Designing a Super-firm

"Starchitects" like Frank Gehry and Renzo Piano may dominate the headlines. But it's the super-firms that dominate the global building industry. Rampant mergers and acquisitions are resulting in firms that are powered by an unusually large collection of architects. The recent acquisition of New Jersey's Hillier Architecture by Edinburgh (Scotland)-based RMJM, followed by the July 6 acquisition of Baltimore-based RTKL Associates by Arcadis, whose global headquarters is in Arnhem, Netherlands, exemplifies an emerging trend in which architectural firms are shelling out big bucks to super-size themselves.

"Consolidation is coming late to design because a lot of the firms were very focused on individual markets," says Kermit Baker, chief economist for the American Institute of Architects (AIA). "Now firms are seeing the benefits of scale in terms of being more competitive and diversified and being better able to weather the ups and downs of local construction cycles. The trend is likely to continue."