2011 2nd 100 Giants

Just as certain professions-doctors, nurses, medical technicians-have been deemed recession-proof, health-care projects, including assisted living, were the jobs-to-have for interior designers, according to our annual survey of the second 100 Interior Design Giants firms.

 

Although down from prerecession days, health care clearly gave these Giants a shot in the arm. Interior design fees from this segment went up nearly 50 percent from just two years ago and are now more than $37 million. This represents an astonishing jump from 9 to 13 percent of total fees for the group.


Industry watchers pay special attention to this segment. With fewer "star" projects, which throw off averages, health-care is possibly the best indicator of general trends, and that proved to be the case with this survey. Total­ design fees were up 2 percent, to?$278 million, compared to the 40 percent nosedive reported last time.


In other words, fears of a double dip?seem to have dissipated. Layoffs continue-the second 100 Giants let 4?percent of their design staff go-but?the previous 35 percent pink-slip massacre seems to be in the past. For the designers who survived, salaries were flat, and reports of unpaid overtime and vacation days were common, but at least there was stability.


This stability was bolstered partly by the aggressive pursuit of segments that received short shrift in the past: not only health care but also related, overlapping sectors such as government and educational. (A quarter of all "government" work dealt with medical facilities.) Over half these Giants worked for government agencies, bring­ing in over $9 million, up $2 million from two years ago. Educational work, mostly colleges and universities, simultaneously rose by more than $5 million.


At first glance, all that public-sector work seems logical in the era of the American Recovery and Reinvestment Act. But these Giants reported only a 15 percent boost from the stimulus package. One explanation is that some government and health-care activity is outside the U.S.-work abroad has been on a slow rise since 2006.


Foreign projects generated more than 11 percent of the group's revenues. Over half these Giants already report building in Asia, and 24 expect continued growth in China. One new Giant, the first to be based in Shanghai, worked exclusively outside the U.S. during the study period: EDG Corporation employs the group's second-largest staff, including the highest number of designers.


Trending away from expectations is the green sector. Fewer of these Giants offer sustainability analysis-even as eco-related fees rose, and the commitment to LEED guidelines strengthened. It's a bit of a paradox that, while more green square footage was completed, the number of firms citing sustainability as an important factor in design decisions fell to 86 percent from 92 percent a year earlier. Of course, there are exceptions. One Giant collected 100 percent of fees from green design, with most of the products specified being sustainable as well. Retrofits also reached the highest levels ever reported, 100 percent at five firms.


So, with cost cuts already in place, these Giants appear poised for a pos­itive year, and they seem to agree that?the most important thing is not to hide their light under a bushel. As one spokes­person put it, "We have begun a concerted effort to increase our reputation as experts in our field and to generate a sense of familiarity between our clients and the members of our team." To help that happen, several Giants are making more appearances at industry events and forays into the realm of social media. "We've encouraged all staff to be creative marketers," another respondent says. Welcome to the Twitter-verse.

 

Rank 2011

Firm

(Headquarters, Website)
ID Fees

$ Value Installed

Sq Ft Installed

Design Staff

Rank 2010

101

Rottet Studio
Houston, TX
rottetstudio.com
$5.400

$150.00

NR

23

95

102

Tsoi/Kobus & Associates
Cambridge, MA
tka-architects.com
$5.309

$340.37

0.94

7

80

103

Tricarico Architecture and Design
Wayne, NJ
tricarico.com
$5.000

$70.00

1.20

58

107

104

Symmes Maini & McKee Associates
Cambridge, MA
smma.com
$5.000

$62.00

2.40

26

114

105

ForrestPerkins
Washington, DC
forrestperkins.com
$5.000

NR

NR

39

74

106

DES Architects + Engineers
Redwood City, CA
des-ae.com
$4.900

NR

NR

10

110

107

WATG
Irvine, CA
watg.com
$4.764

NR

NR

35

103

108

Whitney
Oak Brook, IL
whitneydesign.com
$4.713

$66.00

3.00

28

124

109

HFS Concepts 4
Long Beach, CA
hfsc4.com
$4.700

$60.00

NR

28

133

110

TRO Jung|Brannen
Boston, MA
trojungbrannen.com
$4.650

$317.78

1.35

22

122

111

Hendrick
Atlanta, GA
hendrickinc.com
$4.607

$115.18

5.76

23

136

112

Sasaki Associates
Watertown, MA
sasaki.com
$4.500

$120.00

3.00

18

99

113

Margulies Perruzzi Architects
Boston, MA
mp-architects.com
$4.500

$20.00

0.50

24

92

114

Stonehill & Taylor Architects and Planners
New York, NY
stonehilltaylor.com
$4.435

