China Used to Be an Architect’s Dream. Now, It’s Becoming a Nightmare.
A few years ago, architecture was among China’s most popular and glamorous careers. But as a decadeslong construction boom fizzles, the profession has been plunged into crisis.
By Wang Lianzhang and Xu Cen
Jul 12, 2023
SHANGHAI — Each June, after the results for China’s college entrance exams are released, Chinese social media is dominated by posts offering students a range of tips on how to pick the right major. Lu Chunxi, however, only had one piece of advice to share.
“Think twice about architecture,” the former student said in a video posted on the video platform Bilibili. “After studying for five years at a top two architecture school, I ran away.”
Lu, 24, originally wanted to become an architect because it seemed like a glamorous, “high-end” career. But after years of grueling academic work, she discovered that this image was out-of-date.
Though studying architecture still required more work, talent, and financial investment than other degrees, jobs at Chinese architecture firms were now few and far between — and usually paid little more than bar or restaurant work, Lu found. She eventually decided to cut her losses and retrain as a software engineer.
As China struggles to recover from the pandemic, architecture firms are far from the only businesses feeling the pressure. But the industry’s decline has attracted public attention in recent months — not only because it has fallen so far, so fast, but also because it reflects a wider shift in the country’s economic trajectory.
A decade ago, the profession was a symbol of the Chinese economic miracle, as supertall skyscrapers, cutting-edge cultural venues, and luxury apartment complexes sprang up all over the country. Architecture programs at elite schools like Beijing’s Tsinghua University were among the most competitive in China, accepting only students with the very best exam scores.
zhihao/VCG
But that decadeslong construction boom is now fading, and so are the fortunes of the architects who rode it. Chinese real estate firms, struggling to cope with a historic debt crunch, are cutting back on new projects. That is forcing many architecture firms to shut up shop or make painful budget cuts. Entry-level salaries at some companies are now as low as 4,000 yuan ($550) per month, industry insiders told Sixth Tone.
The speed at which the industry’s reputation has crumbled is striking. In 2013, architecture was named the top career choice for Chinese graduates in education consulting firm MyCOS’s annual report. Architects not only enjoyed the highest employment rate and job conditions, they also reported the greatest career satisfaction scores. But by 2015 it had disappeared from the league table completely, and it has never featured in the list since.
Architecture may have fallen from the throne faster than any other major.
— Southern Weekly
When technology media outlet 36Kr asked over 1,200 Chinese graduates whether they regretted their choice of major this month, architecture students were among the most likely to say yes. “Architecture may have fallen from the throne faster than any other major,” the newspaper Southern Weekly commented in a recent report.
The profession has even been blamed for tanking the ratings of one of China’s most popular reality TV shows. “An Exciting Offer” — a show that features 10 interns competing to win a job offer from a prestigious employer — drew big audiences with its early seasons focusing on the legal and medical industries. But the 2022 season about architects was a flop, attracting less than one-quarter of the number of comments received by the earlier seasons on Douban, a Chinese review site.
The architecture industry’s decline started in the mid-2010s, when rising competition led to a price war breaking out among design firms desperate to win bids. A decade ago, companies typically charged design fees of 80-100 yuan per square meter for a new public construction project; now, firms tend to charge just one-fifth or even one-tenth of that, according to domestic media reports.
But the real estate crisis has made things far worse. In 2022, a string of Chinese property developers faced liquidity difficulties, sparking a loss of confidence among homebuyers and investors. Land and property sales plunged by double-digit levels, while housing prices went into reverse.
Architects have taken a direct hit, as developers cut back on new projects and struggle to meet outstanding payments. Official data shows that the incomes of architects and construction workers rose 1% last year, but industry insiders say that many companies are cutting staff and slashing salaries. Staff wages at Tianhua, one of China’s leading design firms, have dropped by 34% in 2023, according to posts on the job platform Jobui.
zhihao/VCG
Architecture students are increasingly looking for a way out. Cai Yongjie, a professor at Tongji University’s College of Architecture and Urban Planning, said that the number of graduates going on to find jobs at architecture firms had dropped significantly in recent years.
