The Architecture Billings Index (ABI) slipped in August after showing mostly healthy business conditions so far this year. The American Institute of Architects reported the August ABI score was 49.1, down from a mark of 54.7 in July. This score reflects a slight decrease in design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 61.8, down from a reading of 63.7 the previous month.
As an economic indicator of construction activity, the ABI reflects the approximate nine to twelve month lead time between architecture billings and construction spending.
“Over the past several years, a period of sustained growth in billings has been followed by a temporary step backwards,” said AIA Chief Economist Kermit Baker, Hon. AIA, PhD. “The fact that project inquiries and new design contracts continue to grow at a healthy pace suggests that this should not be a cause for concern throughout the design and construction industry.”
Key August ABI highlights:
• Regional averages: Midwest (56.1), South (53.8), West (50.2) Northeast (46.8)
• Sector index breakdown: institutional (53.7), mixed practice (52.8), commercial / industrial (49.7) multi-family residential (49.5)
• Project inquiries index: 61.8
• Design contracts index: 55.3
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
Giants 400 | Nov 6, 2023
Top 110 Cultural Facility Architecture Firms for 2023
Populous, Gensler, HGA, DLR Group, and Quinn Evans top BD+C's ranking of the nation's largest cultural facilities sector architecture and architecture engineering (AE) firms for 2023, as reported in the 2023 Giants 400 Report. Note: This ranking includes revenue from all cultural building sectors, including concert venues, art galleries, museums, performing arts centers, and public libraries.
Giants 400 | Nov 6, 2023
Top 170 Government Building Architecture Firms for 2023
Page Southerland Page, Gensler, Stantec, HOK, and Skidmore, Owings & Merrill top BD+C's ranking of the nation's largest government building sector architecture and architecture engineering (AE) firms for 2023, as reported in the 2023 Giants 400 Report. Note: This ranking includes revenue from all government building sectors, including federal, state, local, military, and Veterans Affairs (VA) buildings.
Designers | Nov 6, 2023
DLR Group opens office in Nashville, Tenn.
DLR Group is expanding its presence in the Southeast with the opening of an office in downtown Nashville, Tenn.—a collaborative effort led by DLR Group Principals Matthew Gulsvig, AIA, LEED AP, and Randall Coy.
Healthcare Facilities | Nov 3, 2023
The University of Chicago Medicine is building its city’s first freestanding cancer center with inpatient and outpatient services
The University of Chicago Medicine (UChicago Medicine) is building Chicago’s first freestanding cancer center with inpatient and outpatient services. Aiming to bridge longstanding health disparities on Chicago’s South Side, the $815 million project will consolidate care and about 200 team members currently spread across at least five buildings. The new facility, which broke ground in September, is expected to open to patients in spring 2027.
Office Buildings | Nov 2, 2023
Amazon’s second headquarters completes its first buildings: a pair of 22-story towers
Amazon has completed construction of the first two buildings of its second headquarters, located in Arlington, Va. The all-electric structures, featuring low carbon concrete and mass timber, help further the company’s commitment to achieving net zero carbon emissions by 2040 and 100% renewable energy consumption by 2030. Designed by ZGF Architects, the two 22-story buildings are on track to become the largest LEED v4 Platinum buildings in the U.S.
Sustainability | Nov 1, 2023
Researchers create building air leakage detection system using a camera in real time
Researchers at the U.S. Department of Energy’s Oak Ridge National Laboratory have developed a system that uses a camera to detect air leakage from buildings in real time.
Adaptive Reuse | Nov 1, 2023
Biden Administration reveals plan to spur more office-to-residential conversions
The Biden Administration recently announced plans to encourage more office buildings to be converted to residential use. The plan includes using federal money to lend to developers for conversion projects and selling government property that is suitable for conversions.
Sustainability | Nov 1, 2023
Tool identifies financial incentives for decarbonizing heavy industry, transportation projects
Rocky Mountain Institute (RMI) has released a tool to identify financial incentives to help developers, industrial companies, and investors find financial incentives for heavy industry and transport projects.
Contractors | Nov 1, 2023
Nonresidential construction spending increases for the 16th straight month, in September 2023
National nonresidential construction spending increased 0.3% in September, according to an Associated Builders and Contractors analysis of data published today by the U.S. Census Bureau. On a seasonally adjusted annualized basis, nonresidential spending totaled $1.1 trillion.
Sponsored | MFPRO+ Course | Oct 30, 2023
For the Multifamily Sector, Product Innovations Boost Design and Construction Success
This course covers emerging trends in exterior design and products/systems selection in the low- and mid-rise market-rate and luxury multifamily rental market. Topics include facade design, cladding material trends, fenestration trends/innovations, indoor/outdoor connection, and rooftop spaces.
