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
| May 16, 2011
Dassault Systèmes to distribute Gehry Technologies’ digital project
Dassault Systèmes and Gehry Technologies announced that Gehry Technologies’ Digital Project products will be integrated into the Dassault Systèmes’ portfolio and distributed through Dassault Systèmes. Digital Project is a suite of 3D BIM applications created by Gehry Technologies using Dassault Systèmes’ CATIA as a core modeling engine.
| May 11, 2011
DOE releases guide for 50% more energy-efficient office buildings
The U.S. Department of Energy today announced the release of the first in a new series of Advanced Energy Design Guides to aid in the design of highly energy efficient office buildings. The 50% AEDG series will provide a practical approach to commercial buildings designed to achieve 50% energy savings compared to the commercial building energy code used in many areas of the country.
| May 10, 2011
Google hires Ingenhoven Architects to design new Mountain View office
The current Googleplex is straining at the seams and yet the company is preparing its biggest hiring surge ever, so Google decided now’s the time to build its own office space—a first for the Internet giant. The company hired Ingenhoven Architects, a German firm that specializes in sustainable architecture, to create plans for what could be a 600,000-sf office.
| May 10, 2011
Solar installations on multifamily rooftops aid social change
The Los Angeles Business Council's study on the feasibility of installing solar panels on the city’s multifamily buildings shows there's tremendous rooftop capacity, and that a significant portion of that rooftop capacity comes from buildings in economically depressed neighborhoods. Solar installations could therefore be used to create jobs, lower utility costs, and improve conditions for residents in these neighborhood.
| May 10, 2011
Dinner is now served…atop the Lincoln Memorial?
Take a look at the temporary restaurant sitting atop Brussels’ historic Arc de Triomphe-Triomfboog. The Cube, by Electrolux, offers 18 diners a spectacular view of the Parc du Cinquantenair, and is one of two structures traveling across Europe, making stops at famous landmarks in Belgium, Italy, Switzerland, Sweden, and Russia. What do you think about one of these 60-tonne structures being placed on a U.S. memorial?
| May 6, 2011
Ellerbe Becket now operating as AECOM
*/ The architecture, interiors and engineering firm Ellerbe Becket, which joined AECOM in 2009, has fully transitioned to operating as AECOM as of May 2, 2011.
| May 2, 2011
URS acquires Apptis Holdings, a federal IT service provider
SAN FRANCISCO, CA and CHANTILLY, VA– April 28, 2011 – URS Corporation and Apptis Holdings, Inc., a leading provider of information technology and communications services to the federal government, announced that they have signed a definitive agreement under which URS will acquire Apptis.
| May 2, 2011
Perkins+Will merges with Vermeulen Hind Architects, offically launches Perkins+Will Canada
Ottawa and Hamilton-based Vermeulen Hind Architects, one of Canada’s leading healthcare architectural firms, has merged with Perkins+Will. Vermeulen Hind joins Toronto-based Shore Tilbe Perkins+Will and Vancouver-based Busby Perkins+Will to create Perkins+Will Canada. The combination marks the official launch of Perkins+Will Canada, a merge that will establish the firm as among the pre-eminent interdisciplinary design practices in Canada.
| Apr 26, 2011
Ed Mazria on how NYC can achieve carbon neutrality in buildings by 2030
The New York Chapter of the American Institute of Architects invited Mr. Mazria to present a keynote lecture to launch its 2030 training program. In advance of that lecture, Jacob Slevin, co-founder of DesignerPages.com and a contributor to The Huffington Post, interviewed Mazria about creating a sustainable vision for the future and how New York City's architects and designers can rise to the occasion.