“Five to 10 years ago, most students chose design firms as their first employers,” Cai told Sixth Tone. “But now, even while they’re still studying, some students are already starting to prepare to move into other industries like IT or real estate … The younger generations are facing greater financial pressure in modern cities — it’s understandable that they want to find a job providing a higher income.”
Shen Chao, a representative from MyCOS, said the company had noticed the same trend. While most architecture graduates used to go on to work in architecture and construction, a growing number are now moving into unrelated industries, Shen told Sixth Tone.
“It might be due to the development of the real estate industry being hindered for unexpected reasons,” said Shen.
Zhang, a recent architecture graduate, said he had decided to look for jobs in the media rather than becoming a practicing architect, despite studying the subject for nine years. He has heard from former classmates that starting salaries in the industry have fallen by half over the past few years, and labor conditions have also deteriorated, he said.
“Working overtime is a must, and your labor rights are not guaranteed,” Zhang, who gave only his surname for privacy reasons, told Sixth Tone.
500px/VCG
Liu Jiasan has witnessed this transformation first-hand. When he graduated from Columbia University in 2016, he had romantic visions of designing a landmark building like the Suzhou Museum — a pioneering project fusing modern and traditional eastern Chinese architectural styles.
“The architecture and construction industries were in their heyday, and practitioners would receive the best treatment when I was still at university,” said Liu, who spoke using a pseudonym for privacy reasons.
Things went well for Liu at first. With his prestigious U.S. degree, he received a generous offer from a private design firm in Shanghai, which paid around 250,000 yuan per year. Two years later, he left the position to set up his own studio with two partners.
But the studio didn’t survive the real estate crisis, and Liu was forced to take a design job at a state-owned enterprise. He hoped working in the public sector would at least provide a degree of job security and a stable 9 a.m. to 6 p.m. lifestyle. He was mistaken.
“The number of new projects has dramatically decreased,” said Liu. “It’s becoming harder to collect payments, and it’s even impossible for some employers to afford to pay their staff.”
To compete for an ever-shrinking amount of business, everyone has to work harder and harder. It becomes an endless rat race.
— Liu Jiasan, architect
Though there is less work available these days, architects are having to work more overtime than ever, according to Liu.
“Many architects were too late to shift to new industries, while new graduates are continuously coming into the job market,” he said. “So, to compete for an ever-shrinking amount of business, everyone has to work harder and harder. It becomes an endless rat race.”
Though it receives less attention, architecture firms are increasingly enforcing the kind of grueling “996” working culture that is commonly associated with China’s tech industry.
In early 2022, a scandal erupted when a 26-year-old architect was found dead at home, after working weeks of overtime shifts. Colleagues said the man had regularly been forced to work over 12 hours a day, and sometimes work overnight to finish urgent projects.
As with many similar cases in China, the man’s employer denied responsibility for the death, arguing it was impossible to prove it was linked to overwork. But it still sparked anger among architects, who warn similar incidents may happen again unless firms change their working practices.
“Architects’ lives matter,” said George Ye, an employee at a state-owned architecture firm in Shanghai. “Getting off work at 8 p.m. is a mercy from clients and bosses.”
A model on display at an architecture exhibition in Suzhou, Jiangsu province, 2018. VCG
It’s unclear where the industry will go from here. Lu’s video on Bilibili clearly struck a chord, attracting hundreds of comments. Though many users criticized Lu for throwing away an elite university education, architects often congratulated her for getting out before things got worse.
Yet, some remain optimistic about the industry’s future. Rossana Hu, co-founder of the Shanghai-based Neri&Hu Design and Research Office and chair of the architecture department at Tongji University, says that architecture will always attract young talent, even if local firms continue to struggle financially.
“China’s architecture graduates enjoyed the industry’s unprecedented boom for so many years, so when salaries fall to the ‘median’ level … the students aren’t too happy,” Hu says. “However, in the Western world, architecture has seldom really been among the top-paying careers. Most students don’t do it for the money; they do it for love — the love of design, creativity, contributing to society, and being involved in creating a piece of cultural history in the environment we live in.”
