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1.5 Development-led Archaeology Turnover and Profit

Gihan Kamel analyses particles at the infrared beamline lab.

Latest Data: 2020

This section reviews data provided by respondents working in development-led archaeology. Question logic was used in the survey so that only respondents that identified that they undertook contractor or consultancy work saw and answered these questions.

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The following table (1.5.1) presents a breakdown of respondents turnover. It also includes data the the State of the Archaeological Market to present a time-series of the results.

Table 1.5.1: Respondents to the turnover question and the total, average, median, highest and lowest responses from 2013-14 to 2019-20. UK only.

2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
Respondents 20 39 24 32 31 33 47
Total turnover £32,834,400 £73,302,177 £70,275,504 £75,148,256 £79,153,726 £52,065,477 £109,263,648
Average turnover £1,641,720 £1,879,543 £2,928,146 £2,348,383 £2,553,346 £1,577,742 £2,324,758
Median £740,935 £864,000 £755,618 £643,500 £1,000,000 £250,000 £550,000
Highest £6,578,420 £10,905,000 £12,484,000 £13,500,000 £14,100,000 £16,434,811 £16,434,811
Lowest £68,000 £54,000 £15,100 £33,000 £20,553 £4,500 £2,000

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The distribution of respondents’ turnover is presented in Table 1.5.2.

Table 1.5.2: Distribution of turnover from 2014-15 to 2019-20. UK only.

Turnover 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
Count % Count % Count % Count % Count % Count %
≥ £10m 2 5% 3 12% 3 9% 3 10% 2 6% 5 11%
£5m – £10m (exclusive) 3 8% 4 16% 2 6% 2 10% 1 3% 1 2%
£2.5m – £5m (exclusive) 2 5% 0 0% 1 3% 1 3% 2 6% 2 4%
£1m – £2.5m (exclusive) 8 21% 3 12% 6 19% 9 29% 5 15% 11 23%
£500,000 – £1m (exlusive) 13 33% 7 28% 8 25% 7 23% 1 3% 6 13%
£250,000 – £500,000 (exlusive) 7 18% 3 12% 4 13% 6 19% 6 18% 5 11%
< £250,000 4 10% 5 20% 8 25% 3 10% 16 48% 17 36%
Total Responses 39 25 32 31 33 47

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On the basis of reported turnover, calculated per member of staff and the total estimated number of archaeologists working in development-led archaeology in the UK in 2019-20, it is estimated that the total financial value (turnover) of UK development-led archaeology in 2019-20 was £224m.

Table 1.5.3: The average turnover per employee, estimated number of archaeologists and total value of the development-led archaeology sector, from 2013-14 to 2019-20. UK only.

Year Avg. per staff member Estimated development-led archaeologists Sector size
2019-20 £51,187 4,375 £224m
2018-19 £48,696 4,152 £202m
2017-18 £48,747 3,997 £195m
2016-17 £45,309 3,743 £170m
2015-16 £45,615 3,481 £159m
2014-15 £45,914 3,284 £151m
2013-14 £56,237 2,871 £161m

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Companies working in development-led archaeology on average returned a profit (or surplus, for charitable organisations) of 2%. This low level of profit being reported across the sector is potentially unsustainable. 41% of respondents reported profits of less than 5% of the value of their turnovers, including several that reported annual losses of up to £482,373. The average profit/surplus per FTE member of staff was £3,663, the median was £2,550.

For comparison, in sectors outside archaeology, the average profit level for all UK private non-financial services companies in 2020 was 15% (ONS).

Table 1.5.4: Distribution of profits, mean, median and ranges of reported profits from 2011 to 2020. Includes UK service sector private non-financial companies net rate of return (ONS).

Oct-11 Apr-12 Dec-12 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20
Count % Count % Count % Count % Count % Count % Count % Count % Count % Count %
<5% 16 73% 15 75% 28 70% 18 75% 23 70% 11 52% 14 44% 12 44% 7 23% 21 41%
5-10% 2 9% 3 15% 9 23% 3 12% 6 18% 4 19% 4 13% 5 19% 6 19% 10 20%
10-25% 3 14% 2 10% 2 5% 3 12% 4 12% 3 14% 13 41% 6 22% 7 23% 11 22%
>25% 1 5% 0 0% 1 3% 0 0% 0 0% 3 14% 1 3% 4 15% 11 35% 9 18%
Total count 22 20 40 24 33 21 32 27 31 51
Mean £31,582 £46,637 £154,438 £121,252 £211,531 £93,630 £135,785
Median £0 £5,500 £50,000 £43,000 £60,000 £50,000 £19,857
Lowest -£3,000 -£1,000,000 -£75,000 -£286,000 -£26,297 -£49,000 -£482,373
Highest £251,000 £935,000 £799,000 £1,000,000 £1,800,000 £828,383 £2,329,494
UK service sector private non-financial companies net rate of return 12% 14% 14% 16% 18% 16% 15% 14% 16% 15%

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Several organisations reported profit margins of over 25%, however, those were all small organisations and in no case was total value greater than £65,000.

Table 1.5.5: Mean, median and highest and lowest values of profits for those who reported >25% profit as % of turnover in 2020.

Profit
Mean £29,793
Median £24,996
Highest £65,000
Lowest £1,895

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Distribution of turnover across the UK closely matches overall population distribution.

Table 1.5.6: Turnover originating from work undertaken by organisations in each of these locations in 2016-17 to 2019-20.

England Scotland Wales Northern Ireland Republic of Ireland Rest of the world
2019-20 85% 7% 2% 0% 4% 2%
2018-19 87% 6% 6% 0% 0% 1%
2017-18 92% 3% 4% 1% 0% 0%
2016-17 88% 7% 4% 0% 0% 0%

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Image Credit

Infrared Beamline Lab by IAEA Imagebank. From Flickr CC BY 2.0

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As a digital document we may update parts of this page in the future to account for corrections or the need for clarification. Please use the version when citing:

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CREDITS

Title: Profiling the Profession

2020 Authors: Kenneth Aitchison, Poppy German and Doug Rocks-Macqueen

Published by: Landward Research Ltd

Version Date: 2021

ISBN: 978-0-9572452-8-0

DOI: https://doi.org/10.6084/m9.figshare.14333387

License: CC BY SA 4.0 for all text and figures. Header images are from different sources check image credits for their specific licensing.

2020 funders: Historic England, with support from Historic Environment Scotland, CIfA and FAME.

Questions about Profiling the Profession: enquiries@landward.eu