GD Industry in trouble in the UK?

[CHRISGEE]

I found a 2 part article on the current sorry state of the GD industry in England and I found it so troubling that I made it the subject of one of my recent blog entries:

www.thepreparedmind.com/pm/index.php/2005/04/12/hearing-no-evil/ (http://www.thepreparedmind.com/pm/index.php/2005/04/12/hearing-no-evil/)

What do some of you guys think about what's going on in the GD industry in the UK? WHY is there not a similar report on the GD industry in the U.S.?

I read the newspapers. I watch the news. I never see any type of report on what the financial outlook or breakdown is on the GD market in the U.S.

Are our industries in trouble and we don't even know it?

Here are some of the lowlights from the article:

Icograda.org website said...
- Turnover down by GBP 1.4bn to GBP 3.9bn (-26%)
- Fees down by 0.5bn to GBP 3.1bn (-13%)
- Overseas income down by 0.1bn to 0.5bn (-13%)
- Employees up from 68,000 to 70,000 (up by 3%)
- London market share down by 0.4bn to 2.2bn
- 58% of the sector now occupied by the 0-5 employee bracket

And if that's not depressing enough, here is more:



Icograda.org website said...
So what happened?

Slow recovery
The results suggest that client companies have not yet fully recovered from the economic down turn and agencies may have to wait a little while longer before whilst client confidence re-builds and marketing activity significantly increases. These figures are one year behind and anecdotal indications are that client marketing activity is beginning to increase.

Redundancies
The continued redundancies brought about an increase of new start-ups as well as shrinkage in the 6-10 employee bracket has seen the 0-5 bracket increase to occupy 58% of the market (up from 54% over 2003/3 and up from 34% in 2001/2).

Design has become a ‘commodity’. Agencies are competing purely on price rather than on expertise & market sector experience especially in the 0-5 bracket. This is upheld by results which show that the 0-5 share of turnover has decreased even though in terms of percentage they make up the larger part of the industry.

Fees
Fees charged are at an all time low - the post Millennium boom time kept fees at a respectable business level. Today fees rates are at 1993 levels despite annual increases in salaries and all other operational costs.

Design agencies are operating today at near freelance rates.

Independent designers, writers, marketing professional, PR professionals, charge from GBP 350 to GBP 600 per day. Design agencies providing higher value resources and carrying substantially higher business overheads are charging the same day rates as many independents.

And unlike the independents, who do charge hour for hour agencies often exceed the chargeable hours. The client quoted an 8 hour day often benefits from designers and project managers unpaid over-time.

Hours actually spent on a project often exceed the hours charged to the client. Factor in an estimated 20% over-budget, covered by unpaid overtime and chances are that agencies are earning the same as or less than the independent consultants and freelancers!

Any thoughts? Any designers from the other side of 'the pond' wanna weigh-in? Also, anyone have ANY idea where there might be some data about our industry here in the U.S.?

Chris Gee
www.thepreparedmind.com (http://www.thepreparedmind.com)

[PrintDriver]

I'd say those bottom quotes about nailed it for here too...(haven't read the article. No more lunch time left)

I've seen some rather ghastly trends lately that can only be happening because of competitive bidding by design firms. But I'm in a weird segment of this industry and on the print side to boot...

PD is a grande format digital print dude. His advice/opinions may not apply to the 4color/offset/web world of printing

[CHRISGEE]

I find those figures very troubling to say the least. What's worse is that I haven't been even able to find such a report for the U.S. industry.

AIGA site? Nothing. GAG site? Nope. ADC site? Still comin' up with nuthin'.

Where is the analysis and critical thinking coming from in our industry? It seems like we have a bunch of organizations here in the U.S. that are more about get togethers, parties, contests and conferences than they are about analyzing the shape of our industry and seeing what can be done to change it.

At least in the UK, they KNOW and acknowledge that there is a problem and have outlined steps to solve them. That's a helluva lot more than we can say on this side of the pond.

Chris Gee
www.thepreparedmind.com (http://www.thepreparedmind.com)

[PrintDriver]

Now think a minute...
- Colleges with GD programs don't want people to know there is a crisis or kids may not go into design ergo the colleges don't make money.
- The AIGA and GAG charge rather high membership fees without offering a lot in return. The more members, the more money.
- Buyers in the US always go for low bidder (well, not ALWAYS) and don't seem to mind shoddy product or poor workmanship.
- Employers in the US don't want to pay decent wages to employees so they can keep the money at the top, so of course they want a pool of low skill, low pay designers.
- Take a look at what is considered 'entry level' today in the GD industry and tell me there isn't a problem.
- Does anyone in the US even know how to analyze things beyond what to watch on Reality TV tonight or to think critically anymore?

