Giants: Number 2—And Gaining

Once again showing more hustle and bustle than the top 100 Interior Design Giants, the second 100 Giants earned $425,634,285 for our 2008 reporting period, up 25 percent from the previous year—the top group’s increase was only 15 percent. Both beat their own earnings projections by more than 10 percent, but interior design continues to account for a larger share of earnings for the second group (73 percent) than for the top group (59 percent). In fact, 35 of the second Giants report that all their income derives from interior design. (Only 17 of the top Giants claim that distinction, with architecture, engineering, facilities management, and industrial design playing a larger part.)

The most earned by a single second Giant was $7,325,000, up 25 percent; the least was $1,700,000, up 13 percent. As always, corporate office work was the most active sector for both sets of Giants, but hospitality, which commands the highest average fees per hour, has been growing steadily over the past five years for the second 100 Giants, consistently coming in just behind offices and now accounting for 29 percent of earnings. Conversely, hospitality has been something of a roller coaster for the top 100 Giants, now generating only 17 percent of earnings. After hospitality, offices commanded the highest hourly fees, followed by the ever fascinating “other” category, which comprises government, retail, education, culture and entertainment, residential, health care and assisted living , and transportation.

The value of the second 100 Giants’ fixtures, furnishings, and construction was $10,215,788,968, up 19 percent, compared with the top 100’s tally, which rose only 15 percent. Total space designed was 192,179,056 square feet, up 8 percent versus 3 percent for the top 100. However, before we become too entranced by the get-up-and-go of the second 100, we should note that their earnings per square foot installed are only three quarters that of the top 100 Giants, the projects’ dollar value roughly one third less. Interior design staff increased 5 percent, to 2,725, not much of a showing compared to the top Giants’ 13 percent. The second 100 also billed fewer working hours. At the same time, however, earnings per employee rose 11 percent, an increase more than double that of the top 100.

After five years during which renovation projects accounted for a small majority of the second 100 Giants’ work, the tables turned this year: New construction took the lead. International jobs rose from 5.3 percent to 8.6 percent but still lagged behind the top 100’s 14.1 percent.

Over the past two years, the second 100 Giants have considerably increased the presence of sustainability and branding experts. The number of firms with green concerns in their mission statements has risen to 56, fewer than the top 100’s 68 firms but a 71 percent increase nonetheless. The second 100 specified $446,207,200 in green product, just under 15 percent of total expenditures on fixtures and furnishings. That’s compared with 34 percent for the top 100.

On average, government, educational, corporate office, and health-care clients are the most receptive to green design. Under 14 percent of the interior design staff at second 100 Giant firms is LEED-accredited, as opposed to 44 percent for the top 100. Eleven firms follow LEED guidelines at least 75 percent of the time, but 18 haven’t had a chance to follow them at all. Clearly, a better class of client is indicated.

See the 1st 100 Giants for 2008 here

See all the Giants rankings here