Billings at architecture firms across the country continue to increase. As a leading economic indicator of construction activity, the Architecture Billings Index (ABI) reflects the approximate nine to twelve month lag time between architecture billings and construction spending. The American Institute of Architects (AIA) reported the November ABI score was 53.2, up from the mark of 52.8 in October. This score reflects an increase in demand for design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 59.6, up slightly from the 59.4 mark of the previous month.
“These are the strongest business conditions we have seen since the end of 2007 before the construction market collapse,” said AIA Chief Economist, Kermit Baker, PhD, Hon. AIA. “The real question now is if the federal budget situation gets cleared up which will likely lead to the green lighting of numerous projects currently on hold. If we do end up going off the ‘fiscal cliff’ then we can expect a significant setback for the entire design and construction industry.”
Other key November ABI highlights:
- Regional averages: Northeast (56.3), Midwest (54.4), South (51.1), West (49.6)
- Sector index breakdown: multi-family residential (55.9), mixed practice (53.9), commercial / industrial (52.0), institutional (50.5)
- Project inquiries index: 59.6
The regional and sector categories are calculated as a 3-month moving average, whereas the index and inquiries are monthly numbers. +
Related Stories
Architects | Jun 30, 2016
The year's best small projects include a floating sauna, dental trailer, and smocked porch
AIA chose the 2016 recipients of the Small Project Awards. Every entry cost less than $1.5 million to build, with one as low as $900.
Architects | Jun 29, 2016
AIA: Healthy demand for all building types signaled in Architecture Billings Index
Recent client interest could signal resurgence for institutional market. May's ABI score was the highest mark in nearly a year.
Architects | Jun 28, 2016
5 easy ways architects can increase their profits
Whitehorn Financial Managing Principal Steve Whitehorn offers effective ways to recoup lost revenue, including a few strategies that capitalize on recent changes to the federal tax code.
AEC Tech | Jun 27, 2016
If ‘only the paranoid survive,’ what does it take to thrive?
“Sooner or later, something fundamental in your business world will change.” The late Andrew Grove (1936-2016), Co-founder of tech giant Intel Corp., lived by these words.
Architects | Jun 15, 2016
Design Thinking makes its way into Yale School of Management
The school will introduce Design Observer co-founders Jessica Helfand and Michael Bierut as faculty.
Retail Centers | Jun 14, 2016
Zaha Hadid and Gensler among finalists for Sunset Strip billboard design competition
The concepts are curvy, sleek, and multidimensional, and feature sharp digital displays.
Movers+Shapers | Jun 14, 2016
VERTICAL INTEGRATOR: How Brooklyn’s Alloy LLC evolved from an architecture firm into a full-fledged development company
Led by an ambitious President and a CEO with deep pockets, Alloy LLC's six entities control the entire development process: real estate development, design, construction, brokerage, property management, and community development.
Office Buildings | Jun 14, 2016
Let's not forget introverts when it comes to workplace design
Recent design trends favor extroverts who enjoy collaboration. HDR's Lynn Mignola says that designers need to accommodate introverts, people who recharge with solitude, as well.
Building Team | Jun 13, 2016
BD+C launches Women in Design+Construction Conference
Inaugural 2.5-day event will convene 125+ leading AEC women in Dana Point, Calif., November 9-11, for professional development, networking, and career training.
University Buildings | Jun 9, 2016
Designing for interdisciplinary communication in university buildings
Bringing people together remains the main objective when designing academic projects. SRG Design Principal Kent Duffy encourages interaction and discovery with a variety of approaches.
