Summary: The practice of architecture depends on teamwork and communication. Yet, in recent years, information technology (IT) spending per employee has come down dramatically, from an average of $4,500 spent per employee in 2002 to $2,700 in 2005, according to research conducted by the AIA and recently published in The Business of Architecture.

Certainly the advent of Microsoft’s Vista operating system will spur office-software upgrades across the spectrum of businesses. A larger factor for architecture firms, however, is building information modeling (BIM) systems as an increasingly necessary component to doing business—and being competitive—for architecture firms.

A little more than 15 percent of firms reported having acquired BIM software and about 10 percent reported using it, according to the AIA survey of 3,000 architecture firms. Of the firms that do have BIM software, most use it for design development (91 percent), schematic design (86 percent), and construction documentation (81 percent). Programming, construction administration, and bidding accounted for only 35, 29, and 23 percent respectively for BIM software use according to survey results. Among the firms having it, nearly two thirds are using their BIM software for billable work, ranging from 60 percent among sole practitioners to 86 percent among 100-plus-employee firms.

IT outlay increases with firm size
In the survey conducted last year, firm representatives reported on their 2005 IT expenditures (which, at the time, most respondents—except those in the largest firms—expected to remain stable into 2007). On average, IT expenditures in 2005 accounted for 2 to 3 percent of firms’ gross billings, with an average of $36,000 across all firm sizes.

The range of IT spending varies widely with firm size, however, with sole practitioners spending on average $3,600 and firms with 100 or more employees spending close to $1 million annually. Nearly all firms with 50 or more employees had $50,000 or more in IT spending, as did 55 percent of firms with 20 to 49 employees. The largest IT expenditures per person were by firms with 100 or more employees, at around $5,500 per person, followed by $4,120 for firms with 50 to 99 employees. Sole practitioners were third on the list at $3,580 followed by midsize firms in the $2,100-$2,400 range.

Hardware and software lead IT budgets
Fully 90 percent of firms include software in their IT budget, followed by hardware with 86 percent. More than two-thirds of all firms include hardware, software, and Internet capabilities as part of their IT budget. Nearly one-half of all firms include consulting (technical) support (44 percent) in their IT budget and approximately 10 percent of firms have dedicated IT staff to remedy technical difficulties.

Acquisition of new technology had stabilized
Perhaps because new software needs were still on the horizon, the response to whether firms expected an increase in technology spending for 2006 were generally low, although they ranged widely across firm size categories, from 17 percent for sole practitioner to 67 percent for firms with 100 or more employees. Typically, the smaller the firm, the less likely the respondents were to think they would be changing IT spending in the coming year.

The AIA firm surveys have consistently shown that large firms are the most likely to be early adopters of new technology, and BIM has been no exception to that rule. History also shows that in fact, many smaller firms are actually ahead of the innovation curve and that eventually firms of all size do catch up. It’s a matter of staying competitive.