1 Table of Contents 2
1.1 List of Tables 4
1.2 List of Figures 7
2 Introduction 9
2.1 What is This Report About? 9
2.2 Methodology 9
2.3 Profile of Survey Respondents 10
3 Executive Summary 14
3.1 The Architecture Industry is Generally Optimistic About the Recovery of the Global Economy 14
3.2 The Level of Optimism About Revenue Growth is Low in the Architecture Industry 14
3.3 Architects As Well As Their Clients Will be Decreasing Procurement Spend Over the Next 12 Months 14
3.4 Industry Players Face a Number of Key Challenges Due to the Recession 15
3.5 Suppliers Must Update Their Knowledge of Buyer Needs During the Periods of Recession and Recovery 16
4 Economic Outlook and Confidence 17
4.1 Global Economic Recovery Expectations 17
4.2 Global Architecture Growth Forecast for 2010 21
4.3 Revenue Growth Expectations 23
5 Architecture Industry Investment Outlook 27
5.1 Construction Growth Opportunities by Region 27
5.2 Construction Growth Opportunities by Market Sector 30
5.3 Architectural Services Growth Opportunities by Region 33
5.4 Architectural Services Growth Opportunities by Market Sector 36
5.5 M&A Activity Predictions 39
5.6 Suppliers’ Industry Outlook 41
6 Recession: Threats and Opportunities for the Architecture Industry 44
6.1 Leading Business Concerns Due to Recession 44
6.2 Key Actions to Overcome Business Threats 49
6.3 Key Actions to Maintain and Win Buyer Business 53
6.4 Leading Recession-Related Business Opportunities 61
7 Architecture and Client Buyer Spend Activity 65
7.1 Expected Change in Procurement Spend: Architects’ Clients 65
7.2 Expected Change in Spend by Product and Service Category: Architects’ Clients 68
7.3 Annual Procurement Budgets: Architect / Planner 73
7.4 Expected Change in Spend by Product and Service Category: Architect / Planner 77
8 Procurement Behaviors and Strategies and the Impact of Recession 83
8.1 Critical Success Factors for Supplier Selection 83
8.2 Current Effects of Recession on Procurement Objectives 87
8.3 Expected Future Effects of Recession on Procurement Objectives 89
8.4 The Effects of Recession on Procurement Strategy 94
9 Appendix 100
9.1 Full Survey Results-Closed Questions 100
9.2 Methodology 107
9.3 Contact Us 108
9.4 About Global Markets Direct 108
9.5 Disclaimer 108
1.1 List of Tables
Table 1: Count of Global Architecture Industry Survey Respondents by Company Type (Number of Respondents), 2009 Industry Survey 10
Table 2: Buyer Respondents by Job Role (% Buyer Respondents), Global Architecture Industry, 2009 11
Table 3: Buyer Respondents by Organization’s Global Turnover (% Buyer Respondents), Global Architecture Industry, 2009 11
Table 4: Buyer Respondents by Organization’s Total Number of Employees (% Buyer Respondents), Global Architecture Industry, 2009 12
Table 5: Supplier Respondents by Job Role (% Supplier Respondents), Global Architecture Industry, 2009 12
Table 6: Supplier Respondents by Organization’s Global Turnover (% Supplier Respondents), Global Architecture Industry, 2009 13
Table 7: Supplier Respondents by Organization's Total Number of Employees (% Supplier Respondents), Global Architecture Industry, 2009 13
Table 8: Global Architecture Industry Expectations of Global Economic Recovery Timings by Region: North America, Europe, Asia-Pacific, Rest of World (% All Respondents), 2009 19
Table 9: Global Architecture Industry Expectations of Global Economic Recovery Timings by Company Type: Architects / Planners, Materials, Products, Fittings Suppliers / Architect Suppliers (% All Respondents), 2009 21
Table 10: Global Architecture Industry Forecast of Global Construction Economic Growth by Company Type: Architect / Planner Vs. Materials, Products, Fittings Supplier / Architect Supplier Vs. Other Construction Industry Supplier Vs. Average Expectations (% All Respondents), 2009 22
Table 11: Company Revenue Growth Optimism by Global Architecture Industry Company Type: Architects / Planners, Materials, Products, Fittings Suppliers / Architect Suppliers (% All Respondents), 2009 25
Table 12: Company Revenue Growth Optimism in the Global Architecture Industry by Region: North America, Europe, Asia-Pacific, Rest of World (% All Respondents), 2009 26
Table 13: Materials, Products, Fittings Supplier / Architect Supplier Industry: Market Predictions of the Fastest and Slowest Growing Regions for the Construction Industry (% Materials, Products, Fittings Supplier / Architect Supplier Respondents), 2009 29
Table 14: Materials, Products, Fittings Supplier / Architect Supplier Industry: Market Predictions of the Fastest and Slowest Growing Market Sectors for the Construction Industry (% Materials, Products, Fittings Supplier / Architect Supplier Respondents), 2009 32