You're right, no one seems to be analyzing this. Even Trendwatch says things are on an upswing (but I'm not paying $800 to find out where!!!).
www.trendwatchgraphicarts.com/reports_2004/creativeforecast2005.html (http://www.trendwatchgraphicarts.com/reports_2004/creativeforecast2005.html)
I beg to differ.

PD is a grande format digital print dude. His advice/opinions may not apply to the 4color/offset/web world of printing

[reuber1]

AIGA said (http://journal.aiga.org/content.cfm?ContentAlias=%5Fgetfullarticle&aid=968 118)...


So where do the “professional” designers fit into this brave new world of homemade content? Rather than become extinct, I’d venture to say that our skills might actually become more valuable. As the mass media continues to look and sound like an endless stream of public-access hokum, the designers of the future will be sought after to bring clarity to the chaos.
Not exactly what you guys are talking about...this essay is rather about people who create their own independent garbage on the web and how everyone is a designer of some sort, but I still think it applies when it concerns the secretary doing the company newsletters or the client who thinks that type in all caps everywhere will get people's attention more.

Everyone thinks they're a designer, and I think because of that this quote is false...I think as this nation (can't speak for the rest of the world) gets dumber and dumber via mass media and as budgets become tighter due to corporate greed (if the secretary can do it, why do we need a designer?) then things will get worse. Designers won't be sought, they'll be forgotten among the ignorance and the greed.

I'm trying to be optimistic that something good will happen, but then again...

"Nicotine, Valium, Vicodin, Marijuana, Ecstasy and Alcohol..."
"Nicotine, Valium, Vicodin, Marijuana, Ecstasy and Alcohol..."

[Ulysses]

PrintDriver said...
Buyers ... always go for low bidder (well, not ALWAYS) and don't seem to mind shoddy product or poor workmanship.

This is an all too common trend. Fact is, a large number of people have expectations for things of a quality beyond their true appreciation and budget. They cannot see past immediate aesthetics (and even then, through a frosted lense that is 'their stupidity'). Like when you're a child, and someone bought you a Taiwan immitation of a popular toy for your birthday; it seemed fine from a distance, but it's inferior manufacture and materials were immediately recognizable, even to a youngster. For twice the money, they could have bought the original that'd last forever.

Today, it seems everyone is finding it financially viable to produce shoddy products, just because the market is oversaturated with people happy to buy in. Where does that leave the companies that would otherwise produce quality products!?

As for design in particular ... it would appear to be no different. I know companies that have downsized or completely shut shop ... designers who were making a good living, have been reduced to freelancers (which lets face it, is a large work force today - people don't trust companies to be around too long).

I'm all for keeping profits up, but if it means hiring outside your own country or taking on people that take the lowest wage, then as far as I'm concerned, that company is simply unaware and/or has a disrespect of the long-term effects that decision will have on this country, and the design industry in general. Alas, this trend of 'Don't pay them to do it ... I can do that for nothing, using this software program I found' theoretically puts every professional's job in jeaporady ... but as was pointed out in numerous threads back ... just because you've watched ER, doesn't mean people are going to trust you to operate on them. Design however, is not a life-or-death occupation in essence, and thus I feel people are taking the stance that if they have the tools ... then they can do the job.

Yes, in today's world of equality - where everyone has the right and access to give anything a try - we've created a bunch of idiots that really think they can do anything the next person can. Indeed some people truely are professionally multi-skilled ... but they are certainly few and far between.

[CHRISGEE]

Great points. But I say again, at least the GD Industry in the UK has acknowledged that there IS a problem and is taking steps to address it. More than we can say here in the U.S., where we prefer to stick our heads in the sand.

Most clients are clueless, which is probably about the same as most people who call themselves 'designers'. They deserve each other.

But just as there is a large percentage of clients who will be happy with any manner of garbage, there is also a percentage of clients who want and expect quality and are willing to pay for it.

We should, as an industry, be prepared to meet the needs and challenges of those clients who want quality. We should be making it easier for them to find and work with us. We should be estblishing a dialogue with them and finding out what their long-term business needs are and how we can meet them.

Who cares about the deadbeat, cheapskate clients? Let the hacks have 'em. The two will be happy with each other. Let us concentrate on the clients who matter and nurture those relationships for the good of our industry.

Chris Gee
www.thepreparedmind.com (http://www.thepreparedmind.com)

[PrintDriver]

The percentage of high end clients is still small when compared to the quantity of relatively competent designers. And they are very hard to find. If you do find them they would more than likely already have an established relationship with a reputable design firm.

I think the major designers are already meeting the needs of their clients. And I don't think the clients have any trouble identifying an established designer.

ChrisGee your last post is on a completely different tack. The problem in the US is a general apathetic attitude and a misguided feeling of entitlement.

