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
| Nov 16, 2010
Just for fun: Words that architects use
If you regularly use such words as juxtaposition, folly, truncated, and articulation, you may be an architect. Architects tend to use words rarely uttered during normal conversations. In fact, 62% of all the words that come out of an architects mouth could be replaced by a simpler and more widely known word, according to this “report.” Review this list of designer words, and once you manage to work them into daily conversation, you’re on your way to becoming a bonafide architect.
| Nov 16, 2010
NFRC approves technical procedures for attachment product ratings
The NFRC Board of Directors has approved technical procedures for the development of U-factor, solar heat gain coefficient (SHGC), and visible transmittance (VT) ratings for co-planar interior and exterior attachment products. The new procedures, approved by unanimous voice vote last week at NFRC’s Fall Membership Meeting in San Francisco, will add co-planar attachments such as blinds and shades to the group’s existing portfolio of windows, doors, skylights, curtain walls, and window film.
| Nov 15, 2010
Gilbane to acquire W.G. Mills, Inc.
Rhode Island-based Gilbane Building Company announced plans to acquire W.G. Mills, Inc., a construction management firm with operations based in Florida. The acquisition will dramatically strengthen Gilbane’s position in Florida’s growing market and complement its already established presence in the southeast.
| Nov 11, 2010
Saint-Gobain to make $80 million investment in SAGE Electrochromics
Saint-Gobain, one of the world’s largest glass and construction material manufacturers, is making a strategic equity investment in SAGE Electrochromics to make electronically tintable “dynamic glass” an affordable, mass-market product, ushering in a new era of energy-saving buildings.
| Nov 11, 2010
Saint-Gobain to make $80 million investment in SAGE Electrochromics
Saint-Gobain, one of the world’s largest glass and construction material manufacturers, is making a strategic equity investment in SAGE Electrochromics to make electronically tintable “dynamic glass” an affordable, mass-market product, ushering in a new era of energy-saving buildings.
| Nov 11, 2010
USGBC certifies more than 1 billion square feet of commercial space
This month, the total footprint of commercial projects certified under the U.S. Green Building Council’s LEED Green Building Rating System surpassed one billion square feet. Another six billion square feet of projects are registered and currently working toward LEED certification around the world. Since 2000, more than 36,000 commercial projects and 38,000 single-family homes have participated in LEED.
| Nov 10, 2010
$700 million plan to restore the National Mall
The National Mall—known as America’s front yard—is being targeted for a massive rehab and restoration that could cost as much as $700 million (it’s estimated that the Mall has $400 million in deferred maintenance alone). A few of the proposed projects: refurbishing the Grant Memorial, replacing the Capitol Reflecting Pool with a smaller pool or fountain, reconstructing the Constitution Gardens lake and constructing a multipurpose visitor center, and replacing the Sylvan Theater near the Washington Monument with a new multipurpose facility.
| Nov 9, 2010
Just how green is that college campus?
The College Sustainability Report Card 2011 evaluated colleges and universities in the U.S. and Canada with the 300 largest endowments—plus 22 others that asked to be included in the GreenReportCard.org study—on nine categories, including climate change, energy use, green building, and investment priorities. More than half (56%) earned a B or better, but 6% got a D. Can you guess which is the greenest of these: UC San Diego, Dickinson College, University of Calgary, and Dartmouth? Hint: The Red Devil has turned green.