After its first negative score in 10 months, the Architecture Billings Index (ABI) showed a nominal increase in design activity in February, and has been positive ten out of the past twelve months.
The American Institute of Architects (AIA) reported the February ABI score was 50.4, up slightly from a mark of 49.9 in January. This score reflects a minor increase in design services (any score above 50 indicates an increase in billings).
The new projects inquiry index was 56.6, down from a reading of 58.7 the previous month.
As a leading economic indicator of construction activity, the ABI reflects the approximate nine to twelve month lead time between architecture billings and construction spending.
“The health of the institutional market has been the key factor for positive business conditions for the design and construction industry in recent months, and it is encouraging to see that sector remain on solid footing,” said AIA Chief Economist Kermit Baker, Hon. AIA, PhD. “However, we’re seeing some slowing in the other major construction sectors. Design billings for residential projects had its first negative month in over three years, and commercial design billings have seen only modest growth in recent years.”
Key February ABI highlights:
- Regional averages: South (52.5), Midwest (50.2), Northeast (48.0), West (46.7)
- Sector index breakdown: institutional (52.2), commercial / industrial (51.4), multi-family residential (48.9), mixed practice (45.3)
- Project inquiries index: 56.6
- Design contracts index: 50.0
The regional and sector categories are calculated as a 3-month moving average, whereas the national index, design contracts and inquiries are monthly numbers.
About the AIA Architecture Billings Index
The Architecture Billings Index (ABI), produced by the AIA Economics & Market Research Group, is a leading economic indicator that provides an approximately nine to twelve month glimpse into the future of nonresidential construction spending activity. The diffusion indexes contained in the full report are derived from a monthly “Work-on-the-Boards” survey that is sent to a panel of AIA member-owned firms. Participants are asked whether their billings increased, decreased, or stayed the same in the month that just ended as compared to the prior month, and the results are then compiled into the ABI. These monthly results are also seasonally adjusted to allow for comparison to prior months. The monthly ABI index scores are centered around 50, with scores above 50 indicating an aggregate increase in billings, and scores below 50 indicating a decline. The regional and sector data are formulated using a three-month moving average. More information on the ABI and the analysis of its relationship to construction activity can be found in the recently released White Paper, Designing the Construction Future: Reviewing the Performance and Extending the Applications of the AIA’s Architecture Billings Index on the AIA web site.
Related Stories
| Mar 9, 2011
Igor Krnajski, SVP with Denihan Hospitality Group, on hotel construction and understanding the industry
Igor Krnajski, SVP for Design and Construction with Denihan Hospitality Group, New York, N.Y., on the state of hotel construction, understanding the hotel operators’ mindset, and where the work is.
| Mar 3, 2011
HDR acquires healthcare design-build firm Cooper Medical
HDR, a global architecture, engineering and consulting firm, acquired Cooper Medical, a firm providing integrated design and construction services for healthcare facilities throughout the U.S. The new alliance, HDR Cooper Medical, will provide a full service design and construction delivery model to healthcare clients.
| Mar 2, 2011
Design professionals grow leery of green promises
Legal claims over sustainability promises vs. performance of certified green buildings are beginning to mount—and so are warnings to A/E/P and environmental consulting firms, according to a ZweigWhite report.
| Mar 2, 2011
Cities of the sky
According to The Wall Street Journal, the Silk Road of the future—from Dubai to Chongqing to Honduras—is taking shape in urban developments based on airport hubs. Welcome to the world of the 'aerotropolis.'
| Mar 2, 2011
How skyscrapers can save the city
Besides making cities more affordable and architecturally interesting, tall buildings are greener than sprawl, and they foster social capital and creativity. Yet some urban planners and preservationists seem to have a misplaced fear of heights that yields damaging restrictions on how tall a building can be. From New York to Paris to Mumbai, there’s a powerful case for building up, not out.
| Mar 1, 2011
Smart cities: getting greener and making money doing it
The Global Green Cities of the 21st Century conference in San Francisco is filled with mayors, architects, academics, consultants, and financial types all struggling to understand the process of building smarter, greener cities on a scale that's practically unimaginable—and make money doing it.
| Mar 1, 2011
How to make rentals more attractive as the American dream evolves, adapts
Roger K. Lewis, architect and professor emeritus of architecture at the University of Maryland, writes in the Washington Post about the rising market demand for rental housing and how Building Teams can make these properties a desirable choice for consumer, not just an economically prudent and necessary one.
| Mar 1, 2011
New survey shows shifts in hospital construction projects
America’s hospitals and health systems are focusing more on renovation or expansion than new construction, according to a new survey conducted by Health Facilities Management magazine and the American Society for Healthcare Engineering (ASHE). In fact, renovation or expansion accounted for 73% of construction projects at hospitals responding to the survey.
| Mar 1, 2011
AIA selects 6 communities for long-term sustainability program
The American Institute of Architects today announced it has selected 6 communities throughout the country to receive technical assistance under the Sustainable Design Assessment Team (SDAT) program in 2011. The communities selected are Shelburne, Vt., Apple Valley, Mn., Pikes Peak Region, Co., Southwest DeKalb County, Ga., Bastrop, Tx., and Santa Rosa, Ca. The SDAT program represents a significant institutional investment by the AIA in public service work to assist communities in developing policy frameworks and long term sustainability plans.
| Feb 24, 2011
Perkins+Will designs 100 LEED Certified buildings
Perkins+Will announced the Leadership in Energy and Environmental Design (LEED) certification of its 100th sustainable building, marking a key milestone for the firm and for the sustainable design industry. The Vancouver-based Dockside Green Phase Two Balance project marks the firm’s 100th LEED certified building and is tied for the highest scoring LEED building worldwide with its sister project, Dockside Green Phase One.
