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
Modular Building | Feb 12, 2015
New shipping container complex begins construction in Albuquerque
The Green Jeans Farmery already has a hydroponic farm component courtesy of owner and entrepreneur Roy Solomon.
Transit Facilities | Feb 12, 2015
Gensler proposes network of cycle highways in London’s unused underground
Unused tube lines would host pedestrian paths, cycle routes, cultural spaces, and retail outlets.
Healthcare Facilities | Feb 11, 2015
Primer: Using 'parallel estimating' to pinpoint costs on healthcare construction projects
As pressure increases to understand capital cost prior to the first spade touching dirt, more healthcare owners are turning to advanced estimating processes, like parallel estimating, to improve understanding of exposure, writes CBRE Healthcare's Andrew Sumner.
Transportation & Parking Facilities | Feb 11, 2015
11 of the nation’s best ‘Complete Streets’ policies of 2014
Austin, Texas, and Troy, N.Y., are among the cities with the strongest safe streets policies, according to a new report.
Sponsored | Roofing | Feb 11, 2015
New school blends with local architecture using Petersen metal roof
Perkins Eastman in Stamford, Conn., designed the school to emphasize and integrate the International Baccalaureate curriculum throughout.
Mixed-Use | Feb 11, 2015
Developer plans to turn Eero Saarinen's Bell Labs HQ into New Urbanist town center
Designed by Eero Saarinen in the late 1950s, the two-million-sf, steel-and-glass building was one of the best-funded and successful corporate research laboratories in the world.
Architects | Feb 11, 2015
Shortlist for 2015 Mies van der Rohe Award announced
Copenhagen, Berlin, and Rotterdam are the cities where most of the shortlisted works have been built.
BIM and Information Technology | Feb 10, 2015
Google's 3D scanning camera leaves the lab
Google is said to be partnering with LG to create a version of the technology for public release sometime this year.
Steel Buildings | Feb 10, 2015
Korean researchers discover 'super steel'
The new alloy makes steel as strong as titanium.
Architects | Feb 9, 2015
The generalist architect vs. the specialist architect
The corporate world today quite often insists on hiring specialists, but the generalists have an intrinsic quality to adapt to new horizons or even cultural shifts in the market, writes SRG Partnership's Gary Harris.
