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
| Aug 19, 2014
Goettsch Partners unveils design for mega mixed-use development in Shenzhen [slideshow]
The overall design concept is of a complex of textured buildings that would differentiate from the surrounding blue-glass buildings of Shenzhen.
| Aug 19, 2014
HOK to acquire 360 Architecture
Expected to be finalized by the end of October, the acquisition of 360 Architecture will provide immediate benefits to both firms’ clients worldwide as HOK re-enters the sports and entertainment market.
| Aug 19, 2014
A designer's epiphany: 'Let's stop talking and make something'
Making things is important because it reveals gaps in thought, sheds light on the fundamental assumptions that can kill ideas, and forces us to push toward solutions that actually work, writes HDR's David Grandy.
| Aug 19, 2014
Construction boom lures new class of lenders in Nashville, says JLL
In the coming months, a gleaming S-shaped tower will join Nashville's burgeoning skyline. The new tower is just one example of a project financed not with conventional construction loans but with a unique blend of equity and debt.
| Aug 18, 2014
Perkins+Will expands planning practice with strategic focus on underserved U.S. communities
The broadened focus is resulting in comprehensive, long-term plans that will guide new growth in places like Buffalo, N.Y., Kingston, R.I., and Brooklyn, N.Y.
| Aug 18, 2014
SPARK’s newly unveiled mixed-use development references China's flowing hillscape
Architecture firm SPARK recently finished a design for a new development in Shenzhen. The 770,700 square-foot mixed-use structure's design mimics the hilly landscape of the site's locale.
| Aug 18, 2014
Seaside luxury: Arquitectonica, Melo Group introduce Aria on the Bay condo tower in Miami
Melo Group has launched sales for Aria on the Bay, its new 647-unit luxury condominium in Miami. The bayfront condo will overlook Margaret Pace Park, Biscayne Bay and the Miami Beach skyline.
Sponsored | | Aug 16, 2014
Fire-rated framing system makes the grade at Johnson & Wales University Center
The precision engineering of TGP’s Fireframes Aluminum Series creates narrow profiles and crisp sightlines at Johnson & Wales University Center for Physician Assistant Studies
| Aug 16, 2014
Decoupling the professional services firm
Business consultant Tim Williams authored a recent LinkedIn post that highlights the emerging trend among professional services firms toward “decoupling,” or consciously separating the high-value services that are scarce from the low-value services that are plentiful. SPONSORED CONTENT
| Aug 16, 2014
The science of learning: Designing the STEM learning facilities of the future
New technology and changing pedagogies are influencing how to best teach a generation of learners who have never known a world without smartphones or tablets, writes HOK's Kimberly Robidoux.