Global Architecture Industry Outlook to 2010: Buyer Spend and Procurement Strategies and the Impact of Recession and Recovery

• The opinions and forward looking statements of over 300 industry executives have been captured in our in-depth survey, of which over 55% represent Directors, C-levels & Departmental Heads
• This report covers data and analysis on buyer spend, procurement and industry developments by architecture, design, planning, surveying and civil engineering and industry suppliers worldwide
• The report examines current practices and provides future expectations over the next 12-24 months
• The research is based on primary survey research conducted by Global Markets Direct in association with ICD Research accessing its B2B panels comprised of senior purchase decision makers and leading supplier organizations
• Key topics covered include buyer spend activity, procurement behaviors & strategies and how these have been affected by the recession, threats & opportunities for the architecture, design and planning industry, sector and region growth forecasts and business confidence.
• In the report buyers identify what suppliers need to do to maintain their business and the key actions being taken by industry players to overcome the leading business threats
• The report provides qualitative analysis of the key industry threats and opportunities and contains full survey results
• The geographical scope of the research is global - drawing on the activity and expectations of leading industry players across the Americas, Europe, Asia-Pacific and Africa & Middle East

• 27% of architects, designers and planners expect their expect clients' procurement spend to increase over the next 12 months and a further 18% expect it to be maintained existing spend levels, however with many companies re-evaluating existing supplier contracts the market open to competition is expected to increase
• 29% of industry buyers are seeking to engage in partnerships to optimize working capital and reduce costs - closer cooperation between suppliers and buyers is being sought during this time of market uncertainty
• Only 11% of industry buyers do not regularly evaluate suppliers to ensure they meet high ethical and environmental standards

• Drive revenues by understanding future product investment areas and growth regions by leading industry players
• Formulate effective sales & marketing strategies by identifying how buyer budgets are changing and where spend will be directed to in the future
• Better promote your business by aligning your capabilities and business practices with your customer’s changing needs during these times of market uncertainty
• Secure stronger customer relationships by understanding the leading business concerns and changing strategies of buyers in the architecture industry
• Effectively plan your business strategies
• Predict how the industry will grow, consolidate and where it will stagnate
• Uncover the business outlook, key challenges and opportunities identified by suppliers and buyers in the industry

