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thinking positive Reasons for optimism, reasons for trepidation. That sums up this election year. And one senses the same emotional yin-yang in the trending statistics for the second 100 Interior Design Giants firms. There’s some really­good evidence that the stormy recession waters might be calming, although uncertainty about the economy hasn’t disappeared. Total revenue for the second 100 Giants jumped to $887 million in 2011 from $686 million in 2010. That’s 29 percent. And the 2012 forecasts call for $936 million. That alone is optimism writ large. Meanwhile, design fees rose $21 million, to $299 million. There’s still a way to go to return to the pre­ recession heights, when fees topped $453 million, but the wind seems to be behind us. Firms installed a cool $8 billion worth of product and forecast $9.3 billion for next time. Average revenue-per-head also rose $13,000, to $167,000, and revenue-per-foot rose $1, to $98. The total number of projects made a wild leap, up 3,161 to 9,996. Firms expect 10,500 projects in 2012. Office and hospitality accounted for 58 percent of all fees. (Office rose 23 percent, while hospitality dropped 15 percent.) Half the Giants worked on residential projects, too, with secondhome projects jumping 27 percent. Folks are either feeling positive about vacations or sprucing up to rent or sell. And 53 firms did government work, heavy on offices but also including educational facilities. Higher

Where will firms be going for new projects? The trend toward globalization is still on the rise, by 14 percent overall. Work in Europe jumped 51 percent. Asia and the Pacific Rim, long a hotbed, have declined 25 percent, though China is seen as remaining a big growth area. In the U.S., which accounts for 86 percent of total projects, the most action is expected in the Northeast and South and on the West Coast. Green, coincidentally the color of money and sustainability, continues to be a driver. More than three quarters of the Giants work on sustainable projects, resulting in 45 million square feet of green space. A third of revenue derives from this, the highest number

since we started asking the question four years ago. Green products account for nearly half of all products used, and the total value has risen $1 billion, to $3.3 billion, in two years. Salaries haven’t changed, but staffing has. Firms employed 1,900-plus designers last year, the highest number since 2008. The total head count, 5,100, represents a whopping 19 percent increase, and the Giants expect to add another 200-plus designers in 2012. Another sign that business is improving: focus. In the depths of recession woes, 66 firms said they spent significant time diversifying. That number has dropped to 59. Two years ago, 50 firms were concentrating on

marketing as opposed to today’s 40. If you don’t have to hustle for new business, clearly your current business is pretty sweet. We can cap all those promising stats with perhaps the most telling indicator, revenue growth. Compared to the dark days when a mere seven of the firms reported positive growth, there are now 50. So why does the uncertainty persist? Numbers, unlike politicians, don’t lie. The second 100 Giants have had a good run that looks likely to continue. —Mike Zimmerman

Jain Malkin designed the Benjamin & Marian Schuster Heart Hospital in Dayton, Ohio.

education was a major factor, with 87 percent of the firms working in edu­cation doing so at the college level. Across all sectors, renovations rose to account for 63 percent of business. david wakely

HMC Architects designed McAfee’s executive briefing center in Santa­ Clara, California.

