The novel coronavirus unleashed an economic shockwave, and the picture is not very rosy in virtually all sectors. The manufacturing sector, the hospitality sector, the travel industry, and everything in-between are deeply affected by the restrictions imposed by local and federal organizations.
Furthermore, these restrictions affected all sectors of the economy, including the design world. As projects, both small and large, get canceled or postponed, South Florida architect firms are feeling the downturn firsthand. Other companies active in the design and construction industries are feeling the negative effects of the coronavirus pandemic. Architecture firms, construction management firms, contractors, technical assistance companies, and marketing consultants active in this industry are all deeply affected.
Although large parts of the economy are slowly reopening for business, the recovery will be slow. Construction projects are expensive and are difficult to restart once postponed or canceled. There are many companies involved and clients are still reluctant. One thing is certain – South Florida architect firms need to have a bulletproof plan in order to get through this crisis. But how is the design world affected? How and when will it recover? What can design firms do to speed up the process and recover quicker? Here’s a short guide to help you out:
Events get canceled
Virtually all construction and interior design events are already postponed or canceled. The events that will take place will be available only online, via videoconference. For instance, the High Point Market has been canceled twice – initially in late February, but also in April. The event is postponed for 2021, which is considered a historic occurrence, as the High Point event was called off only once, in the middle of World War II.
Wayfair is seeing massive growth in sales
Wayfair is still the largest online furniture retailer, having a market share of 33.4 percent (Amazon is in second place, with a market share of 29.7 percent). During the pandemic, as brick-and-mortar stores were being closed, Wayfair has seen explosive growth. The retailer has seen a 20 percent increase in sales in April alone, with more growth being visible in May and June. Experts suggest that Wayfair has expanded its market reach, taking a piece of the pie from Amazon, which focused on shipping essential supplies. Simply put, Wayfair dominates the online furniture market, especially during the pandemic. Their shares also jumped from a five-year low of $22 to an astounding $188 per share – that’s almost 754 percent.
Designers are not very worried about shopping IRL
This is quite surprising, but only a handful of designers are worried about shopping for interior design products in person. The reasons behind this are unclear, but there are some possible explanations. Firstly, designers are already buying items both online and offline and don’t feel worried about making purchases in person. Secondly, it seems that designers are simply not worried about the novel coronavirus. Unfortunately, we can’t assess if this is the right or wrong attitude, especially during this difficult period.
Lower priced products are getting more popular
As mentioned above, almost all business sectors are affected by the pandemic. Clients reduce their budgets and focus more on cutting costs. This means interior design pieces, like furniture or other accessories that have lower prices, become more attractive. People are obviously sticking to their budgets and paying attention to every expense. Because of this, South Florida architect firms have to revise and adapt their projects in order to meet the current budget limitations. After all, every project can be made more efficient and costs can be cut without losing quality.
Interior designers are already adjusting their work to the new normal
The American Society of Interior Designers is routinely conducting polls among its members to take the pulse of the whole industry. During the early phase of the pandemic, designers have reported that they are not affected, and their projects are still moving ahead as predicted. However, by April, 40 percent of designers reported a reduction in activity and cancelations. By May, 50 percent of designers reported that their business activity was reduced because of the COVID-19 pandemic. However, designers adapted to the new market and took on smaller projects to keep a steady stream of income. There are still worrisome signals – for instance, 35 percent of designers are expressing “high concern” over the ongoing pandemic.
How will the market recover?
The American Society of Interior Designers also asked designers about the future – how architecture firms, construction management firms, and other contractors will recover after the pandemic. The question is simple – if the pandemic ends today – how long will it take your firm to get back on track? The answers were very varied. During the start of the pandemic, March, and April, firms usually estimated that they are able to bounce back in as little as three months. However, answers were different during May and June – firms estimated a longer period to bounce back to normal. There’s another important fact – veteran designers have longer estimates than new designers.
Project cancelations are common
This is probably the most visible effect in the construction and interior design industry – projects get canceled at alarming rates. 80 percent of designers have reported massive project cancelations. This includes both small and large projects, as well as new, future projects. There’s a positive aspect though – many projects are postponed, so there still is hope for them. Many designers focus on these projects for the future.
Housing starts dropped massively
In March, the number of housing starts was 1,200,000, a record for the industry. However, this number dropped dramatically during April and May (the drop was estimated at 25 percent in just a few weeks), creating a shockwave in the construction industry. Architecture firms, construction management firms, and other contractors still rely on people who are stuck at home and focus on smaller projects. These are the projects that will help the industry recover quicker.
For More Information :- http://www.urvanx.com/