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
| Oct 19, 2011
System for installing grease duct enclosures achieves UL listing
Updated installation results in 33% space savings.
| Oct 18, 2011
Michel Bruneau wins 2012 AISC T.R. Higgins Award
The AISC T.R. Higgins Lectureship Award is presented annually by the American Institute of Steel Construction (AISC) and recognizes an outstanding lecturer and author whose technical paper(s) are considered an outstanding contribution to the engineering literature on fabricated structural steel.
| Oct 18, 2011
Dow Building Solutions invests in two research facilities to deliver data to building and construction industry
State-of-the-art monitoring system allows researchers to collect, analyze and process the performance of wall systems.
| Oct 18, 2011
Architectural leaders join Gehry to form strategic alliance
Alliance dedicated to transforming the building industry through technology.
| Oct 18, 2011
St. Martin’s Episcopal School expands facilities
Evergreen commences construction on environmentally sustainable campus expansion.
| Oct 17, 2011
THOUGHT LEADER: Allan Bilka, Senior Staff Architect and Secretariat to the IGCC
Allan Bilka, RA, is a Senior Staff Architect and Secretariat to the International Green Construction Code (IgCC) with the International Code Council, based in the ICC’s Chicago district office. He also serves as staff liaison to the ICC-700 National Green Building Standard. He has written several ICC white papers on green building and numerous green-related articles for the ICC. A registered architect, Bilka has over 30 years of combined residential design/build and commercial consulting engineering experience.
| Oct 17, 2011
Austin's newest urban apartment complex under construction
Complex sits on a four-acre waterfront site along Lady Bird Lake with spectacular city and lake views, and is slated to open spring 2013.
| Oct 17, 2011
Aerialogics announces technology partnership with CertainTeed Corp.
CertainTeed to provide Aerialogics’ Aerial Measurement Services to its credentialed contractor base and utilize the technology in its Roofing Products Division.
| Oct 17, 2011
Big D Floor covering supplies to offer Johnsonite Products??
Strategic partnership expands offering to south and west coast customers.
