We Are the Design Economy
The stories behind the statistics
Yesterday, the Creative Industries Federation (CIF) released their new report on the impact of Covid-19 and the risk to the creative industries: a potential loss of £74billion in turnover by the end of 2020, which could cost over 400,000 jobs.
We worked closely with CIF and Oxford Economics (who undertook the analysis) to understand the potential impact on design. Using our Design Economy methodology, we looked at how the risk to design extends well beyond the creative sector into every part of the economy.
A design sector that had been flourishing is now under unparalleled pressure. From the end of 2019 to the end of 2020, there could be a reduction of £37billion in GVA and 300,000 design jobs could be lost.
The scale is hard to grasp even as we become used to such huge statistics.
And behind each of these numbers is a story. Of individuals and businesses making changes to how they work in response to Covid-19, with the challenges, learnings and sometimes opportunities that this brings.
As we share these stark statistics, we also wanted to provide a space to hear from design businesses about how Covid-19 has affected them, how they’ve responded and what their expectations are for the future.
Our last analysis of the design economy showed that there were 78,030 design-intensive firms operating in the UK (2017). Since 2010, there had been a 63% increase in such firms compared to a 3.7% increase for businesses across the UK as a whole. Many of these were smaller firms — including small and medium enterprises.
We’ve gone back to three of the businesses featured in our Design Economy 2018 case studies to understand their story: Studio Moross, City ID and Map Project Office. At the time of our original research — working with BOP Consulting — we purposefully chose firms leading or changing their sector in some way, with the aim to bring to life how some firms are using design, illustrating how design is being applied to new and increasingly complex environments.
As we return to these businesses, we once again see designers applying their skills to new environments, and the continuation of creativity and innovation in lockdown. Similar questions emerge for each. What does it mean to collaborate creatively remotely? How do you balance business needs, staff wellbeing and organisational culture under pressure? What works when helping support clients to adapt and innovate in uncertain times? And where can design skills play a role as we all adapt to the new normal?
The stories below feature design businesses that have so far weathered the storm. A combination of adaptation, resilience and sometimes a bit of good fortune — enough work delivered on key projects before lockdown; long term projects that don’t need to be paused; products not yet in the manufacturing stage.
We can’t leave the continuation of the design economy to chance, not when design is so vital to a sustainable and inclusive economic recovery. All of the stories below demonstrate the critical role the designers play working across different industries and supporting other businesses to innovate. There is compelling evidence of the benefits to business of using design, and yet still 40% only use design in a limited way.
In addition to supporting the CIF call for funding for the creative industries, that will ensure resources are in place for designers and design firms during the coming months; Design Council calls on government to:
1. Encourage and incentivise use of design by businesses, building on the government’s support packages for business.
2. Engage with designers to rebuild a more inclusive and sustainable economy for all, generating a commanding lead for UK business
3. Invest in design skills to meet the challenges of today, and for the jobs of tomorrow
There will be many more similar stories right across the design economy. We encourage you to share yours and our calls to action online: #DesignIsVital
‘We went into Doomsday mode — planning for every eventuality’.
Studio Moross
Studio Moross is an interdisciplinary design and creative studio specializing in work for the music industry, entertainment and broadcast sector, consumer packaged goods, and food and beverage.
The impact of social distancing has been strongly felt within the music industry, with the cancellation or postponement of major tours and festivals. Studio Moross has been in the middle of this, in a fortunate position financially having delivered the bulk of their work for clients ahead of festival season, and now working with clients as they adapt their plans and messaging. With live tours anticipated to not fully resume until next year, Studio Moross anticipate the need for their skills will continue, and there are opportunities for smaller agencies to act as a ‘one-stop-shop’ directly supporting other industries as they make changes to how they operate.
However, as a small agency, there is real risk. Kate Moross’ account of their initial response to Covid-19 is one that blends the pragmatism of a business owner needing to make plans, with someone acutely aware of the need to provide stability for their staff. ‘We planned for everything — I wanted to know exactly how long we could keep going if there was no income. There is an important link between financial planning and staff wellbeing, keeping a focus on not adding any further stresses for staff beyond getting the work done and finished for the day.’ During this time, Studio Moross has not had to furlough any staff, and has also been able to honor three job offers made prior to lockdown. But changes have had to be made, for example temporarily stopping paid overtime to control cashflows and working with larger clients that can provide additional stability.
Looking to the future, Studio Moross’ commitment to a culture of collaboration and openness is on Kate’s mind. ‘It’s important that the changes made within design agencies in response to financial pressures don’t mean we take a step back from creating a more diverse workforce and increasing access opportunities, particularly with paid internships and opportunities for young people to see design as a potential career.’
