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 | Aug 21, 2017
AIA: Architectural salaries exceed gains in the broader economy
AIA’s latest compensation report finds average compensation for staff positions up 2.8% from early 2015.
Sports and Recreational Facilities | Aug 18, 2017
Video: Designing the ideal rugby stadium
HOK invited four world-class rugby players into its London studio to discuss what they would like to see in the rugby stadiums of the future.
Architects | Aug 16, 2017
Staffelbach joins DLR Group
The firm will be merging operations immediately with full integration and the name change to DLR Group| Staffelbach effective October 2.
Multifamily Housing | Aug 9, 2017
Related Companies unveils plans for One Hudson Yards luxury rental residences
The 33-story tower will be positioned on the High Line with views of the Hudson River and downtown Manhattan.
Multifamily Housing | Aug 9, 2017
Multifamily developers, designers cater to occupants’ need for mobility
Bike storage facilities and “bicycle kitchens” are among the most popular mobility amenities in multifamily developments, according to a new survey by Multifamily Design + Construction magazine.
Giants 400 | Aug 9, 2017
Innovation at 72 design firms
The following is a list of advancements architecture and A/E firms underwent in 2016, as reported in Building Design+Construction's 2017 Giants 300 Report.
Giants 400 | Aug 9, 2017
Top 115 Architecture Firms
Gensler, Perkins+Will, and HKS top Building Design+Construction’s ranking of the nation’s largest architecture firms, as reported in the 2017 Giants 300 Report.
Giants 400 | Aug 9, 2017
Top 100 Architecture/Engineering Firms
Stantec, HOK, and CallisonRTKL are among the nation’s largest architecture/engineering firms, according to Building Design+Construction’s 2017 Giants 300 Report.
Contractors | Aug 4, 2017
4 ways to prepare for a negotiation
Practice, practice, practice, and understanding both sides of the deliberation are critical to success in any negotiation.