ASLA: Q4 Activity Down, Optimism Up for 2012

This graph charts hiring percentages, billable hours and inquiries for landscape architect firms responding to the ASLA?EUR??,,????'???s quarterly business surveys.

Business activity for landscape architects was lower in the fourth quarter 2011 from the third quarter, but higher than the fourth Quarter of 2010. As a result, the profession is relatively optimistic about 2012, according to the American Society of Landscape Architects (ASLA).

Almost 28 percent of respondents to the ASLA?EUR??,,????'???s fourth quarter business quarterly survey reported billable hours as slightly (plus 5 to 10 percent) or significantly (10 percent-plus) higher in fourth quarter when compared to the previous quarter. Another 34.8 reported billable hours as about the same (plus or minus 5 percent). This is down from the previous quarter, which showed 32.4 percent as slightly or significantly improved and 33 percent as stable.

The survey also indicated that inquiries showed a retreat, with quarter-to-quarter inquiries slightly or significantly improved for 31.9 percent of respondents compared to 35.7 percent in the previous quarter. Those reporting inquiries as stable remained unchanged at 33.8 percent.

Comparing fourth quarter 2011 to fourth quarter 2010, the picture improves slightly. Some 40.2 percent of firms reported improved billings, and 23.4 reported billable hours as about the same. Inquiries were 40.3 percent slightly to significantly improved, and another 28.6 percent reported inquiries as stable.

A majority of landscape architecture firms, 75.3 percent, said they do not expect to hire during the first quarter of 2012. While the number was high, it too is an improvement on the third quarter, when 81.3 percent said they were not hiring.

Asked about business conditions for the full year of 2012, 45.6 percent of respondents said they expected them to remain the same, but 43.1 percent said they expected conditions to improve. Only 11.2 percent expected conditions to decline. Regarding employment, almost 55 percent said they expected prospects to remain the same, while 34.3 percent said they expected prospects to improve.

?EUR??,,????'??Landscape architecture firms continue to be mired in the sluggish economy, and this is particularly true when it comes to hiring,?EUR??,,????'?? said ASLA Executive Vice President and CEO Nancy Somerville. ?EUR??,,????'??The year ahead, however, seems to hold some hope for firms that things may begin to move forward,?EUR??,,????'?? she said.

Additional results from the fourth quarter survey include:

Compared to the third quarter 2011, your fourth quarter 2011 billable hours were:
Significantly higher (more than 10%) ?EUR??,,????'??? 7.4%
Slightly higher (5 to 10% higher) ?EUR??,,????'??? 20.4%
About the same (plus or minus 5%) ?EUR??,,????'??? 34.8%
Slightly lower (5 to 10% lower) ?EUR??,,????'??? 21.8%
Significantly lower (more than 10%) ?EUR??,,????'???15.5%

Compared to the third quarter 2011, your fourth quarter 2011 inquiries for new work were:
Significantly higher (more than 10%) ?EUR??,,????'??? 9.0%
Slightly higher (5 to 10% higher) ?EUR??,,????'??? 22.9%
About the same (plus or minus 5%) ?EUR??,,????'??? 33.8%
Slightly lower (5 to 10% lower) ?EUR??,,????'???17.4%
Significantly lower (more than 10%) ?EUR??,,????'??? 16.9%

Year to year, compared to the fourth quarter in 2010, your fourth quarter 2011 billable hours were:
Significantly higher (more than 10%) ?EUR??,,????'??? 16.4%
Slightly higher (5 to 10% higher) ?EUR??,,????'??? 23.8%
About the same (plus or minus 5%) ?EUR??,,????'??? 23.4%
Slightly lower (5 to 10% lower) ?EUR??,,????'??? 16.4%
Significantly lower (more than 10%) ?EUR??,,????'??? 19.9%

Year to year, compared to the fourth quarter in 2010, your fourth quarter 2011 inquiries for new work were:
Significantly higher (more than 10%) ?EUR??,,????'??? 14.7%
Slightly higher (5 to 10% higher) ?EUR??,,????'??? 25.6%
About the same (plus or minus 5%) ?EUR??,,????'??? 28.6%
Slightly lower (5 to 10% lower) ?EUR??,,????'??? 18.4%
Significantly lower (more than 10%) ?EUR??,,????'??? 12.8%

Do you plan on hiring any employees in the first quarter of 2012 (multiple answers)?
Yes, we?EUR??,,????'???ll be hiring an experienced landscape architect ?EUR??,,????'??? 6.5%
Yes, we?EUR??,,????'???ll be hiring an entry-level landscape architect ?EUR??,,????'??? 6.0%
Yes, we?EUR??,,????'???ll be hiring an intern ?EUR??,,????'??? 5.3%
Yes, we?EUR??,,????'???ll be hiring support staff ?EUR??,,????'??? 4.8%
Yes, we?EUR??,,????'???ll be hiring other design/architecture/engineering staff ?EUR??,,????'??? 4.8%
Yes, we?EUR??,,????'???ll be hiring other staff ?EUR??,,????'??? 3.9%
No, we?EUR??,,????'???re not currently hiring ?EUR??,,????'??? 75.3%

Looking ahead to full year 2012, do you think the employment prospects for landscape architects will...
Improve ?EUR??,,????'??? 34.6%
Remain the same ?EUR??,,????'??? 54.5%
Decline ?EUR??,,????'???11.0%

Looking ahead to full year 2012, do you think overall business conditions for landscape architects will...
Improve ?EUR??,,????'??? 43.4%
Remain the same ?EUR??,,????'??? 45.4%
Decline ?EUR??,,????'??? 11.2%

Regional Breakdowns
The West consistently ranked lowest in reporting improved billable hours and inquiries quarter-to-quarter and year-to-year. They also ranked highest in predicting improved employment and business conditions in 2012. The Midwest showed the strongest performance in three of the four measures, showing lonely a lower number in the quarter-to-quarter inquiries. Surprisingly, Midwest firms also were among the least optimistic when assessing the business outlook for 2012.