Few would argue that 2009 was a difficult year for the UK Architects industry but early signs suggest that conditions in 2010 will be much brighter. According to new research by leading industry analysts Plimsoll, the market is slowly emerging from the malaise of the last 2 years.
David Pattison, senior analyst and author of the 2010 Plimsoll Analysis explains: “The recession tore through the market in 08 and most of 09 like a tornado and accelerated the rate of change in the market. Aggressive “growth at all cost” operators have been forced to abandon their reckless strategies and many have been caught out and are in real trouble.”
When pressed on what likely changes he envisages in the market in 2010 he offers, “More job losses and consolidations sadly. Even as the market improves there are a lot of companies, large and small, that survived by the skin of their teeth and they have to rebuild their profit margins and efficiencies."
He continues “Our latest analysis projects that a further 1,000 jobs will have to be shed if companies are to get back to profit and remain competitive in 2010. Whether through natural wastage or compulsory lay-offs, job losses are necessary. With the average sales per employee figure down to £84,000, employees need to “buy in” and contribute more to the recovery of their companies - if you still have a job expect to work much harder in 2010. £126 million worth of profit has been wiped from the market in the last year and employers have no choice but to cut their cloth accordingly and get more from their resources."
So, aside from a serious refocus of profitability and the inevitable job cutting and takeovers, does Pattison see any cheer in 2010? “There are some real good news stories out there. We rated 568 companies as 'Strong' in our latest report. As expected this number is down compared to previous years but these companies will lead the market out of the downturn. They have managed to be commercially successful without jeopardising their financial stability."