The American Institute of Architects (AIA) has partnered with Oldcastle BuildingEnvelope in releasing a new report titled Business Opportunities & Sustainability Trends Amidst a Pandemic, studying the impact of COVID-19 on design firm business conditions. The report, which is freely available via the AIA website, was commissioned to understand the impact of the pandemic on business conditions, and also help firms identify new business opportunities.
The study found that although demands for design services and construction activity decreased significantly during the pandemic, other design and construction sectors created positive business conditions for architects with aligned design focuses. For example, while the impact on commercial and institutional projects was particularly negative, the demand for architectural services on single-family homes increased. In addition, while client interest in sustainability declined during the pandemic, architects working on sustainable projects did not see any resulting negative impact.
“Growing concerns over building design from the pandemic and public awareness of health risks will continue to drive the refurbishment, expansion, and remodeling markets throughout 2021,” said AIA EVP/Chief Executive Officer Robert Ivy, FAIA. “As the end of the COVID-19 crisis comes slowly into view, it is clear that the pandemic-induced recession created two contrasting economic realities: a strong residential market and a weakened non-residential market.”
The report is the latest in a number of studies and forecasts for how the industry is being affected by the COVID-19 pandemic. Earlier this month, NCARB published a report examining the impact of COVID-19 on architectural licensing, noting a 40% decrease in the number of newly licensed architects during 2020 relative to the previous three-year average.
The AIA’s finding that single-family housing projects saw an increase during COVID-19 aligns with a report published by the National Association of Realtors last week, which found that the U.S. needs to construct an additional 5.5 million housing units to compensate for a slowdown in housebuilding over the past decades. Software giant Autodesk has meanwhile published its own construction outlook for 2021, setting out the risks and opportunities for design and construction businesses across the U.S.
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