1 Table of Contents

1.1 List of Tables

1.2 List of Figures

2 Introduction

2.1 What is This Report About?

2.2 Methodology

2.3 Profile of Survey Respondents

3 Executive Summary

3.1 The Architecture Industry is Generally Optimistic About the Recovery of the Global Economy

3.2 The Level of Optimism About Revenue Growth is Low in the Architecture Industry

3.3 Architects As Well As Their Clients Will be Decreasing Procurement Spend Over the Next 12 Months

3.4 Industry Players Face a Number of Key Challenges Due to the Recession

3.5 Suppliers Must Update Their Knowledge of Buyer Needs During the Periods of Recession and Recovery

4 Economic Outlook and Confidence

4.1 Global Economic Recovery Expectations

4.2 Global Architecture Growth Forecast for 2010

4.3 Revenue Growth Expectations

5 Architecture Industry Investment Outlook

5.1 Construction Growth Opportunities by Region

5.2 Construction Growth Opportunities by Market Sector

5.3 Architectural Services Growth Opportunities by Region

5.4 Architectural Services Growth Opportunities by Market Sector

5.5 M&A Activity Predictions

5.6 Suppliers’ Industry Outlook

6 Recession: Threats and Opportunities for the Architecture Industry

6.1 Leading Business Concerns Due to Recession

6.2 Key Actions to Overcome Business Threats

6.3 Key Actions to Maintain and Win Buyer Business

6.4 Leading Recession-Related Business Opportunities

7 Architecture and Client Buyer Spend Activity

7.1 Expected Change in Procurement Spend: Architects’ Clients

7.2 Expected Change in Spend by Product and Service Category: Architects’ Clients

7.3 Annual Procurement Budgets: Architect / Planner

7.4 Expected Change in Spend by Product and Service Category: Architect / Planner

8 Procurement Behaviors and Strategies and the Impact of Recession

8.1 Critical Success Factors for Supplier Selection

8.2 Current Effects of Recession on Procurement Objectives

8.3 Expected Future Effects of Recession on Procurement Objectives

8.4 The Effects of Recession on Procurement Strategy

9 Appendix

9.1 Full Survey Results-Closed Questions

9.2 Methodology

9.3 Contact Us

9.4 About Global Markets Direct

9.5 Disclaimer

1.1 List of Tables

Table 1: Count of Global Architecture Industry Survey Respondents by Company Type (Number of Respondents), 2009 Industry Survey

Table 2: Buyer Respondents by Job Role (% Buyer Respondents), Global Architecture Industry, 2009

Table 3: Buyer Respondents by Organization’s Global Turnover (% Buyer Respondents), Global Architecture Industry, 2009

Table 4: Buyer Respondents by Organization’s Total Number of Employees (% Buyer Respondents), Global Architecture Industry, 2009

Table 5: Supplier Respondents by Job Role (% Supplier Respondents), Global Architecture Industry, 2009

Table 6: Supplier Respondents by Organization’s Global Turnover (% Supplier Respondents), Global Architecture Industry, 2009

Table 7: Supplier Respondents by Organization's Total Number of Employees (% Supplier Respondents), Global Architecture Industry, 2009

Table 8: Global Architecture Industry Expectations of Global Economic Recovery Timings by Region: North America, Europe, Asia-Pacific, Rest of World (% All Respondents), 2009

Table 9: Global Architecture Industry Expectations of Global Economic Recovery Timings by Company Type: Architects / Planners, Materials, Products, Fittings Suppliers / Architect Suppliers (% All Respondents), 2009

Table 10: Global Architecture Industry Forecast of Global Construction Economic Growth by Company Type: Architect / Planner Vs. Materials, Products, Fittings Supplier / Architect Supplier Vs. Other Construction Industry Supplier Vs. Average Expectations (% All Respondents), 2009

Table 11: Company Revenue Growth Optimism by Global Architecture Industry Company Type: Architects / Planners, Materials, Products, Fittings Suppliers / Architect Suppliers (% All Respondents), 2009

Table 12: Company Revenue Growth Optimism in the Global Architecture Industry by Region: North America, Europe, Asia-Pacific, Rest of World (% All Respondents), 2009

Table 13: Materials, Products, Fittings Supplier / Architect Supplier Industry: Market Predictions of the Fastest and Slowest Growing Regions for the Construction Industry (% Materials, Products, Fittings Supplier / Architect Supplier Respondents), 2009

Table 14: Materials, Products, Fittings Supplier / Architect Supplier Industry: Market Predictions of the Fastest and Slowest Growing Market Sectors for the Construction Industry (% Materials, Products, Fittings Supplier / Architect Supplier Respondents), 2009

Table 15: Architect / Planner Industry: Market Predictions of the Fastest and Slowest Growing Regions for the Architectural Services Industry (% Architect / Planner Respondents), 2009

Table 16: Architect / Planner Industry: Market Predictions of the Fastest and Slowest Growing Market Sectors for the Architectural Services Industry (% Architect / Planner Respondents), 2009

Table 17: Key Growth Areas in the Global Architecture Industry (Analysis of Supplier Respondents), 2009 Industry Survey

Table 18: Key Growth Areas in the Global Architecture Industry (Analysis of Senior Level Supplier Respondents), 2009 Industry Survey

Table 19: Key Declining Areas in the Global Architecture Industry (Analysis of Supplier Respondents), 2009 Industry Survey

Table 20: Key Declining Areas in the Global Architecture Industry (Analysis of Senior Level Supplier Respondents), 2009 Industry Survey

Table 21: Architect / Planner Vs. Materials, Products, Fittings Supplier / Architect Supplier: Leading Business Concerns for the Period 2009-2010 Among Global Architecture Industry Buyers and Suppliers (% All Respondents), 2009

