The Royal Institute of British Architects (RIBA) has released the findings from its May 2024 Future Trends Survey, showing a positive trajectory for the architects’ profession. This monthly survey provides insights into business and employment trends.
Workload Expectations:
Architects anticipate a rise in workloads over the next three months, continuing the recent positive trend. The RIBA Workload Index increased by 4 points to +6 in May. Of the practices surveyed, 27% expect workloads to grow, while 22% predict a decline, and 51% foresee no change. Notably, small practices (1-10 staff) now expect an increase in workloads for the first time in over a year, with a Workload Index figure of +3. Medium and large practices also showed increased optimism, with their index rising by 11 points to +30.
Staffing Levels:
The RIBA Permanent Staffing Index remained stable at 0, suggesting balanced expectations for staffing levels. Over the next three months, 10% of practices plan to hire more permanent staff, 9% anticipate reductions, and 81% expect no changes. While small practices projected a slight decrease in staffing levels (-2), medium and large practices showed increased optimism (+15). Temporary staffing expectations also rose, indicated by a 1-point increase to +2.
Challenges and Outlook:
Despite the overall positive outlook, practices continue to face challenges like planning delays, fee pressure, and client hesitancy. Cash flow issues persist due to slow project progress and late payments. Nonetheless, some practices report increased inquiries and improved planning application speeds, signaling a cautiously optimistic market recovery.
Adrian Malleson, RIBA’s Head of Economic Research and Analysis, emphasized the need for continued caution but acknowledged the improving market conditions, particularly in the Commercial sector, despite ongoing concerns in housing.
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