Advancing prosperity for architects
Embarking upon the AIA presidency prompted me to think about the key issues that architects are facing and what AIA can specifically do to help address those issues. At the beginning of my term, I convened an ad hoc committee to help me examine how AIA can help enhance business performance for architecture firms of all types, in service to improving compensation levels for architects and our emerging talent. The initiatives that have been prioritized by the “Prosperity Committee” are as follows:
- Engagement (procurement) of architectural services
- Fees and contracts: getting what we deserve
- Project leadership: achieving strong design, delivery, and profitability
- Firm leadership: business acumen and practices to yield profitable firm performance
- Compensation: salaries and benefits to attract and retain the talent we need
I firmly believe that these five initiatives are necessary to further advance business performance and compensation for architects, and I am proud to share that AIA already has some of this work underway. Business acumen training was recently introduced via AIAU. This spring, we shared some data on fee structures and profitability to provide clarity on models firms may consider. Additionally, our newest Business of Architecture report will be released next month with insights into the business operations at firms. As AIA plans for the 2025 Compensation and Benefits study, the advice of this group will help inform that work. I would like to thank the 2024 AIA Prosperity Committee, Justin Chapman, Curtis Clay, Clark Davis, Brett Leonhardt, Ann Thompson, and Carole Wedge for participating in this think tank at my request. Special thanks to AIA staff lead, Michele Russo, for supporting our efforts by providing the research needed to shape the committee’s discussions. This work is not intended to be a silver bullet to the financial challenges that face our industry, but rather the planting of seeds to help foster important and productive conversations in the years ahead.
One of the obstacles that we must face as an organization is the potential of inadvertently violating anti-trust laws, which is part of the explanation of why fees are not typically discussed by AIA. In 1972 and 1990, AIA was found to have violated the anti-trust laws by the Department of Justice and was required to pay several million dollars. As a result, our profession has understandably been hesitant to engage in robust discussions on the topic. My proposal is to proceed with caution and coordinate with anti-trust attorneys who can assist us with navigating how to talk about our economic challenges and opportunities as a profession, within the limits of the law.
We understand that price-fixing is not allowed. Now, let’s discuss all of the other levers that can be pulled to improve our overall financial outlook. We not only owe it to ourselves, but we owe it to those who are coming into this profession expecting to be able to meet their financial needs on an architect’s salary. It is no secret that the cost of living is steadily rising. Architecture students are graduating with staggering student debt on top of needing to cover their basic expenses with 73 percent of all AIA members needing to borrow money to pay for college. But when you consider age, it tells a more troubling story: 89 percent of AIA members under 35 are burdened with student debt, compared to 66 percent of those between 55 and 64 who needed student loans when they were in school. All of this coupled with relatively slow growth in starting salaries is a recipe for the talent shortages we are seeing in the workforce. As a result, almost half of AIA members who borrowed money for college have considered leaving architecture or have already done so (44 percent).
A leadership professor of mine used to say that “people vote with their feet.” In other words, if we do not proactively address our salary levels, we will continue to see emerging architects walk away from traditional practice and toward more lucrative opportunities elsewhere. It isn’t personal, it’s business. Many of them would love to pursue their dream of shaping the built environment as architects. The unfortunate reality is that their ambitious design dreams can’t quite cover the rent, food, loans, and other essential costs for which they are responsible. As a result, they find opportunities in real estate, construction, engineering and technology companies, among others, that can leverage their training as an architect while paying them well above an architect’s average salary. If we do not confront this as a profession, we are doing a disservice to our collective future. The time to act is now.
As a first step, the 2024 AIA Prosperity Committee has created a document to provide guidance on the first initiative on our list: 2024 AIA Engagement Guidance for Architects and Clients
We invite you to review the guidance and provide your feedback to me directly: kimberlydowdell@aia.org
As I mentioned in my AIA24 remarks in June, “The profession's compensation strategies must be adjusted to reflect the true cost of architectural education and the value architects bring to their clients and communities.” I encouraged our members to be bold and advocate for the issues that they care most about.
May you have the courage to request what you deserve from your clients so that you can better serve them and the communities that you are shaping together.
Read Kimberly Dowdell's previous articles on Engaging Future Architects and Championing Chief Architects.