flexiblefullpage
billboard
interstitial1
catfish1
Currently Reading

Architectural billings continue to contract in 2021

Market Data

Architectural billings continue to contract in 2021

AIA’s Architecture Billings Index (ABI) score for January was 44.9 compared to 42.3 in December.


By AIA | February 23, 2021

Courtesy Pixabay

A slight improvement in business conditions has led to fewer architecture firms reporting declining billings, according to a new report today from The American Institute of Architects (AIA).

AIA’s Architecture Billings Index (ABI) score for January was 44.9* compared to 42.3 in December (any score below 50 indicates a decline in firm billings). Last month’s score indicates overall revenue at U.S architecture firms continued to decline from December to January, however, the pace of decline slowed. Inquiries into new projects during January grew for the second month in a row, with a score of 56.8 compared to 51.7 in December. The value of new design contracts also reflected an easing in the pace of decline, rising to a score of 48.8 in January from 47.0 the previous month.

“The broader economy entered a soft spot during the fourth quarter of last year, and business conditions at design firms have reflected this general slowdown,” said AIA Chief Economist, Kermit Baker, Hon. AIA, PhD. “While federal stimulus and the increasing pace of vaccinations may begin to accelerate progress in the coming months, the year has gotten off to a slow start, with architecture firms in all regions of the country and in all specializations reporting continued declines in project billings.”

Key ABI highlights for January include:

  • Regional averages: South (47.4); West (42.8); Midwest (42.2); Northeast (41.9)
  • Sector index breakdown: mixed practice (47.9); multi-family residential (44.4); commercial/industrial (44.3); institutional (39.9)
  • Project inquiries index: 56.8
  • Design contracts index: 48.8

The regional and sector categories are calculated as a three-month moving average, whereas the national index, design contracts and inquiries are monthly numbers.

To learn more about recent economic developments impacting design and construction, visit AIA’s website.

 

*Every January the AIA research department updates the seasonal factors used to calculate the ABI, resulting in a revision of recent ABI values.

Related Stories

Market Data | Apr 20, 2021

Demand for design services continues to rapidly escalate

AIA’s ABI score for March rose to 55.6 compared to 53.3 in February.

Market Data | Apr 16, 2021

Construction employment in March trails March 2020 mark in 35 states

Nonresidential projects lag despite hot homebuilding market.

Market Data | Apr 13, 2021

ABC’s Construction Backlog slips in March; Contractor optimism continues to improve

The Construction Backlog Indicator fell to 7.8 months in March.

Market Data | Apr 9, 2021

Record jump in materials prices and supply chain distributions threaten construction firms' ability to complete vital nonresidential projects

A government index that measures the selling price for goods used construction jumped 3.5% from February to March.

Contractors | Apr 9, 2021

Construction bidding activity ticks up in February

The Blue Book Network's Velocity Index measures month-to-month changes in bidding activity among construction firms across five building sectors and in all 50 states. 

Industry Research | Apr 9, 2021

BD+C exclusive research: What building owners want from AEC firms

BD+C’s first-ever owners’ survey finds them focused on improving buildings’ performance for higher investment returns.

Market Data | Apr 7, 2021

Construction employment drops in 236 metro areas between February 2020 and February 2021

Houston-The Woodlands-Sugar Land and Odessa, Texas have worst 12-month employment losses.

Market Data | Apr 2, 2021

Nonresidential construction spending down 1.3% in February, says ABC

On a monthly basis, spending was down in 13 of 16 nonresidential subcategories.

Market Data | Apr 1, 2021

Construction spending slips in February

Shrinking demand, soaring costs, and supply delays threaten project completion dates and finances.

Market Data | Mar 26, 2021

Construction employment in February trails pre-pandemic level in 44 states

Soaring costs, supply-chain problems jeopardize future jobs.

boombox1
boombox2
native1

More In Category




halfpage1

Most Popular Content

  1. 2021 Giants 400 Report
  2. Top 150 Architecture Firms for 2019
  3. 13 projects that represent the future of affordable housing
  4. Sagrada Familia completion date pushed back due to coronavirus
  5. Top 160 Architecture Firms 2021