Article 082 - A Comparison of Architects Work Sectors in 2014

A Comparison of Architects Work Sectors in Britain in 2014

Architecture can be applied as a functional art to anything as a response to a need.

Since the economic downturn from 2007 to 2010 when the lending systems of world banks accrued too much debt to sustain values the Construction and Architecture sector has had to re-examine its potential work levels and reduce its potential debt risk.

This is a current financial comparison of Architects Work Sectors in Britain in 2014.

The sectors have been ordered in terms of fee return.

Total numbers of Architects in Britain. = 33,000 to 34,000

Source: ARB website 2014

Total numbers of house properties in Britain. = 27,000,000,000

Source: ONS

International Architecture USA Sector as a Comparison

The international earnings levels for Architects in the USA,

one of the largest architect employment areas,

were in 2013

Source: www.salarycomparison.com and Bureau of Labor Statistics, U.S

= $72,550/yr to $42,860/yr

= £42,481/yr to £25,094/yr

Sector Condition

This sector is in the same financial situation as Britain.

This puts the USA below the minimum wage levels per year for Britain.

Historic Buildings Sector

Total maximum value of Historic Buildings Sector = £6,500,000

Source: English Heritage and Historic England

Total number of historic building in Britain = 400

Potential number for each Architect = less than 1 / yr

Potential value for each Architect at 4% fee = £16,250 x 0.04

= £650 / yr

Potential total work for each Architect based on build time = 1 / year

Total number needed to be designed per year to

achieve total work = 1 / year

Potential actual number for each Architect based on

35 work years = 35

Potential earnings at a rate of 4% fee rate = £650 x 1

= £650

= £650 x 35

= £22,750

Sector Condition

This sector becomes more limited and fees potential is reducing as grants reduce. The statutory body in charge of the sectors upkeep, English Heritage, has recently undergone structure changes. This sector is therefore under review.

Private Industrial Sector

Total maximum value of Factories Sector = £654,000,000

Source: BPF

Potential total value for each Architect = £19,818

Potential value for each Architect at 4% fee = £793

Potential total work for each Architect based on build time = 1 / year

Total number needed to be designed per year to

achieve total work = 1 / year

Potential actual number for each Architect based on

35 work years = 35

Potential earnings at a rate of 4% fee rate = £793 x 1

= £793

= £793x 35

= £27,755

Sector Condition

This sector is declining.

Source: BPF 2013

Law and Order Sector

Total value of Law and Order Sector = £8,387,000,000

Public Expenditure Statistical Analyses 2013

Table 1.3 Resource budgets, 2008-09 to 2015-16

Potential for each Architect = £254,151

Potential total work for each Architect based on build time = 1 / 2 years

Total number needed to be designed per year to

achieve total work = 1 / 2 years

Potential actual number for each Architect based on

35 work years = 35 / 2

= 17

Potential earnings at 4% fee rate = £10,166 x 1

= £10,166

= £10,166 x 17

= £172,822

Sector Condition

The sector is under review but receiving decreased budgets as part of the British economy.

Source:Public Expenditure Statistical Analyses 2013

Table 1.3 Resource budgets, 2008-09 to 2015-16

Completed / Conversion / Refurb / Extension Housing Sector

Total numbers of properties = 27,000,000

Source: ONS

Potential total number for each Architect = 818

Potential total work for each Architect based on build time = 818 years

Total number needed to be designed per year to achieve

total work = 23

= 2 per month

Potential actual number for each Architect based on

35 work years = 35

Potential earnings at a rate of 4% for per project based

on a single 2 storey extension of value of £43,000 = £ 1,720 x 818

= £ 1,406,960

= £ 1,720 x 23 x 35

= £ 1,384,600

= £ 1,720 x 35

= £ 60,200

Potential earnings at a rate of 4% for per project based

on a single 2 storey house of value of £250,000 = £ 10,000 x 818

= £ 8,180,000

= £ 10,000 x 23 x 35

= £ 8,050,000

= £ 10,000 x 35

= £ 350,000

Total number of Detached = 4,212,600

Total number of Terraced = 4,796,700

Total number of Semi-Detached = 5,522, 4000

Source HBF: Nationwide UK April 2013 and ONS

Sector Condition

This sector has been increasing since the 1950's with the rebuilding of post war Britain.

