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
| Apr 5, 2011
Top 10 Buildings: Women in Architecture
Making selections of top buildings this week led to a surprising discovery about the representation of women in architecture, writes Tom Mallory, COO and co-founder, OpenBuildings.com. He discovered that finding female-created architecture, when excluding husband/wife teams, is extremely difficult and often the only work he came across was akin to interior design.
| Apr 5, 2011
What do Chengdu, Lagos, and Chicago have in common?
They’re all “world middleweight cities” that are likely to become regional megacities (10 million people) by 2025—along with Dongguan, Guangzhou, Hangzhou, Shenzhen, Tianjin, and Wuhan (China); Kinshasa (Democratic Republic of the Congo); Jakarta (Indonesia); Lahore (Pakistan); and Chennai (India), according to a new report from McKinsey Global Institute: “Urban World: Mapping the economic power of cities”.
| Mar 30, 2011
China's low-carbon future city
In 2005, the Chinese government announced its target to reduce energy consumption per GDP unit by 20% by the year 2010. After a multi-billion investment, that target has been reached. The Chinese Climate Protection Program’s goal to increase energy efficiency, develop renewable energies, and promote energy savings while reducing pollutant emissions and strengthening environmental protection is reflected in the “Future City” by SBA Design.
| Mar 30, 2011
Is the AEC industry at risk of losing its next generation leaders without better mentoring?
After two or three horrifying years for the AEC industry, we are finally seeing the makings of a turnaround. However, data developed by Kermit Baker as part of the AIA Work-on-the-Boards survey program indicates that between 17% and 22% of design firms are eliminating positions for interns and staff with less than six years of experience. This data suggests the industry is at risk of losing a large segment of its next generation of leaders if something isn't done to improve mentoring across the profession.
| Mar 29, 2011
City's design, transit system can ease gas costs
Some cities in the U.S. are better positioned to deal with rising gas prices than others because of their design and transit systems, according to CEOs for Cities, a Chicago-based nonprofit that works to build stronger cities. The key factor: whether residents have to drive everywhere, or have other options.
