What does the future have in store?

The lifting of COVID-19 restrictions last year boosted optimism in the industry. However, the pandemic’s impact on industries and economies still lingers, and this year’s respondents are less optimistic about the future. In the previous year, more than 50 per cent believed the next five years would be better than the last five, with a four per cent increase from 2021. This year, however, the percentage of those who felt this way decreased by eight per cent. The survey also revealed a five per cent decline in the number of respondents who reported their company profits increased or remained the same over the past five years. Interestingly, the percentage of those who reported
a decrease in profits remained the same as last year
(11 per cent), while an identical five per cent said they were unsure about their company’s profitability. The participants’ comments in the survey reflected their apprehension about the future.

“I feel the economy has declined and people are being more careful with how they spend their money. Interest rates have given people a pause for larger projects. Inflation has also curbed people’s spending on renovations along with the decline in the resale market has made people push the pause button as they wait to see what their house is presently worth,” said one respondent.

“COVID-19 caused a lot of additional costs, which did not help our revenue, although we had some additional approved funding for this. And delays in completing a number of projects in progress and new ones to start,” said another.

One respondent wrote, “The problem is the labour force—more jobs to bid on, but it’s hard to bid when you don’t have the workforce to do it.”

It was not all doom and gloom as other respondents also shared cautious hope for the future.

“As the economy gets better after inflation and COVID, more projects will be presented,” said one respondent.

Another reader echoed this sentiment. “The economy will stabilize, and momentum of new work will remain constant.”

We also asked what the single biggest factor could be impacting design/construction firms over the next few years. Here are some of the important considerations:

• Increased interest rates will cause a decline in developers pursuing larger projects.
• Interest rates and government decisions.
• Changing work environments affecting vacancy rates
  in office buildings.
• Retaining employees in a competitive work environment.
• Inflation/borrowing rates leading to less construction.
• Demand for housing and affordable housing efforts.
• Adapting to changing customer needs and preferences, as well as the changing landscape of the architecture industry.
• Sector booms in agriculture, mining, forestry, construction.