Table 22: Leading Business Concerns for the Period 2009-2010 Among Global Architecture Industry Buyers and Suppliers by Region: North America, Europe, Asia-Pacific, Rest of World (% All Respondents), 2009

Table 23: Most Important Actions Being Implemented to Overcome Leading Business Concerns in 2009-2010 in the Global Architecture Industry (Analysis of All Respondents), 2009 Industry Survey

Table 24: Most Important Actions Being Implemented to Overcome Leading Business Concerns in 2009-2010 in the Global Architecture Industry - Senior Level Responses Only, 2009 Industry Survey

Table 25: Most Important Actions Being Implemented by Architects / Planners to Overcome Leading Business Concerns in 2009-2010 (Analysis of Architects / Planners Respondents), 2009 Industry Survey

Table 26: Most Important Actions Being Implemented by Materials, Products, Fittings Suppliers / Architect Suppliers to Overcome Leading Business Concerns in 2009-2010 (Analysis of Materials, Products, Fittings Suppliers / Architect Suppliers Respondents), 2009 Industry Survey

Table 27: The Most Important Actions for Suppliers to Take to Maintain and Secure Buyer Business During the Recession in the Global Architecture Industry: Supplier Responses Vs. All Buyer Responses (% All Respondents), 2009

Table 28: The Most Important Actions for Suppliers to Take to Maintain and Secure Buyer Business During the Recession in the Global Architecture Industry: Analysis of Buyer Respondents by Company Turnover (% Buyer Respondents), 2009

Table 29: The Most Important Actions for Suppliers to Take to Maintain and Secure Buyer Business During the Recession in the Global Architecture Industry: Analysis of All Buyer Respondents by Client's Procurement Budget (% Buyer Respondents), 2009

Table 30: The Most Important Actions for Suppliers to Take to Maintain and Secure Buyer Business During the Recession in the Global Architecture Industry: Analysis of All Buyer Respondents by Region (% Buyer Respondents), 2009

Table 31: The Most Important Actions for Suppliers to Take to Maintain and Secure Buyer Business During the Recession in the Global Architecture Industry: Analysis of All Buyer Respondents by Purchasing Decision Seniority (% Buyer Respondents With Purchasing Decision Influence), 2009

Table 32: Leading Business Opportunities During the Recession in the Global Architecture Industry (Analysis of All Respondents), 2009 Industry Survey

Table 33: Leading Business Opportunities During the Recession in the Global Architecture Industry - Senior Level Responses Only, 2009 Industry Survey

Table 34: Leading Business Opportunities for Architects / Planners During the Recession (Analysis of Buyer Respondents), 2009 Industry Survey

Table 35: Leading Business Opportunities for Materials, Products, Fittings Suppliers / Architect Suppliers During the Recession (Analysis of Supplier Respondents), 2009 Industry Survey

Table 36: Architect / Planner Expected Change in Client Spend on Construction Products and Services Over the Next 12 Months (% All Buyer Respondents), 2009

Table 37: Architect / Planner Expected Change in Client Spend on Construction Products and Services Over the Next 12 Months by Region (% All Buyer Respondents), 2009

Table 38: Future Change in Architect's / Planner's Client Spend by Construction Product and Service Category: Expected Increase or Decrease Over the Next 12 Months (% Architect / Planner Respondents), 2009

Table 39: Annual Procurement Budgets in US$ in the Global Architecture Industry: Architect / Planner (% All Buyer Respondents), 2009

Table 40: Annual Procurement Budgets in US$ in the Global Architecture Industry by Region (% All Buyer Respondents), 2009

Table 41: Future Change in Spend in the Global Architecture Industry by Product and Service Category: Architect / Planner - Expected Increase or Decrease Over the Next 12 Months (% Architect / Planner Respondents), 2009

Table 42: Critical Success Factors for Selecting a Architecture Industry Supplier: Buyer Vs. Supplier Comparison (% All Respondents), Global, 2009

