Following consistently increasing demand for design services throughout most of 2013, the Architecture Billings Index (ABI) has posted its first consecutive months of contraction since May and June of 2012.
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 American Institute of Architects (AIA) reported the December ABI score was 48.5, down from a mark of 49.8 in November. This score reflects a decrease in design services (any score above 50 indicates an increase in billings).
The new projects inquiry index was 59.2, up from the reading of 57.8 the previous month.
“What we thought last month was an isolated dip now bears closer examination to see what is causing the slowdown in demand for architectural services,” said AIA Chief Economist Kermit Baker, Hon. AIA, PhD. “It is possible that some of this can be attributed to the anxiety in the marketplace caused by the shutdown of the federal government, but it will be important to see how business conditions fare through the first quarter of the new year when we no longer have end of the year issues to deal with.”
Key December ABI highlights:
• Regional averages: West (53.2), South (51.2), Midwest (47.0), Northeast (42.8)
• Sector index breakdown: multi-family residential (53.8), mixed practice 51.0), commercial / industrial (47.1), institutional (44.8)
• Project inquiries index: 59.2
Note: The regional and sector categories are calculated as a 3-month moving average, whereas the index 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 White Paper Architecture Billings as a Leading Indicator of Construction: Analysis of the Relationship Between a Billings Index and Construction Spending on the AIA website.
Related Stories
| Dec 29, 2014
Hard hat equipped with smartglass technology could enhance job site management [BD+C's 2014 Great Solutions Report]
Smart Helmet is equipped with an array of cameras that provides 360-degree vision through its glass visor, even in low light. It was named a 2014 Great Solution by the editors of Building Design+Construction.
| Dec 29, 2014
Clayco lends operational support and financing to construction services startups [BD+C's 2014 Great Solutions Report]
Design-build firm Clayco has launched an investment arm called Treehouse Adventures to provide financing and operational infrastructure to startups, including those serving the AEC industry. The new venture was named a 2014 Great Solution by the editors of Building Design+Construction.
| Dec 29, 2014
Reef Worlds to build world’s largest underwater theme park for luxury resort [BD+C's 2014 Great Solutions Report]
Dubai is known for its gargantuan commercial building projects. The latest to be proposed is the world’s largest underwater theme park, designed and built by Reef Worlds. The project was named a 2014 Great Solution by the editors of Building Design+Construction.
| Dec 29, 2014
New data-gathering tool for retail designers [BD+C's 2014 Great Solutions Report]
Beacon technology personalizes smartphone messaging, creating a new information resource for store designers. It was named a 2014 Great Solution by the editors of Building Design+Construction.
| Dec 29, 2014
Leo A Daly's minimally invasive approach to remote field site design [BD+C's 2014 Great Solutions Report]
For the past six years, Leo A Daly has been designing sites for remote field stations with near-zero ecological disturbance. The firm's environmentally delicate work was named a 2014 Great Solution by the editors of Building Design+Construction.
| Dec 29, 2014
Wearable job site management system allows contractors to handle deficiencies with subtle hand and finger gestures [BD+C's 2014 Great Solutions Report]
Technology combines a smartglass visual device with a motion-sensing armband to simplify field management work. The innovation was named a 2014 Great Solution by the editors of Building Design+Construction.
| Dec 29, 2014
From Ag waste to organic brick: Corn stalks reused to make construction materials [BD+C's 2014 Great Solutions Report]
Ecovative Design applies its cradle-to-cradle process to produce 10,000 organic bricks used to build a three-tower structure in Long Island City, N.Y. The demonstration project was named a 2014 Great Solution by the editors of Building Design+Construction.
| Dec 29, 2014
14 great solutions for the commercial construction market
Ideas are cheap. Solutions are what count. The latest installment in BD+C's Great Solutions series presents 14 ways AEC professionals, entrepreneurs, and other clever folk have overcome what seemed to be insoluble problems—from how to make bricks out of agricultural waste, to a new way to keep hospitals running clean during construction.
| Dec 29, 2014
HealthSpot station merges personalized healthcare with videoconferencing [BD+C's 2014 Great Solutions Report]
The HealthSpot station is an 8x5-foot, ADA-compliant mobile kiosk that lets patients access a network of board-certified physicians through interactive videoconferencing and medical devices. It was named a 2014 Great Solution by the editors of Building Design+Construction.
| Dec 28, 2014
Robots, drones, and printed buildings: The promise of automated construction
Building Teams across the globe are employing advanced robotics to simplify what is inherently a complex, messy process—construction.