1. Architects — less is more

As larger practices ‘right-size’ to meet lower demand or adapt to an evolving portfolio mix, we are seeing the specifier landscape fragment further with growth in smaller/sole-person practices.

Medium and large firms could view these smaller studios as specialist ‘overflow’ options to allow future scaling up to happen quickly as demand returns and conversely contract again with less disruption to the practice.

2. Architects — she’ll be right!

I was struck by the fact that a majority of architects and designers anticipate an improvement in their own business situation over the next 12 months when they predict a tough twelve months for the industry. So what is behind their expectation to outperform the industry as a whole?

Much of this sentiment hinges on their perceived influence over their own business outcomes, contrasting with the more daunting task of stimulating overall sector demand. This points to what economists call a “K-shaped recovery” with some firms rebounding and others struggling due to a lack of structure, networks or capital.

It is great to see the resilience — in tough times we back ourselves!

3. Builders — never waste a good crisis

In a drive to reduce build times and costs, builders referenced multiple factors that could impact building efficiencies and lead to a better build delivery.
Chief amongst them were Council Compliance and Design for creating the most inefficiencies. But builders were also self-critical of their own training capability and level of skill available on site.

With slower demand and greater capacity comes the opportunity to rethink the build delivery. Products are not going to get “materially” cheaper. Labour rates may fall as some try to secure work in a tightening market, but this can not be relied upon for the mid-term. So reducing build times and costs must be found in efficiencies across areas we can address. This is a time for design to incorporate what has been learned from the last few years into what makes construction processes more efficient.

4. Builders — fixed on price

Reducing pipelines of work has been a reality for some time. It appears that this has been accelerating, to a point where builders predict a tougher twelve months to maintain work levels & profit margins. The report revealed the realities of dropping levels of forward work and the difficulty in converting enquiries. 
A clear opportunity is to address the difficulty in providing accurate pricing. Talking to attendees at the recent Master Builders Constructive Conference, the talk is for contractors and subbies to offer their pricing, not as the start of a negotiation process, but as a fair price. Let's facilitate good pricing practices to drive cost certainty and efficiency, to maximise the number of projects we bring to life.

5. Builders and Architects — change is the only constant

Both builders and architects agree that the proposed changes to legislation to increase product choice through widening compliance options, making product substitutions easier and self-certifying ‘Granny Flats’ without council involvement, would be, on the whole, positive changes for the industry.

It strikes me that with the relaxation of rules comes the required trust in partners and processes to ensure the intended benefits do eventuate. Or as one respondent in the Builder Sentiment Survey put it: “We need early-stage involvement of as many parties as possible, and to work collaboratively with the project as the primary focus.”

So if we back ourselves, along with the government, we must look to what we can change and improve to drive better build outcomes for our clients. Following a large increase in building work over the last three years, what if we were to complement this with an even greater increase in productivity and efficiency?