The finances would apply to all of the house types in this work sector but at further limited levels for each type, further reducing the fee obtained.

Occupied Properties Sector

Total numbers of Owner Occupied Property. = 17,700,000

Source: Nationwide and ONS

Potential total number for each Architect = 536

Potential total work for each Architect based on build time = 536 years

Total number needed to be designed per year to

achieve total work = 15

= 1 per month

Potential actual number for each Architect based on

35 work years = 35

Potential earnings at a rate of 4% for per project based

on a single 2 storey extension of value of £43,000 = £ 1,720 x 536

= £ 921,920

= £ 1,720 x 15 x 35

= £ 903,000

= £ 1,720 x 35

= £ 60,200

Potential earnings at a rate of 4% for per project based

on a single 2 storey house of value of £250,000 = £ 10,000 x 536

= £ 5,360,000

= £ 10,000 x 15 x 35

= £ 5,250,000

= £ 10,000 x 35

= £ 350,000

Sector Condition

This sector has been increasing since the 1950's and the start of the house ownership

Source: UK .Gov. Table 241 House building: permanent dwellings

completed, by tenure historic calendar year series 2012

Public Housing Sector

Total numbers of Owner Occupied Property. = 2,510

Source: Table 241 House building: permanent dwellings completed, by tenure¹

United Kingdom historical calendar year series

Potential total number for each Architect = less than 1

Potential total work for each Architect based on build time = less than 1 / year

Total number needed to be designed per year to

achieve total work = 1 / year

Potential actual number for each Architect based on

35 work years = 35

Potential earnings at a rate of 4% for per project based

on a single 2 storey extension of value of £43,000 = £ 1,720 x 1

= £1,720

= £ 1,720 x 35

= £ 60,200

Potential earnings at a rate of 4% for per project based

on a single 2 storey house of value of £250,000 = £ 10,000 x 1

= £ 10,000

= £ 10,000 x 35

= £ 350,000

Sector Condition

This sector has been depleting since the 1950's due to the growth of private house building.

Source: UK .Gov. Table 241 House building: permanent dwellings

completed, by tenure historic calendar year series 2012

Housing Association Sector

Total numbers of Owner Occupied Property. = 31,340

Source: Table 241 House building: permanent dwellings completed, by tenure¹

United Kingdom historical calendar year series

Potential total number for each Architect = less than 1

Potential total work for each Architect based on build time = less than 1 / year

Total number needed to be designed per year to

achieve total work = 1 / year

Potential actual number for each Architect based on

35 work years = 35

Potential earnings at a rate of 4% for per project based

on a single 2 storey extension of value of £43,000 = £ 1,720 x 1

= £1,720

= £ 1,720 x 35

= £ 60,200

Potential earnings at a rate of 4% for per project based

on a single 2 storey house of value of £250,000 = £ 10,000 x 1

= £ 10,000

= £ 10,000 x 35

= £ 350,000

Sector Condition

This sector has been variable since the 1950's.

Source: UK .Gov. Table 241 House building: permanent dwellings

completed, by tenure historic calendar year series 2012

Defence Sector

Total value of Defence Sector = £36,076,000,000

Source:Public Expenditure Statistical Analyses 2013

Table 1.3 Resource budgets, 2008-09 to 2015-16

Potential for each Architect = £1,093,212

Potential total work for each Architect based on build time = 1 / 2 years

Total number needed to be designed per year to

achieve total work = 1 / 2 years

Potential actual number for each Architect based on

35 work years = 35 / 2

= 17

Potential earnings at 4% fee rate = £43,728 x 1

= £43,728

= £43,728 x 17

= £743,376

Sector Condition

The sector is under review and receiving increased budgets as part of the British economy.