Indonesian thermal coal prices of various grades showed a mixed trend last week, as per CoalMint's assessment. High-calorific value (CV) (5800 GAR) coal prices edged up marginally to $87.12/t. On the other hand, low-CV coal (3400 GAR) prices inched up to $31.71/t. Prices for 4200 GAR inched down to $52.47/t.
Indonesian coal prices showed a slight uptick this week. Little slowdown was seen for low-CV grades with Japan, Korea and Taiwan turning to natural gas as an alternative. The Indonesian market is contending with weak prices for lower grades and also grappling with losses due to their domestic market obligation, which requires them to sell at prices lower than the spot market.
However, low-CV coal saw little support from Chinese buyers as temperatures continue to rise in parts of the country, boosting electricity consumption. Chinese authorities have issued orange-to-red alert in a few regions due to sharp increase in temperatures. Chinese utilities are seeking July-September cargoes on increased power demand.
Indonesian high-CV coal faces tough competition from Australia given the fact that buyers are inclined to procure 5500 NAR coal, while supply from Indonesia remains lower as producers are opposing any price cuts.
Demand for coal remained tepid in India as heavy rainfall across the country has eased power demand, while demand from the sponge iron sector has remained stable. Also, increase in domestic production has led to decreased imports.
It was also heard that Indonesia was facing supply issues as there was incremental demand for mid-CV coal but production for mid-CV grades remain limited.
Indonesia's thermal coal exports fell by 4% m-o-m to 27.86 million tonnes (mnt) in June as against 29.16 mnt in May, data from Statistics Indonesia shows.
India: Portside prices fall
Thermal coal prices of 4200 GAR coal at Kandla port dropped INR 100/t w-o-w at INR 6,300/t. Prices fell on reduced buying.
Outlook
Indonesia thermal coal prices may edge up in the near term on rising Chinese demand. However, demand from India remains on the lower side and may weigh on prices.
https://www.coalmint.com/insights/indonesian-high-cv-thermal-coal-prices-inch-up-w-o-w-458615
In the local market, the buyers’ open soybean price reached 87,000 pesos. However, the volume traded was low due to rumors circulating about a new soybean dollar. In this context, repurchases were between 95,000 and 97,000 pesos.
Regarding the corn market, there was also a low volume of operations, since the participants remained cautious in the face of the rumors of a differential in the exchange rate. The price of available corn was quoted at 49,000 pesos. As for the new campaign, the values reached a maximum of 180 dollars. For its part, available wheat was around 275 dollars.
At the international level, the prices of wheat and corn closed down, despite the fact that Russia announced the end of its participation in the agreement that allows Ukraine to export crops through the Black Sea. However, the price of soybeans closed higher on concerns about dry weather in the US Midwest.
The Rosario Stock Exchange pointed out in its daily report: “Soybean futures closed higher on forecasts of dry weather in parts of the US Midwest, though gains were capped by expectations for an increase in weekly growing conditions in the USDA weekly report.”
Developer says it is beginning studies ahead of licences being granted to meet 2030 deadline
Scottish developer of the 1500MW Seadragon Offshore Wind Project, Flotation Energy has signed a AUS$22m contract with RPS to commence a two and a half-year programme of environmental surveys in the Australian Bass Strait region.
While licensees are still to be announced, Flotation Energy has been active in the Gippsland region since 2019 and said it is commencing its environmental surveys now to ensure that it can deliver its project by 2030.
Carolyn Sanders, Flotation Energy Australia’s head of operations said: "Flotation Energy has been active in the Gippsland region since 2019 – engaging with the community on offshore wind and using our global expertise to ensure smooth and efficient project delivery.
"A significant part of this is commencing environmental surveys now so our project can be delivered on schedule, and as promised – by 2030 – to deliver power to one million homes.
"The Gippsland region has a wealth of renewable energy resources and a 50-year energy legacy to draw upon.
"Our project will bring over AUS$6bn of investment into the region.
"This forms part of an estimated AUS$40bn of proposed energy projects that are already creating employment opportunities and will ultimately lead to a construction boom and long-term operation and maintenance jobs.
