According to EC& M’s annual listing of the Top 40 design firms, these companies registered an average year-over-year increase of 8.75 percent in design services. Twenty-six out of 40 firms posted higher revenue totals in 2004 than in 2003, and of those that posted lower totals in 2004, only six had declines of more than 10 percent (Top 40 listing on page 2). The overall success of this group resulted in very little movement of individual rankings, and most of those that did move rose or fell by only a single spot or two.
But the good news doesn’t end there. From what these powerful design firms shared with EC&M in their survey responses, they’re looking at posting even bigger and better numbers in fiscal 2005. Of the 24 firms that responded to the question on what kind of increase or decrease they forecasted for design revenues in 2005, nine of them are projecting an increase of more than 10 percent and another seven are looking for gains in the 6 percent to 10 percent range. Only three firms project a decrease in the 6 percent to 10 percent range.
So why were these industry giants so successful in 2004? And what makes them exude such confidence this year? The return of and continued strength of some key market segments and an improving economy is fueling this powerful growth.
An aging population and new care and treatment strategies have made for a healthy health-care market. An ever-growing population of new students and increased competition for research funding has created the need for new housing, classrooms, and research space at higher education facilities. The low cost of financing continues to support a red-hot new and existing housing market. And the continued fight against terrorism and fear of future attacks continue to drive federal and private sector growth in the security and defense markets. Their strength has been powerful enough to offset some of the downturn in other business sectors such as automotive, manufacturing, pulping and paper, telecommunications, and power, which have suffered for years now.
The information used to generate EC&M’s Top 40 listing report was obtained through an exclusive EC&M survey, published annual reports, company press releases, and corporate Web sites.