Positive Economic News Continues for Landscape Architecture Firms

Firm leaders rate marketing cache as important as environmental benefits for sustainable design

For the first time in 18 months, the majority of landscape architecture firm leaders reported normal or above-normal levels of work compared to the previous quarter, according to the latest American Society of Landscape Architects Business Quarterly survey.

For the third quarter of 2009, 51.3% of firms reported average or above billings compared to the second quarter 2009, a significant increase of 32% from last quarter. Additionally, 55.4% of firms reported average or above-average inquiries for the same timeframe, up from 32.2% last quarter. One in five firms, 20.2%, reported work directly related to stimulus funds.

Despite increased optimism, the job market still remains weak, as only 11.8% of firms plan to hire in the upcoming quarter, down from 14.3% previously and near the all-time low of 11.2% from the first quarter of this year.

“Obviously, this represents excellent economic progress, but the industry still faces a long road to recovery and tough challenges through at least the rest of this year,” said ASLA Executive Vice President and CEO Nancy Somerville. “While there appears some improvement in public and commercial work, the residential market remains a significant problem for landscape architecture firms.”

The survey also asked firm leaders about client familiarity with sustainable design techniques and reasons for incorporating them into projects. Only one in ten, 10.1%, reported clients as very knowledgeable about sustainable design, compared to 52% as somewhat knowledgeable and only 3.7% as not knowledgeable or interested. The most popular reasons clients incorporated sustainable design into projects were saving money on utility or maintenance costs, 50.7%; meeting a government regulation, code or construction standard, 49.1%; marketing cache, 40.6%; and reducing environmental harm, 39.8%.

Compared to the second quarter of 2009, ASLA-member third-quarter 2009 billable hours were:

• Significantly higher (10% or more higher) – 4.3%
• Slightly higher (between 5% and 10% higher) – 18.8%
• About the same (plus or minus 5%) – 28.2%
• Slightly lower (between 5% and 10% lower) – 19.3%
• Significantly lower (10% or more lower) – 19.5%

Compared to the second quarter of 2009, ASLA-member third-quarter 2009 inquiries were:

• Significantly higher (10% or more higher) – 6.6%
• Slightly higher (between 5% and 10% higher) – 20.2%
• About the same (plus or minus 5%) – 28.6%
• Slightly lower (between 5% and 10% lower) – 18.8%
• Significantly lower (10% or more lower) – 25.7%

Compared to the third quarter in 2008, ASLA-member third-quarter 2009 billable hours were:

• Significantly higher (10% or more higher) – 4.3%
• Slightly higher (between 5% and 10% higher) – 9.8%
• About the same (plus or minus 5%) – 18.8%
• Slightly lower (between 5% and 10% lower) – 13.3%
• Significantly lower (10% or more lower) – 53.5%

Compared to the third quarter in 2008, ASLA-member third-quarter 2009 inquiries were:

• Significantly higher (10% or more higher) – 4.9%
• Slightly higher (between 5% and 10% higher) – 14.0%
• About the same (plus or minus 5%) – 18.1%
• Slightly lower (between 5% and 10% lower) – 22.5%
• Significantly lower (10% or more lower) – 40.4%

ASLA members whose markets have received stimulus funds:

• My markets have not received any funds – 29.4%
• My markets have received funds, but my practice, thus far, has not received work as a result – 50.4%
• My market has received funds and my practice has work as a result – 20.2%

The ASLA Business Quarterly survey asks quarterly benchmarks on key statistics including billable hours, inquiries, and hiring plans. The Q3 2009 national survey was fielded Oct. 1 through Oct. 16, with 381 firm representatives responding.