The Top 250 Design Survey 2014: Design firms weigh in on Commercial business

By Darius Helm

Much like last year, the commercial market in 2014 is far from robust but is still showing growth in many sectors, and overall business is up. This year’s survey exposes the challenges that designers face in the specification and installation process in an industry still dominated by tight budgets, renovations rather than new construction, and excessively contracted timelines. But the survey also reflects enthusiasm for new design directions and product innovations, an increasingly sophisticated understanding of sustainability, and a commitment to the continued development of the built environment.

Like the domestic economy, the business of commercial interiors is moving in the right direction but nevertheless underperforming. The growth is encouraging after many years of tumultuous conditions, but it has not yet brought with it a sense of stability. And it looks like the industry is getting used to business as usual without that comforting underpinning. Industry professionals have developed a fatalistic attitude, which has led to noticeably fewer prognostications about the state of the business. Five years ago, it was common to have discussions about current conditions and what the next year might bring. Then, following a couple of years of overuse of the phrase “cautious optimism,” most folks simply stopped making predictions.

SECTOR OVERVIEW
Much of the health of the commercial market is based on the conditions in its largest sector, corporate, which has been sluggish for the last couple of years. New construction is weaker than renovation, and budgets in general are not as large. But there are some signs in this year’s survey that the corporate sector is gaining strength.

One of the strongest sectors, healthcare, is just coming out of a short-term lull, and the best explanation is that many in that industry chose to step back while controversy raged about the Affordable Care Act (ACA). Now that the new healthcare system is up and running and more individuals are participating, this sector is starting to regain its momentum, and it is anticipated to bounce back quickly. (For more on ACA and healthcare, see Ruth McRae’s Healthcare Design: Shifting Models, starting on page 61.)

Another major sector is education, and that has had its ups and downs. Private funding, which is largely focused on higher education, has in general been stronger than public funding. However, large K-12 projects, some new and some restarted after long delays, have helped boost that segment.

For the complete Design Survey results, see the October 2014 issue of Floor Focus Magazine.