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.