Findings from a survey of 298 UK residential renovation businesses on Houzz about 2021 and expectations for 2022
Design and build firms are most optimistic about 2022: Design and build firms are the most optimistic about revenue growth in 2022 (88 percent), followed by interior designers and architects (80 and 76 percent, respectively). Companies across all industry sectors plan to grow revenue by bringing in larger budget projects (60 percent).
Revenue growth surpassed expectations in 2021: In 2021, a larger share of businesses reported year-over-year revenue growth than in the last four years (69 percent). Two-thirds of companies reported that revenue growth was at or above their initial expectations for the year (69 percent). Nearly three quarters of both design and build firms and architects reported increases in gross revenues in 2021 (72 percent), followed by interior designers (70 percent).
Hiring is on the rise: More than a quarter of businesses increased headcount in 2021 (29 percent), compared with only 17 percent of businesses who added employees in 2020. Design and build firms were the most likely to hire last year (35 percent), compared with architects and interior designers (29 and 26 percent, respectively). Hiring is expected to continue among a third of businesses in 2022 to support revenue growth (38 percent).
Increases in the cost of doing business: Almost four in five businesses reported an increase in the cost of doing business in 2021 (77 percent). Design and build firms were the most impacted by rising costs (94 percent), followed by interior designers and architects (70 and 65 percent, respectively). Price volatility of products and materials was one of the top challenges reported by one in five businesses (22 percent).
Download the Full Report
Revenue growth surpassed expectations in 2021: In 2021, a larger share of businesses reported year-over-year revenue growth than in the last four years (69 percent). Two-thirds of companies reported that revenue growth was at or above their initial expectations for the year (69 percent). Nearly three quarters of both design and build firms and architects reported increases in gross revenues in 2021 (72 percent), followed by interior designers (70 percent).
Hiring is on the rise: More than a quarter of businesses increased headcount in 2021 (29 percent), compared with only 17 percent of businesses who added employees in 2020. Design and build firms were the most likely to hire last year (35 percent), compared with architects and interior designers (29 and 26 percent, respectively). Hiring is expected to continue among a third of businesses in 2022 to support revenue growth (38 percent).
Increases in the cost of doing business: Almost four in five businesses reported an increase in the cost of doing business in 2021 (77 percent). Design and build firms were the most impacted by rising costs (94 percent), followed by interior designers and architects (70 and 65 percent, respectively). Price volatility of products and materials was one of the top challenges reported by one in five businesses (22 percent).
Download the Full Report