The Architecture Billings Index (ABI) showed more acceleration in the growth of design activity nationally. As a leading economic indicator of construction activity, the ABI reflects the approximate nine to twelve month lead time between architecture billings and construction spending. The American Institute of Architects (AIA) reported the August ABI score was 53.8, up from a mark of 52.7 in July. 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 63.0, down from the reading of 66.4 the previous month.
“As business conditions at architecture firms have improved eleven out of the past twelve months, it is fair to say that the design professions are in a recovery mode,” said AIA Chief Economist, Kermit Baker, PhD, Hon. AIA. “This upturn signals an impending turnaround in nonresidential construction activity, but a key component to maintaining this momentum is the ability of businesses to obtain financing for real estate projects, and for a resolution to the federal government budget and debt ceiling impasse.”
Key August ABI highlights:
- Regional averages: West (54.8), Northeast (54.4), Midwest (52.8), South (51.9)
- Sector index breakdown: mixed practice (60.1), commercial / industrial (54.8), multi-family residential (52.1), institutional (50.8)
- Project inquiries index: 63.0
The regional and sector categories are calculated as a three-month moving average, whereas the index and inquiries are monthly numbers.
About the AIA Architecture Billings Index
The Architecture Billings Index (ABI), produced by the AIA Economics & Market Research Group, is a leading economic indicator that provides an approximately nine to twelve month glimpse into the future of nonresidential construction spending activity. The diffusion indexes contained in the full report are derived from a monthly “Work-on-the-Boards” survey that is sent to a panel of AIA member-owned firms. Participants are asked whether their billings increased, decreased, or stayed the same in the month that just ended as compared to the prior month, and the results are then compiled into the ABI. These monthly results are also seasonally adjusted to allow for comparison to prior months. The monthly ABI index scores are centered around 50, with scores above 50 indicating an aggregate increase in billings, and scores below 50 indicating a decline. The regional and sector data are formulated using a three-month moving average. More information on the ABI and the analysis of its relationship to construction activity can be found in the White Paper Architecture Billings as a Leading Indicator of Construction: Analysis of the Relationship Between a Billings Index and Construction Spending on the AIA web site.
About The American Institute of Architects
Founded in 1857, members of the American Institute of Architects consistently work to create more valuable, healthy, secure, and sustainable buildings, neighborhoods, and communities. Through nearly 300 state and local chapters, the AIA advocates for public policies that promote economic vitality and public well being. Members adhere to a code of ethics and conduct to ensure the highest professional standards. The AIA provides members with tools and resources to assist them in their careers and business as well as engaging civic and government leaders, and the public to find solutions to pressing issues facing our communities, institutions, nation and world. Visit www.aia.org.
Related Stories
| Nov 3, 2010
Virginia biofuel research center moving along
The Sustainable Energy Technology Center has broken ground in October on the Danville, Va., campus of the Institute for Advanced Learning and Research. The 25,000-sf facility will be used to develop enhanced bio-based fuels, and will house research laboratories, support labs, graduate student research space, and faculty offices. Rainwater harvesting, a vegetated roof, low-VOC and recycled materials, photovoltaic panels, high-efficiency plumbing fixtures and water-saving systems, and LED light fixtures will be deployed. Dewberry served as lead architect, with Lord Aeck & Sargent serving as laboratory designer and sustainability consultant. Perigon Engineering consulted on high-bay process labs. New Atlantic Contracting is building the facility.
| Nov 3, 2010
Dining center cooks up LEED Platinum rating
Students at Bowling Green State University in Ohio will be eating in a new LEED Platinum multiuse dining center next fall. The 30,000-sf McDonald Dining Center will have a 700-seat main dining room, a quick-service restaurant, retail space, and multiple areas for students to gather inside and out, including a fire pit and several patios—one of them on the rooftop.
| Nov 2, 2010
11 Tips for Breathing New Life into Old Office Spaces
A slowdown in new construction has firms focusing on office reconstruction and interior renovations. Three experts from Hixson Architecture Engineering Interiors offer 11 tips for office renovation success. Tip #1: Check the landscaping.
| Nov 2, 2010
Cypress Siding Helps Nature Center Look its Part
The Trinity River Audubon Center, which sits within a 6,000-acre forest just outside Dallas, utilizes sustainable materials that help the $12.5 million nature center fit its wooded setting and put it on a path to earning LEED Gold.
| Nov 2, 2010
A Look Back at the Navy’s First LEED Gold
Building Design+Construction takes a retrospective tour of a pace-setting LEED project.
| Nov 2, 2010
Wind Power, Windy City-style
Building-integrated wind turbines lend a futuristic look to a parking structure in Chicago’s trendy River North neighborhood. Only time will tell how much power the wind devices will generate.
| Nov 2, 2010
Energy Analysis No Longer a Luxury
Back in the halcyon days of 2006, energy analysis of building design and performance was a luxury. Sure, many forward-thinking AEC firms ran their designs through services such as Autodesk’s Green Building Studio and IES’s Virtual Environment, and some facility managers used Honeywell’s Energy Manager and other monitoring software. Today, however, knowing exactly how much energy your building will produce and use is survival of the fittest as energy costs and green design requirements demand precision.
| Nov 2, 2010
Yudelson: ‘If It Doesn’t Perform, It Can’t Be Green’
Jerry Yudelson, prolific author and veteran green building expert, challenges Building Teams to think big when it comes to controlling energy use and reducing carbon emissions in buildings.
| Nov 2, 2010
Historic changes to commercial building energy codes drive energy efficiency, emissions reductions
Revisions to the commercial section of the 2012 International Energy Conservation Code (IECC) represent the largest single-step efficiency increase in the history of the national, model energy. The changes mean that new and renovated buildings constructed in jurisdictions that follow the 2012 IECC will use 30% less energy than those built to current standards.
| Nov 1, 2010
Sustainable, mixed-income housing to revitalize community
The $41 million Arlington Grove mixed-use development in St. Louis is viewed as a major step in revitalizing the community. Developed by McCormack Baron Salazar with KAI Design & Build (architect, MEP, GC), the project will add 112 new and renovated mixed-income rental units (market rate, low-income, and public housing) totaling 162,000 sf, plus 5,000 sf of commercial/retail space.
