Outsourcing Labor Intensive Architectural Services: The Key To Productivity And Profitability

How productive do you think your employees are? You should measure your company’s productivity because it has a direct effect on your profitability.

Hiring a productive staff is definitely a must. Your workforce is the oil to your engine, which is your business. You need employees to keep your company going.

It is the same in all industries and different fields. Whatever you are handling, workers are the core of the business. It is also like that when it comes to architectural firms: your architects and their skills and talent are very important.

If you have an idle and unproductive staff, your company (especially for start-ups) is not going to bloom. If that is the case, outsourcing architectural services are your only answer. As a matter of fact, Statista reported that in 2015, the amount of money spent on construction has reached 824 billion dollars. They estimated that it will reach 1.4 trillion in the next 2 years.

With that amount of money, of course you want to venture into business. But how would you succeed if you have unproductive and idle staff?

For a flourishing industry of architecture, it is hard to find the best employees especially if you only own small business. It is a cutthroat environment where big companies are swallowing the small ones.

According to Anything Research, the federal government of the United States has spent a total of $1,086,447,246 on architectural services. It is distributed to companies and the average value is $1,320,106 per company.

Though there aren’t many huge architectural corporations who monopolizes on projects and works, it would still be very hard for a new firm to get in the game when they do not have enough productivity. Good thing, you can outsource labor intensive architectural services.

What exactly is labor intensive service?

Labor intensive is when staff, workers, or employees use a hefty amount of labor to make its goods and services. It is usually found in the service industry like hotels, agriculture, mining, and restaurants.

However, other industries and their employees could render labor intensive work, too especially if they are finishing a project or a presentation. In the book named “Architect? : A Candid Guide to the Profession” by Roger K. Lewis, he stated that most architectural services are labor intensive in nature.

“A project can consume thousands of worker hours,” and that is exactly what outsourcing can provide your company – productive employees who can render thousands of work hours and that will ultimately give you profit.

What advantages can labor intensive architectural services give to architectural firms?

When you outsource a labor intensive architectural service, you need not worry about the time your employees will work under you. It will be by project and they will work almost 24/7 to finish a project.

Productivity will not be a problem

Work overload will not be a problem once you hire labor intensive architectural services. You do not have to turn down new projects. You can also handle more than one project at a time. In addition to that, your employees will not be dull and do routinely works because they are handled by their own company. Plus, more ideas and creativity will flow and be incorporated into your projects because more people will be involved.

Also, when architectural firms hire labor intensive architectural services like an offshore 3D modeling service, concept design, structural analysis, and other tasks that does not really require highly-technical expertise, they could save up more time for project management, the actual building design, and other core architectural jobs. Thus, improving their productivity.

Moreover, you will have higher profit since you don’t have to buy software needed for CAD-specific jobs. You also don’t have to rent big offices or get more computers just to accommodate new in-house employees.

Profitability will increase

Since the great recession in 2008, the mortgage in the US is starting to look good again. It is especially getting better for architectural firms since people are starting to build houses and buildings in great mass again.

SOURCE: Architecture and Engineering Industry Study 34th Annual Comprehensive Report

And in the years following 2012, it has been continuously increasing. In 2017, the industry profited 13 billion dollars, an increase from 2016’ 12.8 billion dollars, said 2017 Inc.

Source: PSMJ Resources’ 2015 A/E Financial Performance Benchmark Survey Report

If you are planning to outsource the services you offer, you should contact us and Magellan Solutions will gladly guide you through every step to achieve the productivity and profitability you want to attain!