Washington, D.C. – April 20, 2011 – The first quarter of 2011 has seen the Architecture Billings Index (ABI) remain virtually unchanged and right at, or slightly above, the break-even level. As a leading economic indicator of construction activity, the ABI reflects the approximate nine to 12 month lag time between architecture billings and construction spending.
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.
“Currently, architecture firms are essentially caught swimming upstream in a situation where demand is not falling back into the negative territory, but also not exhibiting the same pace of increases seen at the end of 2010,” said AIA Chief Economist, Kermit Baker, PhD, Hon. AIA. “The range of conditions reported continues to span a very wide spectrum with some firms reporting an improving business environment and even ramping up staffing, while others continue to operate in survival mode. The catalyst for a more robust recovery is likely financing, with stronger growth occurring only when lending institutions begin approving credit for construction projects with much greater regularity.”
Key March ABI highlights:
Regional averages: Midwest (53.5), Northeast (51.4), West (50.6), South (49.7)
Sector index breakdown: commercial / industrial (54.7), multi-family residential (50.8), mixed practice (49.8), institutional (48.0)
Project inquiries index: 58.7
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 White Paper Architecture Billings as a Leading Indicator of Construction: Analysis of the Relationship Between a Billings Index and Construction Spending.
About The American Institute of Architects
For over 150 years, members of the American Institute of Architects have worked with each other and their communities to create more valuable, healthy, secure, and sustainable buildings and cityscapes. Members adhere to a code of ethics and professional conduct to ensure the highest standards in professional practice. Embracing their responsibility to serve society, AIA members engage civic and government leaders and the public in helping find needed solutions to pressing issues facing our communities, institutions, nation and world. Visit www.aia.org.
Related Stories
Adaptive Reuse | Jul 9, 2018
Work, park, live: Inside Cincinnati’s parking garage turned lifestyle hotel
The Summit hotel and conference center is a converted parking garage that was once a factory.
Architects | Jun 28, 2018
Designing successful maker spaces
The challenge is to design makerspaces that work, spaces that function as a tool for educators to produce better students.
Architects | Jun 27, 2018
Steven A. Lichtenberger joins Leo A Daly as President
He will lead the firm’s global planning, architecture, engineering, and interiors practice worldwide.
Accelerate Live! | Jun 24, 2018
Watch all 19 Accelerate Live! talks on demand
BD+C’s second annual Accelerate Live! AEC innovation conference (May 10, 2018, Chicago) featured talks on AI for construction scheduling, regenerative design, the micro-buildings movement, post-occupancy evaluation, predictive visual data analytics, digital fabrication, and more. Take in all 19 talks on demand.
Building Team | Jun 22, 2018
What owners should know before choosing the design-build project delivery method
Outside of drawing up a well-written contract, owners often overlook a key attribute that can significantly impact the success of a design-build project, writes Skanska’s Julie Hyson.
Architects | Jun 14, 2018
Chicago Architecture Center sets Aug. 31 as opening date
The Center is located at 111 E. Wacker Drive.
Multifamily Housing | Jun 13, 2018
Multifamily visionaries: KTGY’s extraordinary expectations
KTGY Architecture + Planning keeps pushing the boundaries of multifamily housing design in the U.S., Asia, and the Middle East.
| Jun 11, 2018
Accelerate Live! talk: Regenerative design — When sustainability is not enough
In this 15-minute talk at BD+C’s Accelerate Live! conference (May 10, 2018, Chicago), HMC’s Eric Carbonnier poses the question: What if buildings could actually rejuvenate ecosystems?
| Jun 11, 2018
Accelerate Live! talk: The smart jobsite — Predictive visual data analytics for proactive project controls
In this 15-minute talk at BD+C’s Accelerate Live! conference (May 10, 2018, Chicago), a trio of experts in predictive visual data analytics presents how design-build giant Clayco has leveraged this technology to achieve production efficiency on several construction sites.
| Jun 11, 2018
Accelerate Live! talk: Design innovation at Adrian Smith + Gordon Gill Architecture
In this 15-minute talk at BD+C’s Accelerate Live! conference (May 10, 2018, Chicago), AS+GG’s Anthony Viola takes us behind the magic curtain to illuminate the firm’s methods for nurturing design innovation.