Design Industry Trends – Shifting Priorities and Practices
Over the next couple of weeks, we’ll explore a few important industry issues based on an article at BusinessOfHome.com. In it, author Caroline Bourque shares insight into the results of a survey of some 900 interior design firm owners relative to shifting design industry trends, priorities, and practices.
It should go without saying (yet here we go saying it anyway) that the past few years have been some of the most challenging in the history of the design trade. From what some believed to be the end of the design business to a relative boom in business, challenging times persist. Whether you find yourself dealing with twitchy clients or coping with ongoing supply-chain issues, the survey reveals a few other hills to climb moving forward. (Gee, thanks!)
Labor Challenges Persist
As this snapshot of the design businesses reveals, Top of the Pops so to speak appears to be hiring. “The survey found that roughly a third of firms increased staff size in the past year, with slightly more planning to do so in the coming year. Meanwhile, nearly half of all firms attempted to hire staff during the past year, even if they weren’t successful with design assistants and interior designers as the most in-demand new roles.”
The major challenge in the current labor market seems to be the increased expectations of the candidates, “with priorities that include health benefits, flexibility, engaging leadership, and much higher compensation.”
“Candidates today have higher expectations of new positions. In some cases, the survey found entry-level candidates with one to three years of experience requesting salaries in the mid- or higher-level range, up to $50,000 rather than the former entry-level standard of $30,000.”
“In turn, designers seeking new hires reported a lack of candidates that were available: qualified, affordable, and a good cultural fit for the firm … which, coupled with many designers leaving established firms to start their own businesses during the pandemic, puts the onus on firm leaders to adjust their own practices to attract and retain new talent.”
For smaller firms whose owners often struggle mightily to compete in the marketplace, both a lack of candidates and demands for greater compensation will require them to focus on culture and values. This will likely include honesty, customer service as a value, a focus on creativity, and making the workplace fun.
Design Fees, Margins, and Profitability
Stay tuned for more insight on design fees, margins, and profitability we’ve gleaned from the article and survey soon. For now, we believe you have plenty to think about from what we’ve shared above.
If you have questions about these design industry trends and how they are affecting your business, Ted remains available for business consulting to the trade. Simply… Contact TD Fall today.