Washington, D.C. – March 23, 2011 – During the first two months of 2011 the Architecture Billings Index (ABI) is not exhibiting the strength of business conditions that were seen in the final quarter of 2010. As a leading economic indicator of construction activity, the ABI reflects the approximate nine to 12 month lag time between architecture billings and construction spending. The American Institute of Architects (AIA) reported the February ABI score was 50.6, up slightly from a reading of 50.0 the previous month. This score reflects a modest increase in demand for design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 56.4, compared to a mark of 56.5 in December.
“Overall demand for design services seems to be treading water over the last two months,” said AIA Chief Economist, Kermit Baker, PhD, Hon. AIA. “We’ve been preaching patience and cautious optimism for a full recovery because there continues to be a wide range of business conditions for architecture firms that are also influenced by firm size, practice specialties and regional location. We still expect the road to recovery to move at a slow, but steady pace.”
Key February ABI highlights:
Regional averages: Midwest (55.3), South (50.1), West (49.1), Northeast (46.4)
Sector index breakdown: commercial / industrial (55.0), mixed practice (51.3),
multi-family residential (49.7), institutional (48.9)
Project inquiries index: 56.4
About the AIA Architecture Billings Index
The Architecture Billings Index (ABI), produced by the AIA Economics & Market Research Group <http://www.aia.org/practicing/economics> , 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 web site.
About The American Institute of Architects
For over 150 years, members of the American Institute of Architects have worked with each other and their communities to create more valuable, healthy, secure, and sustainable buildings and cityscapes. Members adhere to a code of ethics and professional conduct to ensure the highest standards in professional practice. Embracing their responsibility to serve society, AIA members engage civic and government leaders and the public in helping find needed solutions to pressing issues facing our communities, institutions, nation and world. Visit www.aia.org.
Related Stories
| Feb 5, 2014
Multifamily Housing, Green Building, Market Trends, Innovation to be Prime Topics at MBI’s World of Modular
More than 600 developers, contractors, architects, builders, dealers and equipment/service suppliers are expected at the event, slated for March 21-24 in San Antonio, Texas, and hosted by the Modular Building Institute.
| Feb 5, 2014
7 towers that define the 'skinny skyscraper' boom [slideshow]
Recent advancements in structural design, combined with the loosening of density and zoning requirements, has opened the door for the so-called "superslim skyscraper."
| Feb 4, 2014
World's fifth 'living building' certified at Smith College [slideshow]
The Bechtel Environmental Classroom utilizes solar power, composting toilets, and an energy recovery system, among other sustainable strategies, to meet the rigorous performance requirements of the Living Building Challenge.
| Feb 4, 2014
Must see: Student housing complex made with recycled shipping containers
Architect Christian Salvati's new structure is just the first step in bringing shipping container construction to New Haven, Conn.
| Feb 3, 2014
Gehry wins bid to design Berlin's tallest tower [slideshow]
The architect's "rotating cubes" scheme for the 300-unit residential tower beat out design submissions by eight other prominent firms, including Adjaye Associates and David Chipperfield Architects.
| Jan 31, 2014
Trump Hotel Collections announces luxury hotel for Rio de Janeiro
The 13-story, 171-guestroom Trump Rio will be Trump Hotel Collection’s first property in South America and the only luxury hotel in the neighborhood when it opens in 2016.
| Jan 31, 2014
LEGO, Google partner to develop 3D modeling tool for LEGO structures
The free tool, called Build, allows Chrome users to create virtual 3D structures using any shape and color in the LEGO catalog.
| Jan 31, 2014
Ultra-modern McDonald's restaurant voted one of world's best new buildings
This McDonald's, which is combined with a fuel station and recreation areas, was awarded the Best Commercial Building of the Year by architecture website ArchDaily.
| Jan 31, 2014
6 considerations for rehabbing student union buildings
Most colleges and universities feel pressure to offer the latest amenities in order to attract and retain the best and brightest students. While hauling in the bulldozer to create modern facilities is attractive in some regards, deciding to renovate can be just as effective and, in some cases, even preferable to new construction.
| Jan 30, 2014
Mayors of 10 metros unite to cut building-related climate pollution
Organizers say combined initiative could cut as much climate-change pollution as generated by 1 million cars every year, and lower energy bills by nearly $1 billion annually.