Table 43: Current Effects of Recession on Procurement Objectives and Priorities in the Global Architecture Industry by Company Turnover (% All Buyer Respondents), 2009

Table 44: Expected Changes in Procurement Strategy in the Global Architecture Industry to Drive Value Across the Business Due to Recession: All Buyers by Company Turnover (% All Buyer Respondents), 2009

Table 45: Expected Changes in Procurement Strategy in the Global Architecture Industry to Drive Value Across the Business Due to Recession: All Buyers by Purchasing Decision Seniority (% All Buyer Respondents Purchasing Decision Influence), 2009

Table 46: Expected Changes in Procurement Strategy in the Global Architecture Industry to Drive Value Across the Business Due tto Recession: All Buyers by Region (% All Buyer Respondents), 2009

Table 47: Architect / Planner Attitudes and Approaches to Existing Procurement Practices: Level of Agreement to the Following Five Statements (% Architect / Planner Respondents), 2009

Table 48: Full Survey Results-Closed Questions

1.2 List of Figures

Figure 1: Leading Business Concerns for the Period 2009-2010 Among Global Architecture Industry Buyers and Suppliers (% All Respondents), 2009

Figure 2: Global Architecture Industry Expectations of Global Economic Recovery Timings (% All Respondents), 2009

Figure 3: Global Architecture Industry Expectations of Global Economic Recovery Timings by Region: North America, Europe, Asia-Pacific, Rest of World (% All Respondents), 2009

Figure 4: Global Architecture Industry Expectations of Global Economic Recovery Timings by Company Type: Architects / Planners, Materials, Products, Fittings Suppliers / Architect Suppliers (% All Respondents), 2009

Figure 5: Global Architecture Industry Forecast of Global Construction Economic Growth by Company Type: Architect / Planner Vs. Materials, Products, Fittings Supplier / Architect Supplier Vs. Other Construction Industry Supplier Vs. Average Expectations (% All Respondents), 2009

Figure 6: Company Revenue Growth Optimism in the Global Architecture Industry (% All Respondents), 2009

Figure 7: Company Revenue Growth Optimism by Global Architecture Industry Company Type: Architects / Planners, Materials, Products, Fittings Suppliers / Architect Suppliers (% All Respondents), 2009

Figure 8: Company Revenue Growth Optimism in the Global Architecture Industry by Region: North America, Europe, Asia-Pacific, Rest of World (% All Respondents), 2009

Figure 9: Materials, Products, Fittings Supplier / Architect Supplier Industry: Market Predictions of the Fastest And Slowest Growing Regions for the Construction Industry (% Materials, Products, Fittings Supplier / Architect Supplier Respondents), 2009

Figure 10: Materials, Products, Fittings Supplier / Architect Supplier Industry: Market Predictions of the Fastest and Slowest Growing Market Sectors for the Construction Industry (% Materials, Products, Fittings Supplier / Architect Supplier Respondents), 2009

Figure 11: Architect / Planner Industry: Market Predictions of the Fastest and Slowest Growing Regions for the Architectural Services Industry (% Architect / Planner Respondents), 2009

Figure 12: Architect / Planner Industry: Market Predictions of the Fastest and Slowest Growing Market Sectors for the Architectural Services Industry (% Architect / Planner Respondents), 2009

Figure 13: Merger and Acquisition Activity Expectations Over the Next 12 Months in the Global Architect / Planner Industry (% Architect / Planner Industry Respondents), 2009

Figure 14: Merger and Acquisition Activity Expectations Over the Next 12 Months in the Global Materials, Products, Fittings Supplier / Architect Supplier Industry (% Materials, Products, Fittings Supplier / Architect Supplier Industry Respondents), 2009

Figure 15: Leading Business Concerns for the Period 2009-2010 Among Global Architecture Industry Buyers and Suppliers (% All Respondents), 2009

Figure 16: Architect / Planner Vs. Materials, Products, Fittings Supplier / Architect Supplier: Leading Business Concerns for the Period 2009-2010 Among Global Architecture Industry Buyers and Suppliers (% All Respondents), 2009