$150.00

1.30

26

85

115

Joi-Design
Hamburg, Germany
joi-design.com
$4.400

$44.00

NR

29

116

116

Arcturis
St. Louis, MO
arcturis.com
$4.304

NR

NR

25

83

117

LPA
Irvine, CA
lpainc.com
$4.300

$117.31

2.21

25

66

118

Array Healthcare Facilities Solutions
King of Prussia, PA
arrayhfs.com
$4.120

$200.00

1.62

10

94

119

Cooper Carry
Atlanta, GA
coopercarry.com
$4.000

$50.00

0.83

15

106

120

Design Development Company
Agoura Hills, CA
designdevelopment-group.com
$4.000

$40.00

0.50

10

148

121

STG Design
Austin, TX
stgdesign.com
$4.000

$6.00

10.00

26

89

122

Carrier Johnson + Culture
San Diego, CA
carrierjohnson.com
$3.825

$133.86

1.91

11

111

123

Loebl Schlossman & Hackl
Chicago, IL
lshdesign.com
$3.807

$101.00

0.66

5

100

124

MSA Planning and Design
San Francisco, CA
msasf.com
$3.765

$31.88

1.00

16

123

125

Heitz Parsons Sadek
W. Palm Beach, FL
heitz-parsons-sadek.com
$3.650

$49.00

1.30

29

151

126

Westar Architects
Las Vegas, NV
wagnarchitects.com
$3.600

$32.00

0.50

12

138

127

Reel Grobman & Associates
San Jose, CA
reelgrobman.com
$3.585

$84.00

1.40

26

145

128

H. Hendy Associates
Newport Beach, CA
hhendy.com
$3.509

$47.50

1.90

21

119

129

Looney & Associates
Dallas, TX
looney-associates.com
$3.500

$675.00

3.50

30

118

130

Dyer Brown & Associates
Boston, MA
dyerbrown.com
$3.500

$37.00

1.40

18

146

131

Rees Associates
Oklahoma City, OK
rees.com
$3.430

$85.00

1.14

24

152

132

Sargenti Architects
Paramus, NJ
sargarch.com
$3.400

$98.20

2.68

23

--

133

Slifer Designs
Edwards, CO
sliferdesigns.com
$3.300

$9.00

NR

15

120

134

AAI
San Jose, CA
aaidesign.com
$3.200

$200.00

3.00

18

132

135

Meyer Design
Ardmore, PA
meyerdesigninc.com
$3.176

NR

NR

22

175

136

SFA Design
Santa Barbara, CA
sfadesign.com
$3.072

$22.00

0.70

20

121

137

J. Banks Design Group
Hilton Head Island, SC
jbanksdesign.com
$3.050

$5.74

0.67

22

139

138

Stephen B. Jacobs Group/Andi Pepper Interior Design
New York, NY
sbjgroup.com
$3.000

$125.00

0.55

15

150

139

LB Architects
New York, NY
lbarch.com
$3.000

$120.00

1.00

17

171

140

Ismael Leyva Architects
New York, NY
ilarch.com
$3.000

NR

3.00

44

109

141

AvroKO
New York, NY
avroko.com
$2.950

$11.40

NR

21

--

142

Burkettdesign
Denver, CO
burkettdesign.com
$2.946

$105.01

2.63

21

141

143

Lauckgroup
Dallas, TX
lauckgroup.com
$2.900

$200.00

1.50

27

147

144

Kay Lang + Associates
Los Angeles, CA
kaylangassocs.com
$2.800

$99.75

1.28

17

135

145

Mojo Stumer Associates Architects
Greenvale, NY
mojostumer.com
$2.800

$30.00

0.18

15

157

146

Carson Design Associates
Carmel, IN
carsondesign.com
$2.751

$5.00

1.10

27

144

147

Hopping Kovach Grinnell Design Consultants
Vancouver, Canada
hkgdesign.com
$2.734

