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
Building Tech | Jun 26, 2019
Modular construction can deliver projects 50% faster
Modular construction can deliver projects 20% to 50% faster than traditional methods and drastically reshape how buildings are delivered, according to a new report from McKinsey & Co.
Architects | Jun 24, 2019
Clayco combines architecture and design assets into one business unit
Lamar Johnson Collaborative adds BatesForum.
Architects | Jun 14, 2019
Making public facilities more public
Municipal facilities must strike a delicate balance between openness and security.
Architects | Jun 4, 2019
Big design, small budget: These are the best small projects for 2019
Bjarke Ingels Group's prototype mountainside cabin and Fieldwork's forest pedestrian bridges are among 12 projects honored by AIA's Small Project Practitioners group.
Architects | Apr 26, 2019
Designing for the final frontier: Space architecture
Colonizing Mars is an exciting possibility in the not-too-distant future, and architects will play a vital role in making it a reality, despite the plethora of challenges that need to be overcome.
Architects | Apr 12, 2019
Bipartisan 'Invest in America Act' gains industry support
The bill would attract as much as $125 billion investment for buildings, infrastructure.
Office Buildings | Apr 8, 2019
It’s time for office amenities to get to work
Amenities with the greatest impact on effectiveness and experience are those that directly support the work needs of individual employees and their teams.
Industry Research | Apr 8, 2019
New research finds benefits to hiring architectural services based on qualifications
Government agencies gain by evaluating beyond price, according to a new Dodge survey of government officials.
Architects | Mar 17, 2019
HMC Architects sets up a ‘design lab’ to explore new ideas
The goal is for project team members to collaborate earlier to inspire innovation.