Riding a stretch of increasing levels of demand for thirteen out of the last fifteen months, the Architecture Billings Index (ABI) dropped in April for the second month this year.
The American Institute of Architects (AIA) reported the April ABI score was 48.8, down sharply from a mark of 51.7 in March. This score reflects a decrease in design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 60.1, up from a reading of 58.2 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 fundamentals in the design and construction industry remain very healthy,” said AIA Chief Economist Kermit Baker, Hon. AIA, PhD. “The fact that both inquires for new projects and new design contracts continued to accelerate at a healthy pace in April points to strong underlying demand for design activity. However, April would typically be a month where these projects would be in full swing, but a severe winter in many parts of the Northeast and Midwest has apparently delayed progress on projects.”
Key April ABI highlights:
- Regional averages: South (55.8), West (52.9) Midwest (49.9), Northeast (43.2)
- Sector index breakdown: institutional (51.8), mixed practice (51.8), multi-family residential (49.0), commercial / industrial (48.9)
- Project inquiries index: 60.1
- Design contracts index: 53.1
The regional and sector categories are calculated as a 3-month moving average, whereas the national index, design contracts 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. More information on the ABI and the analysis of its relationship to construction activity can be found in the recently released White Paper, Designing the Construction Future: Reviewing the Performance and Extending the Applications of the AIA’s Architecture Billings Index on the AIA web site.
Related Stories
Sponsored | | Oct 7, 2013
Bridging the digital divide between the BIM haves and have nots
There's no doubt that BIM is the future of design. But for many firms, finding a bridge to access rich model data and share it with those typically left on the sidelines can be the difference between winning a bid or not.
| Oct 7, 2013
How to streamline your operations
The average U.S. office worker generates two pounds of paper each day, according to the EPA. Ninety percent of that trash is made up of printed materials: marketing reports, project drafts, copy machine mistakes, and unwanted mail. Here are a few ways AEC firms can streamline their management processes.
| Oct 7, 2013
Reimagining the metal shipping container
With origins tracing back to the mid-1950s, the modern metal shipping container continues to serve as a secure, practical vessel for transporting valuable materials. However, these reusable steel boxes have recently garnered considerable attention from architects and constructors as attractive building materials.
| Oct 4, 2013
Sydney to get world's tallest 'living' façade
The One Central Park Tower development consists of two, 380-foot-tall towers covered in a series of living walls and vertical gardens that will extend the full height of the buildings.
| Oct 4, 2013
Nifty video shows planned development of La Sagrada Familia basilica
After 144 years, construction on Gaudi's iconic Barcelona edifice is picking up speed, with a projected end date of 2026.
| Oct 4, 2013
Mack Urban, AECOM acquire six acres for development in LA's South Park district
Mack Urban and AECOM Capital, the investment fund of AECOM Technology Corporation (NYSE: ACM), have acquired six acres of land in downtown Los Angeles’ South Park district located in the central business district (CBD).
| Oct 4, 2013
CRB opens Atlanta office
Georgia’s status as a burgeoning hub for the life sciences industry has fueled CRB’s decision to open an office in Atlanta to better serve its clients in the market. CRB is a leading provider of engineering, design and construction services for customers in the biotech, pharmaceutical and life sciences industries.
| Sep 27, 2013
NYC releases first year-to-year energy performance data on commercial properties
A new report provides information on energy performance of New York City's largest buildings (mostly commercial, multi-family residential). It provides an analysis of 2011 data from city-required energy “benchmarking”—or the tracking and comparison of energy performance—in more than 24,000 buildings that are over 50,000 square feet.
| Sep 27, 2013
ASHRAE/IES publish first standard focused on commissioning process
ANSI/ASHRAE/IES Standard 202, Commissioning Process for Buildings and Systems, identifies the minimum acceptable commissioning process for buildings and systems as described in ASHRAE’s Guideline 0-2005, The Commissioning Process. Standard 202 is ASHRAE’s first standard focused on the commissioning process.
| Sep 26, 2013
6 ways to maximize home-field advantage in sports venue design
Home-field advantage can play a significant role in game outcomes. Here are ways AEC firms can help create the conditions that draw big crowds, energize the home team to perform better, and disrupt visiting players.