$85.44

0.93

47

161

148

EDG
San Rafael, CA
edgdesign.com
$2.695

$49.00

0.37

22

155

149

RLF
Winter Park, FL
rlfae.com
$2.670

$874.54

2.81

13

158

150

Brereton Architects
San Francisco, CA
brereton.com
$2.666

$50.00

0.80

26

--

151

Montgomery Roth
Houston, TX
montgomeryroth.com
$2.500

NR

NR

12

182

152

Goettsch Partners
Chicago, IL
gpchicago.com
$2.492

$50.00

0.80

10

137

153

Orsini Design Associates
New York, NY
orsinidesignassociates.com
$2.486

$25.00

NR

7

154

154

CMMI
Atlanta, GA
cmmi-redlines.com
$2.465

$35.00

0.98

15

--

155

Jain Malkin
San Diego, CA
jainmalkin.com
$2.427

$24.10

0.40

13

--

156

Philpotts & Associates
Honolulu, HI
philpotts.net
$2.393

$5.91

NR

22

--

157

GBD Architects
Portland, OR
gbdarchitects.com
$2.275

$23.21

0.54

16

185

158

J.T. Nakaoka Associates Architects
Los Angeles, CA
no website
$2.248

NR

NR

13

--

159

Shea
Minneapolis, MN
shealink.com
$2.160

$24.00

0.24

17

181

160

Klawiter and Associates
Los Angeles, CA
klawiter.com
$2.103

$37.50

0.42

10

174

161

Legat Architects
Chicago, IL
legat.com
$2.100

$38.69

2.05

4

126

162

RD Jones & Associates
Baltimore, MD
rdjones.com
$2.100

NR

NR

13

156

163

Puccini Group
San Francisco, CA
puccinigroup.com
$2.040

$28.00

0.11

19

179

164

Graham Downes Architecture
San Diego, CA
grahamdownes.com
$2.000

NR

0.50

10

168

165

Polytech Associates
San Francisco, CA
polytechae.com
$1.980

NR

0.17

10

--

166

McCarthy Nordburg
Phoenix, AZ
mccarthynordburg.com
$1.968

$331.24

NR

13

--

167

CORE architecture + design
Washington, DC
coredc.com
$1.958

$20.00

0.30

20

143

168

Partridge Architects
Philadelphia, PA
partridgearch.com
$1.953

$10.90

0.28

18

164

169

DAS Architects
Philadelphia, PA
DASarchitects.com
$1.910

$37.00

0.17

14

170

170

INARCH
New York, NY
inarch.net
$1.910

$15.00

0.07

13

177

171

Indidesign
Los Angeles, CA
indidesign.com
$1.900

$300.00

0.35

12

176

172

IEI Group
Philadelphia, PA
ieigroup.com
$1.890

$50.00

1.95

12

172

173

ADM Group
Tempe, AZ
admgroupinc.com
$1.875

$50.00

0.29

15

--

174

OZ Architecture
Denver, CO
ozarch.com
$1.828

NR

NR

12

166

175

Rowland Design
Indianapolis, IN
rowlanddesign.com
$1.822

NR

1.15

16

153

176

api(+)
Tampa, FL
apiplus.com
$1.800

NR

1.93

15

--

177

edg Creatives/edg (China) Corporation
Shanghai, China

edgcreatives.com

$1.779

NR

3.95

48

--

178

MHTN Architects
Salt Lake City, UT
mhtn.com
$1.776

$44.40

1.20

2

--

179

Design Directions International
Marietta, GA
ddi.cc
$1.755

$38.00

1.09

6

167

180

Hatch Design Group
Costa Mesa, CA
hatchdesign.com
$1.568

$63.09

0.24

11

173

181

FME, Architecture + Design
San Francisco, CA
fme-arch.com
$1.540

NR

NR

9

186

182

Hixson Architecture, Engineering, Interiors
Cincinnati, OH
hixson-inc.com
$1.530

NR

NR

15

178

183

DMR Architects
Hasbrouck Heights, NJ
DMRArchitects.com
$1.504

$33.14

0.41

16

112

184

Interform Commercial Interiors
San Ramon, CA
interform.com
$1.430

$34.21

1.00

9

195

185

Design Collective Incorporated
Columbus, OH
dcollective.com
$1.404

$14.06

NR

11

--

186

Simeone Deary Design Group
Chicago, IL
simeonedeary.com
$1.400

$1.60

0.05

7

159

187

Dawson Design Associates
Seattle, WA
dawsondesignassociates.com
$1.320

$38.00

NR

13

--

188

Marvin Stein & Associates
Seattle, WA
marvinstein.com
$1.313

$45.00

0.50

12

192

189

Abel Design Group
Houston, TX
abeldesigngroup.com
$1.289

$29.05

0.76

12

--

190

Spacesmith
New York, NY
spacesmith.net
$1.280

$25.00

0.25

14

180

191

Alan Gaynor + Company
New York, NY
gaynordesign.com
$1.269

$36.54

0.22

12

--