"Flotation Energy has grown rapidly for a developer – from two people in 2021 to a team of 18 in Australia, we are committed to bringing our expertise in the UK offshore wind industry to benefit Australia’s energy transition."
The surveys have been designed to characterise all aspects of the unique Bass Strait marine environment, including its use by whales, seals and other marine mammals, fish and sharks, seabirds, shorebirds and migratory birds.
The surveys will involve tagging and tracking of mammals, birds and sharks, deployment of passive acoustic monitors to listen for marine mammals, aerial surveys, boat-based surveys, towed video and baited cameras, grab sampling, environmental DNA analysis and metocean monitoring.
The first marine field survey has commenced with Jasco Applied Sciences deploying the passive acoustic monitors (PAMs).
PAMs record underwater noise and will play a significant role in helping understand how marine mammals such as whales and dolphins use the proposed project area and the wider region.
Collection of all this data will ensure the project is designed to minimise environmental impact and will be used for environmental approvals.
Flotation Energy has already delivered 3GW of offshore wind in the UK, and most recently, the world’s largest floating grid-connected offshore windfarm, Kincardine, off Scotland.
https://renews.biz/87080/flotation-to-start-oz-offshore-wind-surveys/
Gautam Adani-led Adani Enterprises' copper-producing factory at Gujarat’s Mundra will begin operations in March 2024. The greenfield copper refinery project is being made at a cost outlay of Rs 8,783 crore and has an annual production capacity of 1 million tonnes (MT). Adani Enterprises’ subsidiary Kutch Copper Ltd (KCL) is setting up a greenfield copper refinery project for refined copper production in two phases.
For the first phase, KCL has planned a capacity of 0.5 MT and has achieved financial closure through a syndicated club loan, PTI reported citing sources aware of the matter. The first phase is expected to become operational by the end of the current fiscal year, the sources added. The plant will also produce 25 tonnes per annum gold, 250 tonnes of silver, and 1,500 kilotonnes per annum (KTPA) sulphuric acid and 250 KTPA phosphoric acid as byproducts.
The greenfield project completed a full debt tie-up with an SBI-led consortium of banks earlier this year, sources mentioned. They added the entire debt requirement of Rs 6,071 crore has been provided by the banks.
This plant is aimed at meeting India’s copper production needs, reducing India’s dependence on imports, and aiding energy transition. The copper plant has the potential to make the Mundra Special Economic Zone a hub for downstream ecosystems of value-added copper products. The location also provides access to lower cost and uninterrupted energy supply and logistical infrastructure to cater to domestic and international demand.
At present, the company is engaged in long-term supply agreements for copper concentrate. This coupled with strategic location and integrated value chain advantage will help Kutch Copper become one of the most sustainable and lowest-cost copper producers in the world.
The plant’s sustainable solution-based project design will have zero liquid discharge, explore using green power and deploy byproducts for cement and other businesses.
This development comes days after Gautam Adani said at the company’s annual general meeting (AGM) that the copper smelter is on schedule. Adani said: “Of the several projects underway, two of the key ones include the Navi Mumbai Airport and the Copper Smelter, and both are on schedule”.
Oil prices are set to rise to $86 per barrel at year-end, from $80 now, as record-high oil demand and lowered supply will lead to a large market deficit.
“We expect pretty sizable deficits in the second half with deficits of almost 2 million barrels per day in the third quarter as demand reaches an all-time high,” Daan Struyven, head of oil research at Goldman Sachs, told CNBC’s “Squawk Box Asia” program on Monday.
While demand is set for a record high this summer, supply is shrinking. The production and export cuts from OPEC+ and the slowdown in U.S. oil production growth will also play a part in large deficits in the third quarter this year.
According to Goldman’s Struyven, “We expect U.S. crude supply growth to slow down pretty significantly to a sequential pace of just 200 barrels per day from here.”
The total rig U.S. count fell to 669 last week, according to Baker Hughes data on Friday. So far this year, Baker Hughes has estimated a loss of more than 100 active drilling rigs. Last week’s count is also 406 fewer rigs than the rig count at the beginning of 2019, prior to the pandemic.
