Business of Architecture Podcast

2025 Architecture Alert: Risks for Small Firms | EP640

Jun 23, 2025
Explore the current state of the architecture market and uncover key insights that many architects overlook. Discover the biggest mistakes small firms make during economic downturns and learn effective strategies to turn uncertainty into opportunity. Delve into the emotional challenges faced by leaders and the importance of self-awareness in overcoming them. Gain tips on balancing urgency with importance to enhance productivity and mental well-being, while also discovering collaborative opportunities and valuable resources for your practice.
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INSIGHT

Architecture Market Slowdown

  • The architecture industry is facing a major slowdown with a low building index and operational pressures.
  • Firms have shrinking backlogs and staffing issues, creating a perfect storm of challenges for small firms.
INSIGHT

Construction Challenges Today

  • Construction faces workforce shortages due to immigration policies and rising material costs from tariffs.
  • These disruptions affect pricing of essential materials like steel and aluminum widely used in building projects.
INSIGHT

Cash Flow Pressures Everywhere

  • Cash flow problems affect not only firms but contractors who face payment delays over 30 days.
  • Firms have the smallest project backlog in three years, intensifying cash and operational pressure.
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