thinking positive Reasons for optimism, reasons for trepidation. That sums up this election year. And one senses the same emotional yin-yang in the trending statistics for the second 100 Interior Design Giants firms. There’s some reallygood evidence that the stormy recession waters might be calming, although uncertainty about the economy hasn’t disappeared. Total revenue for the second 100 Giants jumped to $887 million in 2011 from $686 million in 2010. That’s 29 percent. And the 2012 forecasts call for $936 million. That alone is optimism writ large. Meanwhile, design fees rose $21 million, to $299 million. There’s still a way to go to return to the pre recession heights, when fees topped $453 million, but the wind seems to be behind us. Firms installed a cool $8 billion worth of product and forecast $9.3 billion for next time. Average revenue-per-head also rose $13,000, to $167,000, and revenue-per-foot rose $1, to $98. The total number of projects made a wild leap, up 3,161 to 9,996. Firms expect 10,500 projects in 2012. Office and hospitality accounted for 58 percent of all fees. (Office rose 23 percent, while hospitality dropped 15 percent.) Half the Giants worked on residential projects, too, with secondhome projects jumping 27 percent. Folks are either feeling positive about vacations or sprucing up to rent or sell. And 53 firms did government work, heavy on offices but also including educational facilities. Higher
Where will firms be going for new projects? The trend toward globalization is still on the rise, by 14 percent overall. Work in Europe jumped 51 percent. Asia and the Pacific Rim, long a hotbed, have declined 25 percent, though China is seen as remaining a big growth area. In the U.S., which accounts for 86 percent of total projects, the most action is expected in the Northeast and South and on the West Coast. Green, coincidentally the color of money and sustainability, continues to be a driver. More than three quarters of the Giants work on sustainable projects, resulting in 45 million square feet of green space. A third of revenue derives from this, the highest number
since we started asking the question four years ago. Green products account for nearly half of all products used, and the total value has risen $1 billion, to $3.3 billion, in two years. Salaries haven’t changed, but staffing has. Firms employed 1,900-plus designers last year, the highest number since 2008. The total head count, 5,100, represents a whopping 19 percent increase, and the Giants expect to add another 200-plus designers in 2012. Another sign that business is improving: focus. In the depths of recession woes, 66 firms said they spent significant time diversifying. That number has dropped to 59. Two years ago, 50 firms were concentrating on
marketing as opposed to today’s 40. If you don’t have to hustle for new business, clearly your current business is pretty sweet. We can cap all those promising stats with perhaps the most telling indicator, revenue growth. Compared to the dark days when a mere seven of the firms reported positive growth, there are now 50. So why does the uncertainty persist? Numbers, unlike politicians, don’t lie. The second 100 Giants have had a good run that looks likely to continue. —Mike Zimmerman
Jain Malkin designed the Benjamin & Marian Schuster Heart Hospital in Dayton, Ohio.
education was a major factor, with 87 percent of the firms working in education doing so at the college level. Across all sectors, renovations rose to account for 63 percent of business. david wakely
HMC Architects designed McAfee’s executive briefing center in Santa Clara, California.
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