Survey: How Are Landscape Architecture Firms Fairing?11-24-09 | News

How Are Landscape Architecture Firms Fairing?

2009 LASN Annual Survey

By the Numbers

Before we give the survey numbers of the pertinent questions, you need to get an idea of who responded to our survey. We note that 8.1 percent of the respondents were ASLA Fellows.

(**Click on any of the graphs to view a larger version.**)

ASLA Survey/AIA Outlook

Outlook for the Landscape Architecture Profession

According to the American Society of Landscape Architects second quarter business survey of 147 landscape architecture firm principals, landscape architecture firms remain concerned about the economy, but about a third plan to diversify their services and expand into new markets.

The results were released Sept. 19, 2009 during the ASLA Annual Meeting and EXPO in Chicago. The presenter was Kermit Baker, chief economist of the American Institute of Architects. Baker offered his outlook for the landscape architecture profession in context of the overall status of the design and construction market and the broader perspective of demographic trends and their expected short and long-term impact.

One third of the firms (34.9 percent) reported their firms are currently pursuing or plan to pursue international work; 15.1 percent of the firms are currently or recently involved in international projects.

The survey asked about emerging business issues and concerns with what 81.6 percent of the survey judged a “weak economy.” Forty percent of those surveyed expect significantly smaller revenue in 2010.

More than one third (34.9 percent) of the principals said the economy appears to be stabilizing; 33.6 percent indicated their firms plan to expand into new geographic regions or service markets and offer broadened landscape design and/or construction services (37.8 percent), compared to firms limiting their offerings (10.5 percent).

Nancy Somerville, executive vice president and CEO of ASLA, said firms may emerge fundamentally different in their business approach as they expand into new markets. "While these changes will continue to increase competition in the short term, successful firms will be positioned for strong growth over the next decade," she added.

Above: While new residential construction has declined 74 percent from the peak of homebuilding in January 2006 (what some call a “binge” of building), greater drops occurred from 1925 to 1933 (90 percent) and from 1941 to 1944 (80 percent). The good news is housing starts appear to have bottomed.
The downturn in home construction from the binge period, says David Seiders, chief economist of the National Association of Home Builders, was “inevitable and good.” He notes: “It would have been better not to have the binge, but we did, and now (homebuilders) are doing exactly what they should be doing."

Summing Up

By Kermit Baker, the chief economist for the AIA.

Kermit Baker

Kermit Bakes notes the business trends influencing the landscape architecture profession:

Demographic trends point to a shifting construction base.
International growth is centered in emerging economies.
Industry consolidation will continue.
Demand for sustainable design will be concentrated in existing facilities.

In summary, he sees landscape architecture firms mired in a sharp downturn, although residential and public work projects have helped in some sectors.

While the residential and nonresidential downturn is as serious as any of the past 50 years, the recovery is underway, and firms are developing new strategies to position themselves for the upturn.