In September 2018, the
RIBA Future Trends Workload Index dropped slightly to +7, down from +11 in
August.
The gap between London
and the rest of the UK has narrowed significantly this month,with the
previously upbeat North of England seeing a reduction down to +12, from +41
last month.
Practices in the South
of England, by contrast, were more optimistic than they had been previously,
with a balance figure of +11, up from +5. London based practices (balance
figure +1) remain the most cautious about future workload prospects.
In terms of practice
size, large practices (with 51+ staff) seem the most positive, returning a
workload balance figure of +50. Medium-sized practices (with 11 - 50 staff)
returned a balance figure of +4, and small practices (with 1 - 10 staff)
returned a balance figure of +6.
In terms of different
work sectors, the private housing sector was virtually unchanged, standing at
+7 in September 2018, compared to +6 last month. The public-sector workload
forecast (balance figure -3) and the community sector workload forecast (balance
figure -2) also saw little change – both remained in negative territory.
The commercial sector
forecast saw the greatest movement, falling back from +9 in August to -2. This
is the first time the commercial sector has fallen into negative territory
since March 2018, which reinforces the sense that clients feel far more nervous
about committing to new commercial projects.
In contrast to the
RIBA Future Trends Workload Forecast, the RIBA Future Trends Staffing Index
rose marginally this month, standing at +4 in September 2018, up from +3 in
August.
The staffing forecast
for large practices (51+ staff) was +43, for medium-sized practices (11 - 50
staff), -4 (down from zero last month), and small practices (1 - 10 staff) +4.
Large practices remain far more confident about their ability to maintain and
increase staffing levels than those in other size categories, while smaller and
medium-sized practices areh less confident about taking on additional staff in
the short to medium term.
Practices in Scotland
(balance figure +20), London (balance figure +9) and the Midlands and East
Anglia (balance figure +8) seem more upbeat about taking on additional staff
than those in the other nations and regions of the UK. Mirroring the Workload
Index, practices in the North of England saw a significant dip in confidence
about staffing: their balance figure fell to -3 in September, down from +11 in
August.
RIBA Executive
Director Members, Adrian Dobson, said: “Commentary received from our
participating practices suggests a fairly steady but highly competitive market
for architectural services.
"However, a significant number of practices highlight a
growing hesitancy on the part of clients to allow projects to proceed to
construction. Many cite the uncertain conditions created by Brexit as the
dominant factor causing clients to stall projects.
"In recent months
practices in the North of England and the Midlands and East Anglia have been
noticeably more upbeat than those in London and the South of England, but this
north-south difference has now started to narrow considerably.”
