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    Architectural Services Industry Profile

    Report Page Length: 10-12
    Last Quarterly Update: 3/22/2021
    SIC Codes: 0781, 8712
    NAICS Codes: 54131, 54132
    Chapters Include:
    Industry Overview Trends & Challenges Industry Forecast
    Quarterly Industry Update Call Prep Questions Website & Media Links
    Business Challenges Financial Information Glossary & Acronyms
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    Excerpt from Architectural Services Industry Profile

    Companies in this industry plan and design residential, institutional, leisure, and industrial buildings and spaces, as well as landscapes. Prominent fiGensler, HDR Inc, and Perkins & Will; as well as IBI Group (Canada); Nikken Sekkei (Japan); and Woods Bagot (Australia).

    In many markets worldwide, improving economic conditions are helping boost construction investment and driving demand for architectural services. For many major firms, working globally is the norm.

    The US architecture industry includes about 27,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $42 billion.

    COMPETITIVE LANDSCAPE

    Demand for architectural services depends heavily on the volume of residential and commercial construction. Because most costs are fixed, profitability depends on a constant inflow of work. Architectural firms are often small because there are few economies of scale in the industry: architectural design costs for a large company are typically greater than for a small company. The industry is highly fragmented: the 50 largest US firms account for about 20% of revenue.

    PRODUCTS, OPERATIONS & TECHNOLOGY

    Building-related architectural services account for about 90% of industry revenue; landscape architecture accounts for about 10%. Among building-related services, nonresidential buildings account for about 75% of industry revenue. Residential buildings account for about 15%.

    Architects prepare detailed plans that can be used by construction companies to build or modify various types of structures. Most architectural work has both an aesthetic and an engineering component. For many projects, the ...

     
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