ACA Pulse Check 2025 – NSW Insights

Emma Brain & Angelina Pillai , 23 June 2025

The responses from NSW participants of the Pulse Check survey reveal a state of contrasts, with some practices struggling to stay afloat, while others are tracking well, focusing on adaptation and innovation. Key challenges include shaky work pipelines, rising operational costs, and recruiting architects with the necessary skills and experience.

THE NUMBERS

The NSW Pulse Check 2025 was completed by 80 architectural practices, with strong metropolitan representation – over 82% based in capital cities. The sector remains highly experienced, with nearly 60% of firms operating for more than 20 years. While the 1–5-person practice remains the dominant model, overall staff numbers have contracted notably since 2019.

WHAT REALLY STOOD OUT FOR US…

The 2025 ACA Pulse Check reveals a profession navigating many changes and challenges. Across NSW, practices continue to face pressure from short pipelines, rising costs, and a tightening talent market. Yet at the same time, many are evolving – embracing flexibility, investing in wellbeing, and finding new ways to deliver value. What stands out most is the contrast in experience – while some practices are struggling to stay afloat, others are adapting and innovating. The NSW architectural profession is anything but uniform.

FIVE KEY TAKEAWAYS FROM NSW

1. Work pipelines are still shaky

Ongoing uncertainty dominates. Nearly 50% of practices reported they had already let staff go or feared they may need to. Many struggle to forecast beyond the next few months, hampering confidence and planning.

2. Profitability under pressure

Rising operational costs continue to bite. Wages, compliance burdens, insurance premiums, and materials are squeezing margins. While a few practices report improved efficiency, most cite profit erosion.

“I’ve had to reset to make more profit off less revenue.”

3. Diverse realities

Several responses were split down the middle – on staffing, wellbeing, and financial outlook – suggesting vastly different experiences across practice size, location and sector.

4. Recruitment challenges remain

Although 50% of practices hired staff, most found it difficult to source suitable applicants.

“Registered architects who come from novated projects have very basic construction skills.”

5. Wellbeing is improving – but unevenly

Most practices report stronger team culture and wellbeing than in the past, with over 90% offering flexible work. However, many cited external stressors (e.g. cost of living) and leadership burnout as ongoing concerns.

FURTHER INSIGHTS

What did the NSW Pulse Check reveal about staffing?

  • 50% of NSW practices hired new staff in 2024
  • 50% either let staff go or may need to soon, citing lack of work, skill mismatches, or cultural misalignment as key factors
  • Quality of candidates was the top recruitment concern – more so than availability
  • Key shortage areas – mid-career generalists and technically capable registered architects

What’s happening with revenue?

The report reveals a mixed picture on revenue:

  • Some practices report stable or even growing revenue, often due to niche sector focus or new service offerings
  • Others cite falling revenue with higher costs, driving margin compression and difficult staffing decisions
  • Comments suggest a trend towards doing more with less – streamlining teams and resetting expectations.

“Our revenue is steady, but we’re running leaner and smarter than ever.”

For many, their concerns are around profitability and cash flow rather than revenue totals. Fee competition, client expectations, and delayed payments are persistent issues.

What positive developments are we seeing?

  • 94% offer flexible working arrangements, including WFH, part-time, flexible hours, and 9-day fortnights
  • Staff wellbeing is supported via informal and structured check-ins, shared social activities and mental health support, and use of internal wellbeing champions and the ACA’s Employee Assistance Program (EAP) service
  • COVID forced many to formalise better systems and rethink business models.

What challenges are most pressing?

  • Work insecurity
  • Low fees and rising costs
  • Staffing capability gaps
  • Burnout risk for directors
  • External pressures on staff – housing, inflation and wellbeing.

 What ACA resources were most valued?

Members highlighted several ACA resources as particularly helpful this year:

  • Employee Assistance Program (EAP): The ACA EAP was widely used and appreciated, especially by small to medium practices without their own HR teams.
  • ACA Guides on flexible work, HR, and contract admin: These provided much-needed clarity for practices managing changing staff needs and client expectations.
  • ACA Pulse Check itself: Members valued the benchmarking and insights, with several noting they use it to guide internal planning.
  • Events and webinars: Short, focused briefings were especially popular – particularly those offering legal, industrial relations, or fee-setting insights.

“ACA is the only voice consistently pushing for better business tools and conditions for architects – keep going.”

How the ACA will use these insights:

Your responses are shaping ACA’s current and upcoming activities and offerings, including:

  • Business resources and pricing tools for better margins
  • Leadership development and wellbeing case studies
  • Stronger advocacy for fair procurement and contract reform
  • Continued work on education-to-practice readiness
  • More targeted resources for sole practitioners and emerging practices.

Photo: Dominic Kurniawan Suryaputra, Unsplash