70 per cent of workloads are new build and 30 per cent refurbishment.
CHART 2-6 Sector share of New Commissions; 1995 - 2019 Private Housing
Offices Retail
Industrial
Leisure
Public Housing
Other Private
Public Other
£ millions, current prices 200000
150000 Private Sector
100000
50000
1995
2000
2005
2010
2015
2019
% involved
-50000
-100000
-150000
CHART 2-7 Comparison between value of New Commissions and -200000 1995 2000 2005 2010 2015 practices’ involvement in a sector
2019
% practices involved 100 Most practices are involved in a sector
Private Housing
80
60
40
Fewer than a quarter of practices are involved in a sector
Leisure Industrial 20 Offices Health Retail Education Public Housing 0 0
18
Public Sector
0
20
40
60 New commissions, £m
80
100
CHART 2-8 2010 2019 New Commissions received for each sector, changes between 2010 and 2019 2010
2019
Private housing has grown more than any other sector, although work was subdued in 2010 following the Financial Crisis
Housing Offices Retail Leisure
Retail and education are the only sectors to have recorded fewer New Commissions in 2019 than in 2010
Industrial Public Housing Education Health 0
20000
40000 60000 80000 Value of new commissions, £000s
100000
CHART 2-9 New Commissions received, 2019, for each sector showing the split between new build work and refurbishment work
Housing
New build Public Housing Health Retail Offices Industrial Education
Refurbishment
Leisure
TABLE 2-3 Large projects received as New Commissions, 2010 to 2019
10
30
50
% large projects
70
% of large projects, over £1m (or over £0.5m in private housing)
2010
Private Housing Offices 28 29
Retail 45
Public EduLeisure Industrial Housing cation 46 35 57 66
Health 25
2011
28
35
78
43
27
32
29
43
2012
20
38
100
67
14
22
61
70
2013
24
43
27
42
33
50
45
47
2014
20
32
33
62
0
29
58
32
2015
27
50
40
33
39
17
35
83
2016
25
11
65
23
14
13
35
22
2017
19
33
71
68
18
50
61
88
2018
24
19
0
27
35
75
45
75
2019(est)
22
38
11
38
47
91
71
71
19
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Architects Markets 2020 edition
regional workloads How workloads vary by region London-based practices dominate. They account for 35 per cent of all New Commissions in 2019. The next highest share is accounted for by practices in the North of England (22 per cent). Workloads in the Midlands/East Anglia accounts for 18 per cent of total work, just above 16 per cent in the South East. The capital’s workloads have grown since 2010 but by not as much as the growth in the South East and the North of England.
CHART 3-1 Regional values, 2019
The Northern Powerhouse may well be a contributing factor behind the higher than average rate of growth there. Scotland and Wales report a small fall in workloads over the medium-term, these are the only parts of the UK where architects’ workloads are lower at the end of the decade than at the start.
Regional changes 2010-19
Scotland
Northern Ireland North
Midlands & East Anglia Wales
South West
South East
London
£100,000m £50,000m £25,000m
0
20
+50
+100
+200
% change 2010-19
TABLE 3-1 Value of New Commissions and Production Drawings received by architectural practices, 1995-2019
0
+10
+20
+50
% change annually
% change, annually
London
South Midlands South East East Ang West
1995
45
27
28
1996
27
18
1997
8
12
1998
67
5
6
9
1999
-6
31
11
11
2000
-7
20
-1
33
Wales
North Scotland
Northern Ireland
43
84
170
-41
119
21
-8
-66
-45
184
-12
59
91
75
44
100
-4
-40
6
-26
-73
379
72
61
-17
-28
3
3
98
2001
8
51
24
116
9
33
43
446
2002
28
-11
-21
-13
-31
28
-28
-63
2003
7
4
-7
-37
-44
-12
0
109
2004
43
13
-3
88
65
4
22
-50
2005
16
8
-7
10
-20
2
-4
16
2006
13
-27
45
-15
130
28
35
5
2007
15
-24
51
20
-6
0
-7
63
2008
-28
-9
8
-17
-17
6
-8
-16
2009
-48
-5
-59
21
-25
-22
18
-80
2010
-4
-27
72
-22
123
-27
-15
28
2011
44
44
-40
-40
-2
-13
-52
79
2012
15
-39
-24
-31
-56
49
36
-55
2013
100
30
-5
44
31
-12
-5
-35
2014
15
95
63
-10
80
48
-9
110
2015
-17
42
-5
67
-53
51
-40
-18
2016
-13
-20
34
13
-48
2
-14
-58
2017
3
-19
-1
49
99
21
26
-10
2018
-15
42
17
-8
19
-2
40
82
3
16
25
-16
55
-3
20
166
2019(est)
CHART 3-2 Share of total New Commissions received, 2019, analysed by region
Midlands /East Anglia London
South West
Wales
North
Scotland
South East N Ireland
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Architects Markets 2020 edition
Architects’ workload trends by region The longer-term trends since 1995 confirm that London has consistently had the highest workloads. The North has had the second highest value of workloads in most years, while the Midlands and the south East have vied for third place. Northern Ireland has consistently had the lowest volume of workload.