Table 15: Architect / Planner Industry: Market Predictions of the Fastest and Slowest Growing Regions for the Architectural Services Industry (% Architect / Planner Respondents), 2009 35
Table 16: Architect / Planner Industry: Market Predictions of the Fastest and Slowest Growing Market Sectors for the Architectural Services Industry (% Architect / Planner Respondents), 2009 38
Table 17: Key Growth Areas in the Global Architecture Industry (Analysis of Supplier Respondents), 2009 Industry Survey 42
Table 18: Key Growth Areas in the Global Architecture Industry (Analysis of Senior Level Supplier Respondents), 2009 Industry Survey 42
Table 19: Key Declining Areas in the Global Architecture Industry (Analysis of Supplier Respondents), 2009 Industry Survey 43
Table 20: Key Declining Areas in the Global Architecture Industry (Analysis of Senior Level Supplier Respondents), 2009 Industry Survey 43
Table 21: Architect / Planner Vs. Materials, Products, Fittings Supplier / Architect Supplier: Leading Business Concerns for the Period 2009-2010 Among Global Architecture Industry Buyers and Suppliers (% All Respondents), 2009 47
Table 22: Leading Business Concerns for the Period 2009-2010 Among Global Architecture Industry Buyers and Suppliers by Region: North America, Europe, Asia-Pacific, Rest of World (% All Respondents), 2009 48
Table 23: Most Important Actions Being Implemented to Overcome Leading Business Concerns in 2009-2010 in the Global Architecture Industry (Analysis of All Respondents), 2009 Industry Survey 50
Table 24: Most Important Actions Being Implemented to Overcome Leading Business Concerns in 2009-2010 in the Global Architecture Industry - Senior Level Responses Only, 2009 Industry Survey 51
Table 25: Most Important Actions Being Implemented by Architects / Planners to Overcome Leading Business Concerns in 2009-2010 (Analysis of Architects / Planners Respondents), 2009 Industry Survey 52
Table 26: Most Important Actions Being Implemented by Materials, Products, Fittings Suppliers / Architect Suppliers to Overcome Leading Business Concerns in 2009-2010 (Analysis of Materials, Products, Fittings Suppliers / Architect Suppliers Respondents), 2009 Industry Survey 53
Table 27: The Most Important Actions for Suppliers to Take to Maintain and Secure Buyer Business During the Recession in the Global Architecture Industry: Supplier Responses Vs. All Buyer Responses (% All Respondents), 2009 56
Table 28: The Most Important Actions for Suppliers to Take to Maintain and Secure Buyer Business During the Recession in the Global Architecture Industry: Analysis of Buyer Respondents by Company Turnover (% Buyer Respondents), 2009 57
Table 29: The Most Important Actions for Suppliers to Take to Maintain and Secure Buyer Business During the Recession in the Global Architecture Industry: Analysis of All Buyer Respondents by Client's Procurement Budget (% Buyer Respondents), 2009 58
Table 30: The Most Important Actions for Suppliers to Take to Maintain and Secure Buyer Business During the Recession in the Global Architecture Industry: Analysis of All Buyer Respondents by Region (% Buyer Respondents), 2009 60
Table 31: The Most Important Actions for Suppliers to Take to Maintain and Secure Buyer Business During the Recession in the Global Architecture Industry: Analysis of All Buyer Respondents by Purchasing Decision Seniority (% Buyer Respondents With Purchasing Decision Influence), 2009 61
Table 32: Leading Business Opportunities During the Recession in the Global Architecture Industry (Analysis of All Respondents), 2009 Industry Survey 62
Table 33: Leading Business Opportunities During the Recession in the Global Architecture Industry – Senior Level Responses Only, 2009 Industry Survey 63
Table 34: Leading Business Opportunities for Architects / Planners During the Recession (Analysis of Buyer Respondents), 2009 Industry Survey 64
Table 35: Leading Business Opportunities for Materials, Products, Fittings Suppliers / Architect Suppliers During the Recession (Analysis of Supplier Respondents), 2009 Industry Survey 64
Table 36: Architect / Planner Expected Change in Client Spend on Construction Products and Services Over the Next 12 Months (% All Buyer Respondents), 2009 66
Table 37: Architect / Planner Expected Change in Client Spend on Construction Products and Services Over the Next 12 Months by Region (% All Buyer Respondents), 2009 68
