After showing struggling business conditions for most of 2011, the Architecture Billings Index (ABI) has now reached positive terrain in consecutive months. As a leading economic indicator of construction activity, the ABI reflects the approximate nine to twelve month lag time between architecture billings and construction spending. The AIA reported the December ABI score was 52.0, following the exact same mark in November. This score reflects an overall increase in demand for design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 64.0, down just a point from a reading of 65.0 the previous month.
“We saw nearly identical conditions in November and December of 2010 only to see momentum sputter and billings fall into negative territory as we moved through 2011, so it’s too early to be sure that we are in a full recovery mode,” said AIA Chief Economist, Kermit Baker, PhD, Hon. AIA. “Nevertheless, this is very good news for the design and construction industry and it’s entirely possible conditions will slowly continue to improve as the year progresses.”
Key December ABI highlights include:
- Regional averages: South (54.2), Midwest (53.1), Northeast (52.6), West (45.1)
- Sector index breakdown: multi-family residential (54.3), commercial / industrial (54.1), institutional (51.3), mixed practice (44.5)
- Project inquiries index: 64.0
The regional and sector categories are calculated as a 3-month moving average, whereas the index and inquiries are monthly numbers. BD+C
Related Stories
AEC Business Innovation | Jul 11, 2021
Staffing, office changes at SCB, SmithGroup, RKTB, Ryan Cos., Jacobsen, Boldt, and Adolfson & Peterson
AEC firms take strategic action as construction picks up steam with Covid openings.
K-12 Schools | Jul 9, 2021
LPA Architects' STEM high school post-occupancy evaluation
LPA Architects conducted a post-occupancy evaluation, or POE, of the eSTEM Academy, a new high school specializing in health/medical and design/engineering Career Technical Education, in Eastvale, Calif. The POE helped LPA, the Riverside County Office of Education, and the Corona-Norco Unified School District gain a better understanding of which design innovations—such as movable walls, flex furniture, collaborative spaces, indoor-outdoor activity areas, and a student union—enhanced the education program, and how well students and teachers used these innovations.
Market Data | Jul 8, 2021
Encouraging construction cost trends are emerging
In its latest quarterly report, Rider Levett Bucknall states that contractors’ most critical choice will be selecting which building sectors to target.
Multifamily Housing | Jul 7, 2021
Make sure to get your multifamily amenities mix right
One of the hardest decisions multifamily developers and their design teams have to make is what mix of amenities they’re going to put into each project. A lot of squiggly factors go into that decision: the type of community, the geographic market, local recreation preferences, climate/weather conditions, physical parameters, and of course the budget. The permutations are mind-boggling.
Industrial Facilities | Jul 2, 2021
A new approach to cold storage buildings
Cameron Trefry and Kate Lyle of Ware Malcomb talk about their firm's cold storage building prototype that is serving a market that is rapidly expanding across the supply chain.
Contractors | Jul 1, 2021
Nonres construction spending down again in May
And the industry is still beset with labor and materials issues that could impede future growth
Multifamily Housing | Jun 30, 2021
A post-pandemic ‘new normal’ for apartment buildings
Grimm + Parker’s vision foresees buildings with rentable offices and refrigerated package storage.
Resiliency | Jun 24, 2021
Oceanographer John Englander talks resiliency and buildings [new on HorizonTV]
New on HorizonTV, oceanographer John Englander discusses his latest book, which warns that, regardless of resilience efforts, sea levels will rise by meters in the coming decades. Adaptation, he says, is the key to future building design and construction.
Multifamily Housing | Jun 23, 2021
COVID-19’s impact on multifamily amenities
Multifamily project teams had to scramble to accommodate the overwhelming demand for work-from-home spaces for adults and study spaces for children.
Contractors | Jun 22, 2021
McCarthy Building Companies taps the military for potential new hires
The contractor can now recruit through the Army’s Youth Success program