London differs from most regions in that total workloads reported from the capital have fallen back since 2015. In most of the rest of the country they have risen. Nevertheless, the capital’s architects have increased their share of the profession’s workloads since 1995 when it was 29 per cent. London’s share of Production Drawings work (not charted) has increased by even more; from 22 per cent in 1995 to 39 per cent in 2019.
CHART 3-3 Regional share of New Commissions; 1995 - 2019 London
South East
Wales
North
Midlands /East Anglia
South West
Scotland
Northern Ireland
£ millions, current prices 250000 200000 150000 100000 50000 0
1995
2000
2005
2010
2015
2019
CHART 3-4 Regional ranking of New Commissions; 2010 - 2019 London
South East
Midlands /East Anglia
South West
Wales
Rank position 1
North
3
Midlands/ East Anglia
4
South East
5
Scotland
6
South West
7
Wales
8
Northern Ireland
2010
22
London
2
2015
2019
CHART 3-5 Regional New Commissions; 2010 - 2019 London
£ millions, current prices
South East
120000
80000
40000
0 10 11 12 13 14 15 16 17 18 19
10 11 12 13 14 15 16 17 18 19
Midlands/East Anglia
South West
Wales
10 11 12 13 14 15 16 17 18 19
10 11 12 13 14 15 16 17 18 19
10 11 12 13 14 15 16 17 18 19
£ millions, current prices
120000
80000
40000
0
North
£ millions, current prices
Scotland
Northern Ireland
120000
120000
80000
80000
40000
40000
0
0 10 11 12 13 14 15 16 17 18 19
10 11 12 13 14 15 16 17 18 19
10 11 12 13 14 15 16 17 18 19
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market sectors Architects’ predictions, 2020 Architects have been offering their views as to how workloads might change since before 1995. Tracking this shows that, for most of that period, they have been more positive than negative. The negative period was principally around the aftermath of the Financial Crisis. And, of course, the latest figures for Q1 2020 show a spectacular drop in confidence reported during the Great Lockdown.
market sectors. These findings do, of course, pre-date the Covid-19 crisis but are nevertheless an indication of the strength of the underlying market. The results show that private housing is the sector with the largest positive balance, most other sectors are close to a zero balance (meaning that about as many architects expect workloads to rise as to fall). Retail was heavily negative, reflecting the poor market environment at this time, but also negative were education and health.
Historically there have been long spells of positivity, and most of the time a majority of architects predict ‘no change’ in their anticipated workloads. At the end of 2019 we asked architects to say what they expected would happen to their workloads in each of the main
CHART 4-3 Architects’ workload predictions, 2020
average practice fee earnings, £s
Respondents surveyed before the Great Lockdown. Private housing Offices Retail Leisure Industrial Public housing Education Health -50
-40
-30
-20
-10
0
10
20
% architects expecting... Decrease Increase
24
30
40
50
CHART 4-1 up stable How architects expect workloads to change, increase no change decrease predictions made 1995 - 2020 % architects 80 70 60 50 Increase
40 30 20
No change
10 0
1995
2000
2005
2010
2015
2020
-10 -20 Decrease
‘Balance’ statistic -40 50 40 -50 30 -60 20 10 -70 0 -80 -10 -20 -30 1995 -40 -50 -60 -70 -80
Negative balance
Positive balance
-30
2000
2005
2010
2015
CHART 4-2 ‘Balance’ of how2000 architects 2005 expect workloads to change, 1995 2010 2015 down predictions made 1995 - 2020 * stable
1995
2000
2005
2020
Negative balance
Positive balance
‘Balance’ statistic 50 40 30 20 10 0 -10 -20 -30 -40 -50 -60 -70 -80
2020
2010
2015
2020
2015
2020
‘Balance’ figure = % expecting increase minus % expecting decrease * 2020 figure is Q1 50 40 30 20 10 0 -10 -20 -30 -40 -50 -60 -70 -80
1995
2000
2005
2010
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Architects Markets 2020 edition
Private Housing sector Historical Private housing has always accounted for a substantial share of total architects’ workloads. this sector provides a mix of work - large-scale housing developments right down to domestic extensions. Residential work is bread and butter for the majority of practices, many architects’ careers have been enhanced by designing a spectacularly individual private house. The private housing market’s cycles are very much linked to cycles in house prices. So we see the boom lasting from the late 1990s to the Financial Crisis, followed by another upswing starting around 2013. Just as house prices have flattened off in the 2017-2019 period, so have architects’ New Commissions. This flattening in house prices has affected client’s willingness to move on post planning, as Production Drawings work has slowed over the same recent period.
