Architects’
workloads recovered lost ground in April 2018, according to the Royal Institute
of British Architects’ (RIBA) Future Trends Workload Index, which rose to +13,
up from +6 in March.
While
practices in London continue to be the most pessimistic about medium term
workloads, at -1, London returned its best figure for some time. By contrast,
practices elsewhere continue to be more upbeat. The balance figure in the
Midlands and East Anglia was +23, in the North of England +20 and in the South
of England +30, showing that outside London confidence levels are much more
robust.
In terms
of practice size, large practices (51+ staff) returned a workload balance
figure of +29, medium-sized practices (11 - 50 staff) +9, and small practices
(1 - 10 staff) returned a balance figure of +12.
Our
quarterly report showed that the total value of work in progress in April 2018
was the same as April 2017, suggesting that whilst some of the steam has gone
out of the market, demand for architectural services remains steady.
In terms
of different work sectors, there was a complete reversal of the downward trend
from last month, with all four of our sector forecasts moving up. The private
housing sector workload forecast remains the most positive, rising to +16 in
April 2018 from +11 in March. The commercial sector workload forecast moved
back into positive territory, with a balance figure of +6 in April 2018, up
from -2 in March. The public sector workload forecast (balance figure -1) and
the community sector workload forecast (balance figure +7) were both also back
on an upward trajectory.
The RIBA
Future Trends Staffing Index dipped a little further this month, standing at +1
in April 2018 compared with +3 in March. The staffing forecast for large
practices (51+ staff) was +17 in April, for medium-sized practices (11 - 50
staff) it was +9 and for small practices (1 - 10 staff) it was -1.
Compared
to the same period twelve months ago however, practices report that staffing
levels are steady; they are employing just 1% more staff in April 2018 compared
with April 2017. This suggests that supply and demand in the employment market
for salaried architects remains in balance.
RIBA Executive
Director Members, Adrian Dobson, said: “Commentary received from our
participating practices continues to suggest a reasonably steady market. The
mood can best be described as one of cautious optimism.
"Actual workloads
are holding steady and most practices seem to be able to see a reasonable short
to medium term pipeline of work. However, there remains an underlying
nervousness in relation to the broader political and economic context,
including issues such as Brexit, the impact of potential interest rate rises
and the inflation outlook.”
