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Plimsoll Report: UK architects industry, United Kingdom

Friday 26 Jan 2007

Health warning for UK architects

Plimsoll Report: UK architects industry by WAN Editorial in United Kingdom
Plimsoll Report: UK architects industry by WAN Editorial in United Kingdom
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New report reveals that size matters 

A staggering 81% of last year’s sales growth in the UK architects industry went to just 36 firms, according to a new analysis of the market by leading industry commentators Plimsoll Publishing. The flipside of the coin is that many others are struggling to survive in an atmosphere of declining sales and increasing debt, with at least 87 staring failure in the face. The assessment confirms that constant rounds of consolidation are creating “super companies” that are exerting an increasing control over the market. Most of the companies in question are large, with sales over £10m. But 14 have sales of less than that – an indication that it is not simply a case of smaller firms being squeezed out. The just published research includes an individual analysis of 1001 companies in the architects sector and shows the impact these increasingly powerful companies are exercising in the market. David Pattison, senior research analyst, commented. “Looked at separately these 36 super companies are great news for the industry. Yet the reality is much more disturbing. These companies are forcing such intense competition that others are battling for survival.” He added: “Unless some of the worst performing companies start to come to terms with the financial implications of flat or declining sales, they will go bust or be forced to sell up. It really is a time of either joy or tears. The market hungry will use this analysis to seek out companies to approach and buy. For the others, desperate to sell, it’s a case of finding a buyer.”

The 1000 page report is available through WAN at £325 GBP (RRP £350)

Contact Sara Mercer on +44 (0) 20 7332 0050

WAN Editorial

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