Architectural firms in Iowa appear to have experienced an uptick in business in late 2023, the Iowa Chapter of the American Institute of Architect’s fourth-quarter market survey shows.

Nearly 75% of survey respondents reported having 21 or more active projects in October, November or December of 2023, up from 50% in the third quarter. Also, no firms reported having five or fewer active projects in the fourth quarter, the only time that occurred in 2023.

Twenty-three Iowa architectural firms responded to the survey, which asked about active projects and project types, clients and business concerns.

Last year was the first year the Iowa AIA has conducted in-depth quarterly surveys about the market.
The architectural profession typically serves as a barometer for the amount of construction activity that is likely to occur in nine to 12 months.

Highlights from the fourth-quarter report include:

• Sixteen percent of active projects were health care related, a 45% jump from the third quarter. Projects related to K-12 education also accounted for 16% of active projects, a similar percentage in the year’s three other quarters. About 6% of active projects were in the office sector, a drop for 12% in the third quarter. Sixty-four percent of survey respondents indicated the office sector was in a “slow-down period.”

• A majority of firms reported that contract trends are holding steady in Iowa. “This is a major improvement from sentiments in” the third quarter, the survey said.

• About 28% of firms’ clients were the state or local governments, a slight increase from the third quarter, when 25% of clients were from the public sector.

• Labor prices were the top concern of survey respondents, with over 40% indicating “great concern” with the issue. In the third quarter, labor prices were ranked as the fourth-greatest concern. In the first two quarters, workforce ranked as the top concern of respondents, and in the third quarter, the overall economy and rising interest rates were tied as the top concern.

• Fifty-nine percent of respondents indicated their firms were hiring more employees. In the third quarter, 50% said they were hiring more employees.