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
| Oct 5, 2012
2012 Reconstruction Award Bronze Winner: Walsh Group Training and Conference Center, Chicago, Ill.
With its Building Team partners—architect Solomon Cordwell Buenz, structural engineer CS Associates, and M/E engineer McGuire Engineers—Walsh Construction, acting as its own contractor, turned the former automobile showroom and paperboard package facility into a 93,000-sf showcase of sustainable design and construction.
| Oct 5, 2012
2012 Reconstruction Award Silver Winner: 220 Water Street, Brooklyn, N.Y.
The recent rehabilitation of 220 Water Street transforms it from a vacant manufacturing facility to a 134-unit luxury apartment building in Brooklyn’s DUMBO neighborhood.
| Oct 5, 2012
2012 Reconstruction Award Silver Winner: Residences at the John Marshall, Richmond, Va.
In April 2010, the Building Team of Rule Joy Trammell + Rubio, Stanley D. Lindsey & Associates, Leppard Johnson & Associates, and Choate Interior Construction restored the 16-story, 310,537-sf building into the Residences at the John Marshall, a new mixed-use facility offering apartments, street-level retail, a catering kitchen, and two restored ballrooms.
| Oct 4, 2012
2012 Reconstruction Awards Silver Winner: Allen Theatre at PlayhouseSquare, Cleveland, Ohio
The $30 million project resulted in three new theatres in the existing 81,500-sf space and a 44,000-sf contiguous addition: the Allen Theatre, the Second Stage, and the Helen Rosenfeld Lewis Bialosky Lab Theatre.
| Oct 4, 2012
2012 Reconstruction Awards Gold Winner: Wake Forest Biotech Place, Winston-Salem, N.C.
Reconstruction centered on Building 91.1, a historic (1937) five-story former machine shop, with its distinctive façade of glass blocks, many of which were damaged. The Building Team repointed, relocated, or replaced 65,869 glass blocks.
| Oct 4, 2012
2012 Reconstruction Awards Gold Winner: Rice Fergus Miller Office & Studio, Bremerton, Wash.
Rice Fergus Miller bought a vacant and derelict Sears Auto and converted the 30,000 gsf space into the most energy-efficient commercial building in the Pacific Northwest on a construction budget of around $100/sf.
| Oct 4, 2012
2012 Reconstruction Award Platinum Winner: Building 1500, Naval Air Station Pensacola Pensacola, Fla.
The Building Team, led by local firms Caldwell Associates Architects and Greenhut Construction, had to tackle several difficult problems to make the historic building meet current Defense Department standards having to do with anti-terrorism, force protection, blast-proofing, and progressive collapse.
| Oct 4, 2012
2012 Reconstruction Awards Platinum Winner: City Hall, New York, N.Y.
New York's City Hall last received a major renovation nearly a century ago. Four years ago, a Building Team led by construction manager Hill International took on the monumental task of restoring City Hall for another couple of hundred years of active service.
| Oct 4, 2012
BD+C's 29th Annual Reconstruction Awards
Presenting 11 projects that represent the best efforts of distinguished Building Teams in historic preservation, adaptive reuse, and renovation and addition projects.
| Oct 4, 2012
Electronic power tool builds project transparency
As building projects have grown in scope and complexity, so, too, has the task of document management. A new online tool is helping Building Teams meet that demand.
