ECONOMIC MELTDOWN

[Carol Parker]

Carol Parker,working as Asst. Sales manager, Do you think that Architectural workshare/outsourcing is the solution to this meltdown. I think it can help the companies to cover up for their losses.

P.S. : To stay connected with the AEC workshare domain please follow our blog at http://archigenesis.blogspot.com/

[Ethan Hunt]

Can you please be more precise on how you may help design firms..I'm a Principal with a 50 person Architecture design firm in New York and would be interested in understanding how we maybe able to recover the losses incurred?

[Carol Parker]

There are many apparent benefits of workshare, such as;
1. Perhaps the greatest benefit of workshare, given the current atmosphere of uncertainty surrounding the construction industry, is the absence of a financial commitment for the employer
2. We enable our clients to maintain the strategic value of their in-house talents. The inhouse staff is free to focus on more core areas such as design, business development, client interaction, site visits etc rather than production
3. Lower their cost of growth and mitigate the risk involved
4. Improve their agility and responsiveness to the demands of business
5. The financial dynamics involved enable firms to be more competitive while bidding for projects
6. Bottom-line: Lower costs, increase revenue, raise profit margins

For more information on us please visit us at www.archi-genesis.com or our blog at http://archigenesis.blogspot.com/

[Richard Haut]

well, we all have different ways of reacting to crises - my view is simple: I find work that architectural practices can apply for.

it is my belief that architects should be concentrated on the individual strengths of their practices to find the projects for which they are particularly suited.

this is not the sales-pitch "we are really good at ...." but genuinely concentrating on what makes a practice special.

based on my existing service (which counts a lot of winners among subscribers), I am now establishing a very different service which finds those unusual or in some cases unique projects for individual practices.

like all my work it is heavily European-biased, but the work located can be dramatic, unexpected, exciting and well-paid.

the service is highly specialized and complex and I can only handle a limited number of clients.

if your practice genuinely wants to find work, contact me to discuss the type of work you want - but don't hang around. The service was launched three days ago and responses have been serious.

and what is it called ? The 2009 Group.

Richard Haut

[csintexas]

[Ethan Hunt]

To add another dimension to this thought – Figuratively speaking a typical design firm work-shares, on an average, between 5 – 10% of its total production work. Based on a recent financial survey, if a 100 person design firm work-shares 10% of its total production work, the annual savings translate to the order of USD $1 million. Savings of this order not only bring the much required liquidity to these firms but can also be used for R/D, training/enhancing skills of the in-house resources enabling them to take up more complex projects, BIM implementation………and the list goes on.

The crux remains that only 10% of the total production when work-shared can translate to substantial cost savings without resulting in any layoffs or salary cuts. What I mean from this is that is that worksharing is a business strategy which when used judiciously can help firms stay competitive as more and more design firms go global.

Rather than looking at it as a problem it can be perceived as a solution. It’s all a matter of perception…..

[csintexas]

Outsourcing is always outsourcing.

Yes that is the lure -I can save a bit on my bottom line in the short term and gain an advantage. In the long run laying off 10% of your work force and hiring overseas labor means less American Jobs.

Your new and improved workforce isn't going to mean squat when there is no one in America with enough money to build and in the end your whole company will be moved over seas because your position can also be filled more efficiently there. That is the great thing about the internet. I can design houses in New York as easily as I can here in Texas.

Like I said -just save yourself a step and cut all of your salary's down to minimum wage.

[ArchitecturalMoldings]

[Carol Parker]

It’s been an age old discussion…..the pro’s & con’s of workshare…..the bottom-line remains that as the world becomes flat it becomes imperative for firms to be flexible and open to the idea of tapping into the global pool of professionals. It is essential to maintain the balance between service and cost; taking a cue from the IT industry, the way of the future is that while the conceptualizing/designing is done in America the actual production happens in the more financially viable regions.

The result – Higher value, lower price….Workshare can help reach this equilibrium….

And for whatever it is worth...based on my experience (8 years) in the AEC workshare domain I have never met a single client or been to a firm which has laid-off resources to workshare with an external agency.

Carol Parker
ARCHiGENESIS
carol.parker@archi-genesis.com
http://archigenesis.blogspot.com/

[csintexas]

[Carol Parker]

Chris, I can relate to your though process….it is more of a socio-economic issue more than anything else and what is essential is to weigh all your options….but like I mentioned in the beginning of this thread workshare might be one (not the clear favorite apparently ) of the various options which firms have at their disposal to get out of this crunch…we all need to think out of the box, atleast till things get back on track….

[csintexas]

Well there would definitely be a short term advantage for the first companies to outsource. That is how the process goes.

We all get our cars and flat screen TV's cheaper but after a while we discover we no longer actually produce anything here. At first it is only the low skilled and undesirable jobs that go, but in the end scientist and CEO's in China also make considerably less money and so the entire business is relocated.

We are probably powerless to stop this process anyway. That instant gratification is just to tempting. It is like a drug. We have all seen or read stories about addicts. They know they are ruining their and their loved ones lives but they can't control their own behavior.