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
| Mar 30, 2011
Is the AEC industry at risk of losing its next generation leaders without better mentoring?
After two or three horrifying years for the AEC industry, we are finally seeing the makings of a turnaround. However, data developed by Kermit Baker as part of the AIA Work-on-the-Boards survey program indicates that between 17% and 22% of design firms are eliminating positions for interns and staff with less than six years of experience. This data suggests the industry is at risk of losing a large segment of its next generation of leaders if something isn't done to improve mentoring across the profession.
| Mar 29, 2011
City's design, transit system can ease gas costs
Some cities in the U.S. are better positioned to deal with rising gas prices than others because of their design and transit systems, according to CEOs for Cities, a Chicago-based nonprofit that works to build stronger cities. The key factor: whether residents have to drive everywhere, or have other options.
| Mar 29, 2011
Chicago’s Willis Tower to become a vertical solar farm
Chicago’s iconic Willis Tower (formerly the Sears Tower) is set to become a massive solar electric plant with the installation of a pilot solar electric glass project.
| Mar 29, 2011
Read up on Amazon.com's new green HQ
Phase IV of Amazon’s new headquarters in Seattle is nearly complete. The company has built 10 of the 11 buildings planned for its new campus in the South Lake Union neighborhood, and is on-track for a 2013 grand opening.
| Mar 29, 2011
Portuguese architect Eduardo Souto de Moura wins Pritzker Architecture Prize
Portugese architect Eduardo Souto de Moura, whose precisely-honed buildings reflect the influence of the late Chicago modernist Mies van der Rohe, is the 2011 winner of the Pritzker Architecture Prize, the field's highest honor.
| Mar 25, 2011
Qatar World Cup may feature carbon-fiber ‘clouds’
Engineers at Qatar University’s Department of Mechanical and Industrial Engineering are busy developing what they believe could act as artificial “clouds,” man-made saucer-type structures suspended over a given soccer stadium, working to shield tens of thousands of spectators from suffocating summer temperatures that regularly top 115 degrees Fahrenheit.
| Mar 23, 2011
AIA adds 13 new contract documents to Documents-on-Demand service
Web-based solution adds 13 popular Architect’s Scope of Services Documents to AIA Documents-on-Demand, providing easy access to documents anytime, anywhere.
| Mar 23, 2011
After 60 years of student lobbying, new activity center opens at University of Texas
The new Student Activity Center at the University of Texas campus, Austin, is the result of almost 60 years of students lobbying for another dedicated social and cultural center on campus. The 149,000-sf facility is designed to serve as the "campus living room," and should earn a LEED Gold certification, a first for the campus.
| Mar 23, 2011
Architecture Billings Index shows nominal increase
The American Institute of Architects (AIA) reported the February Architecture Billings Index score was 50.6, up slightly from a reading of 50.0 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 56.4, compared to a mark of 56.5 in December.
| Mar 22, 2011
The American National Standards Institute accredits Stantec for greenhouse gas verification
Stantec Consulting Ltd.’s Atmospheric Environment Group has been awarded accreditation by the American National Standards Institute (ANSI) for verification of assertions related to greenhouse gas (GHG) emissions. The Scope of Accreditation is for verification of emissions and removals at the organizational level for Group 1 – General.