Prospects Workloads were already starting to fall, the Covid-19 crisis is likely to lead to a plunge in activity. Workloads will continue to follow house prices, which will fall as unemployment rises. The underlying trend remains good, as there is a high demand for housing and the government continues to maintain high housebuilding targets. It is far from certain, however, that commercial developers will consider the climate to be conducive for meeting these targets, or indeed whether they can. If we were to be very optimistic, we could suggest that there could be a boost to the demand for extensions or layout improvements, as office-based staff and their employers become aware of the benefits of more flexible home working. Any potential growth here would be tempered by a large number of negative factors, such as poor consumer confidence, uncertainty over employment prospects and rising unemployment.
CHART 4-4 Practices’ involvement in private housing and share of workloads
average practice fee earnings, £s
100
% of practices involved in private housing
0
1-2
3-5
6 to 10 arch staff
11 to 30 arch staff % share of new commissions
26
31+ arch staff
CHART 4-5 Value of New Commissions, Private Housing, 1995 - 2019 New build
Refurbishment
£ millions, current prices 100000 80000 60000 40000 20000 0
1995
2000
2005
2010
2015
2019
CHART 4-6 PD Value of Production Drawings, Private Housing, 1995 - 2019 £ millions, current prices 60000 50000 40000 30000 20000 10000 0
1995
2000
2005
2010
2015
2019
CHART 4-7 New Commissions to Production Drawings conversion rate £ millions, current prices
New Commissions
Production Drawings
Average conversion rate last three years
100000 80000 60000 40000
59%
20000 0
conversion rate
2010
2015
2019
New Commissions
Production Drawings
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Architects Markets 2020 edition
Offices sector Historical Commercial office work in the private sector continues to experience a series of peaks and troughs. Generally related to the wider economy, this is sometimes exaggerated by some very large projects which come into the figures. The boom in commercial development in the City of London, followed by smaller booms in other cities around the country can be seen in the first decade of the 21st century. The effects of the Financial Crisis are very clear to see, it is noticeable that Production Drawings work, in particular, took several years to register anything more than negligible levels of activity. The most recent full year, 2019, saw Production Drawings work reach a new peak as several large scale projects moved into the construction phase in 2019 and 2020. It is noticeable that Production Drawings work tends to lag behind New Commissions by maybe 12 to 18 months.
Prospects New Commissions had already trended down in 2019 and we are likely to see a major fall in workloads just as was witnessed after the Financial Crisis. Production Drawings work will tumble from an all-time high. Speculative property development will be likely to take some years to recover from the shock of Covid-19. There is also the possibility that fewer offices may be required in future; the lockdown may bring forward the trend towards greater flexible working and some businesses may never return to the way things were. As working spaces get used differently, with lower occupancy and as some staff and employers start to see the benefits of flexible working including extensive periods of time at home, architects may re-think the fundamentals of office design. This may include offices housing fewer desks and more open spaces for collaborative working. It is possible that refurbishment work will account for a far greater share of total work than it has in recent years.
CHART 4-8 Practices’ involvement in Offices and share of workloads 100
% of practices involved in offices
0 1-2 3-5 6 -10
11 to 30 arch staff % share of new commissions
28
31+ arch staff
CHART 4-9 Value of New Commissions, Offices, 1995 - 2019 New build
Refurbishment
£ millions, current prices 30000 25000 20000 15000 10000 5000 0
1995
2000
2005
2010
2015
2019
2015
2019
CHART 4-10 Value of Production Drawings, Offices, 1995 - 2019 PD
£ millions, current prices 25000 20000 15000 10000 5000 0
1995
2000
2005
2010
CHART 4-11 New Commissions to Production Drawings conversion rate £ millions, current prices
New Commissions
Production Drawings
Average conversion rate last three years
30000 25000 20000 15000 10000
64%
conversion rate
5000 0
2010
2015
2019
New Commissions
Production Drawings
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Architects Markets 2020 edition
Retail sector Historical Work from the retail sector appears cyclical, but the cycles seem to run later than the economic cycle. An upswing in Production Drawings started in 2003, well behind the economic recovery. And there seems to have been a rapid recovery from the Financial Crisis, which subdued Production Drawings for just one year. Since 2012, the pattern of work has shown a clear difference between New Commissions and Production Drawings. In the most recent seven years, the earlier stage work has bounced up, then fallen back. While this upward move has been slow to move to Production Drawings stage and has also been quicker to leave that stage. This implies that clients have been cautious to commit to a project and quick to exit. This is not surprising, given what has happened to the High Street in the past few years.
