Design productivity down but profits up, report shows

Productivity in the design and branding sector has dropped in the past six months, but profitability has increased, according to a new industry report.

The latest Marketing Monitor survey, by accountant Kingston Smith W1, shows that gross income per head has dropped by 1 per cent to £82 592 since December 2008.

However, there has been a 29 per cent increase of operating profit per head, to £10 242 in the same period.

The report states, ‘Pressure from clients on prices and for more time-consuming new business processes are invitably affecting productivity, but designers have responded with tight cost control in order to remain profitable.’

A total of 30 selected design consultancies were polled for the report.

The survey also shows that gross income in the digital sector has risen by nearly 14 per cent in the same time period, making it the highest growth sector in the marketing mix.

The report adds, ‘The full impact of the recession will be seen in results not yet published.’

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