Following three months of accelerating demand for design services, the Architecture Billings Index (ABI) reflected a somewhat slower pace of growth in October. 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 American Institute of Architects (AIA) reported the October ABI score was 51.6, down from a mark of 54.3 in September. This score reflects an increase in design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 61.5, up from the reading of 58.6 the previous month.
“There continues to be a lot of uncertainty surrounding the overall U.S. economic outlook and therefore in the demand for nonresidential facilities, which often translates into slower progress on new building projects,” said AIA Chief Economist Kermit Baker, Hon. AIA, PhD. “That is particularly true when you factor in the federal government shutdown that delayed many projects that were in the planning or design phases.”
Key October ABI highlights:
• Regional averages: West (55.9), South (54.4), Midwest (51.6), Northeast (49.7)
• Sector index breakdown: multi-family residential (57.0), commercial/industrial (53.7), mixed practice (53.2), institutional (50.2)
• Project inquiries index: 61.5
The regional and sector categories are calculated as a 3-month moving average, whereas the index and inquiries are monthly numbers.
About the AIA Architecture Billings Index
The Architecture Billings Index (ABI), produced by the AIA Economics & Market Research Group, 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
Founded in 1857, members of the American Institute of Architects consistently work to create more valuable, healthy, secure, and sustainable buildings, neighborhoods, and communities. Through nearly 300 state and local chapters, the AIA advocates for public policies that promote economic vitality and public well being. Members adhere to a code of ethics and conduct to ensure the highest professional standards. The AIA provides members with tools and resources to assist them in their careers and business as well as engaging civic and government leaders, and the public to find solutions to pressing issues facing our communities, institutions, nation and world. Visit www.aia.org.
Related Stories
University Buildings | Jun 26, 2023
Addition by subtraction: The value of open space on higher education campuses
Creating a meaningful academic and student life experience on university and college campuses does not always mean adding a new building. A new or resurrected campus quad, recreational fields, gardens, and other greenspaces can tie a campus together, writes Sean Rosebrugh, AIA, LEED AP, HMC Architects' Higher Education Practice Leader.
Standards | Jun 26, 2023
New Wi-Fi standard boosts indoor navigation, tracking accuracy in buildings
The recently released Wi-Fi standard, IEEE 802.11az enables more refined and accurate indoor location capabilities. As technology manufacturers incorporate the new standard in various devices, it will enable buildings, including malls, arenas, and stadiums, to provide new wayfinding and tracking features.
Green | Jun 26, 2023
Federal government will spend $30 million on novel green building technologies
The U.S. General Services Administration (GSA), and the U.S. Department of Energy (DOE) will invest $30 million from the Inflation Reduction Act to increase the sustainability of federal buildings by testing novel technologies. The vehicle for that effort, the Green Proving Ground (GPG) program, will invest in American-made technologies to help increase federal electric vehicle supply equipment, protect air quality, reduce climate pollution, and enhance building performance.
Office Buildings | Jun 26, 2023
Electric vehicle chargers are top priority for corporate office renters
Businesses that rent office space view electric vehicle (EV) charging stations as a top priority. More than 40% of companies in the Americas and EMEA (Europe, the Middle East and Africa) are looking to include EV charging stations in future leases, according to JLL’s 2023 Responsible Real Estate study.
Laboratories | Jun 23, 2023
A New Jersey development represents the state’s largest-ever investment in life sciences and medical education
In New Brunswick, N.J., a life sciences development that’s now underway aims to bring together academics and researchers to work, learn, and experiment under one roof. HELIX Health + Life Science Exchange is an innovation district under development on a four-acre downtown site. At $731 million, HELIX, which will be built in three phases, represents New Jersey’s largest-ever investment in life sciences and medical education, according to a press statement.
Sports and Recreational Facilities | Jun 22, 2023
NFL's Jacksonville Jaguars release conceptual designs for ‘stadium of the future’
Designed by HOK, the Stadium of the Future intends to meet the evolving needs of all stadium stakeholders—which include the Jaguars, the annual Florida-Georgia college football game, the TaxSlayer.com Gator Bowl, international sporting events, music festivals and tours, and the thousands of fans and guests who attend each event.
Architects | Jun 22, 2023
Keith Hempel named President of LPA Design Studios
LPA Design Studios today announced the promotion of Chief Design Officer Keith Hempel, FAIA, to president of the 58-year-old integrated design firm. Hempel, who joined LPA in 1995, has been an integral part of the firm’s growth, helping to develop an integrated design process that has produced industry-leading results.
Industrial Facilities | Jun 20, 2023
A new study presses for measuring embodied carbon in industrial buildings
The embodied carbon (EC) intensity in core and shell industrial buildings in the U.S. averages 23.0 kilograms per sf, according to a recent analysis of 26 whole building life-cycle assessments. That means a 300,000-sf warehouse would emit 6,890 megatons of carbon over its lifespan, or the equivalent of the carbon emitted by 1,530 gas-powered cars driven for one year. Those sobering estimates come from a new benchmark study, “Embodied Carbon U.S. Industrial Real Estate.”
Virtual Reality | Jun 16, 2023
Can a VR-enabled AEC Firm transform building projects?
With the aid of virtual reality and 3D visualization technologies, designers, consultants, and their clients can envision a place as though the project were in a later stage.
Mechanical Systems | Jun 16, 2023
Cogeneration: An efficient, reliable, sustainable alternative to traditional power generation
Cogeneration is more efficient than traditional power generation, reduces carbon emissions, has high returns on the initial investment, improves reliability, and offers a platform for additional renewable resources and energy storage for a facility. But what is cogeneration? And is it suitable for all facilities?
