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« Does Expertise Clog the Creative Mind? | Main | Thanksgiving by the Numbers »


November 25, 2008

2009 Outlook for Architectural Pros

By Jorina Fontelera

Reliant on the currently slumping construction sector, architecture projects and jobs slowed in 2008. For licensed professionals trained in the art and science of building design, next year is not looking much better.

Back in 2006, architects held about 132,000 jobs and approximately seven out of 10 jobs were in the architectural, engineering and related services industry, according to the Bureau of Labor Statistics (BLS). For architects, who develop the concepts for structures and turn those concepts into images and building plans, the BLS anticipated employment to grow by 18 percent between 2006 and 2016, but also acknowledged that its success is strongly tied to the activity in the construction industry.

Given current economic conditions, the construction industry has not been faring well. In turn, those in professional fields of architecture have suffered. The Architecture Billings Index (ABI), compiled by the American Institute of Architects (AIA), has dipped below 50 for nine straight months. Anything below 50 shows a billings decrease. The ABI hit a record low 36.2 in October.

The BLS forecasted growth to come from nonresidential construction, but shrinking payrolls mean less need for new office space; and if people cut back on shopping, why build stores, Kermit Baker, AIA chief economist, tells Architectural Record. Plus, given steep material prices, construction is a pricey proposition.

"There is just less willingness to assume risk in this environment," Baker adds, noting that it doesn't matter if a project is pre-leased or guaranteed to be 100-percent occupied.

Residential projects, though making up only a small part of architects' work, have also decreased with the limping housing sector. In August, the ABI's multi-family housing score was 40.8, and the AIA's Home Design Trends Survey for residential projects released in September hit a record low of 38, according to Architectural Record.

The only bright spot in the ABI this year was the institutional sector, which produced a 50 or better rating for 44 straight months. Yet even that sector is not immune. For example, school endowments used for architectural projects are typically invested in the stock market and can take a hit when the financial sector suffers, Rebekah Gladson, AIA member and campus architect at the University of California-Irvine, says.

Any projects requiring bond financing, such as hospitals, need voter support, and thus will be scrutinized, Gerald Reifert, AIA member and managing partner at Mahlum Architects, adds. "People are nervous about money right now," Reifert notes.

While it looks bad now, AIA's Consensus Construction Forecast Panel foresees 2009 to be even worse. The panel predicts retail and hotel building to fall 10 percent and office construction to plummet 12 percent in 2009, Architectural Record says.

Plus, with the outsourcing of drafting construction documents and basic design for large-scale commercial and residential projects, lower-level architects and interns will find it more difficult to get jobs, the BLS reports. This trend is expected to continue and thus negatively affect architectural employment in the U.S. for current architects and new graduates.

According to the National Association of Colleges and Employers (NACE), hiring will remain flat for 2009 graduates, with professional services firms expecting only to hire 1.7 percent from 2009 graduates. NACE polled 146 organizations for its Job Outlook Fall Preview.

"Consequently, many of this year's graduates will find fewer openings available to them and may have to consider different types of opportunities, industries and organizations than they planned," NACE executive director Marilyn Mackes explains.

According to job board Simplyhired.com, architecture jobs have decreased by 11 percent from March 2007 to September 2008 (as illustrated by the graph below).

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Source: Simplyhired.com

The BLS notes that architects who distinguish themselves with their creativity will have the best chances of landing a job or project and that those with knowledge of green design will be looked upon more favorably.

Building Design adds that, when times are tough, graduates should also look at "spatially creative" roles outside of pure architecture to increase their chances of gaining employment.

Earlier: Building Up in a Down Economy


Resources

Occupational Outlook Handbook, 2008-2009 Edition
Bureau of Labor Statistics

Economic Downturn Stalling Design Activity
by Kermit Baker
AIArchitect, Nov. 21, 2008

Architects Hit Hard by Financial Crisis
by C.J. Hughes
Architectural Record, Oct. 15, 2008

Hiring Flat for College Class of 2009
National Association of Colleges and Employers, Oct. 22, 2008

Students Hit First by Recession
Building Design Magazine, Oct. 24, 2008


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