Embarking on the presidency of the AIA prompted me to think about the key issues facing architects and what the AIA can do specifically to help address them. Early in my tenure, I convened an ad hoc committee to help me examine how AIA can help improve the business performance of architectural firms of all types, in service of improving compensation levels for architects and our emerging talent. The initiatives that have been prioritized by the “Prosperity Committee” are the following:

1. Contracting (acquisition) of architectural services.
2. Fees and contracts: getting what we deserve
3. Project Leadership: Achieving Strong Design, Delivery and Profitability
4. Business Leadership: Business Insights and Practices for Profitable Business Performance
5. Compensation: Salaries and benefits to attract and retain the talent we need

I firmly believe that these five initiatives are necessary to further advance business performance and compensation for architects, and I am proud to share that AIA already has some of this work underway. Business vision training was recently introduced through AIAU. This spring, we shared some data on fee structures and profitability to provide clarity on models that companies can consider. Additionally, our newest Architecture Business The report will be published next month with information on the companies’ business operations. As the AIA plans the 2025 Compensation and Benefits study, advice from this group will help inform that work. I would like to thank the AIA 2024 Prosperity Committee, Justin Chapman, Curtis Clay, Clark Davis, Brett Leonhardt, Ann Thompson, and Carole Wedge for participating in this think tank at my request. Special thanks to AIA Staff Leader Michele Russo for supporting our efforts by providing the research needed to inform the committee’s discussions. This work is not intended to be a silver bullet to the financial challenges facing our industry, but rather to plant seeds to help foster important and productive conversations for years to come.

One of the obstacles we must face as an organization is the possibility of inadvertently violating antitrust laws, which is part of the explanation why the AIA does not typically analyze rates. In 1972 and 1990, the Justice Department found that AIA had violated antitrust laws and had to pay several million dollars. As a result, it is understandable that our profession has been reluctant to engage in robust debates on the topic. My proposal is to proceed with caution and coordinate with antitrust attorneys who can help us understand how to talk about our economic challenges and opportunities as a profession, within the confines of the law.

We understand that price fixing is not allowed. Now, let’s look at all the other levers that can be pulled to improve our overall financial outlook. Not only do we owe it to ourselves, but we owe it to those who enter this profession expecting to be able to meet their financial needs on an architect’s salary. It’s no secret that the cost of living is constantly increasing. Architecture students graduate with staggering student debt on top of living expenses and 73 percent of all AIA members need to borrow money to pay for college. But when age is considered, the story is more troubling: 89 percent of AIA members under age 35 are burdened by student debt, compared to 66 percent of those ages 55 to 64 who needed loans. students when they were in school.. All of this, coupled with relatively slow starting wage growth, is a recipe for the talent shortage we are seeing in the workforce. 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 do not proactively address our salary levels, we will continue to see emerging architects moving away from traditional practice and seeking more lucrative opportunities elsewhere. It’s not personal, it’s business. Many of them would love to pursue their dream of shaping the built environment as architects. The unfortunate reality is that their ambitious design dreams cannot 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 take advantage of their training as an architect while paying them well above the average architect salary. If we don’t address this as a profession, we are doing our collective future a disservice. The time to act is now.

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

We invite you to review the guide and send me your comments directly: [email protected]

As I mentioned in my AIA24 Comments in June, “The profession’s compensation strategies must be adjusted to reflect the true cost of architectural education and the value that architects bring to their clients and communities.” I encouraged our members to be bold and stand up for the issues that matter most to them.

May you have the courage to ask your customers for what you deserve so that you can better serve them and the communities we are shaping together.

Read Kimberly Dowdell’s previous articles on Involve future architects and Defender Chief Architects.