With all geographic regions and building project sectors showing positive conditions, there continues to be a heightened level of demand for design services signaled in the latest Architecture Billings Index (ABI).
The American Institute of Architects reported the September ABI score was 55.2, up from a mark of 53.0 in August. This score reflects an increase in design activity (any score above 50 indicates an increase in billings). The new projects inquiry index was 64.8, following a mark of 62.6 the previous month.
As a leading economic indicator of construction activity, the ABI reflects the approximate nine to twelve month lead time between architecture billings and construction spending.
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 August was 56.8.
“Strong demand for apartment buildings and condominiums has been one of the main drivers in helping to keep the design and construction market afloat in recent years,” said AIA Chief Economist Kermit Baker, Hon. AIA, PhD. “There continues to be a healthy market for those types of design projects, but the recently resurgent Institutional sector is leading to broader growth for the entire construction industry.”
Key September ABI highlights:
• Regional averages: South (55.3) , Midwest (55.1), West (54.2), Northeast (51.0)
• Sector index breakdown: multi-family residential (55.3), institutional (54.9), mixed practice (53.8), commercial / industrial (50.8)
• Project inquiries index: 64.8
• Design contracts index: 56.8
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 15, 2016
Top 30 Military Architecture Firms
HDR, Clark Nexsen, and Guernsey top Building Design+Construction’s annual ranking of the nation’s largest military sector architecture and A/E firms, as reported in the 2016 Giants 300 Report.
| Aug 12, 2016
SCIENCE + TECHNOLOGY GIANTS: Incubator model is reimagining research and lab design
Interdisciplinary interaction is a common theme among many new science and technology offices.
| Aug 12, 2016
Top 40 Science + Technology Architecture Firms
Perkins+Will, HDR, and HOK top Building Design+Construction’s annual ranking of the nation’s largest science + technology sector architecture and A/E firms, as reported in the 2016 Giants 300 Report.
| Aug 12, 2016
OFFICE GIANTS: Technology is giving office workers the chance to play musical chairs
Technology is redefining how offices function and is particularly salient in the growing trend of "hoteling" and "hot seating" or "free addressing."
| Aug 12, 2016
Top 100 Office Architecture Firms
Gensler, HOK, and Perkins+Will top Building Design+Construction’s annual ranking of the nation’s largest office sector architecture and A/E firms, as reported in the 2016 Giants 300 Report.
| Aug 11, 2016
RETAIL GIANTS: Retailers and developers mix it up to stay relevant with shoppers
Retail is becoming closely aligned with entertainment, and malls that can be repositioned as lifestyle centers will have enhanced value.
| Aug 10, 2016
Top 90 Retail Architecture Firms
Gensler, GreenbergFarrow, and MG2 top Building Design+Construction’s annual ranking of the nation’s largest retail sector architecture and A/E firms, as reported in the 2016 Giants 300 Report.
| Aug 10, 2016
DATA CENTER GIANTS: Information overload is pushing the limits of mission-critical facilities
Streamlined design and delivery approaches for individual business enterprises and co-location facilities are being born out of the necessity to bring new capacity online as quickly as possible.
| Aug 10, 2016
Top 30 Data Center Architecture Firms
Gensler, Corgan, and HDR top Building Design+Construction’s annual ranking of the nation’s largest data center sector architecture and A/E firms, as reported in the 2016 Giants 300 Report.
| Aug 10, 2016
UNIVERSITY GIANTS: Facing money woes, the nation's colleges double down on innovative ideas
Budget constraints are compelling some public institutions to pursue alternative methods of financing their major building projects.
