Industry News

By Jeff Mottle

COVID-19 and the Arch Viz Industry (April 15, 2020 Update)

My last update was on March 30, so it has been two weeks since the last check in with the industry.  Sadly, things this week are not a lot better and there have been far more drops in projects and quotes.  While I am still hearing glimpses of hope from those less affected, they are now the minority. 

With the pending launch of the new CGarchitect platform coming this month, this is going to be the last COVID update for a while unless I see a tipping point and a sign of a return to more stables times.  Feel free to send me your feedback so I can keep tabs with what is going on.



 

Seeking Assistance

Many studios, freelancers and furloughed staff are now starting to apply for government assistance programs.  Here in Canada the help has been slow, grossly lacking in scope and there is a lot of worry the help is not going to arrive soon enough.  It seems this problem is not isolated. I am reading that many businesses in other countries are facing similar situations. Rents are also a large problem for many studios right now. Next to payroll this often one of the most significant overhead expenses. I have received mixed feedback on studios being able to get support to cover these costs or have their landlords defer payment.

Studios that are significantly affected are leaning into the retained earnings of the company, relaying on lines of credit or business loans.


 

Business Outlook

While there are still a few larger and more diversified studios that have not felt the full brunt of the current business environment, all are preparing for the likely eventuality. Many studios are still seeing new quotes coming in, but all are seeing a massive drop in the numbers. Generally I am hearing a 50-75% drop in what is coming through the door. On the more extreme side, I am also hearing some that have seen all projects postponed or cancelled and the prospects of new work for the foreseeable future is non-existent. When projects are won the time horizons are longer, the feedback loops are being extended and some clients are opportunistically asking for discounts. I have discussed this before, but I would hold your ground here and reduce scope if you feel the client is trying to take advantage of the situation. Account receivables are also starting to grow up as clients are becoming slower to pay.  

Spending has obviously dropped within the industry as well, as I am seeing far too many software and asset vendors dropping their fees with 50-70% off promos.  I am also hearing large drops in revenue from artists selling assets in online marketplaces. This of course correlates to the drop in rendering work in the industry and tightening of budgets.



 

Filling the gap

So what is everyone doing to fill the void?  There certainly appears to be a lot more people turning to social media to create new podcasts, online mini-events and rendering competitions.  Within studios, time is being spent to focus on marketing, working on internal non-commissioned projects, refining and honing internal processes and thinking in some cases how to pivot.  Outside of work, almost everyone has commented about how they are taking their minds off the situation by spending more time with family and their kids.


 

The New CGarchitect is almost here
As many of you have seen me posting recently on social media, the new site is almost done!  We’re in the final stretch of testing and the migration of data. The current site will go down later this week for a number of days while we wrap everything up, do the final testing and get some new content ready for launch day.

This is the single largest investment I have ever made into the site in the last 19 years. It’s very likely the single largest investment the arch viz industry has ever seen in a community platform.  It is the result of five years of planning, one year of solid development, some 25,000 lines of code and thousands of hours of work. CGarchitect is no longer a website, but a platform to enable artists and studios around the globe. 

I have been showing the new site to a select group of studios in the industry and the feedback thus far has been overwhelmingly positive and everyone seems to be quite excited to see it launched. I have to say I am really proud of this site and the work my team has put into it, and I really hope you will enjoy it too!

Finally, many of you have noted the 2020 3D Awards has not yet launched.  Due to the delay getting the new site online and the impacts of COVID-19, I decided to postpone the launch this year.  Currently the plan is to open the call for submissions some time in May, so be sure to keep your eyes open. 

Thank you all for your support and stay safe!
 

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looking forward to viewing the new site Jeff.

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CGarchitect will be reporting weekly on the developments and impacts of COVID-19 on the industry

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About the author

Jeff Mottle

Founder at CGarchitect

placeCalgary, CA