‘Design can have a very significant role in creating a better and fairer society’
City ID
City ID is a city information, urban and wayfinding design company based in Bristol and working internationally. The firm applies visual design and service design techniques to develop physical and digital products and design solutions in the urban environment. Starting with an early innovation project in Bristol, City ID has developed a market for design in urban environments and more recently in the US.
Managing uncertainty has been key to City ID’s response to Covid-19, including navigating varying government responses from the different countries that they work in. In such circumstances, real-time planning and re-planning has been key as new information emerges on how Covid-19 will continue to impact society, with the aim to start thinking about projects six months or one year from now. City ID have also been quick to adapt, listening to client needs and refocusing projects to respond to the changing landscape in the most efficient and effective way possible. In turn clients have been supportive and forward thinking, pushing forward where they can with projects and planning for what comes next, all of which has helped City ID continue to bring in income during this period without the need to furlough staff. At this time agile thinking and design innovation have come to the fore with company securing Innovate UK funding, hosting webinars as well as prototyping solutions to help cities and places.
For Mike Rawlinson, Director and Founder of City ID, the mindsets and skills designers use within their everyday work to focus on people’s needs have been crucial to do this successfully for their clients. Such skills have also had to be turned inwards on their own processes; ‘We were reasonably set-up for working from home and online, with tools like Teams, Miro etc, but we’ve had to think hard about how we undertake design processes in lockdown, and make time for creativity and the sparks in conversation that would normally generate ideas that you could rapidly test and prototype.’ This business need has forced City ID to be more adaptative and responsive in what they do. But Mike also flags the importance of staff wellbeing in this period of change; ‘It makes you think long and hard about personal wellbeing and the need to be as compassionate as possible. Trying to balance everyone’s needs and those of the company is an ongoing challenge’.
Thinking about how we take forwards the lessons learnt during this phase of Covid-19 — on how we live and think about resilience — is something Mike is keen to explore: ‘What this time has shown is that doing things differently — walking more, shopping locally — often small things, collectively can have a huge impact and be a change for greater good, and we have to decide what we go back to and what we can keep’. This might for individual businesses be to explore the value of flexible working, and the value moving to flexible hours and a reduced commute for individuals wellbeing but also for the environment. But Mike also sees the broader opportunity for design to assist: ‘Covid-19 has been a public health crisis, but it’s also been a communication, logistics and management challenge too. These are areas where design can help plan, prepare and work across systems, and in this way design can have a very significant role in creating a better and fairer society.’
‘Existing relationships have come to the fore, where we’ve already demonstrated our value’
Map Project Office
Map is an industrial design firm based in Central London doing work with both major brands (Google, IBM, Sonos) and start-ups in the consumer technology space. Map is passionate about making products — that extends across physical products and digital experiences, frequently designing with and for new technologies including artificial intelligence, the Internet of Things and autonomous vehicles.
Since we last spoke to Map in 2018, the majority of their work (80–85%) now focuses on collaborations with multi-nationals and working more selectively with start-ups where there is useful learning to be gained and design’s critical role can be demonstrated. In 2020, Map were expecting to continue to expand their main proposition, concentrating on fewer projects with a core team of full-time staff, which is complimented by fixed term contracts and freelancers from varying specialisms that allow them to flex how they work to meet specific project needs.
For the most part, this has proceeded as longer-term projects set to be delivered over the next 5–10 years have continued, with some small delays. For Will Howe, Director at Map, existing connections have been key: ‘Whilst still winning new work, existing relationships with clients have come to the fore, where businesses we work with have already seen the value of our work’. With many of these clients operating in the consumer electronics space, where project cycles can last 1.5 years or more, Map have been able to navigate the current climate better than some creative industries. With production often being based in China, Map’s staff would normally be working directly with manufacturers on the ground: ‘We’ve been lucky in the timings of our projects that this has been less of an issue right now, but in the future we’ll need to think about how we travel and work’. This future thinking will bring opportunities to do things in a way that are better for everyone, as designers can play a role in shaping the new behaviours and products we will need to adopt following Covid-19. For Will, the UK is an amazing hub of creativity that ideally placed to contribute to this conversation.
Map have been used to working together remotely, but without regular access to a studio, the need to collaborate more regularly online has meant shifting ways of working and focusing on what processes a modern consultancy needs to have in place. Particular challenges to overcome include how to facilitate the more spontaneous insights that naturally come from a shared space. Working in the open via Slack and filming models at different angles on camera phones are some of the options tried. For Map, having quite a senior team that can work autonomously to challenge and execute ideas has been beneficial, and they have brought in experienced freelancers where needed. With the feelings of frustration and isolation that can come from increased lone working, it’s also important to acknowledge that the need to communicate goes beyond work, to colleagues simply missing each other’s company, and Studio Socials have been introduced as well as live feeds running in the background so the feeling of a studio can be replicated.