Also last week, oilfield services giants Halliburton and Baker Hughes both signaled softer demand for drilling on the North American market.
At the same time, there is already evidence of lower supply from OPEC+.
Russian crude oil exports have shown signs of decline for a second consecutive week and are estimated to have sunk to a six-month low in the four weeks to July 16. Russia is preparing to cut 500,000 barrels per day (bpd) off its oil exports in August, and shipping plans so far suggest that Russia could deliver on at least part of its pledge to reduce oil exports next month.
Saudi Arabia’s crude oil exports have also started to decline, to below 7 million bpd in May, for the first time in many months. Crude shipments out of the world’s top exporter could further decline as Saudi Arabia is now cutting its production by 1 million bpd in July and August.
By Tsvetana Paraskova for Oilprice.com
More Top Reads From Oilprice.com:
Steel Dynamics says the market conditions for its sector suggest domestic steel consumption will be ‘solid’ and increasing in the coming years.
The message was included as the company Q2 report revealed an operating income of US$ 706 million (EUR 638 million) with shipments remaining steady at around three million tonnes. Mark D Millett, chairman and ceo, says the operating income was more than double the first quarter sequential results ‘due to significant metal spread expansion across the platform as realised selling values more than offset moderately higher scrap costs’.
‘Steel order activity remains solid from the automotive, construction, industrial, and energy sectors,’ he went on. ‘Recent positive data from the steel service centre sector points to continued low customer inventory levels, which we believe has abated destocking and will support steel pricing.’
Competitive industry
Millett adds: ‘Order entry activity continues to be strong across all of our businesses. We believe North American steel consumption will increase in the coming years, and that demand for lower-carbon emission, US produced steel products coupled with lower imports will support steel pricing.
‘The continued onshoring of manufacturing businesses, combined with the expectation of significant fixed asset investment to be derived from public funding related to the US Infrastructure, Inflation Reduction Act, and Department of Energy programmes, will competitively position the domestic steel industry. We believe this will benefit all of our operating platforms, especially our steel and steel fabrication businesses.’
Steel Dynamics is ‘quickly progressing’ its aluminium flat rolled products mill in Columbus, Mississippi as a ‘meaningful growth opportunity’. ‘We are pleased to further diversify our end markets with plans to supply aluminium flat rolled products with high recycled content to the countercyclical sustainable beverage can industry, in addition to the automotive and industrial sectors,’ says Millett.
https://recyclinginternational.com/business/steel-dynamics-optimistic-future/54379/
Baltic index logs best day in nearly 5 months on capesize strength
The Baltic Exchange’s main sea freight index, tracking rates for ships carrying dry bulk commodities, on Wednesday posted its biggest single-day gain since March, as higher South American exports supported demand for capesize vessels.
The overall index, which factors in rates for capesize, panamax and supramax shipping vessels, gained 105 points, or 11%, to 1,067 — its highest level since July 17.
The capesize index rose 310 points, or 21.8%, to 1,734, its highest since March 1.
Iron ore flows from east coast of South America to China and some coal shipments from Colombia to Europe are the main factors that contributed to the current upward momentum in capesizes, said Yiannis Parganas, head of Intermodal Research Department.
Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes carrying commodities such as iron ore and coal, increased $2,573 to $14,379.
The harvest period being very good for Brazilian soybean exporters has contributed to a price advantage compared to the U.S., which combined with increased demand of soybean from China has helped with the uptick in vessel rates, Parganas added.
The panamax index was up 21 points, or 2.4%, at 916 — snapping its eight-session losing streak.
Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, increased $190 to $8,244.
Capesizes could continue to outperform the overall dry bulk market, but the unresolved real estate crisis in China may keep rates from surging, BIMCO shipping analyst Filipe Gouveia said.
“In the near term, rates for handysize and supramax ships are also unlikely to substantially strengthen, as slow global economic conditions may limit growth for minor bulks,” Gouveia added.
Among smaller vessels, the supramax index fell 11 points, or 1.5%, to 742.
Source: Reuters (Reporting by Sherin Elizabeth Varghese in Bengaluru; Editing by Shilpi Majumdar)
