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
| Apr 20, 2011
Marketing firm Funtion: to host “Construct. Build. Evolve.”
Function:, an integrated marketing agency that specializes in reaching the architecture, building and design community, is hosting an interactive art event, “Construct. Build. Evolve.” in Atlanta’s Piedmont Park on Thursday April 21, 2011 at 11:00AM EDT. During the event attendees will be asked to answer the question, “how would you build the future?” to rouse dialogue and discover fresh ideas for the future of the built environment.
| Apr 20, 2011
Architecture Billings Index: new projects inquiry index up significantly from February
The American Institute of Architects (AIA) reported the March ABI score was 50.5, a negligible decrease from a reading of 50.6 the previous month. This score reflects a modest increase in demand for design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 58.7, up significantly from a mark of 56.4 in February.
| Apr 19, 2011
What are the 15 most-watched construction and engineering stocks?
According to Motley Fool, a multimedia financial services company, the most-watched construction and engineering stock is Fluor (NYSE: FLR), which ranks #1 on BD+C’s Giants 300 engineering list with $1.994 billion in revenue in 2009. Check out the 14 other most-watched A/E stocks.
| Apr 19, 2011
AIA announces top 10 green Projects for 2011
The American Institute of Architects Committee on the Environment announced its Top 10 Green Projects for 2011. Among the winners: Cherokee Studios in Los Angeles, the Department of Energy's National Renewable Energy Laboratory in Golden, Colo., and the Vancouver Convention Centre West in Vancouver, British Columbia.
| Apr 18, 2011
Greening and Upgrading Today’s Vertical Transport Systems
Earn 1.0 AIA/CES HSW/SD learning units by studying this article and passing the online exam.
| Apr 14, 2011
U.S. embassies on a mission to green the world's buildings
The U.S. is putting greater emphasis on greening its worldwide portfolio of embassies. The U.S. State Department-affiliated League of Green Embassies already has 70 U.S. embassies undergoing efforts to reduce their environmental impact, and the organization plans to increase that number to more than 100 by the end of the year.
| Apr 14, 2011
How AEC Professionals Choose Windows and Doors
Window and door systems need to perform. Respondents to our annual window and door survey overwhelmingly reported that performance, weather resistance, durability, and quality were key reasons a particular window or door was specified.
| Apr 14, 2011
USGBC debuts LEED for Healthcare
The U.S. Green Building Council (USGBC) introduces its latest green building rating system, LEED for Healthcare. The rating system guides the design and construction of both new buildings and major renovations of existing buildings, and can be applied to inpatient, outpatient and licensed long-term care facilities, medical offices, assisted living facilities and medical education and research centers.
| Apr 13, 2011
National Roofing Contractors Association revises R-value of polyisocyanurate (ISO) insulation
NRCA has updated their R-value recommendation for polyisocyanurate roof insulation with the publication of the 2011 The NRCA Roofing Manual: Membrane Roof Systems.
