Change has been the name of the game for Orange County’s architecture firms during the recession.
The top 30 firms in the county have seen an estimated 4% drop in employees and a 19% decline in architects in the past two years according to the Business Journal’s list (see story, page 28).
Some firms have retrenched and looked to do more with less. Others said they are using the challenging environment to make their firms stronger for when the market improves, by adding on top talent from competitors that are cutting back.
A common theme these days is the need for architecture firms to expand their offerings to clients.
Irvine-based LPA Inc., OC’s largest arch-itectural firm based on billings, said a key to surviving is a willingness to work with others within the company or outside from the get-go.
That includes bringing in engineers as early in the design process as possible, according to the company, which emphasizes environmentally friendly projects. LPA has its own mechanical, electrical and plumbing engineers on staff.
It is “fundamentally so different and more effective when your design partners are in-house,” according to President Dan Heinfeld.
Newport Beach-based Newman Garrison + Partners hopes to emerge from the downturn as a more varied firm, increasing the number of services it can offer clients.
Diversify
“We’re adding diversity to our existing design disciplines. It’s the perfect time to grow,” said Kevin Newman, chief executive of Newman Garrison.
The firm recently started up a landscape architecture group. In the next year, an interior design group will also be added.
Newman Garrison recently has worked on housing projects in Ladera Ranch and Coto de Caza, as well as higher-density projects like Anaheim’s Stadium Lofts in the Platinum Triangle.
The plan is to build the firm’s size up to a maximum of about 40 or 50 people. Right now, there are about 15 people at the company.
“We think now is the perfect opportunity to be a one-stop shop,” Newman said. “Instead of 15 or 30 firms, you’ll be seeing more consolidation.”
Newman’s belief is that the days when multiple planning and design firms are retained by a client to work on a single project are gone. The new model will be a developer or builder retaining a single firm to work on several projects, he thinks.
“Architectural firms need to be more aware of the economics” of a development project, Newman said.
Downsizing
Like many local firms, Newman Garri-son has seen its share of downsizing, be-ginning in early 2008.
Newman said by late 2007 he could tell the industry was in for some bad times. His firm was working on a sizable project when two of its big-name financial backers opted out unexpectedly.
“You could tell something wasn’t right,”
he said.
Now, Newman said he’s more optimistic about a rebound, largely due to the feedback he’s been receiving during meetings with builders and city planners.
Rather than wait for developers to come to the firm with new business, Newman and his team is going to city planning and redevelopment staffs to see if they have any development opportunities. At the same time they are meeting with builders to see if they are interested in new opportunities.
In several cases, they have brought the city staffs and builders together if there are real opportunities to discuss where an urban infill model might work, according to the company.
The company’s betting on its latest urban infill project, called The Block, to set an example about the type of project that can get done in this economy.
Units in the three- and four-story projects average 875 square feet. They’re expected to appeal to younger tenants, according to the company.
It’s not just a new community planning product that the company is offering, but a different way of drumming up business, according to Newman.
So far, the response has been strong, Newman said. The firm’s given about 35 presentations to a variety of potential partners over the past two months.
“There are deals out there. You just have to be more creative, and you have to turn over every rock,” Newman said. “Devel-opers are hungry for new projects that are feasible.”