Prospects The Covid-19 Crisis has merely hastened recent trends on the High Street. More familiar names have gone into administration, retail space is being cut. In some towns and cities shops are being converted to residential or student accommodation. As footfall slows, floorspace is being cut. The Covid-19 boost to internet shopping has been accompanied by retailers asking landlords to waive their rent. This is a fateful combination for town centre retail. The response might be that town centre shops become showcases and more geared towards offering experiences to complement internet shopping. Town centre retail may continue to be vibrant but this will come at the expense of there being less retail floorspace.
CHART 4-12 Practices’ involvement in Retail and share of workloads 100
80
60 % of practices involved in retail 40
20
0 1-2
3-5
6 to 10 arch staff
11 to 30 arch staff
% share of new commissions
30
31+ arch staff
CHART 4-13 Value of New Commissions, Retail, 1995 - 2019 New build
Refurbishment
£ millions, current prices 12000 10000 8000 6000 4000 2000 0
1995
2000
2005
2010
2015
2019
2015
2019
CHART 4-14 Value of Production Drawings, Retail, 1995 - 2019 PD
£ millions, current prices 6000 5000 4000 3000 2000 1000 0
1995
2000
2005
2010
CHART 4-15 New Commissions to Production Drawings conversion rate £ millions, current prices
New Commissions
Production Drawings
Average conversion rate last three years
10000 8000 6000 4000 2000
65% 0
conversion rate
2010
2015
2019
New Commissions
Production Drawings
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Leisure sector Historical Leisure has been grabbing a higher proportion of architects’ workloads in recent years, as New Commissions have remained high and Production Drawings have grown. Some of the figures are inflated by substantial single projects, such as football stadia or the 2012 London Olympic games. The lag between New Commission and Production Drawings can be quite considerable in this sector, lasting 18 to 36 months, as planning permission can take a long time for some of the very largest projects.
Prospects The leisure sector is probably more affected by the implications of Covid-19 than any other. Not only have all leisure venues (hotels, restaurants, sports centres, stadia) been ordered to close, they are likely to be the last to open. Tourism will continue to be impacted so hotels, tourist sites and restaurants will see their incomes slashed while non-staff expenditure continues to be a demand. While hotels and restaurants might be cutting rent payments, loan repayments for recent developments are less easy to avoid. Property developers and lend lease operators are hit as well as hoteliers and restaurateurs. A plunge in New Commissions is likely, with this sector taking potentially longer than any other sector to start to recover.
CHART 4-16 Practices’ involvement in Leisure and share of workloads 100
80
60 % of practices involved in leisure 40
20
0 1-2
3-5
6 to 10 arch staff
11 to 30 arch staff % share of new commissions
32
31+ arch staff
CHART 4-17 Value of New Commissions, Leisure, 1995 - 2019 New build
Refurbishment
£ millions, current prices 30000 25000 20000 15000 10000 5000 0
1995
2000
2005
2010
2015
2019
2015
2019
CHART 4-18 Value of Production Drawings, Leisure, 1995 - 2019 PD
£ millions, current prices 20000
15000
10000
5000
0
1995
2000
2005
2010
CHART 4-19 New Commissions to Production Drawings conversion rate £ millions, current prices
New Commissions
Production Drawings
Average conversion rate last three years
30000 25000 20000 15000 10000
62%
conversion rate
5000 0
2010
2015
2019
New Commissions
Production Drawings
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Architects Markets 2020 edition
Industrial sector Historical Workloads would be expected to follow the economic cycle, as demand for industrial buildings - including warehousing and business parks - is driven by wider economic demand. The mini peaks and troughs show a further dimension of variability but that may be because architects are only involved in a minority of industrial buildings. Production drawings work has been ‘bumping along the bottom’ for much of the 2010s, but in 2019 both New Commissions and Production Drawings took off, both reaching their highest levels ever recorded.
Prospects Industrial output will be severely hit as a result of Covid-19. Many manufacturers are likely to cease business or fall into administration. Short-term, there will be costs - both financial and in lost output - associated with the return to work post-Lockdown and there will be supply issues. Manufacturing faces the prospects of higher costs during the recession coupled with a smaller market. And there is the further potential uncertainty of the completion of Trade deals with the EU and other countries. None of this makes for a climate in which property development is likely to thrive in the medium term. The greatest opportunity for growth comes from structures required for new industries related to green technology. Consistently predicted as a growth sector, green issues are at the top of the EU’s agenda for the medium term and remain near the forefront of politicians’ and industry bodies’ thinking. If the way out of Covid-19 is to follow the science, there may well be an even stronger desire not to ignore scientists’ warnings about climate change.
