- Large practices reach a plateau, with no expected change in workload
- Confidence in private housing sector weakens
- Growth in workloads still positive at 8%
The RIBA Future Trends Workload Index changed little in August 2015, dropping one point to +21. All nations and regions in the UK returned positive balance figures, with the North continuing to be the most optimistic about future workloads (returning a balance figure of +42). Practices in London (balance figure +17), the South (balance figure+12) and the Midlands and East Anglia (+14) are more cautious about workload growth over the next quarter.
Large practices (51+ staff) indicated a plateau in workload levels, returning a balance figure of zero; small practices (1–10 staff) and medium-sized practices (11–50 staff) remain more confident about increasing workloads in the medium-term (balance figures of +18 and +36 respectively). Despite the recent change in our headline index, the forecast is firmly in positive territory; the value of actual work in progress is still growing at an annual rate of 8%.
The private housing sector forecast continued its downward trajectory, falling to +18 in August (down from +23 in July). The public sector workload forecast also decreased, down to -4 in August from -1 in July 2015. The commercial sector workload forecast increased by one point to +14, while the community sector forecast was unchanged, standing at +1 in August.
The RIBA Future Trends Staffing Index saw a modest decline this month, falling to +7 in August (down from +12 in July). 96% of surveyed practices nonetheless expect their permanent staffing levels either to increase or to stay the same over the next few months, indicating that the employment market for salaried architects remains buoyant.
Medium-sized practices (with a balance figure of +32) and large practices (balance figure +20) are more likely to be actively appointing new staff than small practices, which returned a balance figure of +2 in August.
RIBA Executive Director Members Adrian Dobson said:
‘After an optimistic spring and early summer, the profession appears to have paused for breath after a period of significant growth. This note of caution is most prominent in the South and East, which have so far seen the greatest growth, whilst confidence now seems higher in the northern cities. There is also a noticeable loss in confidence about medium term prospects for the private housing sector, with our practices suggesting that a temporary peak is being reached in this sector.
‘Commentary from practices suggests that the majority of firms are seeing solid growth in workloads, with a number reporting that market conditions are enabling them to negotiate better fee levels. There is plenty of anecdotal evidence of practices across the UK having difficulties in recruiting experienced staff with specific skill sets. The overall picture is one of continued increases in workloads, though with a consensus that in the coming months the pace of growth is likely to slow significantly.’
ENDS
Notes to editors:
1. For further press information contact Callum Reilly in the RIBA Press Office: 020 7307 3757 callum.reilly@riba.org
2. The Royal Institute of British Architects (RIBA) champions better buildings, communities and the environment through architecture and our members.
Visit www.architecture.com
Follow @RIBA on Twitter for regular updates www.twitter.com/RIBA
3. Completed by a mix of small, medium and large firms based on a geographically representative sample, the RIBA Future Trends Survey was launched in January 2009 to monitor business and employment trends affecting the architects’ profession.
4. The Future Trends Survey is carried out by the RIBA in partnership with the Fees Bureau. Results of the survey, including a full graphical analysis, are published each month at: http://www.architecture.com/RIBA/Professionalsupport/FutureTrendsSurvey.aspx
5. To participate in the RIBA Future Trends Survey, please contact the RIBA Practice Department on 020 7307 3749 or email practice@riba.org. The survey takes approximately five minutes to complete each month, and all returns are independently processed in strict confidence
6. The definition for the workload balance figure is the difference between those expecting more work and those expecting less. A negative figure means more respondents expect less work than those expecting more work. This figure is used to represent the RIBA Future Trends Workload Index, which for August 2015 was +21
7. The definition for the staffing balance figure is the difference between those expecting to employ more permanent staff in the next three months and those expecting to employ fewer. A negative figure means more respondents expect to employ fewer permanent staff. This figure is used to represent the RIBA Future Trends Staffing Index, which for August 2015 was +7
Posted on Wednesday 23rd September 2015
