2010 2nd 100 Giants

The second 100 Interior Design Giants­ grossed $273,298,310 in 2009. That’s a plunge of 40 percent, more than twice the drop experienced by the top 100 Giants and 39 percent worse than was forecast. Dollar figures have not been this low since 2003.

Now the good news.

By growing between 2.8 and a whopping 376 percent, 13 firms bucked this trend; that top number was followed by 207 percent, 179 percent, and 91 percent. Losses reported by others in the group never even approached those magnitudes. And the cream of the top 100 Giants crop reported nowhere near such gains, as published in January.

The economy may have forced clients­ of the second 100 Giants to postpone or abandon 38,078,650 square feet of interior design work, worth $155,433,594, but what the financial upheaval took away with one hand the other hand generously returned: 65,279,531 square feet, worth $188,648,832. In addition, in?a mini survey conducted several months after the main Giants study, a sizable number of firms claimed that projects postponed last year are now back in play.

A significant segment of those surveyed reported impressive growth in government work, education, and health care or assisted living. The government sector, while not huge, was especially robust. Fully half of the second 100 Giants operating in that area experienced improvement, while another 42 percent reported no impact from an otherwise difficult economy. More than a third of those working in education saw growth in that sector, and 30 percent saw no change. The greatest percentage boost was in transportation, but only a few firms cultivated that particular field.

A variety of strategies helped the?second 100 Giants keep doors open. A few firms sacrificed profit in order to land jobs, while other firms kept a tighter rein on operating expenses. However, the largest number, 43 firms, intensified marketing and explored techniques not previously tried. The next most pop­ular approach involved diversification in services offered, project types handled, and geographical locations covered. For one firm, an unprecedented investment in education and training paid off many times over, thanks to just one new project, a research center. More than 20 firms managed to avoid layoffs; 36 were actually able to hire.

Discussing relationships with vendors, the top 100 Giants had expressed a wish to speed things up-on the understanding that time is money. The second 100 Giants­ seem to prefer the notion that knowledge is power. They’ve been requesting more product information, notably life-cycle and return-on-investment data, even factory tours.

The number of the second 100 Giants with mission statements that cite environmental responsibility shot up 40 percent to a total of 70, just six shy of the top 100 Giants­. And the proportion of LEED-accredited staff at firms in the second 100 rose from 20 to 29 percent, about double what it was just two years ago.

The greatest opportunities foreseen by the second 100 Giants lie in overseas work, followed by renovations, among them the repositioning and reorganizing of client properties. Our favorite comment came from the survey participant who reported that opportunities are “too many to mention.” With that attitude, eventual recovery seems assured.

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