DOWNLOAD THE FULL REPORTDesign and build firms are the most bullish: More than half of design and build firms expect that 2024 will be a good or very good year (53%), followed by interior designers and architects (52% and 48%, respectively).
Demand for services expected to improve: More than 3 in 5 businesses across industry groups anticipate heightened demand for their services (62%), which is more than 10 percentage points higher than last year (52%). Interior designers are the most confident, with nearly three-quarters expecting increased demand (73%), compared with architects and design and build pros (59% and 57%, respectively).
Costs of doing business rise: Nearly 4 in 5 firms across all of the industry groups cited an increase in the cost of doing business in 2023 (79%), albeit slightly less than the previous year (82%). Product and material costs were the biggest drivers (70%), followed by business insurance costs and subcontractor costs (38% and 34%, respectively). Architects were impacted the most significantly, with 4 in 5 citing an increase in the costs of doing business in 2023 (83%), followed by interior designers and design and build firms (74%, each).
Product and material availability improves: More than 2 in 5 businesses expected the availability of products and materials to improve (41%), with interior designers most optimistic (55%), followed by architects and design and build firms (29%, each).
Pros implement diverse business strategies: More than two-thirds of businesses plan to target larger budget projects (68%) and nearly as many plan to adjust pricing structures (65%) to achieve expected growth in 2024. Pros also plan to offer new products and services and expand their geographic area (38% and 32%, respectively).
Design and build firms are the most bullish: More than half of design and build firms expect that 2024 will be a good or very good year (53%), followed by interior designers and architects (52% and 48%, respectively).
Demand for services expected to improve: More than 3 in 5 businesses across industry groups anticipate heightened demand for their services (62%), which is more than 10 percentage points higher than last year (52%). Interior designers are the most confident, with nearly three-quarters expecting increased demand (73%), compared with architects and design and build pros (59% and 57%, respectively).
Costs of doing business rise: Nearly 4 in 5 firms across all of the industry groups cited an increase in the cost of doing business in 2023 (79%), albeit slightly less than the previous year (82%). Product and material costs were the biggest drivers (70%), followed by business insurance costs and subcontractor costs (38% and 34%, respectively). Architects were impacted the most significantly, with 4 in 5 citing an increase in the costs of doing business in 2023 (83%), followed by interior designers and design and build firms (74%, each).
Product and material availability improves: More than 2 in 5 businesses expected the availability of products and materials to improve (41%), with interior designers most optimistic (55%), followed by architects and design and build firms (29%, each).
Pros implement diverse business strategies: More than two-thirds of businesses plan to target larger budget projects (68%) and nearly as many plan to adjust pricing structures (65%) to achieve expected growth in 2024. Pros also plan to offer new products and services and expand their geographic area (38% and 32%, respectively).