It’s five years since we conducted the first major survey of the UK design industry. Back then we found an industry in good shape, but with a few warning bells ringing. Lots has happened over the intervening years. In the current economic climate, putting the industry through its five-yearly MOT couldn’t be more important. So we’re excited to present this overview in Design Week with more detail for those who seek it online.
What we’ve uncovered is that design is holding up remarkably well in tough conditions. Naturally, some businesses have been hurt, but the industry has increased its earnings by around 15% since 2005, clocking up £15bn last year – not bad for a sector many said would shrink during the recession. Designers have clearly been working hard to grow their number of clients, increase their fee incomes and boost demand. In addition, many feel optimistic about their future financial performance. In-house teams have also been doing well, making themselves indispensable to firms, despite downward pressure on budgets. There are now 6,500 in-house teams in larger businesses in the UK – a 10% increase since 2005.
However, some things need tuning to ensure the industry is certifiably roadworthy for the future. The research suggests that growth is being achieved through new ways of working – for example, there are 39% more freelance designers than in 2005. Is this growth sustainable? New distributed operating models may give design companies greater flexibility and lighten staff costs at a time when margins are tight, but how do these lone designers access training and development support? Furthermore, does this fragmentation of the industry threaten our ability to compete on the world stage?
Likewise, it’s worrying that the industry still lacks diversity. The average UK designer remains male, white and 38 years old. Only 7% of UK designers are from ethnic minority backgrounds. With this profile, can UK design really compete internationally and respond to client companies around the world? These are important issues in a global market place. We can’t afford to ignore them.
It’s reassuring to see that the UK design industry is already responding to a number of these challenges, freeing it up to support post-recession growth. Design networks are playing an important networking and peer-to-peer role as are the established trade and industry organisations. There is great evidence of our top design talent rolling up their sleeves in education. Above all, the design industry presents a confident face to business and government as the engines of innovation, enterprise and economic growth.
So there is a lot to reflect on here. We hope this supplement, and the conversations that follow, will encourage you to get in touch with your thoughts. Have we got it right? Have we missed something? How are you making sure your business is fit for the next MOT in five years’ time?
David Kester, Chief Executive