DOWNLOAD THE FULL REPORTPros Enter 2026 with Divided OutlookMore than half of architects (55%) and interior designers (54%) report a good or very good outlook for 2026, a notable increase compared to last year, when optimism stood at 33% and 45%, respectively. In contrast, only 32% of design and build firms share that level of optimism, while 47% expect the year to be poor or very poor. This comes after a challenging 2025 for many firms. Nearly three-quarters of design and build firms and interior designers (73% each) say their 2025 gross revenues fell short of expectations, along with more than half of architects (55%).
Signs of Stabilisation in 2025 PerformanceWhile many firms reported revenue and profit declines in 2025, year-on-year comparisons suggest conditions may be easing. The share of businesses reporting revenue increases rose (38% versus 34% in 2024), and those reporting revenue decreases dipped slightly compared with 2024 (45% versus 47%). Profitability also improved, with fewer firms reporting declines (47% versus 62% in 2024) and the share reporting increases rising slightly (27% versus 26% in 2024).
Firms Align on Improving Efficiency and Sales ProcessesAs firms navigate ongoing cost pressures and demand uncertainty, many are prioritising operational improvements in 2026. Increasing efficiency is the leading investment area across sectors, with 65% of design and build firms, 57% of interior designers and 56% of architects dedicating resources to streamline processes and improve productivity. Design and build firms are also focused on reducing costs and risks (53%), while architects and interior designers are prioritising better communication (50% and 35%, respectively) with clients and teams. Improving the sales process ranks among the top three investment areas for all groups.
Rising Costs Continued to Pressure FirmsHigher costs remained widespread across the sector in 2025. The vast majority of design and build firms (90%) and architects (86%) report an increase in the cost of doing business in 2025, along with over two-thirds of interior designers (68%). Among firms reporting higher expenses, product and material costs remain the leading driver (52%), followed by advertising and marketing costs (40%) and software expenses (30%).
Pros Enter 2026 with Divided Outlook
More than half of architects (55%) and interior designers (54%) report a good or very good outlook for 2026, a notable increase compared to last year, when optimism stood at 33% and 45%, respectively. In contrast, only 32% of design and build firms share that level of optimism, while 47% expect the year to be poor or very poor. This comes after a challenging 2025 for many firms. Nearly three-quarters of design and build firms and interior designers (73% each) say their 2025 gross revenues fell short of expectations, along with more than half of architects (55%).
Signs of Stabilisation in 2025 Performance
While many firms reported revenue and profit declines in 2025, year-on-year comparisons suggest conditions may be easing. The share of businesses reporting revenue increases rose (38% versus 34% in 2024), and those reporting revenue decreases dipped slightly compared with 2024 (45% versus 47%). Profitability also improved, with fewer firms reporting declines (47% versus 62% in 2024) and the share reporting increases rising slightly (27% versus 26% in 2024).
Firms Align on Improving Efficiency and Sales Processes
As firms navigate ongoing cost pressures and demand uncertainty, many are prioritising operational improvements in 2026. Increasing efficiency is the leading investment area across sectors, with 65% of design and build firms, 57% of interior designers and 56% of architects dedicating resources to streamline processes and improve productivity. Design and build firms are also focused on reducing costs and risks (53%), while architects and interior designers are prioritising better communication (50% and 35%, respectively) with clients and teams. Improving the sales process ranks among the top three investment areas for all groups.
Rising Costs Continued to Pressure Firms
Higher costs remained widespread across the sector in 2025. The vast majority of design and build firms (90%) and architects (86%) report an increase in the cost of doing business in 2025, along with over two-thirds of interior designers (68%). Among firms reporting higher expenses, product and material costs remain the leading driver (52%), followed by advertising and marketing costs (40%) and software expenses (30%).