Optimism slightly weakens but architects still confident of future workload growth

In June, architects remained positive about their workloads over the next three months, although optimism has fallen back a little compared to last month.

The June RIBA Future Workload Index returned a +8 balance figure, indicating an expectation of growing workloads.

The report shows that while practices are still generally optimistic about future workloads, challenges such as increased business and project costs, concerns about the economy and difficulties recruiting qualified staff, mean a more mixed commentary for June than the previous month.

Although optimism has moderated this month, all regions continue to expect workloads to grow, and all sectors are positive about future work.

The RIBA Future Trends Permanent Staffing Index stands at +9 indicating that, on balance, practices intend to recruit additional staff in the coming three months.

Adrian Malleson, RIBA Head of Economic Research and Analysis, said: “June sees the profession remain optimistic about future workloads, but optimism is softening somewhat compared with the uptick in outlook seen in May. Current workloads remain below what they were twelve months ago.

“Nevertheless, all practice sizes, regions and sectors remain optimistic about future work.

“The ongoing improvement in outlook for permanent staff recruitment suggests a benign longer-term outlook, even in a challenging economic background.

“This month's commentary gives a mixed picture.

“Some practices describe an improving market, with increased enquiries and commissions, particularly for smaller projects, high-end residential, office fit-outs, and within the education sector.

“A number of practices note that recruiting qualified staff is becoming increasingly challenging, especially where specialist skills, such as Passivhaus design, are required.

“Other practices continue to describe a challenging market with concerns about the strength of the economy. Upward pressures on business and project costs are reported to continue. Practices express concern that increased regulatory requirements are increasing project costs and delaying project progress. Low fees remain a significant concern for many.”