All together now: everyone heave a huge sigh of relief. The leaders of the pack are back on track, with the top 100 Interior Design Giants collecting $1,461,153,649 in fees in 2003. That's 1.13 percent, or $16,331,804, more than 2002's fees. And an even larger rise, 5.5 percent, is predicted for next year.
A total of 42 top Giants reported increases for 2003, the same number as the previous year. What's changed is the size of those increases, from 1.1 percent to a truly unbelievable 78.1 percent. (The average was a hefty 22.44 percent.) Six firms reported no change. Meanwhile, 45 firms suffered decreases ranging from 1 to 39 percent—slightly less than the decreases reported for 2002—bringing the average to 15.44 percent.
Office and retail design remain the top two earning categories, accounting for 29.59 percent and 12.67 percent of fees, respectively. The contribution that offices made to fees, however, went down almost 2 percent, while retail rose almost 1 percent. The big changes occurred in health care, which went up 32 percent (from fourth to third place), and financial institutions, which dropped 21.6 percent (from third to sixth place). The contribution made by educational facilities increased 13.8 percent. Residential declined 11.6 percent.
Although 2001 has been considered the beginning of the end of the technology boom, 15.5 percent more top Giant income derives from this sector now, compared to the 1990's. (Even financial commentators ended 2003 conceding that the death of technology had been grossly exaggerated. It had simply "matured.")
Thirty-two top Giant firms began working in new fields during 2003—seven in culture and entertainment; five each in hospitality, residential, and technology; four each in retail and government; two in education; and one each in health care and office.
New construction accounted for 57 percent of top Giant earnings, a figure that's been creeping slowly downward from a high of 62.1 percent at the end of the 20th century. Overseas jobs accounted for 9 percent of earnings, up from 7.5 percent in 2002.
The top Giants are far more likely than their clients to raise issues of sustainability, yet 81.4 percent are still taking the initiative to search out information about green products and materials. Of the 2003 total installation value of $34,861,306,470—a 12.14 percent improvement on the Giants' own forecasts—2.5 percent was allocated to green products and materials.
Total area installed was 509,556,713 square feet. The ratio of fees to installation value remains at only 80 percent of what it was during the recent boom, but the average fee per employee nevertheless rose 2 percent, to $213,284. One firm reported a sizable $816,667 earned per employee.
What did all those employees produce, in creative terms? Our portfolio presents the best Giant projects of 2003.
Cuningham Group Architecture, Minneapolis; cuningham.com
$4.627
NR
NR
108
97
98
H. Hendy Associates, Irvine, California; hhendy.com
$4.586
$60.00
1.50
23
124
99
Babey Moulton Jue & Booth, San Francisco; bamo.com
$4.500
NR
NR
25
104
100
Planning Design Research Corporation, Houston
$4.455
$318.75
4.25
34
-
Methodology: The first installment of the three-part annual business survey of Interior Design Giants comprises the 100 largest firms ranked by interior design fees for the 12-month period ending December 31, 2003. The second 100 Giants firm ranking will be published in July; the final installment, listing the top 50 hospitality Giants, will be published in October. Interior design fees include fees attributed to: 1. All types of interiors work, including commercial and residential. 2. All aspects of a firm's interior design practice, from strategic planning and programming to design and project management. 3. Fees paid to a firm for work performed by employees and independent contractors who are "full-time staff equivalent." Interior design fees do not include revenues paid to a firm and remitted to subcontractors who are not considered the equivalent of full-time staff. For example, certain firms attract work that is subcontracted to a local firm. The originating firm may collect all the fees and retain a fee for management or generation, paying the remainder to the performing firm. The amounts paid to the latter firm are not included in the fees of the collecting firm in determining its ranking. Data was compiled and analyzed by Interior Design's market research staff in New York: research manager Wing Leung and tabulation supervisor Laura Girmscheid. Judith Davidsen is a contributing editor for the magazine.
Although 2001 has been considered the beginning of the end of the technology boom, 15.5 percent more top Giant income derives from this sector now, compared to the 1990's. (Even financial commentators ended 2003 conceding that the death of technology had been grossly exaggerated. It had simply "matured.")
