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
| Jul 19, 2012
BIM finally starting to pay off for AEC firms
In surveying Giants 300 firms about BIM, we went right for the jugular: Is BIM paying off—through cost savings, higher quality, or client satisfaction? Here’s what they told us.
| Jul 19, 2012
Contractors finally ‘moving off the bottom’
C and CM Agent + PM Giants 300 Firms also taking steps to improve project efficiency.
| Jul 19, 2012
The best states for a construction job
The top anticipated engineering and skilled labor shortages according to a survey of 2,223 construction industry professionals.
| Jul 19, 2012
Suffolk Construction launches subcontractor development series
Professional certificate program to provide core construction management skills to disadvantaged, minority, and women business enterprises.
| Jul 19, 2012
Construction begins on military centers to treat TBI and PTS
First two of several centers to be built in Fort Belvoir, Va. and Camp Lejeune, N.C.
| Jul 18, 2012
U.S. engineering firms set sail for foreign ports
Other E/EA Giants 300 firms are just dipping their toes into foreign waters, still looking for international business but choosing not to establish additional offices.
| Jul 18, 2012
Architecture giants spreading their wings
A/AE Giants 300 rankings reveal firms branching out globally, merging, adding services.
| Jul 18, 2012
Green expert Kats joins GreenWizard as an advisor
Kats' role is to help further expand GreenWizard’s impact in the sustainable construction industry.
| Jul 18, 2012
Construction employment stagnates in June
Lack of hiring in construction combined with job growth elsewhere threatens to create skilled-labor gap once contractors are ready to hire again.
| Jul 18, 2012
Legat & Kingscott relocates architecture/interior design office
Move enables the architecture/interior design firm to better serve its expanding clientele.