Table 38: Future Change in Architect's / Planner's Client Spend by Construction Product and Service Category: Expected Increase or Decrease Over the Next 12 Months (% Architect / Planner Respondents), 2009 70
Table 39: Annual Procurement Budgets in US$ in the Global Architecture Industry: Architect / Planner (% All Buyer Respondents), 2009 74
Table 40: Annual Procurement Budgets in US$ in the Global Architecture Industry by Region (% All Buyer Respondents), 2009 77
Table 41: Future Change in Spend in the Global Architecture Industry by Product and Service Category: Architect / Planner - Expected Increase or Decrease Over the Next 12 Months (% Architect / Planner Respondents), 2009 79
Table 42: Critical Success Factors for Selecting a Architecture Industry Supplier: Buyer Vs. Supplier Comparison (% All Respondents), Global, 2009 87
Table 43: Current Effects of Recession on Procurement Objectives and Priorities in the Global Architecture Industry by Company Turnover (% All Buyer Respondents), 2009 89
Table 44: Expected Changes in Procurement Strategy in the Global Architecture Industry to Drive Value Across the Business Due to Recession: All Buyers by Company Turnover (% All Buyer Respondents), 2009 95
Table 45: Expected Changes in Procurement Strategy in the Global Architecture Industry to Drive Value Across the Business Due to Recession: All Buyers by Purchasing Decision Seniority (% All Buyer Respondents Purchasing Decision Influence), 2009 96
Table 46: Expected Changes in Procurement Strategy in the Global Architecture Industry to Drive Value Across the Business Due tto Recession: All Buyers by Region (% All Buyer Respondents), 2009 98
Table 47: Architect / Planner Attitudes and Approaches to Existing Procurement Practices: Level of Agreement to the Following Five Statements (% Architect / Planner Respondents), 2009 99
Table 48: Full Survey Results-Closed Questions 100
1.2 List of Figures
Figure 1: Leading Business Concerns for the Period 2009-2010 Among Global Architecture Industry Buyers and Suppliers (% All Respondents), 2009 15
Figure 2: Global Architecture Industry Expectations of Global Economic Recovery Timings (% All Respondents), 2009 18
Figure 3: Global Architecture Industry Expectations of Global Economic Recovery Timings by Region: North America, Europe, Asia-Pacific, Rest of World (% All Respondents), 2009 19
Figure 4: Global Architecture Industry Expectations of Global Economic Recovery Timings by Company Type: Architects / Planners, Materials, Products, Fittings Suppliers / Architect Suppliers (% All Respondents), 2009 20
Figure 5: Global Architecture Industry Forecast of Global Construction Economic Growth by Company Type: Architect / Planner Vs. Materials, Products, Fittings Supplier / Architect Supplier Vs. Other Construction Industry Supplier Vs. Average Expectations (% All Respondents), 2009 22
Figure 6: Company Revenue Growth Optimism in the Global Architecture Industry (% All Respondents), 2009 23
Figure 7: Company Revenue Growth Optimism by Global Architecture Industry Company Type: Architects / Planners, Materials, Products, Fittings Suppliers / Architect Suppliers (% All Respondents), 2009 24
Figure 8: Company Revenue Growth Optimism in the Global Architecture Industry by Region: North America, Europe, Asia-Pacific, Rest of World (% All Respondents), 2009 26
Figure 9: Materials, Products, Fittings Supplier / Architect Supplier Industry: Market Predictions of the Fastest And Slowest Growing Regions for the Construction Industry (% Materials, Products, Fittings Supplier / Architect Supplier Respondents), 2009 28
Figure 10: Materials, Products, Fittings Supplier / Architect Supplier Industry: Market Predictions of the Fastest and Slowest Growing Market Sectors for the Construction Industry (% Materials, Products, Fittings Supplier / Architect Supplier Respondents), 2009 31
Figure 11: Architect / Planner Industry: Market Predictions of the Fastest and Slowest Growing Regions for the Architectural Services Industry (% Architect / Planner Respondents), 2009 34
Figure 12: Architect / Planner Industry: Market Predictions of the Fastest and Slowest Growing Market Sectors for the Architectural Services Industry (% Architect / Planner Respondents), 2009 37
Figure 13: Merger and Acquisition Activity Expectations Over the Next 12 Months in the Global Architect / Planner Industry (% Architect / Planner Industry Respondents), 2009 40
Figure 14: Merger and Acquisition Activity Expectations Over the Next 12 Months in the Global Materials, Products, Fittings Supplier / Architect Supplier Industry (% Materials, Products, Fittings Supplier / Architect Supplier Industry Respondents), 2009 41
