ACA Pulse Check 2025 – National Key Findings
The results of ACA Pulse Check 2025 reveal a profession under pressure. While practices have successfully embraced flexibility, new sectors of work and shifting business models, they are also grappling with significant challenges across revenue, project delivery, risk and fee structures. Many of our surveyed practices are busy right now, but a significant number face a dwindling pipeline and a high level of uncertainty.
The Pulse Check Survey 2025 was conducted by the Association of Consulting Architects (ACA) from 31 March–17 April 2025 and was undertaken by 275 practices. It builds on six previous Pulse Check surveys to create longitudinal knowledge about the ongoing evolution of architectural practice and the profession’s adaptive responses. This informs the resources, advice and advocacy programs developed by the ACA.
Read the key findings below. State-specific analysis is available separately. Click on the following links:
NATIONAL PARTICIPATION SNAPSHOT
The 2025 ACA Pulse Check drew responses from 275 architectural practices across Australia, offering a broad and detailed picture of the impacts of current economic conditions and challenges. The majority of participants are based in capital cities (91%), with the strongest representation from Victoria (36%) and New South Wales (29%). Most respondent practices are long-established, with 43% operating for 21–50 years, reflecting a mature and experienced cohort. The sector continues to be dominated by small practices – 90% of the survey cohort employ 1–5 people – underscoring the importance of tailored support for small and micro firms navigating evolving economic conditions.
WHAT REALLY STOOD OUT FOR US …
The 2025 ACA Pulse Check offers a revealing snapshot of the Australian architectural profession – resilient yet under pressure. Across the country, small, long-established practices dominate the landscape, identifying rising costs, revenue volatility and increasing risk as their key concerns. While firms are responding by finding efficiencies, embracing flexible work and exploring new business models, persistent stress points remain, such as fee underbidding, delayed payments, and project cancellations and delays. There is clear evidence that practices are rethinking how they operate, but they’re also calling for stronger sector-wide reforms – particularly around procurement, contracts, and sustainable fees.
FIVE KEY TAKEAWAYS FROM ACROSS AUSTRALIA
1. Revenue is falling and pipelines are uncertain
Over half of respondents (57%) reported falling revenue in the past six months, while 29% report an increase in revenue and 14% report no change. Almost one in four firms has just 1–2 months of work ahead – or none at all. Delays, cancellations and cost escalations are major disruptors.
“Late payments and budget delays from clients – especially government – are crippling.”
2. Small practices vulnerable to economic shocks
The profession is overwhelmingly composed of small practices – 90% of our survey cohort employ 1–5 people – with little growth since the pandemic. While small businesses are often agile and capable of rapid adaptation, practice size also limits financial buffers, making these practices especially vulnerable to economic shocks.
“Cash flow is tight. Unpaid invoices create stress”
3. Staffing is shifting – new hires and redundancies
Almost half of practices (49%) hired new staff in the past year, but 41% let staff go, mostly due to a lack of work. Recruiting qualified staff remains difficult, and many directors report mentoring and team cohesion challenges, especially in hybrid settings.
4. Undercutting of fees and increased risk
Fee undercutting is identified as a major challenge for 63% of respondents, with a similar percentage highlighting the shifting of risk onto architects. These structural pressures are threatening practice sustainability, even among long-established firms.
“We’re doing more for less – and carrying more liability while we do it.”
5. Practices are adapting – but need support
Many firms are responding to uncertainty with business model shifts – 43% have rethought how they practise and 35% are becoming more selective about projects. Flexible working arrangements are now the norm (94%), and wellbeing is rated as stable, but support is still needed.
“I hired adults who care about the work they’re doing. They get the job done or they flag if they need more resources/hours to keep their project commitments.”
We are on-goingly in contact with our staff about wellbeing, and sacrifice profit for better health and balance in lifestyle.”
STAFFING
What did the Pulse Check reveal about staffing nationally?
- 49% hired new staff
- 41% let staff go – mostly due to lack of work
Challenges
- Attracting and retaining experienced staff
- High salary expectations versus fee realities
- Difficulty maintaining team culture and mentorship in hybrid models
REVENUE
What’s happening with revenue?
- 57% reported revenue declines in the past six months
- 29% saw revenue growth
- 14% saw no change in revenue
Key contributing factors to revenue drop
- Delayed/cancelled projects
- Fee pressure and low-value tenders
- Cost escalation in staffing, insurance and operations
- 26% of firms have less than 2 months of pipeline work, underscoring insecurity
Cost-cutting measures include:
- Salary freezes and director pay reductions
- Improved office systems
- Diversified services
- Cutting non-core expenses (e.g. going paperless)
POSITIVE DEVELOPMENTS
What positive developments are we seeing?
- Many firms are responding to uncertainty by seeking opportunities – 43% have rethought how they practise, 35% are becoming more selective about projects, and 34% are experimenting with hybrid workplace models. Other new opportunities include changing or moving into new sectors (32%), learning new skills and technologies (33%) and developing workplace culture (29%).
- 94% of practices offer flexible working arrangements, including: remote work (86%), flexible hours (85%), unpaid leave (63%) and time-in-lieu (58%)
- Wellbeing rated “good” or “very good” by 73% of practices
- Many practices are prioritising wellbeing and seeking support – from wellbeing guides (48%), peer forums (40%) and leadership culture for wellbeing (27%).
CHALLENGES
What challenges are most pressing?
- Fee underbidding and shrinking margins
- Delayed or withheld payments – especially from government
- Rising business and staffing costs
- Increased risk passed onto architects
- Difficulties with project delivery – cost escalation, cancellations, timeline blowouts.
ACA RESOURCES AND PRIORITIES
What ACA resources were most valued?
- Reliable information (90%)
- Online CPD events (88%)
- Advocacy and lobbying (83%)
- Templates and tools to navigate legal, HR, and operational pressures (82%)
- Mental wellbeing resources (51%)
“ACA’s advocacy for fair contracts and realistic business conditions is more important than ever.”
How ACA will use these insights
Your responses are directly shaping ACA’s national priorities:
- Sustainable fees and education about value
- Fair contracts with clearer risk allocation
- Better promotion of ACA’s support tools, including the underused EAP program
- Guides for hybrid working, wellbeing, and small practice resilience
- Continued pressure on procurement reform, fee benchmarking, and government tender access.