Hardwood Floors December 2019/January 2020

Interior Design (Continued)

prices and created uncertainty around the pricing of materials. The three-month moving average also slowed to a score of 51.5 in July compared to a score of 53.3 in June.” “This month’s special questions asked our survey panelists if new building construction in their firms’ area impacted project inquiries in a significant way. The same questions were asked the last two years. One in four interior designers (23 percent) said that new building construction had impacted their firm in a positive way, down notably from 2017 when a positive impact was nearly 40 percent. The view that the impact of new construction is negative has grown from 3 percent in 2017 to 13 percent in 2019.” APPLYING THE STATE OF THE DESIGN INDUSTRY TO HARDWOOD FLOORING Housing, hardwood flooring, and interior design are connected – period. Better quality homes are built more times than not with hardwood flooring and other “natural” hard surface materials. Many homes today are still going with the site-installed solid hardwood provided to them by their contractors in order not to upset their construction schedule, which is subject to disruptions in momentum thanks in part to the shortage of skilled labor. However, 2019 is looking strong according to leaders across the design industry, who when surveyed, reported having business prospects throughout 2019 that looked very good. Many had projects already underway or committed to and expect that demand would continue through the remainder of the year. Tariffs are also a challenge to both large and small

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110,280 (and growing) with an expected total revenue of $16 billion. The design industry as a whole is enjoying the robust economy as homeowners and business owners are making improvements to their existing structures, building new, and even expanding. When you combine the commercial, hospitality, institutional, and residential sides of design, the industry reports are all positive according to the ASID Billings Index: “The ASID Interior Design Billings Index (IDBI), a key billings indicator for interior design firms and the profession, dipped in July to a score of 49.6. While an index score of 50 indicates firms saw no increase or decline in business activity, this is the fourth consecutive month of lower scores since the IDBI reached its highest score, 60.8, in over two years. Many panelists note that tariffs have increased Median salary for designers is $70K; while the median hourly rate is $30/hour, the median salary for sole practitioners is $50K Designers and firms that specialize in commercial interiors earn $14,000 more than those that focus on residential projects. Gender gaps exist in pay; men typically hold a disproportionate number of high-level jobs and earn a salary that is $19,000 more than their female counterparts. Men are more likely to engage in salary negotiations than women. NCIDQ (National Council for Interior Design Qualification) and education impacts pay; Designers typically earn +$16,000 more with certification and $17,000 more with a bachelor’s degree

design firms. Tariffs impact firms’ ability to be competitive with other firms vying for the same projects, often driving down margins and squeezing the portions spent on flooring which goes in at the latter part of the project. Interest rate changes by the Fed are also challenging the design world; as well as competition with other firms; price increases on goods, services and construction materials; and shortages of skilled labor. The design industry is said to be at a cross roads and where they go next is up to who points them in the right direction. The future of design is full of possibilities. It is more important now than ever before in its history and plays a greater role in improving the quality of life for more people than ever before. g Emily Morrow Finkell is an interior designer and CEO of EF Floors & Design LLC in Dalton, Georgia, a provider of hardwood floors and home furnishings, and an NWFA design contributor. She can be reached at emily@emilymorrowhome.com.

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