Interior Design Services Industry Profile

Companies in this industry plan and design interior spaces such as hotels, hospitals, residences, commercial businesses, and offices. Major companies include units of architecture and design firms such as Gensler, HOK, Interior Architects, and Perkins + Will (all based in the US), as well as M Moser Associates (Hong Kong), Space Matrix (Singapore), and Stantec (Canada).

The US interior design industry includes about 11,000 companies with combined annual revenue of about $7 billion. In addition, there are more than 17,000 self-employed designers that generate about $1 billion in annual revenue, according to the American Society of Interior Designers (ASID). Moderate growth is forecast for the next two years. Growth drivers include increased residential construction and remodeling.

COMPETITIVE LANDSCAPE

Constructing and renovating residential, commercial, industrial, and institutional buildings drive demand for interior design services. The profitability of individual companies depends on accurate bidding, timely delivery, and a steady volume of projects. Large companies have advantages in marketing, developing partnerships, building a large client referral list, and getting priority service from suppliers. Small companies can compete effectively by providing better service, specializing, and using unique or custom product sources. The industry is highly fragmented: the 50 largest firms account for about 10 percent of revenue.

Competitors include suppliers and consumers. Suppliers compete by expanding their services to include interior design; consumers compete by establishing their own independent businesses, typically a home-based operation focusing on ...