101


200giants Rank 2012 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150

Firm (headquarters | web site) HMC Architects (los angeles | hmcarchitects.com) Chute Gerdeman (columbus, ohio | chutegerdeman.com) WATG (irvine, california | watg.com) Wolcott Architecture Interiors (los angeles | wolcottai.com) Margulies Perruzzi Architects (boston | mp-architects.com) Elkus Manfredi Architects (boston | elkus-manfredi.com) Ratcliff (emeryville, california | ratcliffarch.com) FXFowle Architects (new york | fxfowle.com) Interprise (addison, texas | interprisedesign.com) Hendrick (atlanta | hendrickinc.com) LPA (irvine, california | lpainc.com) Reel Grobman & Associates (san jose, california | reelgrobman.com) Symmes Maini & McKee Associates (cambridge, massachusetts | smma.com) Whitney (oak brook, illinois | whitneydesign.com) Davis, Carter, Scott (mclean, virginia | dcsdesign.com) Dyer Brown & Associates (boston | dyerbrown.com) Intec Group (fairfax, virginia | intecgroup.net) STG Design (austin, texas | stgdesign.com) Joi-Design (hamburg, germany | joi-design.com) Anderson Mikos Architects (oakbrook terrace, illinois | andersonmikos.com) Tsoi/Kobus & Associates (cambridge, massachusetts | tka-architects.com) Arcturis (saint louis | arcturis.com) Looney & Associates (dallas | looney-associates.com) H. Hendy Associates (newport beach, california | hhendy.com) AAI (san jose, california | aaidesign.com) LB Architects (new york | lbarch.com) EDG (China) Corporation (shanghai | edg.com.cn) JRS Architect (mineola, new york | jrsarchitect.com) Legat Architects (chicago | legat.com) Carrier Johnson + Culture (san diego | carrierjohnson.com) Sasaki Associates (watertown, massachusetts | sasaki.com) J. Banks Design Group (hilton head island, south carolina | jbanksdesign.com) EDG (san rafael, california | edgdesign.com) Montgomery Roth (houston | montgomeryroth.com) Sargenti Architects (paramus, new jersey | sargarch.com) Lauckgroup (dallas | lauckgroup.com) Cetra/CRI Architecture (new york | cetraruddy.com) TRO Jung/Brannen (boston | trojungbrannen.com) Slifer Designs (edwards, colorado | sliferdesigns.com) Rowland + Broughton Architecture (aspen, colorado | rowlandbroughton.com) Design Development Company (agoura hills, california | designdevelopment-group.com) Kay Lang + Associates (los angeles | kaylangassocs.com) DMR Architects (hasbrouck heights, new jersey | dmrarchitects.com) MSA Planning and Design Consultants (san francisco | msasf.com) RD Jones + Associates (chevy chase, maryland | rdjones.com) Mojo Stumer Associates Architects (greenvale, new york | mojostumer.com) Philpotts & Associates (honolulu | philpotts.net) Brereton Architects (san francisco | brereton.com) RLF (winter park, florida | rlfae.com) Goettsch Partners (chicago | gpchicago.com)

work Installed

design Fees

Value

Sq. Ft.

(millions)

(millions)

(millions)

$5.500 $5.490 $5.400 $5.396 $5.299 $5.249 $5.005 $5.000 $5.000 $4.962 $4.900 $4.900 $4.725 $4.722 $4.617 $4.600 $4.527 $4.500 $4.500 $4.446 $4.431 $4.409 $4.400 $4.200 $4.100 $3.900 $3.895 $3.800 $3.745 $3.715 $3.700 $3.600 $3.463 $3.349 $3.341 $3.300 $3.300 $3.256 $3.255 $3.206 $3.200 $3.200 $3.045 $3.021 $3.000 $2.900 $2.853 $2.800 $2.800 $2.723

NR NR NR $95.000 $80.000 NR NR $100.000 $43.000 $99.000 $116.766 $102.000 $63.000 $65.000 NR $44.000 $65.000 $65.000 $60.000 $35.750 $65.200 $75.000 $650.000 $45.000 $300.000 $150.000 NR $45.000 $74.500 $183.750 $110.000 $3.600 $14.000 NR $118.412 $225.000 $25.000 $178.093 $9.560 $96.198 $30.000 NR $46.600 $49.500 NR $38.000 $3.811 $60.000 $59.856 $32.000

NR 0.62 NR 2.00 0.80 1.21 1.50 0.45 3.20 4.00 2.09 2.04 2.50 3.20 NR 2.50 NR 1.20 NR 1.00 0.22 0.95 3.50 2.20 3.00 1.25 NR 0.68 3.73 1.86 2.40 0.85 0.40 NR 3.05 1.50 0.25 1.18 NR 0.35 0.50 NR 0.37 1.83 NR 0.24 NR 0.95 2.82 0.30

design Staff 27 35 39 42 26 27 4 19 29 28 27 30 25 27 18 22 20 33 36 17 7 46 27 26 19 18 102 20 5 13 17 21 28 15 37 27 10 13 15 21 8 18 15 22 19 23 19 26 14 11

Rank 2011 57 90 107 93 113 --98 94 111 117 127 104 108 96 130 -121 115 77 102 116 129 128 134 139 177 67 161 122 112 137 148 151 132 143 -110 133 -120 144 183 124 162 145 156 150 149 152


200 200giants Rank 2012 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176 177 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 197 198 199 200

