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
Architects | Feb 6, 2020
NBBJ acquires immersive technology design studio ESI Design
NBBJ has acquired experience design studio ESI Design. The acquisition signals a new era where buildings will be transformed into immersive and interactive digital experiences that engage and delight.
Sponsored | HVAC | Feb 3, 2020
Reliable Building Systems Increase Net Operating Income by Retaining Tenants
Tenants increasingly expect a well-crafted property that feels unique, authentic, and comfortable—with technologically advanced systems and spaces that optimize performance and encourage collaboration and engagement. The following guidance will help owners and property managers keep tenants happy.
Architects | Jan 29, 2020
Frank Lloyd Wright’s architecture school is closing
The school was established in 1932.
Libraries | Jan 23, 2020
Information or community center: The next generation of libraries must be both
Are libraries still relevant in a digital world?
Green | Jan 10, 2020
How the new EC3 tool raises the bar on collective action
Nearly 50 AEC industry organizations partnered to develop the groundbreaking Embodied Carbon in Construction Calculator.
Architects | Jan 9, 2020
AIA selects recipients for the 2020 Regional & Urban Design Awards
The 2020 Regional & Urban Design program recognizes the best in urban design, regional and city planning and community development.
Building Technology | Jan 7, 2020
Tariff whiplash for bifacial solar modules
Bifacial solar systems offer many advantages over traditional systems.
Sponsored | HVAC | Jan 6, 2020
Maximize Energy Efficiency in Class A Office Buildings With Modern Building Systems
Energy-efficient building design starts with the building envelope, but the building systems have a tremendous impact on energy use as well.
Life of an Architect Podcast | Jan 6, 2020
5 most popular Life of an Architect podcast episodes of 2019
Architects Bob Borson, FAIA, and Andrew Hawkins, AIA, LEED AP, produced 25 episodes of the Life of an Architect podcast in 2019. Here are the five most popular episodes of Life of an Architect based on the number of downloads. Â
Architects | Jan 6, 2020
Merger expands HED’s presence in SoCal
Puchlik Design Associates, its new addition, specializes in healthcare design.