Yes, architecture & engineering firms can make good profits—over 20 percent Operating Profit Rates—and provide stockholders a very good returns on their investments—over 30 percent Pre-tax Returns on Equity.
Most architects are making money in a service business. They sell their skills, time and expertise in exchange for money. There is a typical problem with service businesses, which I'm sure most of you have already experienced.
Architects need to compete for the limited projects, and undercutting fees naturally take place. Most small firms operate on a thin profit margin; because a building's design and construction duration typically stretch a few years, they need a healthy supply of new projects to support their existing headcount.
How does an architecture firm make money? Architects make money by charging a fee for designing buildings, permanent and temporary structures, and for design consultations on construction projects. Some architecture companies also assist civil engineers on city planning.
Principals at major corporate firms like Gensler, SOM, HOK, etc... earn more like $500,000 to $1,000,000. Architects consider themselves poor because they always compare themselves to other white collar professionals like lawyers, doctors, and bankers who generally make more money.
According to Salary.com, the average architect salary in the United States is $83,535 as of October 28, 2020. If one religiously saves 10% of the paycheck every month, it will take an architect about 120 years to become a millionaire.
An infographic published by Metalocus shows that these seven countries (in ascending order) offer highest average monthly salaries: Ireland ($4,651), Qatar ($4,665), Canada ($4,745), Australia ($4,750), United States ($5,918), the UK ($6,146), and Switzerland ($7,374).
While architecture can be seen as an entrepreneurial endeavor, entrepreneurship isn't often an explicit part of architectural practice or architectural education. As such, architects often don't view themselves as entrepreneurs or leverage their entrepreneurial potential in any venue other than architectural practice.
Norman Foster remains the richest architect on the list with a $240 million net worth. He founded his firm Foster + Partners in 1967 and is known to create elegant modern buildings from steel and glass.
Is it actually worth it? The short answer is yes, its a creative, diverse and ever changing subject and profession that provides a huge array of opportunities and avenues to explore. To date, it has been an absolute pleasure to study the subject and work within it as a qualified professional.
There are immense opportunities for architects in the future. At present, only around 1.2 lakh architects are in India and there is a huge demand for new architects and building designers in near future. Architects can work with development organizations wherein they are approached to fill in as a fashioner.
According to their statistics, architecture majors ranked number five overall, but were the worst off when it came to employment, with a 13.9-percent unemployment rate for recent graduates and a 9.2-percent unemployment rate for experienced graduates.
1. Antoni Gaudí Gaudí spent his entire career in Barcelona, where he built all of his projects, the most famous of which is the 1883 cathedral known as La Sagrada Familia, still under construction today.
Building a financial foundation
It's only the right time to start a firm once you've considered your current employment situation and family needs, as well as potential clients and projects.
1. The routines, norms, structures and channels that influence the behaviour of individuals within a certain strategic mould and enable the flow of knowledge and innovation from the university to society.
Employment of architects is projected to grow 3 percent from 2020 to 2030, slower than the average for all occupations. Despite limited employment growth, about 9,400 openings for architects are projected each year, on average, over the decade.