Design in the property, finance and business services sector

The headline

In our research, businesses in the property, finance and business services sector emerged as some of the more positive towards design.

Four out of five businesses here think design has a role to play in their operations. And even more – 81% – think it’s integral to the UK’s future economic performance. Compared to the average of 67%, this was the highest vote of confidence we found.

The details

How do businesses in this sector see design’s role?

Businesses in the property, finance and business services sector mirror the overall UK picture in their appreciation of design. 17% think it’s integral.
UK average 15%

Overall, 78% think design has some role to play. This is also consistent with the UK average of 75%.

Of the sectors we surveyed, only manufacturing was more positive.

16% of businesses in this sector think design is crucial to their success.

The sector’s businesses are positive about the value of design in a wider economic context. 81% agree that it’s integral to future economic performance, and 66% see a link between design and profitability. They’re more enthusiastic about both concepts than other sectors, such as primary industry, construction, utilities and communications and retail, wholesale and leisure services.

Do businesses in this sector believe it’s worth investing in design?

Over half (55%) the businesses in the property, finance and business services sector believe that, in their sector, it’s worth investing in design.
UK average 50%

Half of businesses also believe that, over the past decade, design has become more important in helping them compete. That’s ahead of the UK average of 46%, and much better than the 30% of businesses in the primary industry, construction, utilities and communications sector.

And nearly two in five (39%) have increased their investment in design over the past three years. Only manufacturing businesses beat this sector, with 44% increasing their investment in the same period. Indeed, 69% of manufacturing businesses say that for them, it’s worth investing in design.

How do businesses in this sector use design?

Almost all types of design are used more than average by businesses in the property, finance and business services sector. Communications design is particularly strong. Almost one in three (60%) businesses use it.
UK average 52%

Of the sectors we surveyed, only manufacturing uses all of these design services more.

Product and industrial design is the only service used to a below average degree by businesses in the property, finance and business services sector.

When it comes to applying design, businesses in this sector are keener than most to use it for marketing. Two out of three businesses do so, compared to half of companies overall.

They’re also keen users of design in other areas of their business, such as externally facing functions including branding and external communications, and internally facing functions like workplace design, internal communications and business planning.

Do businesses in this sector use designers?

Businesses in property, finance and business services are most likely to employ their own internal designers. Two in five (42%) do this.
UK average 34%

When it comes to having design departments or commissioning work from external designers, businesses in this sector follow the UK norm.

How many businesses in this sector have developed new products or services?

Two in five (40%) of businesses in the property, finance and business services sector have developed a new product or service in the last three years. That’s the average for businesses in the UK too.
UK average 40%

How do businesses in this sector compete?

One in five (20%) businesses in property, finance and business services compete on the basis of innovation.
UK average 16%

That’s slightly above average, but manufacturing is far ahead, with 29% of businesses pointing to innovation as the way to get ahead.

Like businesses in other sectors, those in property, finance and business services are most likely to compete on the added value of their products or services (76%). Just under half (46%) of them think of the price or cost of their offer as a key point of competition. Only 46% think this is key, compared to 64% of businesses overall.

How do businesses in this sector think their customers make buying decisions?

Businesses in property, finance and business services think 82% of their private sector clients and 71% of their public sector clients decide to buy on the added value of their product or service.
UK averages 81% and 74%

They think that 18% and 29% of these clients respectively buy because of innovation. That’s more positive than most sectors, and ahead of the UK averages (14% and 19%).

Sector portrait

The property, finance and business services sector is growing.

In 2004 its turnover was £329billion, up an impressive 12% on 2003.

The sector covers a variety of business areas, such as real estate, advertising and financial services. There were 578,146 businesses registered in this sector in 2004, employing 4,535,000 people – an increase of 4% on 2003.

Advertising alone had a turnover in 2003 of £18billion, but the number of advertising businesses fell by 2.9% from 12,555 to 12,189 in the same period.

According to our National Survey of Firms, 69% of this sector’s businesses saw their turnover grow in 2004-05. And 77% said they intended to grow in 2005-06.

More sector information is available from the Office for National Statistics.

How can I use this information?

If you’re a business intermediary

This data could help you make the case to businesses in this sector for competing through design.

Half are already convinced that design is becoming more important to competitiveness. Those that aren’t yet convinced might not want to miss out.

Businesses in this sector primarily use communications design. In contrast, those in other sectors use a more diverse range of design disciplines in their business, potentially increaseing their chances of success.

Likewise, if they’re not increasing their investment in design, perhaps they should. Businesses in other sectors, for example manufacturing, are increasing their investment in design more.

If you’re a design business

There should be multiple opportunities for you in this sector.

Virtually all design services are more popular here than elsewhere, communications design especially so. Similarly, design is applied more widely, especially in marketing.

You could also use the findings of this report to help you persuade clients and potential clients of design’s importance. For example, you can prove that design is becoming increasingly important to competitiveness. Half of businesses think so – more than in any other sector.

If you’re a design educator or student

This sector is potentially an interesting one to study. Its positive attitude towards design’s importance to the UK economy, and competitiveness within the sector, is significant.

For students interested in a career in design, it’s worth familiarising yourself with the property, finance and business services sector. Its use of design is widespread.

If you want to work for a business in this sector, there are ample opportunities. 42% of businesses hire internally, but less than half as many commission agencies.