I wish I could start this post by announcing a boom in our industry, but we're not quite there yet. However, there's cautious optimism as things are slowly but surely starting to improve. Before we look at what's expected in the coming months, let's take a moment to reflect on the challenges of the past year.

The last twelve months have certainly posed a number of challenges.

A combination of economic instability, political uncertainty, global tensions, and new regulations has profoundly impacted our industry. It's been disheartening to see several renowned practices having to reduce their workforce and even more distressing, witnessing some smaller practices cease operations entirely.

These setbacks stem from multiple factors: projects being put on hold, clients hesitating due to uncertainty, and new regulations adding further complications. It's important to note that this downturn hasn't been isolated to architecture - it's affected many sectors, particularly those tied to construction and project-based work.

However, there are signs of improvement on the horizon. As we move into the latter half of 2024, we're seeing some encouraging developments. There's renewed focus from political leadership on boosting housing, interest rates are showing signs of stabilisation, and we're anticipating a levelling out of construction material prices.

The Building Safety Act is creating new opportunities, and we're seeing more UK talent making significant contributions in international markets. While we're not expecting an immediate turnaround, we're observing a gradual path to recovery, with potential for growth in certain areas.

RIBA's latest report echoes this cautious optimism, noting an end to the negative outlook and increased activity in overseas work and various sectors. Importantly, more practices are considering hiring again, albeit at a measured pace.

While we haven't yet reached our ideal position, there are genuine reasons for hope. In the following sections, we'll examine how various sectors are performing and assess the current state of the employment market for architects.

Architecture Industry Sector Trends and Projections 2024

Let's face it, the UK architecture scene has had a bumpy ride over the last year with some sectors feeling the pinch more than others. However, while housing projects have definitely seen better days, sectors such as commercial and high-end residential homes continue to do well and show signs of growth. Let’s break it down.

Housing:

Housing has had a tough time lately, perhaps one of the toughest. But there's a glimmer of hope on the horizon. The experts at Glenigan think we might see a modest 4% bump in residential projects starting up this year. It's not a full-blown recovery, but it's a step in the right direction.

High-End Homes: 

High-end residential work is still going strong. We're even seeing new architecture practices popping up in the scene. This is one of the sectors that continues to show resilience even in tough economic conditions.

Commercial Offices: 

Commercial buildings continue to do well and get a major rethink. With everyone questioning how and where we work, there's a lot of redesigning and repurposing going on. Glenigan's indicates this upward trend will continue into 2025 predicting a further 13% increase. 

Health and Education: 

Healthcare and education are also areas that show a positive outlook. Both sectors are expected to grow this year and next. There's a rise in private healthcare projects, and we're all waiting to see what the new government budget might mean for public healthcare builds. Universities are also keeping architects busy, with a further predicted 13% increase in project starts in 2025.

Sustainability: 

Demand for sustainable buildings continues to drive work in new areas. From retrofitting old buildings to make them more energy-efficient, to designing new, eco-friendly spaces, green thinking continues to shape the architecture industry in a big way. 

Overseas Projects 

Interestingly, more UK architectural practices are bidding for, and landing international projects, especially in the Middle East. It seems British architectural expertise is in demand worldwide and this is a trend that continues to grow. 

Public Sector:

Public sector projects have been a bit slow, but there's cautious optimism as we get more clarity on the new government's plans. A more stable economic and political environment should help boost confidence.

Ok, while we’re not out of the woods just yet with planning delays and new regulations continuing to pose challenges, there are some signs of progress. The economy is slowly steadying, and the political scene has calmed since the election. This stability is bringing more confidence with investors – usually good news for construction.

Furthering our cautious optimism, Glenigan’s forecast a 3% rise in project starts for late 2024. The RIBA Future Trends survey backs this up: in June 2024, 28% of architects anticipated higher workloads over the next three months, while just under 60% expected them to stay the same.

It's not a boom, but it's a step in the right direction. Think of it as the first buds of spring after a long winter - small, but promising. After the tricky waters we've been traversing, that's something to smile about.

Architecture Industry Employment Trends and Projections 2024

While the architecture employment scene isn't exactly at its healthiest, there are some encouraging signs that it's warming up. In fact, at FAT Recruitment, we've just had our busiest quarter in the last 12 months, indicating a positive shift in hiring trends.

Key areas of growth include:

1. Commercial and private residential architecture: These sectors are showing steady job growth.

2. Principal Designer roles: We're seeing increased demand in this area, not surprising following the new regulations. 

3. International projects: We’re experiencing a rising demand for design-led architects with an interest in international work.

It's worth noting that while freelance opportunities have slowed somewhat, we're observing a steady increase in permanent positions. This trend suggests companies are investing in long-term staffing solutions.

Our observations align with RIBA's recent industry trends survey. Their Staffing Index has reached a two-year high, indicating that practices are preparing for future growth. Findings from the June 2024 RIBA Future Trends survey reveals more practices intend to increase staff numbers than reduce them - the most positive outlook in over two years.

Interestingly, while practices of all sizes expect to increase permanent staffing levels, this trend is more pronounced among medium and large practices.

These developments paint a cautiously optimistic picture for architecture employment in 2024. While we're not seeing a dramatic surge, the steady growth and shift towards permanent positions suggest a stabilising and potentially expanding job market.

Wrapping Up

Looking at the big picture, it's clear that the architecture industry is on a path of gradual recovery. While we're not out of the woods yet, with housing and public sector projects still facing headwinds, there's plenty to be hopeful about. The slight uptick in project starts and positive employment trends suggest an industry gearing up for a brighter future.

So, what does this mean for architects and practices? It's time to stay nimble, informed, and proactive. For architects, consider expanding your skills and knowledge to seize new opportunities. For instance, if you've got strong delivery experience, the rising demand for Principal Designer roles could be an interesting new avenue - check out our latest blog post for more on this. 

As for practices, now's the time to strategise your future resourcing. Focus on filling skill gaps, exploring new opportunities, and setting growth milestones. Perhaps it's time to strengthen your leadership team? 

The shift towards permanent positions hints at companies preparing for long-term growth - a promising sign indeed. Remember, adaptability is key in these times. By staying flexible and forward-thinking, we can all play a part in shaping a vibrant future for the months and years ahead.