Buoyed by sustained demand for apartments and condominiums, coupled with state and local governments moving ahead with delayed public projects, the Architecture Billings Index (ABI) has been positive for seven consecutive months.
The American Institute of Architects (AIA) reported the November ABI score was 50.9, down from a mark of 53.7 in October. This score reflects a slight increase in design activity (any score above 50 indicates an increase in billings). The new projects inquiry index was 58.8, following a mark of 62.7 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 November was 54.9.
“Demand for design services has slowed somewhat from the torrid pace of the summer, but all project sectors are seeing at least modest growth,” said AIA Chief Economist Kermit Baker, Hon. AIA, PhD. “Architecture firms are expecting solid mid-single digit gains in revenue for 2014, but heading into 2015, they are concerned with finding quality contractors for projects, coping with volatile construction materials costs and with finding qualified architecture staff for their firms.”
Key November ABI highlights:
• Regional averages: South (57.9), West (52.7), Midwest (49.8), Northeast (46.7)
• Sector index breakdown: multi-family residential (56.8), mixed practice (52.6), institutional (51.3), commercial / industrial (50.6)
• Project inquiries index: 58.8
• Design contracts index: 54.9
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.
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 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 website.
Related Stories
Building Team Awards | May 23, 2016
'Greenest ballpark' proves a winner for St. Paul Saints
Solar arrays, a public art courtyard, and a picnic-friendly “park within a park" make the 7,210-seat CHS Field the first ballpark to meet Minnesota sustainable building standards.
Architects | May 20, 2016
NCARB survey indicates continued growth of U.S. architects
The number of U.S. architects surpassed 110,000 in 2015, a 2% increase from the previous year.
Multifamily Housing | May 19, 2016
Architect Jean Nouvel designs flood-resilient Monad Terrace in Miami Beach
A man-made lagoon with lush vegetation at the base of the complex is expected to adapt to climate change and rising sea levels.
Building Team Awards | May 19, 2016
Chinatown library unites and serves two emerging Chicago neighborhoods
The 16,000-sf, pebble-shaped Chinatown Branch Library was built at the intersection of new and old Chinatown neighborhoods. The goal is for the building to unite the communities and serve as a catalyst for the developing area.
Building Team Awards | May 19, 2016
NYC subway station lights the way for 300,000 riders a day
Fulton Center, which handles 85% of the riders coming to Lower Manhattan, is like no other station in the city’s vast underground transit web—and that’s a good thing.
Market Data | May 17, 2016
Modest growth for AIA’s Architecture Billings Index in April
The American Institute of Architects reported the April ABI score was 50.6, down from the mark of 51.9 in the previous month. This score still reflects an increase in design services.
Architects | May 16, 2016
AIA and HOK partner to advance Design and Health Research Consortium
The groups' key priority is to identify and develop practice-focused opportunities for funded research, publications, and tools in the area of design and public health.
Senior Living Design | May 16, 2016
Perkins Eastman releases white paper on biophilic design in senior living
The paper highlights some of the firm's top projects that feature biophilic design, a sustainable architecture strategy that connects people with nature.
Architects | May 16, 2016
3 strategies to creating environments that promote workplace engagement
VOA's Pablo Quintana writes that the industry is looking for ways to increase engagement through a mix of spaces suited to employees' desire for both privacy and connection.
Architects | May 11, 2016
AIA to create a resilience curriculum for architects
The program will teach resilient design and decision-making on hazard mitigation, climate adaptation and community resilience.
