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
| Feb 14, 2014
Crowdsourced Placemaking: How people will help shape architecture
The rise of mobile devices and social media, coupled with the use of advanced survey tools and interactive mapping apps, has created a powerful conduit through which Building Teams can capture real-time data on the public. For the first time, the masses can have a real say in how the built environment around them is formed—that is, if Building Teams are willing to listen.
| Feb 13, 2014
University officials sound off on net zero energy buildings
As part of its ongoing ZNE buildings research project, Sasaki Associates, in collaboration with Buro Happold, surveyed some 500 campus designers and representatives on the top challenges and opportunities for achieving net-zero energy performance on university and college campuses.
| Feb 13, 2014
3 keys to designing freestanding emergency departments
Having physically disassociated from a central hospital, FEDs must overcome the particular challenges associated with a satellite location, namely a lack of awareness, appeal, and credibility. Gresham, Smith & Partners' Kristin Herman-Druc offers three keys to success.
| Feb 13, 2014
Why you should start with a builder
They say the best way to eat an elephant is one bite at a time. Expanding your building or constructing a new structure for your business, church, or school isn’t all that different. Attacking it is best done in small, deliberate pieces.
| Feb 13, 2014
Related Companies, LargaVista partner to develop mixed-use tower in SoHo
The site is located at the gateway to the booming SoHo retail market, where Class A office space is scarce yet highly in demand.
| Feb 12, 2014
First Look: Futuristic Silicon Valley campus designed to draw tech startups
The curved campus will consist of four different buildings, one exclusively for amenities like a coffee bar, bike shop, and bank.
| Feb 12, 2014
IIT's College of Architecture launches the Mies Crown Hall Americas Prize
Awarded biennially with a $50,000 prize, the program will recognize the most distinguished architectural works built on the North and South American continents in the preceding two years.
| Feb 11, 2014
Adobe Photoshop update features new 3D printing capabilities
Available as part of an update to Photoshop Creative Cloud, the tool enables users to easily and reliably build, refine, preview, prepare, and print 3D designs.
| Feb 10, 2014
Proposed parking garage will sandwich vehicles between housing and retail space
Architecture firm Brisac Gonzalez says that the design "will introduce different activities after parking hours."
| Feb 10, 2014
Architecture Design Collaborative announces firm opening in Southern California
Today, Architecture Design Collaborative officially announces the launch of its firm providing a full range of architecture and interior design services nationwide. Architecture Design Collaborative offers architectural design services, comprehensive interior design services, developer collaboration, direct tenant improvement, repositioning and site planning.