IALD Business Owners Report Mixed Outlook for 2009

Craig DiLouie March 23, 2009

The International Association of Lighting Designers (IALD) recently conducted an economic impact survey in an effort to determine how the current economic downturn is affecting its members and their businesses.

IALD Executive VP Marsha Turner summed up the results: “Significantly, it’s not all doom and gloom. There is a lot of trepidation–understandably–but there is definite optimism that comes through in the feedback.”

The majority of respondents included Professional IALD members (40%) and Associate IALD members (40%); Fellow, Practicing Affiliate, Commercial Affiliate, Educator, Student members, and non-members made up the remainder of the respondents. The majority of respondents were based in North America (88%), with the remainder based in Europe, Asia, Australia and the Middle East. More than half of all respondents (62%) were sole owners or had an ownership interest in their firm.

When asked how their businesses have been impacted by the current economic downturn/world financial crisis, three-fourths of all respondents said they are experiencing either a strong negative or slight negative impact. Interestingly, 11% of respondents reported a positive impact and 14% reported no change. Of those with a negative impact, more than half (53%) have experienced a tightening of expenses or spending freeze due to the economic climate, and 28% have experienced hiring freezes. On a positive note, 29% have experienced no cutbacks. Only 15% of respondents experienced layoffs at their businesses, while 85% reported none. Of those who have had layoffs, positions included administrative positions, and a few junior-level lighting designers.

Finding new projects (46%), collecting payments owed (37%) and keeping current projects (25%) have been the greatest challenges for businesses during this economic recession.

When asked about expected growth (i.e. more projects, staff increases, etc.) in the first and second quarters of 2009, almost an equal number of respondents said they expect no growth, a slight/strong decline, or a slight/strong growth. In spite of the current atmosphere, it is interesting to note that when asked about the coming year, half of all respondents were either strongly optimistic (7%) or slightly optimistic (43%), and a little less than half were either slightly pessimistic (31%) or strongly pessimistic (15%). More than half of all respondents believe this economic recession will last 12 or more months.