Headed by the continued strength in the multifamily residential market and the emerging growth for institutional projects, demand for design services continues to be healthy, as exhibited in the latest Architecture Billings Index (ABI).
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 October ABI score was 53.7, down from a mark of 55.2 in September. This score reflects an increase in design activity (any score above 50 indicates an increase in billings). The new projects inquiry index was 62.7, following a mark of 64.8 the previous month.
The AIA has added a new indicator measuring the trends in new design contracts at architecture firms that can provide a strong signal of the direction of future architecture billings. The score for design contracts in October was 56.4.
“Though it has been slow in emerging, we’re finally seeing some momentum develop in design activity for nonprofits and municipal governments, and as such we’re seeing a new round of activity in the institutional sector,” said AIA Chief Economist Kermit Baker, Hon. AIA, PhD. “It will be interesting to see if and how the results of the mid-term Congressional and gubernatorial elections impact this developing momentum.”
Key October ABI highlights:
• Regional averages: South (58.4), West (56.1), Midwest (54.4), Northeast (47.0)
• Sector index breakdown: mixed practice (56.9), multi-family residential (54.7), institutional (54.4), commercial / industrial (52.3)
• Project inquiries index: 62.7
• Design contracts index: 56.4
The regional and sector categories are calculated as a 3-month moving average, whereas the national index, design contracts 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 recently released White Paper, Designing the Construction Future: Reviewing the Performance and Extending the Applications of the AIA’s Architecture Billings Index on the AIA website.
Related Stories
Coronavirus | Apr 21, 2020
COVID-19 update: CallisonRTKL, Patriot, PODS, and USACE collaborate on repurposed containers for ACFs
CallisonRTKL and PODS collaborate on repurposed containers for ACFs
Multifamily Housing | Apr 15, 2020
Related Group picks Stantec to design and engineer Manor Miramar residences in Florida
Related Group picks Stantec to design and engineer Manor Miramar residences in Florida.
Coronavirus | Apr 4, 2020
COVID-19: Architecture firms churn out protective face shields using their 3D printers
Architecture firms from coast to coast have suddenly turned into manufacturing centers for the production of protective face shields and face masks for use by healthcare workers fighting the COVID-10 pandemic.
Coronavirus | Mar 30, 2020
Learning from covid-19: Campuses are poised to help students be happier
Overcoming isolation isn’t just about the technological face to face, it is about finding meaningful connection and “togetherness”.
Coronavirus | Mar 15, 2020
Designing office building lobbies to respond to the coronavirus
Touch-free design solutions and air purifiers can enhance workplace wellness.
Architects | Mar 11, 2020
S/L/A/M/ Collaborative grows significantly in deal with CBRE
The architectural firm acquires five of Heery’s practices and adds 70 people.
University Buildings | Mar 9, 2020
Designing campus buildings through an equity lens
As colleges become more diverse, campus conversation is focusing on how to create equitable environments that welcome all voices.
Architects | Mar 9, 2020
New York's façade inspection program gets an overhaul following a death from falling terra cotta
January 14, 2020, kicked off big changes to the NYC Local Law 11 Façade Inspection and Safety Program (FISP) for Cycle 9.
Healthcare Facilities | Mar 9, 2020
Mobile wayfinding platform helps patients, visitors navigate convoluted health campuses
Gozio Health uses a robot to roam hospital campuses to capture data and create detailed maps of the building spaces and campus.
AEC Innovators | Mar 5, 2020
These 17 women are changing the face of construction
During this Women in Construction Week, we shine a spotlight on 17 female leaders in design, construction, and real estate to spur an important conversation of diversity, inclusion, and empowerment.
