How Did Architects Fare During the Downturn?

16 MIN READ

christine l. albertsson, aia
albertsson hansen architecture, minneapolis


www.aharchitecture.com age of firm: 10 years
firm specialty: Custom homes and residential remodeling
staff: 9, including 3 part-time (2005); 11, including 3 part-time (2008); 9, including 3 part-time (2009); 9, including 3 part-time (2010, projected)
total revenue: $614,000 (2005); $986,000 (2008); $640,000 (2009); $725,000 (2010, projected)
completed projects: 9 (2005); 17 (2008); 10 (2009); 17 (2010, projected)

A series of smart operational moves and an influx of new projects have put Albertsson Hansen Architecture on solid footing for the new year. Taking advantage of cheaper commercial rents in 2009, Christine L. Albertsson, AIA, and husband Todd P. Hansen, AIA, moved the office to a warehouse in a vibrant neighborhood—a lateral move financially, but one that offered more space and parking. With billings down about 40 percent, they slashed expenses accordingly, sacrificing three staff positions, IT support, advertising, education, and client entertainment, and switching from a deluxe health care plan to a health savings plan. “These are hard decisions to make, but it made us look good to the bank.” Albertsson says. “I was really worried when the line of credit renewal was coming up, but the bank was very complimentary; they said we’d done our homework.”

In the last four months, the firm has replenished its coffers. With a six-month backlog of contracts in hand, they recently hired back one employee. Average job size is down, however, as the ratio of new homes to remodels has slipped from 60/40 to 25/75. Albertsson credits some of their resiliency to a new website, launched in 2008, that has become an important marketing tool. And they’ve made themselves more accessible to potential clients, agreeing to meet after hours and going to their homes, if necessary. The firm’s trademark transitional aesthetic helps, too, she says. “We’re not too traditional, not too modern. We can be all things to all people.”

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