Doing More With Less

After a rebound in last year's ranking, the second 100 Interior Design Giants for 2006 continued to make strides. This group earned a total of $309,890,091 in 2005, up from $307,879,526 in the previous study period—resulting in interiors worth $7,118,532,105. The group is responsible for designing a total of 166,452,858 square feet of installations, up 24 percent.

Staff size actually decreased by 5 percent on average, but leaner ranks weren't a deterrent. Rather than scaling back, the second 100 Giants devised ways to handle more volume with fewer hands—all without risking burnout and disaffection. Only five firms admit to working harder and longer. Technology came to the rescue of 30, while 20 said they engaged in tighter management, both of projects and of processes. Another 13 relied on in-house training and increased staff responsibility. Just six outsourced and/or used temps.

Under these conditions, employees earned an average of $175,850 for their firms. And in an era when corporations often protect profits by offering buyouts to older employees—the only ones who can pass along both professional standards and tricks of the trade—about 10 percent of the second 100 Giants reported doing the opposite. These firms are entrusting the future to more experienced staff and are increasingly involving partners and principals in day-to-day work.

Going against type was apparently a theme. More than half the second 100 Giants responded to the changing economy by working on a specialty they'd never tackled before. Over a quarter worked for the first time in retail and residential design, and nearly a quarter took on a first health-care or assisted-living project.

Almost 94 percent of second 100 Giants' projects were in the U.S., but 37 did at least 1 percent of their work in foreign countries—one did 100 percent. Of these jobs, China accounted for 28 percent; Canada, Japan, and the United Arab Emirates for 17 percent each; and Mexico for 14 percent. It will be interesting to see how these numbers shift—or don't—after the Beijing 2008 summer Olympics.

Sustainability is becoming a more important component of design decisions for 83 firms in this group. They specified $278,940,000 in green products during 2005, up 3 percent from 2004 and 47 percent from 2003. For the average firm, that meant devoting 20 percent of spending to green products. The products most likely to be green were flooring, followed by fabric, wall covering, paint, furniture, building products, and lighting.

Eight firms specified green more than half of the time; two specified green 75 percent of the time. For one, the percentage was 95. And almost three quarters of the second 100 Giants expect to specify even more green product during the next study period. Most interesting, half of those who chose to go green on 50 percent or more products ranked in the top quarter of our listing.

Predictably, the greatest interior-design fees earner was offices. Not so predictably, the second highest-earning specialty, hospitality, increased 24 percent to account for approximately 6 percent more of total earnings than in the previous year. That's roughly three times the ratio reported by the top 100 Interior Design Giants.

Are the second 100 Giants, which have a long history of taking on the top 100 Giants, now about to take on the hospitality Giants, too? Check back in October.