Firm (headquarters | web site) SFA Design (santa barbara, california | sfadesign.com) J.T. Nakaoka Associates Architects (los angeles) J/Brice Design International (boston | jbricedesign.com) GBD Architects (portland, oregon | gbdarchitects.com) API(+) (tampa, florida | apiplus.com) Hopping Kovach Grinnell (vancouver, british columbia | hkgdesign.com) Loebl Schlossman & Hackl (chicago | lshdesign.com) TAL Studio (las vegas | tal-studio.com) Simeone Deary Design Group (chicago | simeonedeary.com) Heitz Parsons Sadek (west palm beach, florida | heitz-parsons-sadek.com) PDT International (fort lauderdale, florida | pdtintl.com) L2Partridge (philadelphia | l2partridge.com) Design Directions International (marietta, georgia | ddi.cc) Orsini Design Associates (new york | orsinidesignassociates.com) Klawiter and Associates (los angeles | klawiter.com) Indidesign (los angeles | indidesign.com) Stephen B. Jacobs Group/Andi Pepper Interior Design (new york | sbjgroup.com) Dawson Design Associates (seattle | dawsondesignassociates.com) Cleo Design (las vegas | cleo-design.com) Meyer Design (ardmore, pennsylvania | meyerdesigninc.com) WHR Architects (houston | whrarchitects.com) Burkettdesign (denver | burkettdesign.com) Puccini Group (san francisco | puccinigroup.com) CMMI (atlanta | cmmi-redlines.com) DAS Architects (philadelphia | dasarchitects.com) BG Studio International (new york | bgstudio.com) Hixson (cincinnati | hixson-inc.com) Polytech Associates (san francisco | polytechae.com) ADM Group (tempe, arizona | admgroupinc.com) Graham Downes Architecture (san diego | grahamdownes.com) Rowland Design (indianapolis | rowlanddesign.com) Shea (minneapolis | shealink.com) Abel Design Group (houston | abeldesigngroup.com) Hatch Design Group (costa mesa, california | hatchdesign.com) MHTN Architects (salt lake city | mhtn.com) Yates-Silverman (las vegas | yates-silverman.com) Interform Commercial Interiors (san ramon, california | interform.com) Marvin Stein & Associates (seattle | marvinstein.com) Alan Gaynor + Company (new york | gaynordesign.com) Design Collective (columbus, ohio | dcollective.com) IEI Group (philadelphia | ieigroup.com) Applied Design Initiative (new york | adinitiative.com) FME Architecture + Design (san francisco | fme-arch.com) Dreamtime Australia Design (sydney, australia | dreamtimeaustraliadesign.com) GH2 Architects (tulsa, oklahoma | gh2.com) Cagley & Tanner (las vegas | cagleyandtanner.com) Faulkner Design Group (dallas | faulknerdesign.com) Floss Barber (philadelphia | flossbarber.com) Group One Partners (boston | grouponeinc.com) Spacesmith (new york | spacesmith.net)

work Installed

design Fees

Value

Sq. Ft.

(millions)

(millions)

(millions)

$8.235 NR $220.000 NR NR $75.000 $80.000 $32.000 NR $21.000 $300.000 $23.200 $55.000 $25.000 $38.000 $190.000 $180.000 $100.000 NR $24.000 $335.623 $63.916 $28.000 $35.000 $30.000 $5.000 NR NR $42.359 NR NR $28.000 NR $54.260 $38.883 NR $27.000 $40.000 $38.430 $12.500 $25.000 $18.000 NR $18.000 NR $25.000 $3.750 NR $140.000 $15.000

NR NR 1.55 NR 1.99 0.85 0.52 NR NR 0.75 1.00 0.47 1.55 NR 0.44 0.60 1.00 NR NR 1.75 1.78 1.28 0.11 0.98 0.20 0.10 NR NR 0.21 NR NR 0.28 NR 0.20 1.80 NR 0.44 0.60 0.83 NR 1.70 0.33 NR 0.06 NR 0.30 0.18 0.50 NR 0.15

$2.700 $2.676 $2.651 $2.615 $2.560 $2.500 $2.485 $2.410 $2.400 $2.380 $2.351 $2.263 $2.250 $2.233 $2.210 $2.200 $2.200 $2.200 $2.104 $2.095 $2.092 $2.082 $2.040 $2.012 $2.010 $2.000 $2.000 $2.000 $1.864 $1.800 $1.773 $1.600 $1.547 $1.533 $1.512 $1.500 $1.482 $1.466 $1.449 $1.441 $1.440 $1.410 $1.396 $1.350 $1.350 $1.300 $1.300 $1.300 $1.264 $1.232

design Staff 15 13 12 8 17 57 6 13 17 29 30 18 7 6 10 10 6 16 12 22 12 25 19 17 14 10 15 10 10 14 15 17 12 18 4 14 8 11 14 10 11 14 7 9 23 12 13 10 15 13

Rank 2011 136 158 -157 176 147 123 -186 125 -168 179 153 160 171 138 187 193 135 45 142 163 154 169 199 182 165 173 164 175 159 189 180 178 -184 188 191 185 172 -181 -196 -198 194 -190


fees by project type 2011 actual

$35,718,775

$38,363,621

$21,260,041

$25,363,319

148

Residential

$7,491,037

$24,940,759

From top: The Tencent building in Shenzhen, China, is by EDG (China) Corporation. Brereton Architects designed Cammisa and Wipf Consulting Engineers in San Francisco. Another San Francisco project is Macys.com by MSA Planning and Design Consultants.

