MAJORITY OF EUROPEAN ARCHITECTS EXPECT A DECREASING TURNOVER IN 2020
Rotterdam, March 23, 2020 – The economy is currently under pressure due to the coronavirus that is spreading across the World. Without a doubt, this will affect the construction markets in all European countries. In recent quarters, a slowdown in the top eight European markets has been noticed in the European Architectural Barometer. Currently, we are in the early stages of the corona crisis in Europe, and in many countries, construction projects seem to continue for now. However, it is important to keep track of the expectations of the market to oversee what the challenges that the construction industry is facing are.
Large share of architects in Europe expect a negative development of their turnover due to COVID-19.
Almost half of all architectural firms in Europe expect that their turnover will be negatively impacted. In Italy, Poland, Spain and the UK, architects are most worried about their position. But also in other countries the impact of the COVID-19 virus is expected to be felt by a large proportion of architectural firms. Many of them expect a turnover loss, or in the best case a neutral scenario in which the COVID-19 virus will not result in turnover loss already this year.
The weekend of March 13 seemed to be a turning point in the expectations of architects
The previously shared update on the impact of COVID-19 virus on the construction industry was based on figures collected until Friday the 13th of March. Architects in Italy were already very worried about their turnover in the coming year, possibly due to the measures already taken in the country. The weekend of March 13 seemed to be a turning point for many of the other countries. This was also the weekend when many governments announced measures to be taken.
Substantial loss of turnover expected in the majority of countries in the coming 12 months
Also the estimated loss of turnover by all architectural firms has increased since that weekend. The sentiment in general has thus become more negative and shows a worrying image. The average loss in each country is estimated to be a quarter to half of their turnover.
Current projects are not cancelled, but first delays in projects can be expected
Until March 13, it seemed that many construction projects were continuing. The number of architects experiencing direct cancellations or postponements of projects remained fairly stable with previous quarters. The cancelled projects did not rise strongly since March 14, but the number of architects experiencing postponed projects did. This results in a delay of execution of projects.
About the European Architectural Barometer
The European Architectural Barometer is a study by USP Marketing Consultancy, which is based on 5,400 successful interviews with architects in eight European countries annually. Every quarter, a report is published covering a specific topic like BIM, prefabrication, media orientation of architects, and many more. The report also provides future building volume predictions, based on the orderbook development of architects and other economic indicators in the construction sector.
About USP Marketing Consultancy
USP Marketing Consultancy is a leading international market research agency that is specialised in the construction, installation and DIY sector for over 25 years. USP Marketing Consultancy works for internationally renowned companies (such as Knauf, Xella, VELUX, Saint-Gobain, Rockwool, Vaillant, Grohe, etc.). Our clients often have pan-European questions about their brand awareness, customer journeys, market opportunities, e-commerce trends and other research needs. USP Marketing Consultancy delivers the insights to make decisions and acts as marketing advisor for its clients.
For more information, please contact the project manager of this research, Mr. Jeroen de Gruijl
USP Marketing Consultancy, Business Unit Construction
Jeroen de Gruijl, Project Manager Construction Market
Telephone: 0031 10-2066900