ArchiTeam

ArchiTeam is a shared services co-operative headquartered in Victoria, and also registered in Queensland, that aims to be the leading representative of small, independent architecture practices across Australia. Founded in 1991, ArchiTeam now has more than 500 members and is a major advocacy group for the small architectural practices. The co-operative’s focus is on supporting the common good of all its members and is run “by the members for the members”.

The motivation behind the creation of ArchiTeam was the need to provide greater “voice” and support for independent, small architecture practices across Australia. There are approximately 13,300 architectural services firms in Australia that generate a combined annual turnover of $7.7 billion and approximately $2 billion in wages. However, there are no major companies present in the sector and the small independent practices are being squeezed by cheaper drafting consultancies that undercut their prices, and also large multi-discipline firms that have been acquiring smaller firms leading to a decline in the number of small independent practices.

Commercial and industrial building projects such as offices, retail complexes and hotels is the largest market segment for architectural services, comprising around 33% of all revenue in FY2014/15. Institutional building projects such as hospitals, universities and aged- care facilities make up around 18% of the market. Other market segments are new single-unit housing projects, domestic home renovations and multi-unit residential building projects. Domestic housing projects for new building or renovations are highly competitive and price sensitive. Competition from building designers and drafts people who offer lower cost services is intense and it is usually time-intensive, low-margin work for architects.

Architects must be registered with each state or territory jurisdiction in which they operate. This serves as an impediment on small, independent firms operating across multiple states. The cost of establishing an architecture practice is relatively low, allowing easy market entry into the sector. This has resulted in few large firms emerging as major players.

ArchiTeam provides its members with a range of services including Professional Indemnity and Public Liability insurance. It also helps to collectively market the small architecture practice by offering a “Find An Architect” search facility on its website, and peer to peer networking amongst its membership. The co-operative offers discounted continuing professional development (CPD) education programs and an advocacy role for its members and the wider industry.

The extended version of this case study is presented in Australia’s Leading Co-operative and Mutual Enterprises in 2016, which is part of the CEMI Discussion Paper series.