The architect industry has faced numerous challenges in recent times, and one of the latest victims of these difficulties is Cannon Clarke Architects, a 10-year-old practice based in the East of England. Despite employing 12 people at its peak and working on various projects, including housing, leisure, community, and commercial spaces, the company has been forced to enter voluntary liquidation. This unfortunate decision has resulted in the loss of jobs for the six remaining staff members, who had survived a round of redundancies in March. The practice’s two former directors are now working with liquidators to explore the possibility of continuing to assist existing clients with ongoing projects.
The main reasons behind the liquidation of Cannon Clarke Architects are rising costs and falling workloads, according to Jon Brent, one of the company’s co-directors. Brent, a former associate at AHMM, pointed out that regional economic factors, as well as national economic factors, have been unfavorable for the practice over the past year. The number of inquiries and confirmed commissions has decreased significantly, and the process of getting through the planning system has been problematic. For instance, the issue of nutrient neutrality in Norfolk has caused delays, with applications pending for three years without being determined. This has resulted in a substantial portion of the practice’s fee income being affected, making it challenging for the company to sustain itself.
The economic difficulties faced by Cannon Clarke Architects are not unique to the practice. The construction industry as a whole is grappling with increased costs, including the rising cost of construction and obtaining consents. Additionally, the issue of getting viable sites has become a significant challenge, with developers finding it difficult to balance the cost of construction with the gross development value (GDV) of a project. Furthermore, the practice had to absorb the increased cost of National Insurance, as well as the rising cost of employing an apprentice, whose minimum wage was increased by the Labour government. These increased costs, combined with the reduction in workload, made it impossible for the practice to continue operating.
Brent expressed his disappointment and frustration with the situation, stating that the practice had grown in a sensible and organic way, but was ultimately affected by factors beyond its control. He criticized the current government for not supporting small to medium-sized businesses, which are the backbone of the economy. In contrast, he believed that the previous Conservative government had provided more economic support to people trying to make a living and create jobs. The liquidation of Cannon Clarke Architects serves as a stark reminder of the challenges faced by small businesses in the current economic climate.
The Royal Institute of British Architects (RIBA) has also highlighted the challenges faced by architects, particularly those working in the housing sector. According to the RIBA’s Future Trends survey, the housing sector has seen a significant decline in workload expectations over the past two months. The industry bellwether for July suggested that there may be challenges ahead for architects working in housing and in London. Adrian Malleson, the RIBA’s head of economic research and analysis, noted that practices have reported a subdued domestic sector, with weak consumer confidence, increased construction costs, planning delays, and technicians winning smaller projects. The RIBA has also warned of increased competition, downward fee pressure, and persistent planning delays, which are all contributing to a slowdown in the industry.
The liquidation of Cannon Clarke Architects is a sad reminder of the harsh realities faced by small businesses in the architect industry. The practice’s story serves as a cautionary tale about the importance of being prepared for unexpected changes in the economic climate. As the industry continues to grapple with increased costs, reduced workloads, and government policies that may not be supportive of small businesses, it is essential for architects and practices to be resilient and adapt to the changing landscape. The RIBA’s warnings about the challenges ahead for the industry are a reminder that architects must be proactive in seeking new opportunities, managing costs, and advocating for policies that support small to medium-sized businesses. Only by doing so can the industry hope to thrive in these uncertain times.