CHART 4-20 Practices’ involvement in Industrial and share of workloads 100
80
60 % of practices involved in industrial 40
20
0 1-2
3-5
6 to 10 arch staff
11 to 30 arch staff % share of new commissions
34
31+ arch staff
CHART 4-21 Value of New Commissions, Industrial, 1995 - 2019 New build
Refurbishment
£ millions, current prices 15000 12000 9000 6000 3000 0
1995
2000
2005
2010
2015
2019
CHART 4-22 Value of Production Drawings, Industrial, 1995 - 2019 PD
£ millions, current prices 10000 8000 6000 4000 2000 0
1995
2000
2005
2010
2015
2019
CHART 4-23 New Commissions to Production Drawings conversion rate £ millions, current prices
New Commissions
Production Drawings
Average conversion rate last three years
15000 12000 9000 6000 3000
67%
conversion rate
0
2010
2015
2019
New Commissions
Production Drawings
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Architects Markets 2020 edition
Public Housing sector Historical There have been three periods of high activity in public housing; the early 2000s, 2010-15 and 2018-19. Activity is less linked to economic cycles and is more influenced by political goals, reflecting how public housing becomes more or less important to the government of the day. Recently the figures suggest public housing is becoming more important, as it is part of the government’s armoury in meeting its housing targets.
Prospects Public expenditure is clearly dependant upon government decisions, but there are good reasons to suggest public housing will continue to receive at least as much capital spending as in 2019. First, the government has set housebuilding targets. The demand for houses remains, but private housebuilders are unlikely to complete as many houses in 2020 as they originally planned - making it more urgent that public housing should not be allowed to fall, too. Second, in its budget the Government set out ambitions to borrow more to finance long-term projects including HS2. This indicates a willingness to differentiate between capital and revenue spending and to accept a Keynesian approach. The basic element of which is that public spending rises during a recession. So it would be sensible and consistent with recent government thinking to maintain or increase funding for public housing projects.
CHART 4-24 Practices’ involvement in Public Housing and share of workloads 100
80
60 % of practices involved in public housing 40
20
0 1-2
3-5
6 to 10 arch staff
11 to 30 arch staff % share of new commissions
36
31+ arch staff
CHART 4-25 Value of New Commissions, Public Housing, 1995 - 2019 New build
Refurbishment
£ millions, current prices 15000 12000 9000 6000 3000 0
1995
2000
2005
2010
2015
2019
CHART 4-26 Value of Production Drawings, Public Housing, 1995 - 2019 PD
£ millions, current prices 12000 10000 8000 6000 4000 2000 0
1995
2000
2005
2010
2015
2019
CHART 4-27 New Commissions to Production Drawings conversion rate £ millions, current prices
New Commissions
Production Drawings
Average conversion rate last three years
12000 10000 8000 6000 4000
64%
conversion rate
2000 0
2010
2015
2019
New Commissions
Production Drawings
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Architects Markets 2020 edition
Education sector Historical There has been a succession of positive waves which have increased workloads in the education sector. First, Labour’s ‘education, education, education’ mantra raised spending on school infrastructure in the late 1990s onwards. Then the expansion of universities brought a large rise in workloads - work on both campus buildings and student accommodation. This trend eased slightly after 2010 but workloads continue to remain strong, and rose again in 2019.
Prospects The 2020 budget allocated a similar sum for capital spending on schools as in the previous year although the figures are due for review in the Comprehensive Spending Review which may be even more wideranging as a consequence of the Covid-19 crisis. University funding is uncertain as the sector struggles to deal with the Covid-19 impact on student recruitment and teaching methods. But the education sector is used to thinking long-term, where the prospects are more positive. This positivity could be compounded if the government were to adopt a Keynesian fiscal stimulus as part of its way out of the Great Lockdown.
CHART 4-28 Practices’ involvement in Education and share of workloads 100
80
60 % of practices involved in education 40
20
0 1-2
3-5
6 to 10 arch staff
11 to 30 arch staff % share of new commissions
38
31+ arch staff
CHART 4-29 Value of New Commissions, Education, 1995 - 2019 New build
Refurbishment
£ millions, current prices 30000 25000 20000 15000 10000 5000 0
1995
2000
2005
2010
2015
2019
CHART 4-30 Value of Production Drawings, Education, 1995 - 2019 PD
£ millions, current prices 20000
15000
10000
5000
0
1995
2000
2005
2010
2015
2019
CHART 4-31 New Commissions to Production Drawings conversion rate £ millions, current prices
New Commissions
Production Drawings
Average conversion rate last three years
30000 25000 20000 15000 10000
60%
5000 0
conversion rate
2010
2015
2019
New Commissions
Production Drawings
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Architects Markets 2020 edition
Health sector Historic Workloads move up and down in line with government spending. And there is a clear similarity with the pattern recorded by education workloads. Peak values of both New Commissions and Production Drawings stage work appear to have been recorded in 2015. Generally, Production Drawings lag about 12 to 18 months behind New Commissions. Health records the lowest conversion rate of any sector, at just 36 per cent, suggesting that many new schemes are modified or reconsidered before moving on to Production Drawings.
