Interior Design Services

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 13,400 interior design firms in the US plan, design, and administer projects in interior spaces to meet the physical and aesthetic needs of customers. Revenue comes primarily from design services and product sales. Companies may specialize in a particular sector (hospitality, health care, institutional, residential), room (kitchens, bathrooms, closets), or style (contemporary, traditional).

Demand Driven By Construction Trends

Interior design services are often tied to new construction and remodeling projects.

Design Driven By Trends And Fads

The interior design market is often driven by styles and trends in the fashion world.

Industry size & Structure

The average interior design service provider operates out of a single location, employs 3-4 workers, and generates about $1 million annually.

    • The interior design services industry consists of about 13,400 companies that employ about 45,000 workers and generate $13.6 billion annually.
    • The industry is highly fragmented; the top 50 firms account for 15% of industry sales.
    • Large companies that offer interior design as part of a portfolio of services include Gensler, HOK, and Perkins+Will. The majority of firms are small, independent companies with localized operations.
                                    Industry Forecast
                                    Interior Design Services Industry Growth
                                    Source: Vertical IQ and Inforum

                                    Recent Developments

                                    Nov 21, 2022 - Existing Homes Sales Drop
                                    • Sales of existing US homes fell 5.9% in October from September and were down 28.4% year over year, according to the National Association of Realtors (NAR). October marked the ninth consecutive monthly drop as rising interest rates slow home sales. NAR chief economist Lawrence Yun said, "More potential homebuyers were squeezed out from qualifying for a mortgage in October as mortgage rates climbed higher. The impact is greater in expensive areas of the country and in markets that witnessed significant home price gains in recent years."
                                    • Home remodeling spending is expected to moderate by mid-2023, according to the Leading Indicator of Remodeling Activity (LIRA) report released in October by the Joint Center for Housing Studies at Harvard. Homeowner improvements and repairs are expected to increase 16.1% to $427 billion in the fourth quarter of 2022 compared to Q4 2021. In the first quarter of 2023, remodeling spending will reach $448 billion, up 15% over Q1 2022. Spending will then moderate to $445 billion in Q2 2023, 9.9% over Q2 2022, then remain flat in Q3 2023. Associate Project Director at the Joint Center for Housing Studies said, “Although remodeling market gains are expected to cool significantly next year, homeowners still have record levels of home equity to support financing of renovations.”
                                    • Interior designers are tasked with staying up to date on fashion trends and knowing when looks become stale. According to Styled Staged & Sold, some of the styles to avoid as 2022 draws to a close include classic farmhouse (white-wash, shiplap, barn doors), vessel bowl sinks, matching furniture sets, cowhide, rainfall showerheads, Venetian plaster, wallpaper murals, tile countertops, and the “cloffice” (pandemic-era trend of turning a closet into a workspace).
                                    • A minimalist trend popularized on social media is giving way to bolder home décor styles for 2023, according to Who What Wear. Pent-up demand for travel is inspiring designs that recall the looks of European villas, including replacing heavy drapes with airy linen. Natural light and warm wood tones also underpin the trend. Nostalgia for the 1970s is expected to drive demand for vintage, low-flung furniture, especially with a European look. For color, all-white walls are losing ground to jewel tones, often a different color to set the mood for each room.
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