DOWNLOAD THE FULL REPORTOptimism Prevails for 2025: Two in five industry professionals expect a good or very good year (40%). Additionally, the share of pros anticipating revenue growth has risen 4 percentage points year-on-year (57%). Interior designers are most bullish, with nearly half (44%) reporting a good or very good outlook for 2025. Over two-thirds expect revenue growth (69%) and almost half anticipate increased demand for their services (44%).
Investments to Enhance Performance: Nearly 9 in 10 firms across the industry (87%) plan to prioritise investments in key areas to address ongoing challenges and enhance operational performance. Increasing efficiency is a top focus, with 42% dedicating resources to streamline processes and improve productivity. Similarly, improving the sales process is a significant priority (37%), as well as communication with clients and teams (35%).
Hiring Challenges Seemingly Ease: A quarter of professionals plan to expand their teams in 2025, marking a 4 percentage points year-on-year increase (25%). The percentage of those citing hiring difficulties and subcontractor shortages as major challenges in 2024 has dropped significantly compared to the previous year (5% for both, compared to 9% and 13%, respectively).
Costs Expected To Rise: More companies expect costs to rise in 2025 than decrease (53% versus 8%). This sentiment is particularly strong among design and build firms, followed by architects and interior designers (64%, 49% and 36%, respectively).
Perceived Improvements To Price Volatility And Availability: Although rising material costs remain a challenge cited by firms, the perception of price volatility and availability has seen significant improvements over the last year. The percentage of professionals citing these as top challenges has decreased considerably (11% and 3%, compared to 19% and 9%, respectively).
Decline In Revenue And Profitability In 2024: A larger share of firms reported annual revenue and profitability decreases in 2024 than in 2023. More than 3 in 5 firms reported reduced profitability (62%, compared to 51%). Similarly, almost half reported lower revenue (47%, compared to 43%). This 2024 decline in profit is most widespread among architecture practices (72%), followed by interior designers and design and build firms (62% and 57%, respectively).
Optimism Prevails for 2025: Two in five industry professionals expect a good or very good year (40%). Additionally, the share of pros anticipating revenue growth has risen 4 percentage points year-on-year (57%). Interior designers are most bullish, with nearly half (44%) reporting a good or very good outlook for 2025. Over two-thirds expect revenue growth (69%) and almost half anticipate increased demand for their services (44%).
Investments to Enhance Performance: Nearly 9 in 10 firms across the industry (87%) plan to prioritise investments in key areas to address ongoing challenges and enhance operational performance. Increasing efficiency is a top focus, with 42% dedicating resources to streamline processes and improve productivity. Similarly, improving the sales process is a significant priority (37%), as well as communication with clients and teams (35%).
Hiring Challenges Seemingly Ease: A quarter of professionals plan to expand their teams in 2025, marking a 4 percentage points year-on-year increase (25%). The percentage of those citing hiring difficulties and subcontractor shortages as major challenges in 2024 has dropped significantly compared to the previous year (5% for both, compared to 9% and 13%, respectively).
Costs Expected To Rise: More companies expect costs to rise in 2025 than decrease (53% versus 8%). This sentiment is particularly strong among design and build firms, followed by architects and interior designers (64%, 49% and 36%, respectively).
Perceived Improvements To Price Volatility And Availability: Although rising material costs remain a challenge cited by firms, the perception of price volatility and availability has seen significant improvements over the last year. The percentage of professionals citing these as top challenges has decreased considerably (11% and 3%, compared to 19% and 9%, respectively).
Decline In Revenue And Profitability In 2024: A larger share of firms reported annual revenue and profitability decreases in 2024 than in 2023. More than 3 in 5 firms reported reduced profitability (62%, compared to 51%). Similarly, almost half reported lower revenue (47%, compared to 43%). This 2024 decline in profit is most widespread among architecture practices (72%), followed by interior designers and design and build firms (62% and 57%, respectively).