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
Building Team | Jun 13, 2016
BD+C launches Women in Design+Construction Conference
Inaugural 2.5-day event will convene 125+ leading AEC women in Dana Point, Calif., November 9-11, for professional development, networking, and career training.
University Buildings | Jun 9, 2016
Designing for interdisciplinary communication in university buildings
Bringing people together remains the main objective when designing academic projects. SRG Design Principal Kent Duffy encourages interaction and discovery with a variety of approaches.
BIM and Information Technology | Jun 7, 2016
Conquer computational design: 5 tips for starting your journey
Data-driven design expert Nathan Miller offers helpful advice for getting your firm ready to use CD tools and concepts.
BIM and Information Technology | Jun 7, 2016
6 ways smart AEC firms are using computational design methods
Rapid prototyping, custom plug-ins, and data dashboards are among the common applications for computational design.
Building Team | Jun 2, 2016
Managing risk when building in challenging locations
AEC firms recognize the upsides of exploring new, emerging markets. Whitehorn Financial's Steve Whitehorn offers four principles that can help guide you to success.
Airports | Jun 1, 2016
LaGuardia Airport’s massive redevelopment begins construction
The development consortium has secured financing for the $4 billion project, and signed an operating lease through 2050.
Building Team Awards | Jun 1, 2016
Multifamily tower and office building revitalize Philadelphia cathedral
The Philadelphia Episcopal Cathedral capitalizes on hot property to help fund much needed upgrades and programs.
Building Team Awards | Jun 1, 2016
Central utility power plant takes center stage at UC San Diego Jacobs Medical Center
An undulating roof, floor-to-ceiling glass, and façade scheme give visual appeal to a plant that serves the 10-story medical center.
Architects | May 31, 2016
JLG Architects acquires Minneapolis-based Studio Five Architects
Led by Linda McCracken-Hunt, SFA is one of Minnesota’s oldest woman-owned architecture firms.
Building Team Awards | May 31, 2016
Gonzaga's new student center is a bustling social hub
Retail mall features, comfortable furniture, and floor-to-ceiling glass add vibrancy to the new John J. Hemmingson Center.