Architectural Services Data Summary March 2011

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1 Firms Typically Small in Size According to the latest U.S. Census Survey of Business Owners, majority of the firms under the description Architectural Services are less than 500 in staff size (99.78%) U.S. Census ENTERPRISE NAICS DESCRIPTION EMPLOYMENT SIZE NUMBER OF FIRMS Architectural services 1: Total 23,581 % Cumulative % Architectural services 2: , % 62.36% Architectural services 3: 5 9 4, % 81.36% Architectural services 4: , % 91.88% Architectural services 6: , % 98.66% Architectural services 7: % 99.78% Architectural services 9: % % Source: 2008 U.S. Census: Survey of Business Owners Half of smaller firms have small business status By far, the specialized business classification most used by architecture firms is small business. The Small Business Administration (SBA) defines small businesses as those with no more than 500 employees and a maximum of $4.5 million in annual gross receipts under the business description Architectural Services. One half of firms with fewer than 20 employees are recognized as small businesses, while just over one quarter of firms with 20 to 49 employees are recognized under both the federal and state/local standards. Ninety five percent of firms that classify themselves as small businesses are firms with fewer than 20 employees. Traditionally, as with building codes, the federal standards set a model that local jurisdictions adapt to their specific needs. 50% 45% 47% 42% 40% 30% 20% 10% 6% 8% 6% 4% 5% 4% 2% 3% 3% 0% Small Business Woman-Owned Business Minority-Owned Business Disadvantaged Business Federally Recognized Locall Recognized Both Federally and Locally Source: 2009 AIA Firm Survey 1 P age

2 Majority of Firms Qualify for SBA Status (Based on Gross Receipt 2008 Annual Billings) As of 2009, majority of firms qualify for SBA business status based on their billings. Just over ninety percent of firms reported their annual gross billings under the $4.5 million SBA status threshold. By increasing the SBA gross receipt standard to $19 million, potentially additional six percent of firm would qualify for the SBA business status. Less than $1 mil $1 mil to $4.49 mil $4.5 mil to $9.9 mil $10 mil to $14.9 mil $15 mil to $18.99 mil $19 mil to $24.9 mil $25 mil to $49.9 mil $50 mil to $99.9 mil $100 mil to $149.9 mil $200 mil to $499.9 mil Office size Cumulative Total % of Total Within Receipt % of Total Within Receipt Count % 72.7% % 33% 49% 17% 1% 0% 0% 0% 100% Count % 91.7% % 1% 5% 32% 48% 13% 0% 0% 100%. Count % 95.7% % 0% 1% 3% 14% 69% 11% 1% 100% Count % 97.2% % 0% 3% 0% 3% 41% 50% 3% 100% Count % 97.7% % 0% 0% 0% 0% 22% 61% 17% 100% Count % 98.3% % 0% 0% 0% 0% 19% 46% 35% 100% Count % 99.5% % 0% 0% 0% 6% 12% 14% 69% 100% Count % 99.8% % 0% 0% 0% 7% 17% 9% 67% 100% Count % 99.9% % 0% 0% 0% 0% 0% 24% 76% 100% Count % 100.0% % 0% 0% 0% 0% 24% 0% 76% 100% Total Count Source: 2009 AIA Firm Survey % 24% 37% 19% 11% 6% 2% 2% 100% 2 P age

3 Architectural Services (NAICS ) Data extracted on: March 30, 2011 (3:14:42 PM) Employment, Hours, and Earnings from the Current Employment Statistics survey (National) Series Id: CEU Not Seasonally Adjusted Super Sector: Professional and business services Industry: Architectural services NAICS Code: Data Type: ALL EMPLOYEES, THOUSANDS Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual (P) P : preliminary U.S. Bureau of Labor Statistics, Architectural Services had a 30.93% drop in employment from the peak during July The number of employed in the Architectural Services industry is still a distance from the prerecession numbers and with the exception, of 2 months in 2010, it has been on a 30 months straight decline. The Architectural Services industry has not seen this low in number of employment, in the 150,000 s more than 10 years ago, since ============================================================================= Architectural Services (NAICS ) Operated for Entire Year Sales/ less than $10,000 $10,000 to $24,999 $25,000 to $49,999 $50,000 to $99,999 $100,000 to $249,999 $250,000 to $499,999 $500,000 to $999,999 $1,000,000 to $2,499,999 $2,500,000 to $4,999,999 $5,000,000 to $9,999,999 $10,000,000 or more 21,603 $36,424, $ $5, $19,893 1,387 $104,513 4,123 $701,542 4,401 $1,602,456 4,145 $2,945,417 3,674 $5,731,825 1,533 $5,342, $5,719, $14,250,561 % of all Cumulative % $1, % 0.34% $6 1.38% 1.72% $ % 4.17% $ % 10.59% $ % 29.67% $ % 50.04% $ % 69.23% $ % 86.24% $1, % 93.33% $3, % 97.16% $6, % % $23,247 3 P age

