If you’re in the design market, you’re certainly familiar with the headlines throughout the last year pointing to layoffs, budget cutting, and dwindling new business prospects as overall market headwinds weighed on the industry. However, business leaders responding to our survey were actually bullish on their design budgets throughout 2024. 51% noted that their budget improvements for 2024 will increase internal spending, and 49% said a better budget will increase external spending with partners and agencies.

The 51% increasing internal spending is nearly four times more than those who said budget changes this year will lead to a decrease in internal spending (13%), and those increasing external spending are seven times the number of respondents who noted they are decreasing external spending on design (7%)

“Companies are still investing in design, especially as they now look to it as revenue and growth generator”

Clearly this data illustrates companies are still investing in design, especially as they now look to it as revenue and growth generator. Still, the responses are a bit of surprise when considering respondents said their organizations are typically conservative with innovating when facing industry or market headwinds, which have dominated the last 12-24 months.

In fact, 63% of business leaders said they are most likely to focus on their core business or continue with core business while simultaneously exploring new market opportunities during tough economic times. Only 19% said they would focus on looking beyond their core business with new innovations during market headwinds, and 17% said they would continue with core business while placing a bigger emphasis on expanding into new areas.

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