Prospects In the Covid-19 climate it seems inconceivable that capital spending on health will be curtailed. Short-term, the ‘whatever it takes’ mantra is likely to be applied to health spending in general, the NHS is likely to be rewarded by a grateful government and public. The building of new hospitals was already a popular target before the crisis; this is likely to be enhanced in the coming years.
CHART 4-32 Practices’ involvement in Health and share of workloads 100
80
60 % of practices involved in health 40
20
0 1-2
3-5
6 to 10 11 to 30 arch staff arch staff % share of new commissions
40
31+ arch staff
CHART 4-33 Value of New Commissions, Health, 1995 - 2019 New build
Refurbishment
£ millions, current prices 25000 20000 15000 10000 5000 0
1995
2000
2005
2010
2015
2019
2015
2019
CHART 4-34 Value of Production Drawings, Health, 1995 - 2019 PD
£ millions, current prices 20000
15000
10000
5000
0
1995
2000
2005
2010
CHART 4-35 New Commissions to Production Drawings conversion rate £ millions, current prices
New Commissions
Production Drawings
Average conversion rate last three years
25000 20000 15000 10000 5000
36%
conversion rate
0
2010
2015
2019
New Commissions
Production Drawings
41
STATISTICAL DATA Architects Markets 2020 edition TABLE S-1 Private Housing Sector Statistics, 1995 - 2019 year 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
NEW COMMISSIONS (£m current prices) New build Refurbishment ALL 5,046 1,736 6,782 5,170 1,599 6,769 12,803 2,569 15,372 6,588 3,061 9,649 9,753 4,978 14,731 19,731 7,897 27,627 28,732 7,424 36,156 36,579 3,271 39,850 27,118 7,248 34,366 35,469 8,371 43,840 39,121 12,930 52,051 44,953 19,863 64,817 52,380 14,934 67,314 37,242 13,886 51,128 18,345 8,402 26,747 17,109 10,473 27,583 22,848 10,449 33,296 23,115 5,697 28,811 35,640 9,798 45,437 35,385 12,243 47,628 51,744 25,730 77,474 51,526 34,925 86,451 74,280 15,229 89,509 76,625 13,208 89,833 81,247 9,271 90,518
PRODUCTION DRAWINGS (£m) 3,247 4,078 8,009 4,602 8,028 11,162 20,232 20,631 19,491 34,064 42,431 33,664 24,338 25,004 12,607 11,972 18,564 8,601 27,034 27,506 36,950 55,238 52,774 48,029 42,625
TABLE S-2 Office Sector Statistics, 1995 - 2019 year 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
42
NEW COMMISSIONS (£m current prices) New build Refurbishment ALL 5,132 1,447 6,579 4,050 2,296 6,346 5,228 1,184 6,412 16,830 1,340 18,170 10,713 9,418 20,131 9,168 3,975 13,143 14,549 4,165 18,714 8,970 1,534 10,504 6,639 1,771 8,410 9,774 1,205 10,980 11,842 4,415 16,257 22,526 2,381 24,906 20,152 7,547 27,701 9,469 3,092 12,561 1,023 1,674 2,697 4,469 2,393 6,861 7,425 2,781 10,207 5,862 2,013 7,875 2,465 7,071 9,536 5,435 7,105 12,540 6,949 7,453 14,402 11,742 8,244 19,986 27,971 1,913 29,884 10,452 2,132 12,584 9,595 3,196 12,791
PRODUCTION DRAWINGS (£m) 2,550 3,947 4,033 7,261 5,698 3,659 10,940 5,927 3,677 4,304 5,104 3,125 10,385 17,680 6,178 1,004 1,334 2,728 13,852 9,130 7,072 6,086 2,694 10,101 22,530
TABLE S-3 Retail Sector Statistics, 1995 - 2019 year 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
NEW COMMISSIONS (£m current prices) New build Refurbishment ALL 7,589 2,978 10,567 6,092 2,657 8,749 4,688 3,173 7,861 5,678 1,743 7,421 1,608 1,453 3,061 2,653 876 3,529 9,335 783 10,118 2,832 1,453 4,284 2,083 384 2,467 3,811 898 4,709 2,910 688 3,599 1,239 253 1,492 5,476 1,150 6,626 4,388 214 4,602 2,665 271 2,936 3,892 201 4,092 2,413 2,329 4,742 203 739 941 4,553 426 4,979 3,401 387 3,788 7,150 965 8,115 6,142 605 6,747 1,961 2,220 4,182 790 1,255 2,045 675 81 756
PRODUCTION DRAWINGS (£m) 5,179 5,514 5,272 2,593 2,547 2,606 2,275 1,358 1,743 5,040 5,593 3,071 3,156 4,755 1,405 3,654 3,552 316 322 179 726 4,813 3,250 541 770
TABLE S-4 Leisure Sector Statistics, 1995 - 2019
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
