On the heels of consecutive months of decreasing demand for design services, the Architecture Billings Index (ABI) has returned to positive territory.
The American Institute of Architects (AIA) reported that the May ABI score was 52.6, up sharply from a mark of 49.6 in April. This score reflects an increase in design activity (any score above 50 indicates an increase in billings). The new projects inquiry index was 63.2, up from the reading of 59.1 the previous month.
The AIA has added a new indicator measuring the trends in new design contracts at architecture firms that can provide a strong signal of the direction of future architecture billings. The score for design contracts in May was 52.5.
“Volatility continues to be the watchword in the design and construction markets, with firms in some regions of the country, and serving some sectors of the industry, reporting strong growth, while others are indicating continued weakness,” said AIA Chief Economist Kermit Baker, Hon. AIA, PhD. “However, overall, it appears that activity has recovered from the winter slump, and design professions should see more positive than negative numbers in the coming months.”
Key May ABI highlights:
- Regional averages: South (58.1), Midwest (51.3), Northeast (47.6) , West (46.9)
- Sector index breakdown: multi-family residential (58.2), commercial / industrial (53.6), mixed practice (50.4), institutional (47.3)
- Project inquiries index: 63.2
- Design contracts index: 52.5
The regional and sector categories are calculated as a 3-month moving average, whereas the national index, design contracts and inquiries are monthly numbers.
Related Stories
Museums | May 25, 2017
The museum as workspace
Many museum staff are resistant to the idea of open offices.
| May 24, 2017
Accelerate Live! talk: Applying machine learning to building design, Daniel Davis, WeWork
Daniel Davis offers a glimpse into the world at WeWork, and how his team is rethinking workplace design with the help of machine learning tools.
| May 24, 2017
Accelerate Live! talk: Learning from Silicon Valley - Using SaaS to automate AEC, Sean Parham, Aditazz
Sean Parham shares how Aditazz is shaking up the traditional design and construction approaches by applying lessons from the tech world.
| May 24, 2017
Accelerate Live! talk: The data-driven future for AEC, Nathan Miller, Proving Ground
In this 15-minute talk at BD+C’s Accelerate Live! (May 11, 2017, Chicago), Nathan Miller presents his vision of a data-driven future for the business of design.
Architects | May 23, 2017
Queens Museum exhibit shows New York City as it could have been
The installation will showcase 200 years worth of unrealized Big Apple projects via original drawings, renderings, newly commissioned models, and 3D visualizations.
Education Facilities | May 22, 2017
Educational design taking lessons from tech firms
Recently, in educational design, we have seen a trend toward more flexible learning spaces.
Architects | May 16, 2017
Architecture that helps children fall in love with the environment
The coming decades present a major ecological challenge... so let’s encourage the next generation to do something about it!
AEC Tech | May 11, 2017
Accelerate Live!: Social media reactions from BD+C's AEC innovation conference
BD+C's inaugural Accelerate Live! innovation conference took place May 11, in Chicago.
Multifamily Housing | May 10, 2017
Triple Treat: Developer transforms mid-rise into unique live-work lofts
Novus Residences’ revolutionary e-lofts concept offers tenants a tempting trio of options—‘live,’ ‘live-work,’ or ‘work’—all on the same floor.
Architects | May 9, 2017
Spiezle Architectural Group looks to the future
Now in its seventh decade, the firm expands its portfolio and moves into a larger HQs.