Source:Public Expenditure Statistical Analyses 2013

Table 1.3 Resource budgets, 2008-09 to 2015-16

Sports Sector

Total value of Sports Sector = £20,300,000,000

Source: Sport England

Potential for each Architect = £615,151

Potential total work for each Architect based on build time = 1 / year

Total number needed to be designed per year to

achieve total work = 1 / year

Potential actual number for each Architect based on

35 work years = 35

Potential earnings at 4% fee rate = £24,606 x 1

= £24,606

= £24,606 x 35

= £861,210

Sector Condition

This sector is variable but increasing. It has other impacts on education, crime, health, social order and prestige for the nation.

Private Enterprise Housing Sector

The number of private enterprise properties built in 2012 =109,830

Source: UK .Gov. Table 241 House building: permanent dwellings

completed, by tenure historic calendar year series 2012

Potential total number for each Architect = 3 / year

Potential total work for each Architect based on build time = 3 / year

Total number needed to be designed per year to

achieve total work = 1 every 4 months

Potential actual number for each Architect based on

35 work years = 35

Potential earnings at a rate of 4% for per project based

on a single 2 storey extension of value of £43,000 = £1,720 x 1

= £1,720

= £1,720 3 x 35

= £180,600

Potential earnings at a rate of 4% for per project based

on a single 2 storey house of value of £250,000 = £10,000 x 1

= £10,000

= £10,000 x 3 x 35

= £1,050,000

Sector Condition

This sector was been variable. Following a peak in 1968 the sector has been in a gradual decline. The major decline being since 2007 to 2014.

Source: UK .Gov. Table 241 House building: permanent dwellings

completed, by tenure historic calendar year series 2012

Education Sector

Total value of Education Sector = £53,284,000,000

Source:Public Expenditure Statistical Analyses 2013

Table 1.3 Resource budgets, 2008-09 to 2015-16

Potential for each Architect = £1,614,666

Potential total work for each Architect based on build time = 1 / 2 years

Total number needed to be designed per year to

achieve total work = 1 / 2 years

Potential actual number for each Architect based on

35 work years = 35 / 2

= 17

Potential earnings at 4% fee rate = £64,586 x 1

= £64,586

= £64,586 x 17

= £1,097,962

Sector Condition

The sector is under review but receiving increased budgets as part of the British economy.

Source:Public Expenditure Statistical Analyses 2013

Table 1.3 Resource budgets, 2008-09 to 2015-16

Health Sector

Total value of NHS Sector = £109,956,000,000

Source: NHS Confederation

Potential for each Architect = £ 3,332,000

Potential total work for each Architect based on build time = 1 / 2 years

Total number needed to be designed per year to

achieve total work = 1 / 2 years

Potential actual number for each Architect based on

35 work years = 35 / 2

= 17

Potential earnings at 4% fee rate = £133,280 x 1

= £133,280

= £133,280 x 17

= £2,265,760

Sector Condition

The total budget for this sector is increasing.

Source: NHS Confederation

Factories Sector

Total maximum value of Factories Sector = £69,000,000,000

Source: BPF

Potential total value for each Architect = £2,090,909

Potential value for each Architect at 4% fee = £83,636

Potential total work for each Architect based on build time = 1 / year

Total number needed to be designed per year to

achieve total work = 1 / year

Potential actual number for each Architect based on

35 work years = 35

Potential earnings at a rate of 4% fee rate = £83,636 x 1

= £83,636

= £83,636 x 35

= £2,927,260

Sector Condition

This sector is declining.

Source: BPF 2013

Warehousing Sector

Total maximum value of Warehousing Sector = £97,000,000,000

Source: BPF

Potential total value for each Architect = £2,939,393

Potential value for each Architect at 4% fee = £117,575

Potential total work for each Architect based on build time = 1 / year

Total number needed to be designed per year to

achieve total work = 1 / year

Potential actual number for each Architect based on

35 work years = 35

Potential earnings at a rate of 4% fee rate = £117,575 x 1

= £117,575

= £117,575 x 35

= £4,115,125

Sector Condition

This sector is declining.