Health Care/ Assisted Living

$8,169,993

$75,041,348

$86,525,118

Cultural

127

Other

200giants200 % of firms working on government projects

Office 72% Educational 38% Health Care 32% Lab/Training Facility 28% Courthouse/Correctional Facility 21% Military Facility 13% Library 11% Other 19%

144

from top: sun zhong bao; cĂŠsar rubio; tamara waite

Government

Educational

$2,262,246

$10,059,764

$11,607,505

Retail

Hospitality

$25,697,596

$22,356,008

$26,125,217

Office

$2,074,235

$99,541,554

$106,405,171

2012 forecast


200giants

New to the second­ 100 giants

Rank Firm 106 Elkus Manfredi Architects 107 Ratcliff 117 Intec Group 137 Cetra/CRI Architecture 140 Rowland + Broughton Architecture 153 J/Brice Design International 158 TAL Studio 161 PDT International 186 Yates-Silverman 192 Applied Design Initiative 194 Dreamtime Australia Design 196 Cagley & Tanner 199 Group One Partners

146 147 median annual salary

Project Manager $85,000

Designer $60,000

Other Design­ Staff $50,000

median hourly rate

Principal/ Partner $200

Project Manager­ $150

Designer $110

106

Other Design­ Staff $90

From top: Mojo Stumer Associates designed Parker Waichman Alonso in Port Washington, New York. Allure Waikiki in Honolulu is by Philpotts & Associates. Elkus Manfredi Architects designed the Dassault Systèmes campus in Waltham, Massachusetts.

from top: mark stumer; eric staudenmaier; chuck choi

Principal/ Partner $144,000


issues most affecting design firms

60% 43% 41% 40% 22% 20% 13%

CLIENT ISSUES

BUSINESS ISSUES

PRACTICE ISSUES

Creating new business/diversifying into new services or segments Recruiting qualified staff Marketing the firm’s capabilities Training staff Offering staff an appropriate pay scale and benefits Retaining qualified staff Keeping track of profits and expenses

77% 77% 49% 15% 12% 7% 5%

Earning appropriate fees Confronting economic uncertainty Dealing with clients’ increasing­  demands­ Handling increased interference from clients’ consultants Creating cutting-edge design solutions Managing the growing needs for sustainable­ design Managing vendors

73% 58% 52% 31% 25% 23% 13%

Convincing clients to pay the project’s worth Finding new clients Getting clients to understand design value Managing clients’ expectations Encouraging clients to take design risks Handling micromanaging clients Retaining current clients

200 102 The most admired firms (voted by the 2012 second 100 giants) (1)

Gensler (2)

(3)

Tonychi & Associates Yabu Pushelberg

Rockwell Group

From left: Edun in New York is by Spacesmith. Chute Gerdeman designed C&A Iguatemi in São Paulo, Brazil.

from left: alexander severin/razummedia; brandon l. jones

200giants


200giants200

total new hires 2012 2011

234 204

Go to interiordesign.net/200giants12 for more projects by these Giants firms. The second installment of the two-part annual business survey of Interior Design Giants Methodology comprises the second 100 largest firms ranked by interior design fees for the 12-month period ending December 31, 2011. The first 100 Giants firm ranking was published in January. Interior design fees include those attributed to: 1. All types of interiors work, including office, hospitality, retail, health care, and residential. 2. All aspects of a firm’s interior design practice, from strategic planning and programming to design and project management. 3. Fees paid to a firm for work performed by employees and independent contractors who are full-time staff equivalent. Interior design fees do not include revenues paid to a firm and remitted to subcontractors who are not considered full-time staff equivalent. For example, certain firms attract work that is subcontracted to a local firm. The originating firm may collect all the fees and retain a management or generation fee, paying the remainder to the performing firm. Amounts paid to the latter are not included in fees of the collecting firm when determining its ranking. Ties are broken by the dollar value of products installed. The data was compiled and analyzed by the Interior Design market research staff in New York, led by Wing Leung, research director.

104 Beachbody in Los Angeles is by Wolcott Architecture/Interiors.

College/University K-12 45%

87%

% of firms working on residen­tial projects

Development (Mixed-Use or Apartment Building)

61% 45%

City Residence Weekend/Vacation House

37%

Suburban House Other 23%

Other

31% 16%

marshal safron

% of FIRMS working on educational projects

Interior Design Magazine's Top 200 Giants July 2012  

Spacesmith ranked as number 200 among Top 200 Interior Design Giants.

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