Positive Economic News Continues for Landscape Architecture Firms
For the first time in 18 months, the majority of landscape architecture firm
leaders reported normal or above levels of work compared to the previous
quarter, according to the latest American Society of Landscape Architects (ASLA)
Business Quarterly survey.
Reuters
For the third quarter of 2009, 51.3 percent of firms reported average or above
billings compared to the second quarter 2009, a significant increase over 32
percent last quarter. Additionally, 55.4 percent of firms reported average or
above inquiries for the same time frame, up from 32.2 percent last quarter. One
in five firms (20.2 percent) reported work directly related to stimulus funds.
Despite increased optimism, the job market still remains weak as only 11.8
percent of firms plan to hire in the upcoming quarter, down from 14.3 percent
previously and near the all-time low of 11.2 percent from the first quarter of
this year.
"Obviously this represents excellent economic progress, but the industry still
faces a long road to recovery and tough challenges through at least the rest of
this year," said ASLA Executive Vice President and CEO Nancy Somerville, Hon.
ASLA. "While there appears some improvement in public and commercial work, the
residential market remains a significant problem for landscape architecture
firms."
The survey also asked firm leaders about client familiarity with sustainable
design techniques and reasons for incorporating them into project. Only one in
ten (10.1 percent) reported clients as very knowledgeable about sustainable
design, compared to 52 percent as somewhat knowledgeable and only 3.7 percent as
not knowledgeable or interested. The most popular reasons clients incorporated
sustainable design into projects were saving money on utility or maintenance
costs (50.7 percent), meeting a government regulation, code or construction
standard (49.1 percent), marketing cache (40.6 percent) and reducing
environmental harm (39.8 percent).
Compared to the second quarter of 2009, your third quarter 2009 billable hours
were:
Significantly higher (10% or more higher) - 4.3%
Slightly higher (between 5% and 10% higher) - 18.8%
About the same (plus or minus 5%) - 28.2%
Slightly lower (between 5% and 10% lower) - 19.3%
Significantly lower (10% or more lower) - 19.5%
Compared to the second quarter of 2009, your third quarter 2009 inquiries were:
Significantly higher (10% or more higher) - 6.6%
Slightly higher (between 5% and 10% higher) - 20.2%
About the same (plus or minus 5%) - 28.6%
Slightly lower (between 5% and 10% lower) - 18.8%
Significantly lower (10% or more lower) - 25.7%
Compared to the third quarter in 2008, your third quarter 2009 billable hours
were:
Significantly higher (10% or more higher) - 4.3%
Slightly higher (between 5% and 10% higher) - 9.8%
About the same (plus or minus 5%) - 18.8%
Slightly lower (between 5% and 10% lower) - 13.3%
Significantly lower (10% or more lower) - 53.5%
Compared to the third quarter in 2008, your third quarter 2009 inquiries were:
Significantly higher (10% or more higher) - 4.9%
Slightly higher (between 5% and 10% higher) - 14.0%
About the same (plus or minus 5%) - 18.1%
Slightly lower (between 5% and 10% lower) - 22.5%
Significantly lower (10% or more lower) - 40.4%
Do you plan on hiring any employees in the fourth quarter 2009? (multiple
answers):
Experienced landscape architect - 2.1%
Entry level landscape architect - 2.9%
Intern - 2.4%
Support staff - 2.4%
Other design/architecture/engineering staff - 3.7%
Other staff - 1.8%
Not hiring - 88.2%
Has your market received any stimulus funds and, if so, has your practice
benefited?
My markets have not received any funds - 29.4%
My markets have received funds, but my practice, thus far, has not received work
as a result - 50.4%
My market has received funds and my practice has work as a result - 20.2%
Rate client knowledge about sustainable design practices:
Very knowledgeable - 10.1%
Somewhat knowledgeable - 52.0%
Not very knowledgeable, but interested - 34.2%
Neither knowledgeable nor interested - 3.7%
Reasons clients request sustainable design techniques (multiple answers):
Save money on utility or maintenance costs - 50.7%
Meet requirements by government regulation, code or construction standard -
49.1%
Add marketing cache - 40.6%
Reduce environmental harm - 39.8%
Eligible for government incentive such as a tax break or quicker approval -
27.9%
Lower upkeep time and effort - 27.3%
Clients are not requesting sustainable design - 10.6%
Other - 12.7%