PD is a grande format digital print dude. His advice/opinions may not apply to the 4color/offset/web world of printing

[CHRISGEE]

PrintDriver said...
The percentage of high end clients is still small when compared to the quantity of relatively competent designers. And they are very hard to find. If you do find them they would more than likely already have an established relationship with a reputable design firm.

I don't find that to be the case. There are new companies and divisions of companies opening CONSTANTLY. These are not all cash-strapped, mom and pops but often well-funded concerns that are run by experienced managers who do understand the value of marketing and design.

While I do think there are plenty of qualified designers out there, I think we make ourselves tough to find. I don't, for the life of me, know how a potential client would find a qualified designer. Unless they know someone who is happy with their design relationship, they're either going to be putting ads onto HotJobs or going to a recruiter.

While I'm not opposed in principle to recruiters or HotJobs making a buck, it seems that we communications professionals could make the process easier for our clients to find us. AIA, ASID, IDSA and other design professions who have their collective acts together, list a wealth of this type of information right on their websites.

If you have this kind of project, you should hire this type of designer. These are the skills they will have. These are the benefits of working with them. Us? Bupkis. Find us how you find us. Or not.

PrintDriver said...
I think the major designers are already meeting the needs of their clients. And I don't think the clients have any trouble identifying an established designer.

I'm not so sure about that. Of course, in the U.S. the design industry can't even be bothered to do any studies involving our clients to find out whether we are meeting their needs or not. The report from the Design Council (http://www.design-council.org.uk/resources/assets/assets/pdf/Publications/Design%20in%20Britain%202004-2005.pdf) states that 11% of the clients interviewed in their study stated that they would prefer to work with an accredited designer. So I'm not sure that clients 'don't care' or find it easy to identify established designers. Not if we listen to what THEY have to say, anyway.

Chris Gee
www.thepreparedmind.com (http://www.thepreparedmind.com)

[PrintDriver]

Maybe I'm warped by the industry I'm in. It's all showbiz of one kind or another and the end client DOES know who 'the best' designers are and where to find them. Experienced managers should know where to find designers. If they don't they aren't experienced enough. If they don't personally know of one, they have contact with experienced collegues who do know. It's called networking. With the web, it isn't too hard to research available talent and determine skill level and establishment (but don't believe everything you read).

No there isn't a central clearing house for designers. If there was, it would probably be typical, American, pay your fee and you're in no matter what your skill level (like AIGA, GAG, etc).

The Hotjobs or Monster ads placed by HR departments with no clue for what is needed are the scary ones. You may have no manager savvy enough to know what to look for in a designer but it isn't the design industry's fault if people without a clue are put into hiring positions. Even here on the GDF we've seen examples of AD's and marketing directors who don't know that PMS doesn't mean that time of the month.

The people who turn to Agencies for their designers have a better clue. Most Agencies test their pool of workers before they take them on and at least can guarantee some skills to the hiring company. An agency will tell a client if a specific designer has the skills to fill a certain job - or at least they should.

A good design firm has its own ear to the ground looking for those new companies and promoting themselves to those new companies. Perhaps you shouldn't wait for someone to find you. Go out and look for them.

PD is a grande format digital print dude. His advice/opinions may not apply to the 4color/offset/web world of printing

[CHRISGEE]

PrintDriver said...
Experienced managers should know where to find designers. If they don't they aren't experienced enough. If they don't personally know of one, they have contact with experienced collegues who do know. It's called networking. With the web, it isn't too hard to research available talent and determine skill level and establishment (but don't believe everything you read).

You think so? You think an experienced manager just ought to, in addition to all the info they need to do their own job, be equipped with an understanding of what makes a good designer and how to find one? Wow, that's pretty tough! Should they also know how to find/hire an accountant, lawyer, auditor, marketer, etc?

Or should they JUST know all about how to hire a graphic designer?

I remember at my old agency, I was one of the people who had the task of building our agency's web design unit from the ground up. Hiring designers was no problem, I knew what I was looking for. But I, and the others who were charged with building the department along with me, were dumbfounded when it came to hiring a qualified Web Developer. Maybe we just weren't good managers, otherwise we'd have known?

The web and Internet industry is young, so MAYBE there is an excuse there. But our industry is not so young. We're like child stars: everyone THINKS of us as young but really we're middle-aged and have prostate problems.

PrintDriver said...
No there isn't a central clearing house for designers. If there was, it would probably be typical, American, pay your fee and you're in no matter what your skill level (like AIGA, GAG, etc).

Or like the AIA, ASID or IDSA -- which take designers through a rigorous testing process, have established standards and accountability? Maybe instead of 'typical, American' the words 'typical American Graphic Design Industry' would be far more accurate and at the same time far less sweeping and generalized?

