This article was originally published by a www.houzz.com . Read the Original article here. .
The quarterly U.S. Houzz Pro Industry Barometer surveys nearly 1,000 construction and architecture and design firms on Houzz about their expected, current and recent business activity. The Q2 2026 Barometer also examines how firms are responding to rising cost pressures, intensifying competition and ongoing labor shortages.
The latest report finds that business activity softened across both sectors in the first quarter of 2026. Even so, professionals enter Q2 with cautious optimism, as construction firms signal early signs of a rebound and design firms maintain a steady outlook despite sharper recent declines in project inquiries.
Against this backdrop, firms are increasingly focused on three key areas: managing rising costs and economic uncertainty, strengthening client relationships to stay competitive and evolving recruitment strategies to address persistent labor shortages. Here’s a closer look at how construction and design businesses are adapting.
1. Rising Costs and Uncertainty Weigh on Q2 Outlook
Cost pressures and broader economic uncertainty remain top concerns for construction and design professionals heading into the second quarter.
Nearly half of firms cite rising costs of products and materials as a key challenge (49% construction, 45% design).
Broader macroeconomic concerns also persist, particularly among design firms:Geopolitical uncertainty (23% construction, 30% design)Tariffs (17% construction, 30% design)Client hesitation continues to affect project timelines, with more than a quarter of firms reporting homeowners are delaying project starts (27% construction, 30% design).
In construction, labor constraints remain especially pronounced, with more than two-thirds of firms (67%) reporting skilled labor shortages.
Pros Expect Q2 Rebound After Softer Start to 2026
2. Firms Focus on Client Experience to Stay Competitive
As competition intensifies, professionals are prioritizing client communication and experience to win and retain projects. Improving client communication is the most widely adopted strategy across both sectors, cited by 60% of construction firms and 45% of design firms.
Other approaches include:Adjusting pricing or offering promotions (42% construction, 19% design)Construction firms are more likely to rely on pricing strategies to secure work, while design firms continue to emphasize experience-driven differentiation and branding.
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3. Recruitment Strategies Evolve Amid Labor Shortages
Ongoing labor constraints are pushing firms to rethink how they attract and retain talent. More than half of construction firms are investing in on-the-job training programs (57%), while design firms are more likely to pursue academic partnerships (26%).
Both sectors are expanding digital recruiting efforts:Social media recruiting (35% construction, 36% design)Highlighting use of advanced technology — AI, project management tools like Houzz Pro (10% construction, 16% design)These strategies reflect a broader effort to reach younger, tech-savvy talent while addressing long-term workforce gaps.
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This article was originally published by a www.houzz.com . Read the Original article here. .
As for the traits True and his team look for in a new recruit: “Cultural fit will always be top of the list.
“We also look for people that want to learn and grow and who will thrive within a team environment,” he says. “If a team member is a professional communicator and understands that serving each other is how we best serve our clients, they are Hursthouse material.”
Some skills are harder to find than others, True says. “One is a work ethic of truly caring about the desired result. The balance between an extremely high level of creativity, a terrific communicator and a focused determination to excel at the highest level of client service is a rare find.
“On one hand, I feel it’s getting harder to find special people, as there [seem to] be less people entering the industry,” he says. “On the other hand, people are changing companies more often, so [in some ways] it might be a bit easier. If a company doesn’t take good care of its people, they will have a revolving door — and that’s an opportunity for Hursthouse.
“Our average seniority for team members at Hursthouse is now 13 years, with many over 20, 25 and 30 years,” True says. “We try to have our team sing about how great it is to work at Hursthouse.”
This article was originally published by a www.houzz.com . Read the Original article here. .
“From the start, Soloway Designs has set one of its goals to create and grow an exciting professional work environment,” says Marc Soloway, architect, founder and principal at Soloway Designs in Tucson, Arizona. “The atmosphere is light, but quality work is produced, deadlines are met and client satisfaction is at the forefront. Our office is a giant family, and as we grow, and during interviews, we endeavor to make sure each new hire will be a good fit.”
Soloway describes reviewing hundreds of resumes to source a new employee. He says the company is seeking “a personality that fits with our team. A quality work ethic, knowledge of what the position requires, desire for further growth are a few of the critical success factors for a potential new employee.”
To find these attributes, Soloway looks beyond what’s written on the page in front of him. “Resumes offer only a glimpse of a potential candidate,” he says.
“The resume and the candidate all too often are not a close fit. For example, a great project in the presented portfolio may indeed be commendable, but deeper discussion may question just how much the candidate actually understands and had uniquely contributed.
“During in-house interviews, we look beyond stated assignments and accomplishments,” Soloway says. “Discussion issues include: Tell me about a particular challenge and how you worked it out. What frustrates you most in the work environment? What are your primary professional growth goals for the coming year? And where do you see yourself in five years?”
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