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
| Aug 4, 2014
BIM Giants: Firms enhance BIM/VDC with advanced collaboration tools [2014 Giants 300 Report]
Cloud-based data sharing, rapid iterative design, and cross-discipline collaboration are among the emerging trends in the BIM/VDC field, according to BD+C's 2014 Giants 300 Report.
| Aug 4, 2014
7 habits of highly effective digital enterprises
Transforming your firm into a “digital business” is particularly challenging because digital touches every function while also demanding the rapid development of new skills and investments. SPONSORED CONTENT
| Aug 4, 2014
What AEC executives can do to position their firms for success
Most AEC leadership teams are fastidious about tracking their hit rate–the number of proposals submitted minus the number of proposals won. Here are three alternatives for increasing that percentage. SPONSORED CONTENT
| Aug 1, 2014
Best in healthcare design: AIA selects eight projects for National Healthcare Design Awards
Projects showcase the best of healthcare building design and health design-oriented research.
| Aug 1, 2014
Recession recovery spotty among American cities: WalletHub report
Texas metros show great momentum, but a number of Arizona and California cities are still struggling to recover.
| Jul 30, 2014
Higher ed officials grapple with knotty problems, but construction moves ahead [2014 Giants 300 Report]
University stakeholders face complicated cap-ex stressors, from chronic to impending. Creative approaches to financing, design, and delivery are top-of-mind, according to BD+C's 2014 Giants 300 Report.
Sponsored | | Jul 30, 2014
How one small architecture firm improved cash flow using ArchiOffice
Foreman Seeley Fountain Architecture not only managed to survive the Great Recession, it has positioned itself to thrive in the economy’s recovery.
| Jul 30, 2014
German students design rooftop solar panels that double as housing
Students at the Frankfurt University of Applied Sciences designed a solar panel that can double as living space for the Solar Decathlon Europe.
| Jul 30, 2014
Restaurants, farmers' markets high on urban dwellers' wish list: Sasaki report
Urban dwellers love food-related resources, public spaces, and historic structures—but really hate traffic, lack of parking, and poor public transportation.
| Jul 30, 2014
Nonresidential building activity on the rise for 2015: AIA Forecast
Semiannual Consensus Construction Forecast predicts 4.9% increase this year, 8% next year, with offices and retail facilities leading the charge.