Promoting prosperity for architects | The American Institute of Architects

As I took on the AIA presidency, I was prompted to think about the key issues facing architects and what AIA can specifically do to address these issues. Early in my term, I convened an ad hoc committee to help me explore how AIA can help improve the business performance of all types of architectural firms, in the service of improving compensation levels for architects and our emerging talent. The initiatives prioritized by the “Prosperity Commission” are the following:

Engagement (purchasing) of architectural services
Rates and contracts: getting what we deserve
Project leadership: achieving strong design, delivery and profitability
Strong leadership: business acumen and practices to deliver profitable business performance
Compensation: salaries and benefits to attract and retain the talent we need

I believe these five initiatives are necessary to further improve business performance and architect compensation, and I am proud that AIA already has some of this work underway. Business acumen training has recently been introduced via AIAU. We shared a few this spring data on compensation structures and profitability to provide clarity on the models that companies can consider. In addition, our newest Architecture matters A report with insights into business operations at companies will be published next month. As AIA plans for the 2025 Compensation and Benefits Survey, this group’s advice will help inform that work. I would like to thank the AIA Prosperity Committee 2024, Justin Chapman, Curtis Clay, Clark Davis, Brett Leonhardt, Ann Thompson, and Carole Wedge for joining this think tank at my request. Special thanks to AIA Staff Leader Michele Russo for supporting our efforts by providing the research necessary to shape the committee’s discussions. This work is not intended as a silver bullet to the financial challenges facing our industry, but rather as planting seeds to help foster important and productive conversations in the years to come.

One of the obstacles we face as an organization is the possibility of inadvertently violating antitrust laws, which is part of the explanation why compensation is not typically discussed by AIA. In 1972 and 1990, the Justice Department found AIA to have violated antitrust laws and ordered it to pay several million dollars. As a result, our profession is understandably hesitant to engage in robust discussions on this topic. My proposal is to proceed cautiously and coordinate with antitrust attorneys who can help us navigate how to talk about our economic challenges and opportunities as a profession, within the bounds of the law.

We understand that price agreements are not permitted. Now let’s discuss all the other levers that can be pulled to improve our overall financial prospects. We owe this not only to ourselves, but also to those who enter this profession and expect to meet their financial needs on an architect’s salary. It’s no secret that the cost of living is steadily rising. Architecture students graduate with enormous student debt and must also cover their basic expenses with 73 percent of all AIA members having to borrow money to pay for their studies. But when you look at age, it tells a more troubling story: 89 percent of AIA members under the age of 35 are burdened with student debt, compared to 66 percent of those between the ages of 55 and 64 who needed student loans when they were were at school.. All of this, coupled with relatively slow growth in starting salaries, is a recipe for the talent shortages we see in the labor market. As a result, nearly half of AIA members who borrowed money for college have considered leaving architecture or have already done so (44 percent).

A leadership professor of mine used to say that “people vote with their feet.” In other words, if we don’t proactively address our salary levels, we will continue to see emerging architects move away from traditional practice and look for more lucrative opportunities elsewhere. It’s not personal, it’s business. Many of them would like to pursue their dream of shaping the built environment as an architect. The unfortunate reality is that their ambitious design dreams can’t quite cover the rent, food, loans, and other essential costs they are responsible for. As a result, they find opportunities in real estate, construction, engineering and technology companies, among others, that can leverage their training as architects while paying them well above the average salary of an architect. If we do not recognize this as a profession, we will be doing our collective future a disservice. Now is the time to act.

As a first step, the 2024 AIA Prosperity Committee has prepared a document to provide guidance for the first initiative on our list: 2024 AIA Engagement Guidelines for Architects and Clients

We invite you to review the guidelines and provide your feedback directly to me: [email protected]

As I said in my AIA24 comments in June: “The profession’s compensation strategies must be adjusted to reflect the true costs of architectural education and the value architects provide to their clients and communities.” I encouraged our members to be courageous and advocate for the issues they care about most.

May you have the courage to ask for what you deserve from your customers so that you can better serve them and the communities you help shape.

Read Kimberly Dowdell’s previous articles about Involving future architects And Standing up for chief architects.