ASLA:
Third Quarter Business Stable,

 
Improving

The American Society of Landscape Architects' latest Business Quarterly survey shows stable conditions across the industry in the third quarter, with the potential for growth and improvement on the horizon. Year-over-year billable hours are steady, more employers are hiring and inquiries from new and potential clients are rising.

For the third quarter 2012, 71.5 percent of respondents reported stable to improved billable hours, and 74.0 percent reported stable or improved inquiries for new work. When compared to the previous quarter, inquiries improved, billable hours fell slightly, and both improved year to year for the same period.

Compared to the third quarter of 2011, 77.8 percent of firms indicated stable to improved levels of new business inquiries. More than three-quarters of respondents (73.9 percent) also claimed steady or increased billable hours over the previous year.

Employment data in Q3 shows progress: 42.4 percent of firms with 10 or more employees indicated that they would be hiring in the fourth quarter, and more than one quarter (26.2 percent) of firms with 10 to 49 employees plan to hire either an entry-level or experienced landscape architect before years' end.

"Though it is still very difficult out there, we are pleased to have an improving employment picture going into the next quarter," said ASLA CEO Nancy Somerville. "Many firms are deeply concerned about the economy, but these data really show how resilient our profession can be."

Even with the apparent progress in employment, the economy continues to loom over landscape architecture firms – 95.6 percent of firms surveyed are concerned or very concerned about the economy, according to one survey question. Those concerns are not dictating negative attitudes, however: 64.9 percent of respondents predict an improved business outlook for the next year.

Survey Highlights:

Compared to the second quarter 2012, third quarter 2012 billable hours were:
Significantly higher (more than 10%) – 11.4%
Slightly higher (5 to 10% higher) – 29.4%
About the same (plus or minus 5%) – 30.1%
Slightly lower (5 to 10% lower) – 13.1%
Significantly lower (more than 10%) – 15.9 %

Compared to the second quarter, third quarter 2012 inquiries for new work were:
Significantly higher (more than 10%) – 11.0%
Slightly higher (5 to 10% higher) – 29.6%
About the same (plus or minus 5%) – 33.0%
Slightly lower (5 to 10% lower) – 14.1%
Significantly lower (more than 10%) – 12.4%

Compared to the third quarter in 2011, third quarter 2012 billable hours were:
Significantly higher (more than 10%) – 26.0%
Slightly higher (5 to 10% higher) – 25.6%
About the same (plus or minus 5%) – 21.8%
Slightly lower (5 to 10% lower) – 14.9%
Significantly lower (more than 10%) – 11.8%

Compared to the third quarter in 2011, third quarter 2012 inquiries for new work were:
Significantly higher (more than 10%) – 19.9%
Slightly higher (5 to 10% higher) – 31.2%
About the same (plus or minus 5%) – 26.4%
Slightly lower (5 to 10% lower) – 13.0%
Significantly lower (more than 10%) – 9.6%

Do you plan to hire any employees in the fourth quarter of 2012?
Yes, an experienced landscape architect – 6.2%
Yes, an entry-level landscape architect – 7.5%
Yes, an intern – 4.6%
Yes, support staff – 5.0%
Yes, other design/architecture/engineering staff – 6.6%
Yes, other staff – 1.7%
No plans – 77.2%

Thinking about the economy, what is your overall business outlook for 2013?
Much improved – 11.4%
Somewhat improved – 53.5%
Stalled – 26.4%
Somewhat worse – 5.4%
Much worse – 3.3%