Gearing Up For A Comeback

With major obstacles melting away, the second 100 Giants have found their footing again

Judith Davidsen and Wing Leung -- Interior Design, 7/1/2004 12:00:00 AM

It's mostly good news for the second 100 Interior Design Giants. As a group, they earned $262,944,327 in 2003—a decline of 3 percent from 2002 but nowhere near the disastrous 24 percent drop of the previous reporting period. And an increase of 13 percent is forecast for 2004.

Among this year's second 100 Giants, 35 experienced growth that ranged from 1 percent all the way up to an outstanding 76 percent, and five racked up gains of over 50 percent. (During the previous reporting period, the few increases topping 25 percent were a cause for celebration.) The number of second 100 Giants reporting income decreases was six fewer than the top 100 Giants reporting decreases, and the greatest drop was 4 percent less than that experienced by the top 100. Furthermore, 28 percent fewer earned less than the second 100 Giants' number the previous year, and even the most serious individual drops were at least 39 percent smaller.

The second 100 Giants installed 116,064,671 square feet, down almost 9 percent from 2002 but not down nearly so far as the 16 percent reported between 2001 and 2002. The value of these installations came in at $6.4 billion, down 1.56 percent—compared to a 5 percent drop last time around. Hospitality, office, financial, government, educational, and residential jobs accounted for a larger portion of the second 100 Giants' income than the same categories did in 2002. These Giants were also more reliant on hospitality, office, residential, and "other" than the top 100 were.

When it came to billing, the second 100 Giants generally charged a higher percentage of project cost than the top 100 Giants—except in health care, transportation, technology, and "other"—as well as a higher dollar amount per square foot in all areas but health care and technology. When billing on an hourly basis, however, the second 100 Giants charged more than the top 100 for only offices, hotels, restaurants, cultural and entertainment spaces, and the ever intriguing "other." Average billing rates rose 3.1 percent for principals and partners, 4.55 percent for project managers and job captains, 5.74 percent for designers, and 4.05 percent for CAD operators, while average salaries increased 6.73 percent, 4.3 percent, 4.09 percent, and 4.8 percent, respectively.

The average employee at second 100 Giants firms earned fees of $147,979, a rise of .4 percent from the previous year. The high was $450,981, up 3 percent, and the low was $37,255, up an amazing 47 percent. Compared to the top 100 Giants, pay rates at the second 100 rose faster in all job categories, with average principal-partner compensation growing 4.43 times faster than for the same rank among the top 100.

By definition, the second 100 Giants' earnings have never been as high as those of the top 100, but the former group's lean-and-hungry rate of growth has usually far outstripped the bigger guys. That generalization temporarily lost its currency in 2002, which hit the second 100 much harder. Now, it looks as though the runners-up are ready to close the gap.

% of Fees by Type of Work: 2003 Actual

% of Fees by Type of Work: 2004 Forecast

Annual Salary

Hourly Rate

Giants 200

New to the Second 100 Giants

Fastest-Growing Second 100 Giants
(By ID Fees)

From top: ACB Financial Centre in Antigua, West Indies, by OBM International. Austin Ventures in Austin, Texas, by Susman Tisdale Gayle. RNL Design's Cable Center in Denver.

From top: Oblon, Spivak, McClelland, Maier & Neustadt in Alexandria, Virginia, by SKB Architecture and Design. JPC Architects's SS+K in Bellevue, Washington.

From top: GBD Architects's offices in Portland, Oregon. W.D. Idea Span's Stribling Heart Clinic in Gainesville, Georgia.