Design firms across the Western U.S. are navigating a year defined less by sharp downturns and more by cautious progress. While uncertainty remains, a dramatic slowdown hasn’t materialized. Clients aren’t disappearing, they’re just moving more deliberately.

“It’s not that the work isn’t out there—it’s just coming with more strings attached,” says Scott Hunter, West Coast regional director and partner at HKS. “Clients are looking for value, flexibility and a delivery approach that helps them stay nimble in a shifting economy.”

Overall, firms on the ENR West Top Design Firms list are reporting solid growth across all subregions, with the largest state, California, reversing a weakening trend this year. The smaller states continue to punch above their weight, consistently showing double digit growth post-pandemic.

The top 25 firms in California and Hawaii reported total revenue of $5.88 billion for 2024, up 9.3% over the same group’s 2023 revenue. That reversed a slowdown trend from the previous few years, when the top 25 design firms in those states recorded an increase of 1.9% in 2023, compared with 5.1% in 2022 and 8% in 2021.

The top 25 firms in the Northwest subregion, which includes Alaska, Oregon and Washington, continued to report significant growth year on year. The group’s combined total for 2024 was $2.3 billion, a 16.4% increase, which follows a sustained pattern of growth of 12.1% in 2023 and 16% in 2022.

Nevada also continued to show robust growth for the top 25 firms. The top firms reported combined revenue of $471 million in the state, up 14.4% from $412 million in 2023. While significant, that growth was slightly lower than the 18.7% increase the top firms saw in 2023 compared with 2022 revenue.

Amazon’s 750,000-sq-ft Last-Mile Distribution Center in Honolulu is reflective of the robust distribution and warehouse sector.
Rendering courtesy MG2

Cautious Optimism

Meanwhile, delivery timelines are stretching and funding cycles are becoming harder to predict, leaders say. Projects are moving forward, but with more conditions and recalibration. Firms say the current climate favors adaptability and proactive planning over scale alone.

“There was a time when agencies were reactive—fix what’s broken and move on,” says Danny Sims, regional head of transportation at WSP USA. “Now we’re seeing a much more thoughtful approach. They’re asking, ‘What will this corridor look like in 20 years? What are the economic impacts?’”

Transportation projects such as the 215 Beltway bridge over Peace Way in Las Vegas have created a stout backlog for firms.
Photo courtesy WSP

Firms are looking at specific strong sectors to focus on such as education and health care.

Larger university systems with diversified funding are moving forward with integrated housing and academic complexes, while smaller institutions are still constrained by budget pressures. Many campuses are prioritizing hybrid learning environments and resilient infrastructure.

“There’s been years and years of built-up demand for housing,” says Scott Hunter, regional director at HKS. “Some of the universities in our state have been pretty aggressive in trying to remedy that.”

A host of airports across the West Coast, including Hollywood Burbank Airport, are undergoing major upgrades and renovations.
Rendering courtesy Corgan

Health care design has shifted toward cost-effective retrofits and compliance-driven upgrades. Renovation now outpaces new construction. “A lot of the health care systems still have a bit of a post-COVID hangover,” says Kirk Rose, principal at HMC Architects. “They’re proceeding very cautiously with construction, and they’re postponing certain major projects because they don’t know what’s going to happen tomorrow with the federal government.”

Still, firms are facing growing challenges posed by industrywide issues. Labor shortages continue to strain delivery capacity across the Western U.S. More than 90% of contractors reported difficulty filling positions in 2024, up from 80% the year prior. The steepest gaps are in senior technical and project management roles. In response, firms are recruiting earlier, investing in internal training and adjusting workflows to prioritize team continuity.

At the same time, many firms are sitting on a backlog of permitted work that could surge into production if market conditions shift. “We actually have almost 3,000 housing units permitted right now,” says Russ Hazzard, president of MG2. “Only one of those is moving forward. But if something wild happens—like the Fed drops rates by 2 percentage points—I know every single one of those clients would say, ‘Start tomorrow.’ And I don’t have the staff to do it.”