In June 2018, the RIBA
Future Trends Workload Index remained positive, standing at +17, but it’s down
from the May’s figure of +24.
In terms of
geographical analysis, practices in the North of England (with a balance figure
of +41) and the Midlands and East Anglia (balance figure +28), remain most
upbeat about their medium term workloads. London practices in contrast continue
to be more cautious, with a balance figure of just +12.
The biggest change in
June was the significant dip in confidence in Wales and the West, who returned
a balance figure of +6 down from +28. The South of England also returned a
balance figure of just +4, down from +24 in May.
Analysing June’s
workload forecast data in terms of practice size, large practices (51+ staff)
returned a workload balance figure of +60, medium-sized practices (11 - 50
staff) +40, and small practices (1 - 10 staff) +14.
In terms of different
work sectors, the private housing sector, with a balance figure +22, remains by
some margin the strongest of our sector forecasts. All our other sector
workloads dipped somewhat in June 2018. The commercial sector, with a balance
figure of +6, and the community sector, with a balance figure of +2, both
remain in positive territory, but the public sector forecast was down to -4,
indicating that practices anticipate an overall decline in public sector work.
The RIBA Future Trends
Staffing Index fell back quite sharply this month, wiping out most of last
month’s gain, and falling to +2 in June 2018.
Even though the
staffing forecast for large practices (51+ staff) was +60 in June, medium-sized
practices (11 - 50 staff) returned a balance figure of zero, and small
practices (1 - 10 staff) returned a balance figure of +1. Both appear to have
become much less confident about taking on additional staff in the short to
medium term.
Mirroring the Workload
Index, practices in the North of England (balance figure +28) and the Midlands
and East Anglia (balance figure +6) are the most optimistic about being able to
take on more staff over the next quarter, whereas London practices (balance
figure zero), practices in Wales and the West (balance figure -10) and the
South of England (balance figure -12) are significantly more cautious on future
staffing levels.
RIBA Executive
Director Members, Adrian Dobson, said:
“Commentary received from our participating practices continues to suggest a
reasonably steady work flow, but practices report a highly competitive market
in terms of achievable fee levels.
A small number of
correspondents report that they have seen significant construction tender price
inflation and that this has led to delays in getting projects to site.
The private housing
sector remains the driving force sustaining a stable market for architectural
services, but despite the fact it looks positive on the whole, a cooling of the
housing market in London and the South of England, increases in interest rates
and potential withdrawal of right to buy subsidies may impact on this sector in
the medium term.”
