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Selected Comments from Creative
Firm Respondents
2001 was OK; 2002 was worst in 20 years; 2003 survived; 2004 slowly
getting back on track.
2004 has really picked up. It came through existing clients introducing
new products and moving ahead with projects that had been on hold.
After a quiet 2003, I’ve seen a marked increase in overall
work since January 2004.
2001 was best in our 22 year history. Income in 2003 and projected
income for 2004 is about 50% less.
Things are picking up and there is business out there. However,
it is more competitive and clients are shopping more with regard
to pricing and service.
Gone from a great business to close to zero.
Much better outlook for 2004. We have had a number of projects stalled
since 2002 brought back and finished. Our clientele is industrial
in nature and was hit hard by the economic downturn. They are generally
optimistic about this year, and hopeful as to 2005.
Overall slightly better than last year, but compared to 2001 a lot
worse.
We are very encouraged with the improving climate, are expecting
to double our revenues from 2003, and we’ve been able to double
our staff.
Recovery? What recovery? Business conditions seem to be getting
worse rather than better. Most colleagues report their business
is slowing down rather than picking up.
This is the worst we’ve had it in a long, long time!
Faster, cheaper, better—this is today’s mantra. The
design consultancy business is changing dramatically, with old lines
of business being taken in-house or outsourced to cheap, fast sources
using the visual assets created by the consultantcy.
My view is this business is almost treated as a commodity, is much
leaner, been marginalized, and can be done in hours vs. days, with
less control.
I’ve been experiencing an atmosphere of cutthroat activity.
People want information on creative and business practices without
compensation. It’s an unfriendly environment with those having
little or no experience in the business getting clients, offering
the world at bargain basement prices, and not truly being able to
deliver.
Quite frankly, after thirteen years in business we’re about
to decide whether it’s worth keeping the doors open. For the
past three years, employees have been making more than either partner.
We’re half the size we were in 2001 (from 22 to 11).
After 2 years of struggling we are blessed with an incredible 2004.
We work on a three month backlog. Shortly after 9/11 it dropped
to a couple weeks. It is now back to normal.
Plenty of interactive work. Little profit.
Getting squeezed more and more by freelancers on the low end and
agencies on the high end.
Selected Comments from In-House Department Respondents
Not only has the workload increased but the projects have become
larger in scope.
We have become a viable alternative to the outside agency because
of our on-site convenience, fast turnaround, low cost, and intimate
knowledge of our company’s brand.
Although the work volume continues to increase, my staff has not.
Doing more with less has become a way of life that unfortunately
compromises not only the quality of the work we produce and our
ability to develop well-crafted design, but also employee morale
and motivation.
Corporate cost-cutting measures are forcing us to in-source most
creative and outsource only special needs. The perceived value of
design as a driver of the brand is increasing; however, senior management’s
willingness to back this up with financial support is decreasing
(as product margins are being squeezed and spending is being forced
down). This results in significant cost negotiations with external
creative partners.
With the corporate attitude of “doing more with less,”
without adequate compensation, morale is increasingly an issue.
It is increasingly more difficult to defend the value of design
internally.
Only a recent improvement—in the last month or so.
On balance, we have been on a three-year hiring freeze, but do a
lot of outsourcing and contracting of resources. Much more work
to do, with equal or less resources!
We are lean in staffing and more strategic about who we keep and
who we hire, and more focused on long-term development of people.
Outlook for expanded business into next year is very strong.
Design productivity and awareness now right back to where we were
in 2001.
Staff loss due to attrition, with no new hires allowed.
The business climate has not steadily improved over the last few
years.
We have not begun to see any economic improvement in the Northwest.
Having to do more with less. Senior level management expects 87%
utilization for all non-managerial staff. This is 2% higher than
last year.
We had a pay freeze until early this year. Our department is overworked
and overlooked in the corporate culture.
Comments are edited and paraphrased
for brevity and are broadly representational of those received.
Back to the 2004 Business Conditions
Report
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