192

Adache Group Architects
Ft. Lauderdale, FL
adache.com
$1.260

$6.40

1.10

17

196

193

Cleo Design
Las Vegas, NV
cleo-design.com
$1.243

NR

NR

10

--

194

Floss Barber
Philadelphia, PA
flossbarber.com
$1.200

$35.00

0.48

7

183

195

Gray Design Group
St. Louis, MO
graydesigngroup.com
$1.123

$24.87

4.05

16

194

196

GH2 Architects
Tulsa, OK
gh2.com
$1.110

NR

NR

17

191

197

RDH & Associates
Addison, TX
rdhassociates.net
$1.100

$4.00

0.30

8

184

198

Faulkner Design Group
Dallas, TX
faulknerdesign.com
$1.100

$3.50

0.11

13

197

199*

BG Studio International
New York, NY
www.bgstudio.com
$1.090

$15.00

0.15

16

--

200*

TEK Architects
New York, NY
www.tek-arch.com
$1.060

$15.43

0.51

17

--



*Karlsberger and Cheryl Rowley Design were originally ranked as #155 and #164 respectively in the July issue.  We learned of their closing after the July issue went to press.
Had the firms not been included in the Giants ranking, BG Studio International and TEK Architects would have been ranked #199 and #200 respectively.

ID Fee, Dollar Value and Square Footage numbers are in millions

NR - not reported


Firms New To 2011 2nd 100 Giants

2011 Rank

Sargenti Architects

132

AvroKO

141

Brereton Architects 150

CMMI 154

Jain Malkin 156

Philpotts & Associates 157

J.T. Nakaoka Associates Architects 159

Polytech Associates 167

McCarthy Nordburg 168

ADM Group 175

api(+) 178

edg Creatives/edg (China) Corporation 179

MHTN Architects 180

Design Collective Incorporated 187

Dawson Design Associates 189

Abel Design Group 191

Alan Gaynor + Company 193

Cleo Design 195

 


% of Fees by Project Types
  

2010 Actual Fees

% of Fees

Hospitality

$81,847,690

29%

Corporate Office

$80,714,923

29%

Healthcare/Assisted Living

$37,118,550

13%

Educational  

$23,491,197

8%

Retail

$18,914,767

7%

Residential

$16,543,954

6%

Government

$9,331,698

3%

Cultural

$1,747,978

1%

Transportation

$626,526

0.2%

Other

$7,921,047

3%



% of Fees by Project Types
 

2011 Forecasted Fees

% of Fees

Hospitality

$101,606,628

31%

Corporate Office

$86,434,047

27%

Healthcare/Assisted Living

$40,789,336

13%

Educational  

$27,600,964

9%

Retail

$21,246,310

7%

Residential

$19,419,818

6%

Government

$11,792,897

4%

Cultural

$2,187,124

1%

Transportation

$1,793,376

1%

Other

$10,845,782

3%

 



Median Annual Salaries

Median Hourly Rates

Principals/Partners

$145,000

$200

Project Managers

$85,000

$150

Designers

$60,000

$110

Other ID Staff

$47,000

$90

 

Most Admired Firms

1.     Gensler

2.     Rockwell Group, Yabu Pushelberg (tied)

3.     Perkins + Will, Tonychi & Associates (tied)

 

Issues Most Affecting Design Firms

Practice Issues
Creating new business/Diversifying into new services or segments

68%

Marketing firm's capabilities

49%

Training staff

33%

Offering staff appropriate pay scale and benefits

31%

Recruiting qualified staff

27%

Keeping track of profits and expenses

14%

Retaining qualified staff

12%

Business issues
Earning appropriate fees

78%

Downturn in economy

72%

Dealing with clients' increasing demands

45%

Increasing interference from client's consultants

18%

Creating cutting edge design solutions

13%

Managing the growing needs for sustainable design

9%

Managing vendors 5%

Client issues
Client's willingness to pay what it's worth

74%

Finding new clients

61%

Getting clients to understand design value

54%

Client's willingness to take design risks

28%

Managing client expectation

25%

Handling micromanaging clients

20%

Retaining current clients

12%

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