Profitability in the design industry increased slightly in the past quarter, but the sector still remains the lowest of all the marketing services disciplines monitored by accountancy group Willott Kingston Smith.
According to the latest issue of WKS’s Marketing Monitor, productivity within the industry remains almost unchanged, falling just 0.4 per cent, and gross income per head is now £81 509 on average, compared with £81 891 previously.
Operating profit per head has increased by 5 per cent to £6973, but that falls way short of WKS’s suggested £15 000 target.
Overall, profitability improved slightly as overheads fell. Operating profit margins have risen from 8.1 per cent to 8.6 per cent.
Esther Carder, partner of WKS, says, ‘The project side of the work, combined with the lack of bullishness to charge a price that reflects the value of the work, has resulted in the design industry lagging behind in margins.’