Architecture firm billings remained soft entering into 2024, with an AIA/Deltek Architecture Billings Index (ABI) score of 46.2 in January. Any score below 50.0 indicates decreasing business conditions.
“This now marks the lengthiest period of declining billings since 2010, although it is reassuring that the pace of this decline is less rapid and the broader economy showed improvement in January,” said Kermit Baker, PhD, AIA Chief Economist. "Firms are seeing growth with inquiries into new projects and value of newly signed design contracts is holding steady, showing potential signs of interest from clients in new projects.”
Business conditions remained weak at firms in all regions of the country except the Midwest, where modest growth was seen in three of the last four months. Firms with a multifamily residential specialization continue to report the softest business conditions of all specializations.
The ABI score is a leading economic indicator of construction activity, providing an approximately nine-to-twelve-month glimpse into the future of nonresidential construction spending activity. The score is derived from a monthly survey of architecture firms that measures the change in the number of services provided to clients.
Key ABI highlights for January include:
- Regional averages: Northeast (43.6); Midwest (50.9); South (45.2); West (46.6)
- Sector index breakdown: commercial/industrial (47.0); institutional (48.5); mixed practice (firms that do not have at least half of their billings in any one other category) (42.9); multifamily residential (44.6)
- Project inquiries index: 53.8
- Design contracts index: 49.7
Note: The regional and sector categories are calculated as three-month moving averages and may not always average out to the national score. Every January the AIA research department updates the seasonal factors used to calculate the ABI, resulting in a revision of recent ABI values.
Related Stories
AEC Tech Innovation | Oct 7, 2021
How tech informs design: A conversation with Mancini's Christian Giordano
Mancini's growth strategy includes developing tech tools that help clients appreciate its work.
Green | Oct 6, 2021
My reaction to the UN IPCC Climate Change 2021 report: Ugh!
The recent report of the UN Intergovernmental Panel on Climate Change is not a happy read.
Sponsored | Glass and Glazing | Oct 1, 2021
Specifying Responsibly to Save Birds’ Lives
Realizing sustainable, bird-friendly glass design
Sponsored | Glass and Glazing | Oct 1, 2021
Seizing the Daylight with BIPV Glass
Glass has always been an idea generator. Now, it’s also a clean energy generator.
Architects | Sep 30, 2021
Riding the great AEC resignation wave
More people than ever are reconsidering what work and career mean. What can AEC firms do to recruit and retain workers in this changing workplace environment? Karl Feldman, Partner with Hinge Marketing, discusses ideas and strategies with BD+C's John Caulfield in this exclusive interview for HorizonTV.
Glass and Glazing | Sep 30, 2021
Plans move forward on Central Place Sydney, duel towers with an AI-driven façade system
SOM and Fender Katsalidis are designing the project.
Architects | Sep 28, 2021
Hoffmann Architects Welcomes Travis Heim as Senior Staff Architect
Hoffmann Architects, an architecture and engineering firm specializing in the rehabilitation of building exteriors, announces that Travis Heim has joined the New York office as Senior Staff Architect.
AEC Business Innovation | Sep 28, 2021
Getting diversity, equity, and inclusion going in AEC firms
As a professional services organization built on attracting the best and brightest talent, VIATechnik relies on finding new ways to do just that. Here are some tips that we’ve learned through our diversity, equity, and inclusion (DE&I) journey.
Multifamily Housing | Sep 22, 2021
Designing for the ‘missing middle’ in multifamily housing
Multifamily housing expert Patrick Winters, AIA, discusses a neglected segment of the market: the "missing middle."
Multifamily Housing | Sep 22, 2021
11 notable multifamily projects to debut in 2021
A residence for older LGBTQ+ persons, a P3 student housing building, and a converted masonic lodge highlight the multifamily developments to debut this year.