PrintDriver said...
The Hotjobs or Monster ads placed by HR departments with no clue for what is needed are the scary ones. You may have no manager savvy enough to know what to look for in a designer but it isn't the design industry's fault if people without a clue are put into hiring positions.

Fair enough. But it IS our fault that we don't even make a pedestrian effort to inform the public or the business community, nor do we offer a centralized place where they can go to get edification. We shouldn't place unfair blame on our industry where we DON'T deserve it, but PrintDriver I think we have to step up and accept the blame where we DO deserve it. There are -- as with all things -- things our industry does well and things our industry does not do well.

We'll never get better at the latter if we're not brave enough to first face up to it.

PrintDriver said...
The people who turn to Agencies for their designers have a better clue. Most Agencies test their pool of workers before they take them on and at least can guarantee some skills to the hiring company. An agency will tell a client if a specific designer has the skills to fill a certain job - or at least they should.

Again, fair enough. But my focus is on our industry's response. What is our role in this, if any? What obligation does our industry have to enhance this type of knowledge in the business community? I'm talking self-interest, not altruism.

PrintDriver said...
A good design firm has its own ear to the ground looking for those new companies and promoting themselves to those new companies. Perhaps you shouldn't wait for someone to find you. Go out and look for them.

Well thanks for the tip but I've had my own firm for almost 4 years now and turn down offers from agencies and design firms. Larger agencies are free to hire us to collaborate on projects but I have no interest to ever be in someone else's employ. My motivation is more in the interests of our industry.

I was able to get a design education, work in design firms, get a good design training and eventually own my own firm in large part because the foundation of this industry had been laid by folks who came before me. Other designers laid the foundation for future designers, however that foundation is now beginning to wear and crumble.

We need to make changes so that one day others can enter this industry and have the same opportunities for prosperity and success that you and I currently enjoy. After all, someone left the lights on and food in the fridge for us. How selfish for us to just take what we can, use it up and leave the place bare.

Chris Gee
www.thepreparedmind.com (http://www.thepreparedmind.com)

[Kool]

Chris, welcome to our forum. You have some pretty strong opinions on this subject and that's fine, we welcome discussions like this but your posts are starting to get a little hostile. Take it down a notch ok, you're very new here. Read our FAQs. Agree to disagree and move on.

Your friendly moderator,
Kool /DesktopModules/dotNetBB/emoticons/cool.gif

Sound advice I recieved from my 2 1/2 year old granddaughter:

'Grandpa, don't eat the popcorn bones'

[CHRISGEE]

No problem. I'll admit to not having read the FAQs initially. Sorry if I've offended anyone. Consider my from now on on notch 3. /DesktopModules/dotNetBB/emoticons/wink.gif

Chris Gee
www.thepreparedmind.com (http://www.thepreparedmind.com)

[Kool]

Great, it sounds like you have some valuable experience to share with designers wishing to move their business out of the spare bedroom and into that office downtown.

As far as this whole state of the industry thing. It is what it is. It's going to take a dedicated group of people and a whole lot of money to change it. /DesktopModules/dotNetBB/emoticons/cool.gif

Sound advice I recieved from my 2 1/2 year old granddaughter:

'Grandpa, don't eat the popcorn bones'

[PrintDriver]

I don't mind.
Like I said, I'm warped by my environment. Read my sig line.
;)

PD is a grande format digital print dude. His advice/opinions may not apply to the 4color/offset/web world of printing

[CHRISGEE]

Kool said...
Great, it sounds like you have some valuable experience to share with designers wishing to move their business out of the spare bedroom and into that office downtown.

Well maybe they stay in their spare bedroom, save the money they'd be spending downtown and buy that beach house they always wanted! LOL! /DesktopModules/dotNetBB/emoticons/wink.gif As long as we're all prosperous and happy, that's all I want.

Kool said...

As far as this whole state of the industry thing. It is what it is. It's going to take a dedicated group of people and a whole lot of money to change it.

Dedicated group of people? Absolutely. A whole lot of money? Maybe not as much as we think. I think a few dedicated people can typcially change things. A few dedicated people usually do.

Chris Gee
www.thepreparedmind.com (http://www.thepreparedmind.com)

[CHRISGEE]

PrintDriver said...
I don't mind.
Like I said, I'm warped by my environment. Read my sig line.
;)

I'm glad to hear that. If I come off a bit strong, it's only because I'm passionate about our industry.

My goal is to keep the debate alive and to keep certain issues on the forefront. Talk. Debate. Discuss. Disagree. It's all healthy. To be sure, it's needed.

At the end of the day, even if folks disagree with me, the purpose of keeping folks talking about these issues is still met.

Chris Gee
www.thepreparedmind.com (http://www.thepreparedmind.com)