4 Average receipt/revenue for all establishments is approximately $1,7 million Just over half (50.04%) of all establishments make less than $500,000 in sales/receipts/revenue. Over 90 percent of establishments produce sales/receipt/revenue less than $5 million. Less than 3 percent of establishments make less more than $5 million in sales/receipt/revenue =========================================================================== Architectural Services (NAICS ) Meaning of Single unit/multi-unit firm code Number of firms Number of establishments % of Firms Firm All firms 24,283 25,337 $37,149, % $1,523 $1,466 Single unit firms 23,589 23,589 $24,064, $1,020 $1,020 Multiunit firms 694 1,748 $13,085, % $18,856 Firms with 1 establishment $1,063, % $5,687 $5,687 Firms with 2 establishments $2,957, % $9,541 $4,771 Firms with 3 or 4 establishments $2,851, % $21,605 $6,648 Firms with 5 to 9 establishments $3,830, % $72,266 $11,677 Firms with 10 establishments or $2,382, % $198,538 $12,948 Overwhelmingly, architectural firm are single units in nature (97.1%). The average receipt/revenue for the single firms is just over $1 million in revenue. On average, the multiunit firms, which comprises less than 3 percent of the industry, make just under $20 million in receipt/revenue ($18.9 million). Only those firms with 3 or more establishments earn an average receipt of over $20 million and comprises of less than 2 percent of all firms. The biggest firms (0.05%) in terms of each establishment, make on average just under $13 million, which is significantly less than the $19 million in questions for the new SBA criteria. (* assuming here that each establishment could possibly file their own business statsu) ================================================================== 4 P age

5 Engineering Services (NAICS ) Series Id: CEU Not Seasonally Adjusted Super Sector: Professional and business services Industry: Engineering and drafting services NAICS Code: 54133,4 Data Type: ALL EMPLOYEES, THOUSANDS Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual (P) P : preliminary U.S. Bureau of Labor Statistics, Engineering and Drafting Services had a decline of 10.33% in employment from the peak during July 2008 (note: the BLS only had the Engineering and Drafting Services combine data). The number of employed in the Engineering and Drafting Services have bounced back slightly to where they were at the beginning of 2006 and recently had increases throughout =========================================================================== Engineering Services (NAICS ) % of all Cumulative % Operated for Sales/ Entire Year Total 49,447 $184,756,496 $3, less than $10, $2, % 1.06% $5.53 $10,000 to $24, $12, % 2.57% $17.28 $25,000 to $49,999 1,181 $43, % 4.96% $36.66 $50,000 to $99,999 2,900 $218, % 10.82% $75.46 $100,000 to $249,999 8,050 $1,362, % 27.10% $ $250,000 to $499,999 7,549 $2,723, % 42.37% $ $500,000 to $999,999 7,862 $5,654, % 58.27% $ $1,000,000 to $2,499,999 9,660 $15,461, % 77.81% $1, $2,500,000 to $4,999,999 5,031 $17,604, % 87.98% $3, $5,000,000 to $9,999,999 3,051 $21,167, % 94.15% $6, $10,000,000 or more 2,892 $120,504, % % $41, Average receipt/revenue for all establishments for the Engineering Services industry is nearly $4 million. 5 P age

6 Approximately 40 percent of establishments make over $1 million in revenue versus the Architectural Services industry where only 30% make over the same amount. Just under 9 in 10 (87.98%) of all establishments make less than $5 million in sales/receipts/revenue. =========================================================================== Engineering Services (NAICS ) Meaning of Single unit/multi-unit firm code Number of firms Number of establishments % of Firms Firm All firms 47,714 58, ,531, % $3,930 $3,212 Single unit firms 44,606 44,606 55,214, $1,238 $1,238 Multiunit firms 3,108 13, ,317, % $42,573 Firms with 1 establishment ,973, % $9,680 $9,680 Firms with 2 establishments 977 1,954 12,081, % $12,366 $6,183 Firms with 3 or 4 establishments 634 2,122 13,893, % $21,914 $6,547 Firms with 5 to 9 establishments 334 2,135 20,150, % $60,331 $9,438 Firms with 10 establishments or 236 6,647 77,219, % $327,201 $11,617 Like the Architectural Services industry engineering firm are single units in nature (93.5%). The average receipt/revenue for the single firms is just over $1.2 million in revenue On average, the multiunit firms with 6.5% of the Engineering Services industry make over $40 million in receipt/revenue more than double the amount compared to the Architectural Service industry at $18.9 million. ================================================================== 6 P age

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