IIDA has released the second edition of its IIDA Index Report, an analysis of economic health for the U.S. commercial design industry, and accompanying web tool. With an accelerated trend of growth and solidity in the profession and industry as a whole, the 2019 IIDA Index Report indicates robust industry expansion in 2018 compared to 2017. The 2018 index value of 70 is considerably higher than the 2017 index value of 59.
First launched in 2018, the IIDA index serves to empower contract design and architecture firms to survey the market and competitive positioning, as well as analyze opportunities for new business based on project scale, geography and market sector.
Project data for 2018 from participating firms in 77 U.S.-based offices is compared to that of the previous year. The index categorizes more than 14,000 projects by region, project size and market sector, including Education, Healthcare, Hospitality, Workplace and Everything Else (defined as all other commercial projects). The data is represented in a diffusion index with a neutral growth indicator of 50; a value above 50 indicates expansion and a value below 50 indicates contraction.
Additional key index results include:
Healthy growth in all U.S. geographic regions, specifically in the East (88) and the Midwest (65)
Indications of expansion in Hospitality (62) and Workplace (58) projects across the country
Strong positive momentum in Education projects in the East (88)
Vigorous growth in Large projects in all regions (84) with particularly significant growth in the South (92)
“We’re pleased to confirm, through data from firms of all scales across the country, that 2018 was a significant year of continued growth for commercial design,” said IIDA Deputy Director and Senior Vice President John Czarnecki, Hon. FIIDA, Assoc. AIA. “As firms look to the final months of 2019 and beyond, we encourage them to leverage the index as a tool to make data-driven decisions that strengthen their firms, thereby ensuring the vitality of the industry and affirming the value of design to the business community at large.”
When viewed in the context of other relevant indicators, the index growth results are further confirmed. With an increase in U.S. Real Gross Domestic Product of 2.9% in 2018 and an average 7% year-over-year reported salary increase as indicated in the 2019 IIDA Interior Design Compensation Report, the index data completes the positive outlook for contract interiors overall.
IIDA members and non-members may purchase access to the IIDA IndexReport, while the participating firms have exclusive access to an online dashboard that provides benchmarking information in more detail.
To download the full report ($50 IIDA members, $125 non-members), visit www.iida.org. Firms interested in participating in the next IIDA index should email firstname.lastname@example.org for more information.