August 13, 2010

U.S. architecture suffers recession downsizing

WAYLAND, Mass.

In the last two years, numerous U.S. architecture and engineering firms are believed to have fallen victim to the recession. No one, however, seems to know exactly how many, according to industry consultant ZweigWhite.

“I don’t think that anyone tracks this information systematically,” said Kermit Baker, chief economist at the American Institute of Architects.

“A few months ago, we asked our work-on-the-boards panel to estimate how many firms in their area had gone under and what share that was of all firms in their area. The ballpark, as I recollect, was that somewhere between five per cent and 10 per cent of firms have closed down. This was a very crude estimate but I was curious as to the general range. I’m not sure how to get a more accurate estimate.”

Given the often-quoted estimate pointing to the existence of more than 20,000 architecture firms in the U.S., that would mean that upwards of 2,000 firms may have disappeared into thin air, ZweigWhite said in a release.

The American Council of Engineering Companies (ACEC), which lists more than 5,300 firms among its membership, has no concrete answer either.

“Firms have downsized (reduced staff) in certain areas, particularly where there was a large developer market tied to residential construction growth,” said Jeffrey Beard, ACEC vice president and director of the Institute for Business Management. “But we have no data on closings.”

Massachusetts-headquartered ZweigWhite provides strategic planning and other business management services to architecture, engineering and environmental consulting firms in the U.S.

DCN NEWS SERVICES

Print | Email | Comment