NEW COMMISSIONS (£m current prices) New build Refurbishment ALL 2,110 765 2,875 2,301 1,094 3,395 4,166 674 4,840 11,758 849 12,607 15,360 3,320 18,680 6,016 2,153 8,169 8,114 1,210 9,325 4,214 2,199 6,413 10,118 2,337 12,456 13,848 1,529 15,377 13,551 1,123 14,674 15,151 2,051 17,203 8,518 1,860 10,377 23,154 1,548 24,703 17,586 2,159 19,744 10,463 2,414 12,877 9,224 4,136 13,361 11,000 11,070 22,070 13,931 12,303 26,234 14,143 8,427 22,570 13,664 5,840 19,504 8,330 7,025 15,354 14,122 5,919 20,041 9,331 10,678 20,009 7,544 11,601 19,145
PRODUCTION DRAWINGS (£m) 1,258 2,151 1,218 5,102 8,156 3,133 5,375 2,540 2,302 1,987 4,192 19,987 15,240 11,223 6,246 5,779 1,874 15,765 6,174 7,123 6,784 7,642 10,825 10,119 15,715
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STATISTICAL DATA Architects Markets 2020 edition TABLE S-5 Industrial Sector Statistics, 1995 - 2019 year 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
NEW COMMISSIONS (£m current prices) New build Refurbishment ALL 3,408 1,020 4,428 4,741 997 5,738 8,824 1,505 10,329 4,269 412 4,680 5,975 1,400 7,375 7,805 1,096 8,901 5,008 1,165 6,173 2,008 81 2,089 5,530 118 5,648 8,165 256 8,421 7,436 1,115 8,551 10,942 34 10,976 11,011 486 11,498 8,799 1,802 10,602 1,209 2,382 3,590 1,636 4,365 6,002 3,130 249 3,379 250 197 447 7,029 253 7,282 3,548 122 3,670 3,628 483 4,111 963 139 1,102 661 531 1,192 4,029 3,418 7,447 8,878 3,461 12,338
PRODUCTION DRAWINGS (£m) 2,705 2,556 4,550 4,209 3,906 1,736 3,888 1,701 1,578 2,907 3,754 2,637 3,032 4,692 766 2,292 1,488 514 2,644 598 1,448 1,011 370 4,360 9,308
TABLE S-6 Public Housing Statistics, 1995 - 2019 year 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
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NEW COMMISSIONS (£m current prices) New build Refurbishment ALL 2,565 593 3,158 2,237 553 2,790 2,536 373 2,909 1,735 965 2,698 2,327 940 3,267 3,384 251 3,636 4,811 5,195 10,007 5,243 1,565 6,808 8,117 1,121 9,238 11,839 678 12,517 9,884 567 10,451 5,175 312 5,487 2,658 523 3,180 3,119 668 3,787 1,703 658 2,361 1,424 426 1,853 2,519 2,459 4,979 5,206 144 5,350 5,463 933 6,396 4,668 668 5,336 2,730 849 3,579 3,434 820 4,254 9,604 672 10,276 6,570 939 7,509 6,853 439 7,292
PRODUCTION DRAWINGS (£m) 2,124 1,526 1,532 1,324 1,529 2,426 2,506 7,600 9,289 3,829 3,558 3,211 5,857 2,788 715 2,043 2,081 1,271 2,015 11,283 5,839 3,153 3,616 6,800 5,725
TABLE S-7 Education Sector Statistics, 1995 - 2019 year 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
NEW COMMISSIONS (£m current prices) New build Refurbishment ALL 1,547 649 2,196 2,762 824 3,586 4,388 712 5,100 2,094 996 3,089 3,060 1,186 4,246 2,358 1,873 4,230 10,000 859 10,859 3,466 1,591 5,057 5,475 1,303 6,778 8,106 510 8,616 6,789 298 7,087 10,378 226 10,604 14,263 1,473 15,735 22,681 6,083 28,765 13,956 2,154 16,111 18,058 8,138 26,195 5,170 2,503 7,673 8,475 5,044 13,519 3,758 3,823 7,582 10,967 4,376 15,343 6,325 2,010 8,335 17,599 1,241 18,840 9,966 1,941 11,906 8,926 3,244 12,170 7,934 10,251 18,185
PRODUCTION DRAWINGS (£m) 2,314 1,319 2,894 1,214 2,256 4,967 4,507 3,224 3,216 1,940 3,016 5,656 4,072 10,679 5,697 17,457 6,640 12,919 3,093 5,662 9,873 7,162 6,754 7,892 10,715
TABLE S-8 Health Sector Statistics, 1995 - 2019 year 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
NEW COMMISSIONS (£m current prices) New build Refurbishment ALL 2,054 656 2,710 2,770 662 3,432 3,910 559 4,469 912 674 1,585 3,669 1,176 4,845 2,032 2,231 4,263 4,542 2,744 7,287 8,397 431 8,828 9,237 2,127 11,364 8,337 1,045 9,381 4,584 267 4,851 8,975 91 9,066 12,914 1,461 14,375 7,212 1,652 8,862 3,550 1,822 5,372 1,862 3,180 5,042 4,227 5,083 9,310 10,584 4,053 14,637 9,103 2,981 12,084 18,672 5,708 24,380 11,848 1,346 13,194 6,876 1,262 8,138 6,808 2,840 9,648 10,651 2,057 12,708 13,943 3,011 16,954
