Led by a still active multi-family housing market and sustained by solid levels of demand for new commercial and retail properties, the Architecture Billings Index has accelerated to its highest score in nearly a year.
As a leading economic indicator of construction activity, the ABI reflects the approximate nine to 12 month lead time between architecture billings and construction spending. The American Institute of Architects (AIA) reported the May ABI score was 53.1, up sharply from the mark of 50.6 in the previous month. This score reflects an increase in design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 60.1, up from a reading of 56.9 the previous month.
“Business conditions at design firms have hovered around the break-even rate for the better part of this year,” said AIA Chief Economist, Kermit Baker, Hon. AIA, PhD. “Demand levels are solid across the board for all project types at the moment. Of particular note, the recent surge in design activity for institutional projects could be a harbinger of a new round of growth in the broader construction industry in the months ahead.”
Key May ABI highlights:
- Regional averages: West (53.8), South (53.7), Northeast (51.2), Midwest (49.9)
- Sector index breakdown: multi-family residential (53.7), institutional (53.0), commercial/industrial (51.0), mixed practice (51.0),
- Project inquiries index: 60.1
- Design contracts index: 52.8
- The regional and sector categories are calculated as a 3-month moving average, whereas the national index, design contracts and inquiries are monthly numbers.
Related Stories
| Dec 6, 2013
French concert hall includes integrated musical elements [VIDEO]
La Métaphone, a concert hall in Ognies, France, is a 1,980-sm facility with the unique characteristic of being a structural musical instrument. The solar-powered building incorporates musical elements in its walls, which can be played by musicians inside or outside the facility.
| Dec 6, 2013
Goettsch Partners selected 2013 AIA Chicago Firm of the Year
Architecture firm Goettsch Partners (GP) has been named the 2013 Firm of the Year, as conferred by the Chicago chapter of the American Institute of Architects (AIA Chicago). The award is the highest honor a firm can receive from the chapter.
| Dec 5, 2013
Maximizing the impact of online marketing
Because most professional services firms exist to help their clients reduce risk and navigate an uncertain future, they tend to approach the world of online or digital marketing with some caution. Here are four tips for maximizing the impact of online marketing.
| Dec 5, 2013
Translating design intent from across the globe
I recently attended the Bentley User Conference in Vejle, Denmark. I attended the event primarily to get a sense for the challenges our Danish counterparts are experiencing in project delivery and digital communication. One story I heard was from a BIM manager with Henning Larsen Architects in Denmark, who told me about a project she’d recently completed overseas in the Middle East. She outlined two distinct challenges and offered some interesting solutions to those challenges.
| Dec 3, 2013
‘BIM for all’ platform pays off for contractor
Construction giant JE Dunn is saving millions in cost avoidances by implementing a custom, cloud-based BIM/VDC collaboration platform.
| Dec 3, 2013
Historic Daytona International Speedway undergoing $400 million facelift
The Daytona International Speedway is zooming ahead on the largest renovation in the Florida venue’s 54-year history. Improvements include five redesigned guest entrances, an extended grandstand with 101,000 new seats, and more than 60 new trackside suites for corporate entertaining.
| Dec 3, 2013
Creating a healthcare capital project plan: The truth behind the numbers
When setting up a capital project plan, it's one thing to have the data, but quite another to have the knowledge of the process.
| Dec 3, 2013
Architects urge government to reform design-build contracting process
Current federal contracting laws are discouraging talented architects from competing for federal contracts, depriving government and, by inference, taxpayers of the best design expertise available, according to AIA testimony presented today on Capitol Hill.
| Dec 3, 2013
Construction spending hits four-year peak after rare spike in public outlays
An unusual surge in public construction in October pushed total construction spending to its highest level since May 2009 despite a dip in both private residential and nonresidential activity.
| Nov 27, 2013
BIG's 'oil and vinegar' design wins competition for the Museum of the Human Body [slideshow]
The winning submission by Bjarke Ingels Group (BIG) and A+ Architecture mixes urban pavement and parkland in a flowing, organic plan, like oil and vinegar, explains Bjarke Ingels.
