Helping architects thrive | American Institute of Architects

Beginning the AIA presidency has prompted me to think about the key challenges facing architects and what specifically the AIA can do to help solve these challenges. Early in my term, I convened an ad hoc committee to help me explore how the AIA can help improve the business performance of architecture firms of all types, helping to improve compensation levels for architects and our new talent. The initiatives that were recognized as a priority by the Prosperity Committee are the following:

1. Attraction (purchase) of architectural services
2. Fees and contracts: we get what we deserve
3. Project leadership: achieving quality design, delivery and profitability
4. Firm Leadership: Business Acumen and Methods for Achieving Profitable Firm Operations
5. Compensation: salaries and benefits to attract and retain the talent we need

I firmly believe that these five initiatives are needed to further improve business performance and rewards for architects, and I am proud to say that AIA is already doing some of this work. Business acumen training was recently introduced through AIAU. This spring we shared some data on commission structures and profitability to provide clarity to the models that firms may consider. In addition, our newest Business architecture The report will be published next month and will contain information on the companies’ business operations. As the AIA plans to conduct a 2025 Compensation and Benefits Study, the group’s recommendations will help guide that work. I would like to thank the AIA 2024 Prosperity Committee, Justin Chapman, Curtis Clay, Clark Davis, Brett Leonhardt, Anne Thompson, and Carol Wedge for participating in this think tank at my request. Special thanks to AIA Chair 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 panacea for the financial challenges facing our industry, but rather to plant seeds that will help stimulate important and productive conversations in the years ahead.

One of the obstacles we have to face as an organization is the possibility of inadvertently violating antitrust laws, which is part of the explanation why fees are not typically discussed by the AIA. In 1972 and 1990, the Department of Justice found that AIA had violated antitrust laws and was forced to pay out several million dollars. As a result, our profession is understandably hesitant to engage in serious discussions on this topic. My suggestion is to tread carefully and coordinate with antitrust lawyers who can help us understand how to talk about our economic challenges and opportunities as a profession within the bounds of the law.

We understand that price fixing is unacceptable. Now let’s discuss all the other levers that can be pulled to improve our overall financial outlook. We not only owe it to ourselves, but also to those who enter the profession hoping that they can meet their financial needs through an architect’s salary. It’s no secret that the cost of living is steadily rising. Architecture students graduate with staggering student debt on top of the need to cover their basic expenses. yet 73 percent of all AIA members need loans to pay for college. But when you factor in age, the story gets more alarming: 89 percent of AIA members under age 35 are saddled with student debt, compared with 66 percent of those ages 55 to 64 who required student loans while they were in school.. All of this, coupled with relatively slow growth in starting salaries, is responsible for the talent shortage we are seeing in the workforce. As a result, nearly half of AIA members who borrowed money for college were considering leaving architecture or had already done so (44 percent).

My leadership professor used to say that “people vote with their feet.” In other words, unless we proactively address the wage issue, we will continue to see aspiring architects move away from traditional practice toward more lucrative opportunities elsewhere. This is not personal, this is business. Many of them would like to fulfill their dream of shaping the built environment as architects. Unfortunately, the reality is that their ambitious design dreams cannot fully cover rent, food, loans and other basic expenses 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 education as an architect while paying them well above the average architect salary. If we don’t confront this as a profession, we will be doing a disservice to our collective future. The time to act is now.

As a first step, the AIA 2024 Prosperity Committee has created a document containing recommendations for the first initiative on our list: AIA Guide to Engagement for Architects and Clients 2024

We invite you to review the guide and provide feedback directly to me: [email protected].

As I mentioned in my AIA24 Notes in June, “The profession’s compensation strategies must be adjusted to reflect the true cost of architectural education and the value that architects bring to their clients and communities.” I encouraged our members to be bold and stand up for the causes they care about most.

May you have the courage to demand from your customers what you deserve so that you can better serve them and the communities you form together.

Read Kimberly Dowdell’s previous articles on Attracting future architects And Support for Chief Architects.