Figure 17: The Most Important Actions for Suppliers to Take to Maintain and Secure Buyer Business During the Recession in the Global Architecture Industry: Supplier Responses Vs. All Buyer Responses (% All Respondents), 2009

Figure 18: The Most Important Actions for Suppliers to Take to Maintain and Secure Buyer Business During the Recession in the Global Architecture Industry: Analysis of All Buyer Respondents by Region (% Buyer Respondents), 2009

Figure 19: Architect / Planner Expected Change in Client Spend on Construction Products and Services Over the Next 12 Months (% All Buyer Respondents), 2009

Figure 20: Architect / Planner Expected Change in Client Spend on Construction Products and Services Over the Next 12 Months by Region (% All Buyer Respondents), 2009

Figure 21: Future Change in Architect's / Planner's Client Spend by Construction Product and Service Category: Expected Increase or Decrease Over the Next 12 Months (% Architect / Planner Respondents), 2009

Figure 22: Future Change in Architect's / Planner's Client Spend by Construction Product and Service Category: Expected Increase Over the Next 12 Months (% Architect / Planner Respondents), 2009

Figure 23: Future Change in Architect's / Planner's Client Spend by Construction Product and Service Category: Expected Increase Over the Next 12 Months by Region (% Architect / Planner Respondents), 2009

Figure 24: Annual Procurement Budgets in US$ in the Global Architecture Industry: Architect / Planner (% All Buyer Respondents), 2009

Figure 25: Annual Procurement Budgets in US$ in the Global Architecture Industry by Company Turnover (% All Buyer Respondents), 2009

Figure 26: Annual Procurement Budgets in US$ in the Global Architecture Industry by Region (% All Buyer Respondents), 2009

Figure 27: Future Change in Spend in the Global Architecture Industry by Product and Service Category: Architect / Planner - Expected Increase or Decrease Over the Next 12 Months (% Architect / Planner Respondents), 2009

Figure 28: Future Change in Spend in the Global Architecture Industry by Product and Service Category: Architect / Planner - Expected Increase Over the Next 12 Months (% Architect / Planner Respondents), 2009

Figure 29: Future Change in Spend in the Global Architecture Industry by Product and Service Category: Architect / Planner - Expected Increase Over the Next 12 Months Among All Buyers by Company Turnover (% Architect / Planner Respondents), 2009

Figure 30: Future Change in Spend in the Global Architecture Industry by Product and Service Category: Architect / Planner - Expected Increase Over the Next 12 Months Among All Buyers by Region (% Architect / Planner Respondents), 2009

Figure 31: Critical Success Factors for Selecting a Architecture Industry Supplier: Difference in Views, Buyers Vs. Suppliers (Net Difference in Ranking), Global, 2009

Figure 32: Critical Success Factors for Selecting a Architecture Industry Supplier: Buyer Vs. Supplier Comparison (% All Respondents), Global, 2009

Figure 33: Current Effects of Recession on Procurement Objectives and Priorities in the Global Architecture Industry (% All Buyer Respondents), 2009

Figure 34: Likelihood of Future Change in Procurement Objectives in the Global Architecture Industry (% All Buyer Respondents), 2009

Figure 35: Likelihood of Future Change on Procurement Objectives in the Global Architecture Industry by Company Turnover (% All Buyer Respondents), 2009

Figure 36: Expected Future Effects of Recession on Procurement Objectives and Priorities in the Global Architecture Industry (% All Buyer Respondents), 2009

Figure 37: Expected Future Effects of Recession on Procurement Objectives and Priorities in the Global Architecture Industry by Company Turnover (% All Buyer Respondents), 2009

Figure 38: Expected Changes in Procurement Strategy in the Global Architecture Industry to Drive Value Across the Business Due to Recession (% All Buyer Respondents), 2009

Figure 39: Expected Changes in Procurement Strategy in the Global Architecture Industry to Drive Value Across the Business Due to Recession: All Buyers by Region (% All Buyer Respondents), 2009