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
| Dec 20, 2013
Must see for the holidays: Architects re-create iconic structures using gingerbread
Gensler, PBK, Page Sutherland Page, and Kirksey were among the firms to compete in the 5th Annual Gingerbread Build-Off.
| Dec 20, 2013
Can energy hogs still be considered efficient buildings? Yes, say engineers at Buro Happold
A new tool from the engineering firm Buro Happold takes into account both energy and economic performance of buildings for a true measure of efficiency.
| Dec 18, 2013
How small architectural firms can make big money
What separates the great-but-struggling designers from the great-successful ones isn't luck. If you're as good an architect as you think, it will take more than your awesome design skills to become successful. Learn how to manage your firm’s finances and go from floundering to flourishing.
| Dec 18, 2013
Eskew + Dumez + Ripple receives AIA's 2014 Architecture Firm Award
The American Institute of Architects (AIA) Board of Directors has voted for Eskew + Dumez + Ripple to receive the 2014 AIA Architecture Firm Award. The firm will be honored at the 2014 AIA National Convention in Chicago. The Board also voted to posthumously honor Julia Morgan, FAIA, with its 214 Gold Medal.
| Dec 18, 2013
Architecture Billings Index takes step back in November
After six months of steadily increasing demand for design services, the Architecture Billings Index paused in November, dipping below 50 for just the second time in 2013.
| Dec 17, 2013
Kahn appoints Alan Cobb President and CEO
Cobb is the tenth president in the firm’s 118-year history. As President, Cobb is responsible for ensuring that all of the firm’s client issues are effectively address and that overall project team performance meets or exceeds client expectations for each and job the firm undertakes.
| Dec 17, 2013
CBRE's Chris Bodnar and Lee Asher named Healthcare Real Estate Executives of the Year
CBRE Group, Inc. announced today that two of its senior executives, Chris Bodnar and Lee Asher, have been named Healthcare Real Estate Executives of the Year by Healthcare Real Estate Insights.
| Dec 16, 2013
Is the metal building industry in a technology shift?
Automation is the future you can’t avoid, though you may try. Even within the metal building industry—which is made up of skilled tradesmen—automation has revolutionized, and will continue revolutionizing, how we work.
| Dec 16, 2013
Why employees don’t trust their leaders
Trust, one of the key elements to productive business relationships, is in short supply these days. An Associated Press-GfK poll discovered that only one-third of Americans say most people can be trusted and nearly two-thirds says “you can’t be too careful” in dealing with people.
| Dec 16, 2013
Construction materials prices remain stable in November
Overall, construction materials prices fell 0.5 percent in November and are up only 1.1 percent year over year, according to the Department of Labor’s Dec. 13 Producer Price Index.
