CHICAGO - The business of interior design has been quite good over the past 12 months, and American Society of Interior Designers expects that to continue. Last year’s State of the Industry report showed that interior design had fully recovered to pre-recession levels, and the momentum carried through this year, with only slight moderation. With all indicators showing robust growth, this is a good time to be in the interior design business.
According to ASID, the industry is not only in a period of tremendous change for both the business and practice of design, but the pace of change is accelerating, with no signs of slowing. This complex, dynamic, and accelerating environment is difficult to navigate.
Whatever factors may be at work, they have conspired to make the business of design quite good over the past 12 months, and ASID expects that to continue. Last year’s State of the Industry report showed that interior design had fully recovered to pre-recession levels, and the momentum carried through this year, with only slight moderation.
According to the U.S. Bureau of Labor Statistics and the U.S. Census, the number of interior designers has grown by 11.9 percent to 68,067.
There are 12,642 design firms in business, an increase of 6 percent.
Construction spending is strong, increasing 8 percent for total residential in the first quarter of 2016 compared to the first quarter of 2015.
Multifamily construction gained 35 percent in the same period. Total nonresidential construction, including commercial/industrial and institutional, gained 9 percent in the same time frame.
Designers remain optimistic about the outlook, and this has translated into a hot job market, with 29 percent of firms looking to hire this year (up 4 percent from last year).
In addition, the value of sales of these designers is $9.1 billion, according to Barnes Reports.
Factors affecting the design profession included competition, costs and profitability, industry economy, pace of change, perceived lack of value, regulation and liability, sustainability and time.
Elements that are being incorporated into project design most often include health, innovation, science and technology, security, sustainability, and technology.
According to Dr. Jack Kleinhenz, ASID economist, “The U.S. economy was saddled with another weak first quarter in 2016, but looking forward, fundamentals appear solid. The pace of job growth is steady, unemployment claims are well below late-2000 levels, consumer confidence remains elevated, manufacturing conditions are improving, and home and equity prices have strengthened. These dynamics signal that the economy will improve in the coming months.”
Look for the ASID Interior Design Billings Index quarterly reports and recorded press conferences, which are available at www.asid.org.
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