AIA survey provides look at diversity, growth

There has been a significant increase in career advancement opportunities within the profession of architecture for women and minorities during the last two years, according to a report released in late 2003 by The American Institute of Architects.

This is just one of the major findings within the study, "The Business of Architecture: The 2003 AIA Firm Survey." It is conducted every three years to examine issues related to business conditions of AIA-member-owned architecture firms. The study provides a snapshot of the industry on a variety of topics ranging from fees and markets and use of new technological advances to scope of practice and profitability.

Diversity

The survey findings demonstrate considerable improvements in the architecture field's efforts to serve a diverse and dynamic society. Over the past several decades, an increasing number of women and minorities have entered the profession.

As of 2002, women comprised 27 percent of architecture staff at firms, up from 20 percent in 1999. Racial and ethnic minorities accounted for 17 percent, up from 9 percent three years prior.

The figures for registered architects are just as strong: women accounted for 20 percent in 2002, up from under 14 percent in 1999, while racial and ethnic minorities were over 11 percent in 2002, up from 6 percent during the same period.

Some of this increase is due to simple demographics. However, the recent change is the rate at which women and racial and ethnic minorities have moved into leadership positions at firms.

In 2002, women accounted for almost 21 percent of principals and partners at firms, a figure which grew from 11 percent in 1999.

Likewise, racial and ethnic minorities accounted for 11 percent of principals and partners in 2002, up from 5 percent in 1999.

Billings

During the survey period, which encompassed the recession of 2001, the economy grew an average of 4 percent per year, contracts declined by an average of 3 percent per year, and billings at architecture firms increased by just 2 percent.

According to the 2003 AIA Firm Survey, billings by AIA-member-owned firms totaled $25.5 billion in 2002, a small increase from $24 billion in 1999. Profits averaged 10.5 percent of net billings across all firms in 2002.

Integration

According to the survey findings, firms are increasingly integrating alternative design professionals to create multidisciplinary design firms, which generate increased billings per construction project. However, basic design services remain the most profitable segment of AIA-member-owned firms' practice, generating half of the billings.

Size

During the 1990s, industry consolidation was producing sustained increases in the size of firms. Between 1999 and 2002, the structure didn't reverse, but it did change.

The share of very large firms increased marginally, and the share of sole practitioners increased quite substantially. Midsize firms bore the brunt of the decline, and the number of firms, regardless of size, declined by 8 percent overall.

Construction

The design of nonresidential buildings remains the core business for most firms, with the educational market accounting for almost one-quarter of firm revenues.

The rehabilitation of buildings is becoming a growing share of architecture firm billings.

Governments provided 31 percent of firm billings in 2002 and private businesses, typically through multifamily, commercial, and industrial construction projects, provided almost a quarter of billings.