Business Trends in the Building Industry
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- Specialization within the Architectural and Engineering professions is likely to increase. Niche marketing will become commonplace. Architects and Engineers will attempt to woo long term clients with plenty of repeat business.
- A&E firms will continue to form partnerships on a project by project basis. New, web based technology will help support virtual project teams that dissolve after a project’s completion.
- The construction industry will continue to be among the most interest sensitive segments of the US economy. Its health is quickly affected by any fluctuation in interest rates or business activity.
- Market conditions within the US can be expected to fluctuate. Within the next 10 years, we can expect the American economy to enter one or more recessions. As the economy shrinks, business competition will increase, construction activity will diminish and, technology purchases will slow (i.e. expenditures for business expansion and plant maintenance are, in large part, dependent on a healthy economy).
- Consolidation within the AEC industry will increase over the next 10 years. Many small, medium and large sized Architectural firms will merge. Several large Architectural firms will consolidate into mega firms. If they haven’t already done so, large construction firms will acquire or form A&E subsidiaries.
- The power and responsibilities of Architects will continue to erode due in large part to the increased popularity of the design-build business model.
- Increased competition may force AE firms into joint ventures with clients or contractors. The need to access capital may force AE firms to try non-traditional business strategies like design-build contracting or project development.
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