Some of the heat is off the supercharged demand for design services, but no one is predicting a downward turn in the economy.

Reading the surveys Click on one of the company names listed to find out more about how the company has done in the past year, what projects they've been working on, and what they see developing in the next year for the local design community.

Most of the firms participating in this year's design firm survey continue to face intense challenges in finding and keeping a qualified workforce. They must schedule jobs tightly so that quality can be maintained while the firm takes advantage of the press of demand in a variety of markets. Many, especially those who traditionally work in the public sector, are taking advantage of the booming economy by making headway in strategic markets and consolidating gains in particular specialties. On the other hand, some firms are responding to increased demand by focusing tightly on what they do best, responding with increasing services to key clients.

In building design, several firms are making strategic gains in the healthcare, biotech, high tech and corporate office markets. And they are finding more opportunities in cultural institutions, an attractive market for design-oriented firms. Infrastructure needs continue to mount and will drive demand for engineering and environmental services despite uneven mix of revenue sources for public clients, complicated by the recent passage of I-695 (Kato & Warren, RWE).

Demand and timing in all building design markets is restrained by permitting challenges and regulatory pressures related to the Growth Management Act and the more recent listing of Northwest salmon as endangered species.

Geographic expansion among design firms is moderate, with branch offices continuing to open around the Pacific Northwest. Survey participants continue to be active in Asia and the Russian Far East (NBBJ, McGowan Broz), assigning them an important place in marketing plans. Mergers continue to figure highly in company strategy, especially among larger engineering firms who must compete for huge publicly funded projects or who want to provide a range of services for corporate clients who are becoming increasingly global. (Hart Crowser, GeoEngineers).

Although projections of 20 percent growth are not uncommon for 1999 and some recently founded firms have grown to be major competitors very quickly, some also note that they see some signs of new slack in the market.

No one is foreseeing a major slowdown - neither are they predicting an increased rate of growth next year. As a technology-powered economy and population growth pressures continue to fuel demand for design services, architects and engineers strive to keep pace, hiring aggressively and positioning themselves in newly expanded markets.

-Clair Enlow
Editor, A/E Perspectives