Good News for Q2 2021 – Optimistic Design Project Predictions
Compared to the same time last year, the good news for designers is not found in optimistic design project predictions for the second quarter alone. No, even better, there are actual, positive numbers to support such an outlook.
According to the most recent Houzz Renovation Barometer, “architecture and design firms saw a significant increase in recent project inquiries and [newly] committed projects in January, February, and March. Their score for the Recent Business Activity Indicator of the Barometer increased to 75, an 11-point rise from the prior three months and the highest level recorded since the launch of the Barometer in Q4 2014. Relative to the same period a year ago, the indicator is up 31 points.”
When Bad News is Good News
So, while the most recent Houzz Barometer “reveals continued confidence among remodeling professionals for home renovation activity in the second quarter of the year”, that’s not enough for us. We want proof that things are improving!
Ironically, that proof can be found in what we would normally consider a couple of negative business metrics: project backlog stats and increased project wait times. In other words, “Surging demand for new residential construction and design projects has resulted in a backlog, with wait times of more than two months to start new midsize projects – about double the wait compared with this time last year.”
While backlogs and wait times vary by region, “The Project Backlog Indicator for architectural and design firms averages 8.4 weeks nationally at the start of the second quarter of 2021, up 2.8 weeks compared with the start of the first quarter. Compared with a year ago, when wait times were 3.6 weeks, wait times are up more than a month (4.8 weeks).”
“Compared with the same quarter a year ago, backlogs have almost tripled across all nine census divisions as reported by architecture and interior design firms.”
If your design business has yet to experience a similar surge in new projects this year, Ted is available to work with you on a case-by-case basis with tips to help you grow your business.
With more than 25 years of experience in the luxury furnishings and interior design industries, he has pretty much seen it all. So, if you're ready to work with a professional business consultant who can help you grow your business with reachable goals… Get in touch with TD Fall today.