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
| Apr 24, 2012
AECOM design and engineering team realizes NASA vision for Sustainability Base
LEED Platinum facility opens at NASA Ames Research Center at California’s Moffett Field.
| Apr 23, 2012
Vegas’ CityCenter called financial ‘black hole’
Two and a half years ago, stockholders filed six lawsuits after the stock price fell from $99.75 on Oct. 9, 2007, to $1.89 on March 5, 2009. Bondholders sued over similar steep losses.
| Apr 23, 2012
Innovative engineering behind BIG’s Vancouver Tower
Buro Happold’s structural design supports the top-heavy, complex building in a high seismic zone; engineers are using BIM technology to design a concrete structure with post-tensioned walls.
| Apr 23, 2012
AAMA releases updated specification for anodized aluminum
AAMA 611-12 describes test procedures and requirements for high performance (Class I) and commercial (Class II) architectural quality aluminum oxide coatings applied to aluminum extrusions and panels for architectural products.
| Apr 23, 2012
Thornton Tomasetti project wins AISC Merit Award
Thornton Tomasetti provided structural design services through construction administration to architect HOK for the 1.6-million-sf tower and tiara structure, which comprises 15 steel tube arches spanning approximately 158 feet horizontally and 130 feet vertically from the top of the main building roof.
| Apr 23, 2012
Construction underway on City Winery Chicago
The Building Team is maintaining the old brick and timber construction, while adding 5,000-sf of new construction in the form of a two-story addition within the site’s existing courtyard.
| Apr 20, 2012
McCarthy completes Santa Barbara Cottage Hospital Replacement Facility
The new hospital’s architectural design combines traditional Santa Barbara Spanish colonial architecture with 21st century medical conveniences highlighted by a therapeutic and sustainable atmosphere.
| Apr 20, 2012
Century-old courthouse renovated for Delaware law firm offices
To account for future expansion, Francis Cauffman developed a plan to accommodate the addition of an 8-story tower to the building.
| Apr 20, 2012
RCMA and Oak Ridge National Laboratory to host International Roof Coatings Conference
The International Roof Coatings Conference will feature keynote speakers Marc LaFrance of the U.S. Department of Energy, and Art Rosenfeld of the Lawrence Berkeley National Laboratory.
| Apr 20, 2012
Shawmut completes Yard House Restaurant in Boston
12,000-sf restaurant marks new addition to Boston’s Fenway neighborhood.