PRODUCTION DRAWINGS (£m) 1,361 742 2,013 935 1,409 1,077 2,399 2,770 3,171 2,292 4,378 3,208 4,565 5,233 6,523 3,131 4,021 6,694 14,227 16,736 7,392 2,220 5,350 1,604 7,042
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Other Research Publications from The Fees Bureau Architecture Architects Performance 2020 edition Architects Performance 2020
Here’s hard data on fee incomes, staffing, costs & profits, and indicators per head. The detailed survey will help you scrutinise your business. As well as financial information there is market data, staffing figures and information on the make-up of fee income.
Architects Practice Ownership 2020 edition This title analyses owners’ valuations of their practices and shows the relationship between valuation, turnover and profits. Includes data on mergers, acquisitions, and disposals. Plus: earnings data for Principals; income received by retired architects; information about ownership structures; fee earnings and profits; conflicts in practice ownership.
Architects Fees 2020 edition Architects Fees 2020
Architects Fees - Minor Works 2020 edition Architects Practice Ownership
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The Minor Works edition of Architects Fees shares the same format as the main survey while focusing exclusively on jobs valued at up to £250,000. A wide range of different job types are examined - new one-off houses, house extensions, hotels, church work: 39 in total. It includes data on hourly charge-out rates as well as sector by sector analyses.
Architects Earnings 2020 edition Architects Earnings 2020
This annual survey reveals the average fee levels across a wide range of projects - from loft conversions to hotels; from one-off homes to shop fitout, office blocks, factories, schools and hospitals. More than 40 different types of building project are included. New build and refurbishment schemes are analysed separately.
Architects Fees A survey of the fees charged by private architec-
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Construction Futures
Vital information monitoring the UK construction industry’s early warning system: architects workload. Four times a year, Construction Futures tracks the trends through clear, at-a-glance graphics, and provides a concise analysis of the statistical data.
The annual report examining salaries and benefits for architects. All employment categories are covered. Data is analysed by region, age and size of practice or organisation. Includes information on fringe benefits, holidays, working hours.
Engineering & Surveying Quantity Surveyors Fees, 2020 edition Quantity Surveyors Fees A survey of the fees charged by professional quantity surveyors
2020
This survey shows average fees for a wide variety of QS jobs - from GP surgeries to hotels; from flats to supermarkets, office blocks, factories, schools and hospitals. Altogether, 39 different types of building project are included. The data reports separately on new build and refurbishment schemes. Plus detailed information on hourly charge-out rates.
www.feesbureau.co.uk
Engineers Fees, 2020 edition Engineers Fees 2020
Average fees are presented for a wide variety of structural and civil engineering jobs - from bridges to highway improvements, waste, housing, education and offices. New build and refurbishment are analysed separately, and average fee levels are presented separately for Lead and Non-Lead consultant. Plus there's detailed information on hourly charge-out rates.
www.mirza-nacey.com
MIRZA & NACEY RESEARCH
Other publications from The Fees Bureau: Architects Fees Architects Fees - Minor Works M&E Services Engineers Fees Engineers Fees Quantity Surveyors Fees Architects Earnings Architects Performance Architects Markets Construction Futures (quarterly) The Fees Bureau is a division of Mirza & Nacey Research Ltd. Southdown House Ford, Arundel West Sussex BN18 0DE Tel: 01243 555302 www.feesbureau.co.uk