Source: BPF 2013

Leisure Sector

Total value of Leisure Sector = £200,000,000,000

Source: State of the UK Leisure Industry: A Driver for Growth (June 2012)

Executive Summary Oliver Wyman BISL

Potential for each Architect = £6,060,606

Potential total work for each Architect based on build time = 1 / year

Total number needed to be designed per year to

achieve total work = 1 / year

Potential actual number for each Architect based on

35 work years = 35

Potential earnings at 4% fee rate = £242,424 x 1

= £242,424

= £242,424 x 35

= £8,484,840

Sector Condition

This sector is variable but likely to be in growing demand as the economy reduces to a stable level. Less work will encourage more consumer spending and so encourage leisure time.

Small Commercial and Office Sector

Total maximum value of Small Commercial

and Office Sector = £224,000,000,000

Source: BPF 2013

Potential total value for each Architect = £6,787,878

Potential value for each Architect at 4% fee = £271,515

Potential total work for each Architect based on build time = 1 / year

Total number needed to be designed per year to

achieve total work = 1 / year

Potential actual number for each Architect based on

35 work years = 35

Potential earnings at a rate of 4% fee rate = £271,515 x 1

= £271,515

= £271,515 x 35

= £9,503,025

Sector Condition

This sector is declining.

Source: BPF 2013

Retail Sector

Total maximum value of Retail Sector = £227,000,000,000

Source: BPF 2013

Potential total value for each Architect = £6,878,787

Potential value for each Architect at 4% fee = £275,151

Potential total work for each Architect based on build time = 1 / year

Total number needed to be designed per year to

achieve total work = 1 / year

Potential actual number for each Architect based on

35 work years = 35

Potential earnings at a rate of 4% fee rate = £275,151 x 1

= £275,151

= £275,151 x 35

= £9,630,285

Sector Condition

This sector is declining.

Source: BPF 2013

Commercial Sector

Total value of Commercial Sector = £717,000,000,000

Source: BPF 2013

Total sqft of Commercial Sector per year = 50,000,000,000 sqft

Source: BPF 2013

Potential for each Architect = 1,515,151 sqft

= 140,762 sqm

Potential total work for each Architect based on build time = 1 / year

Total number needed to be designed per year to

achieve total work = 1 / year

Potential actual number for each Architect based on

35 work years = 35

Potential earnings at a rate of £240/sqft and 4% fee rate = £14,545,449 x 1

= £14,545,449

= £ 14,545,449 x 35

= £ 509,090,715

Sector Condition

This sector is declining.

Source: BPF 2013

Conclusions

The key sector financial influences are

The type of project.

The total build time for each project.

The low fee return for all of the type of work.

Increasing the rate of work necessitates additional staff that decreases the fee potential.

The fees for the work would not be paid until the end of each project and so would cause, if coupled to the additional projects and staff levels, a further reduction in the actual fee obtained.

Other areas of debt risk

Pre-application access to the local authorities planning and building control now requires that their consultation and search fees are paid upfront prior to any approval or comments. This puts further fees at risk at the instigation of the project causing the architects to loose capital accrued on previous commissions before any new fees are obtained.

The interdependent structure of the construction industry also adds more debt risk potential to each project since all fees are dependent on the economic, social, political situation of each person or group making up the construction team.

When one connection fails the stability of the whole is compromised particularly in the weak global conditions since 2007.

The future areas of debt risks

The Construction industry will be affected by the following in the future.

From 2014 ongoing reductions in food and water availability.

From 2015 The signing of the UN Climate Agreements to limit and end the use of fossil fuels and move to a renewable energy strategy.

From 2020 The end of cheap oil production and products.

From 2035 The reduction of the national power generation grid in Britain.

From 2014 to 2050 an increasingly urbanized population.

By 2050 an increase of approx. 15,000,000 people up to a population of approx. 77,000,000 needing resources, energy and environment in Britain with less ability to obtain them.

Ian K Whittaker

My websites:

https://sites.google.com/site/architecturearticles

Email: iankwhittaker@gmail.com

23/07/2014

14/10/2020

3001 words over 9 pages.