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
Office Buildings | Dec 19, 2017
How do we measure human performance, and what does it mean for the workplace?
There are many new tools and methods that are beginning to look more comprehensively to evaluate organizational well-being.
Sports and Recreational Facilities | Dec 18, 2017
Canada’s newest funicular makes Edmonton’s largest green space more accessible
The incline elevator is located in downtown Edmonton and was publicly funded.
Sponsored | Building Team | Dec 12, 2017
3 tips to address the top causes of budget overruns
The most cited issues are communication breakdowns, inadequate fees for the work provided, and unrealistic deadlines or schedules.
Multifamily Housing | Dec 12, 2017
Call for technical experts: Dog wash station design
The editors of Multifamily Design + Construction magazine need your expertise.
Government Buildings | Dec 11, 2017
Is this the world’s most humane prison?
The C.F. Møller-designed prison’s architecture supports the inmates’ and staff’s mental and physical well-being.
Architects | Dec 7, 2017
Snow Kreilich Architects receives the 2018 AIA Architecture Firm Award
Julie Snow, FAIA, founded the firm in Minneapolis in 1995, and later was joined by partner Matt Kreilich, AIA.
Architects | Dec 7, 2017
2018 AIA Gold Medal awarded to James Stewart Polshek
In 1963 Polshek started his first architecture firm, James Stewart Polshek Architect.
Architects | Dec 4, 2017
Architects to Congress: ‘You're making a terrible mistake’
House and Senate gut historic building credits and penalize architecture firms.
Architects | Dec 1, 2017
The third wave of urban waterfront development
The nature of waterfront redevelopment has been evolutionary, in the truest sense of the word.
Multifamily Housing | Nov 29, 2017
First Porsche, now Aston Martin: Sports car maker co-develops Miami condo tower *UPDATED
The 391-unit Aston Martin Residences will feature seven penthouses and a duplex penthouse, all with private pools and terraces overlooking Biscayne Bay.