Figure 15: Leading Business Concerns for the Period 2009-2010 Among Global Architecture Industry Buyers and Suppliers (% All Respondents), 2009 45
Figure 16: Architect / Planner Vs. Materials, Products, Fittings Supplier / Architect Supplier: Leading Business Concerns for the Period 2009-2010 Among Global Architecture Industry Buyers and Suppliers (% All Respondents), 2009 46
Figure 17: The Most Important Actions for Suppliers to Take to Maintain and Secure Buyer Business During the Recession in the Global Architecture Industry: Supplier Responses Vs. All Buyer Responses (% All Respondents), 2009 55
Figure 18: The Most Important Actions for Suppliers to Take to Maintain and Secure Buyer Business During the Recession in the Global Architecture Industry: Analysis of All Buyer Respondents by Region (% Buyer Respondents), 2009 59
Figure 19: Architect / Planner Expected Change in Client Spend on Construction Products and Services Over the Next 12 Months (% All Buyer Respondents), 2009 66
Figure 20: Architect / Planner Expected Change in Client Spend on Construction Products and Services Over the Next 12 Months by Region (% All Buyer Respondents), 2009 67
Figure 21: Future Change in Architect's / Planner's Client Spend by Construction Product and Service Category: Expected Increase or Decrease Over the Next 12 Months (% Architect / Planner Respondents), 2009 69
Figure 22: Future Change in Architect's / Planner's Client Spend by Construction Product and Service Category: Expected Increase Over the Next 12 Months (% Architect / Planner Respondents), 2009 71
Figure 23: Future Change in Architect's / Planner's Client Spend by Construction Product and Service Category: Expected Increase Over the Next 12 Months by Region (% Architect / Planner Respondents), 2009 72
Figure 24: Annual Procurement Budgets in US$ in the Global Architecture Industry: Architect / Planner (% All Buyer Respondents), 2009 73
Figure 25: Annual Procurement Budgets in US$ in the Global Architecture Industry by Company Turnover (% All Buyer Respondents), 2009 75
Figure 26: Annual Procurement Budgets in US$ in the Global Architecture Industry by Region (% All Buyer Respondents), 2009 76
Figure 27: Future Change in Spend in the Global Architecture Industry by Product and Service Category: Architect / Planner - Expected Increase or Decrease Over the Next 12 Months (% Architect / Planner Respondents), 2009 78
Figure 28: Future Change in Spend in the Global Architecture Industry by Product and Service Category: Architect / Planner - Expected Increase Over the Next 12 Months (% Architect / Planner Respondents), 2009 80
Figure 29: Future Change in Spend in the Global Architecture Industry by Product and Service Category: Architect / Planner - Expected Increase Over the Next 12 Months Among All Buyers by Company Turnover (% Architect / Planner Respondents), 2009 81
Figure 30: Future Change in Spend in the Global Architecture Industry by Product and Service Category: Architect / Planner - Expected Increase Over the Next 12 Months Among All Buyers by Region (% Architect / Planner Respondents), 2009 82
Figure 31: Critical Success Factors for Selecting a Architecture Industry Supplier: Difference in Views, Buyers Vs. Suppliers (Net Difference in Ranking), Global, 2009 85
Figure 32: Critical Success Factors for Selecting a Architecture Industry Supplier: Buyer Vs. Supplier Comparison (% All Respondents), Global, 2009 86
Figure 33: Current Effects of Recession on Procurement Objectives and Priorities in the Global Architecture Industry (% All Buyer Respondents), 2009 88
Figure 34: Likelihood of Future Change in Procurement Objectives in the Global Architecture Industry (% All Buyer Respondents), 2009 90
Figure 35: Likelihood of Future Change on Procurement Objectives in the Global Architecture Industry by Company Turnover (% All Buyer Respondents), 2009 91
Figure 36: Expected Future Effects of Recession on Procurement Objectives and Priorities in the Global Architecture Industry (% All Buyer Respondents), 2009 92
Figure 37: Expected Future Effects of Recession on Procurement Objectives and Priorities in the Global Architecture Industry by Company Turnover (% All Buyer Respondents), 2009 93
Figure 38: Expected Changes in Procurement Strategy in the Global Architecture Industry to Drive Value Across the Business Due to Recession (% All Buyer Respondents), 2009 94
Figure 39: Expected Changes in Procurement Strategy in the Global Architecture Industry to Drive Value Across the Business Due to Recession: All Buyers by Region (% All Buyer Respondents), 2009 97