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
Game Changers | Dec 20, 2017
Urban farms can help plant seeds for cities’ growth around them
Urban farms have been impacting cities’ agribusiness—and, on some cases, their redevelopment—for decades.
Market Data | Dec 20, 2017
Architecture billings upturn shows broad strength
The American Institute of Architects (AIA) reported the November ABI score was 55.0, up from a score of 51.7 in the previous month.
Public Health Labs | Dec 19, 2017
10 takeaways from SmithGroup’s ‘lab of the future’ initiative
The LAB2050 initiative digs into the scientific trends, technologies, and economics that will shape tomorrow’s research laboratory environments.
Office Buildings | Dec 19, 2017
How do we measure human performance, and what does it mean for the workplace?
There are many new tools and methods that are beginning to look more comprehensively to evaluate organizational well-being.
Sports and Recreational Facilities | Dec 18, 2017
Canada’s newest funicular makes Edmonton’s largest green space more accessible
The incline elevator is located in downtown Edmonton and was publicly funded.
Sponsored | Building Team | Dec 12, 2017
3 tips to address the top causes of budget overruns
The most cited issues are communication breakdowns, inadequate fees for the work provided, and unrealistic deadlines or schedules.
Multifamily Housing | Dec 12, 2017
Call for technical experts: Dog wash station design
The editors of Multifamily Design + Construction magazine need your expertise.
Government Buildings | Dec 11, 2017
Is this the world’s most humane prison?
The C.F. Møller-designed prison’s architecture supports the inmates’ and staff’s mental and physical well-being.
Architects | Dec 7, 2017
Snow Kreilich Architects receives the 2018 AIA Architecture Firm Award
Julie Snow, FAIA, founded the firm in Minneapolis in 1995, and later was joined by partner Matt Kreilich, AIA.
Architects | Dec 7, 2017
2018 AIA Gold Medal awarded to James Stewart Polshek
In 1963 Polshek started his first architecture firm, James Stewart Polshek Architect.