The Architecture Billings Index (ABI) returned to positive territory after a slight dip in August, and has seen growth in six of the nine months of 2015. As an economic indicator of construction activity, the ABI reflects the approximate nine to 12 month lead time between architecture billings and construction spending. The American Institute of Architects (AIA) reported the September ABI score was 53.7, up from a mark of 49.1 in August. This score reflects an increase in design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 61.0, down from a reading of 61.8 the previous month.
“Aside from uneven demand for design services in the Northeast, all regions are project sectors are in good shape,” said AIA Chief Economist Kermit Baker, Hon. AIA, PhD. “Areas of concern are shifting to supply issues for the industry, including volatility in building materials costs, a lack of a deep enough talent pool to keep up with demand, as well as a lack of contractors to execute design work.”
Key September ABI highlights:
- Regional averages: South (54.5), Midwest (54.2), West (51.7), Northeast (43.7)
- Sector index breakdown: mixed practice (52.6), institutional (51.5), commercial / industrial (50.9) multi-family residential (49.5)
- Project inquiries index: 61.0
- Design contracts index: 53.2
The regional and sector categories are calculated as a 3-month moving average, whereas the national index, design contracts and inquiries are monthly numbers.
Related Stories
| Aug 12, 2016
Top 40 Science + Technology Architecture Firms
Perkins+Will, HDR, and HOK top Building Design+Construction’s annual ranking of the nation’s largest science + technology sector architecture and A/E firms, as reported in the 2016 Giants 300 Report.
| Aug 12, 2016
OFFICE GIANTS: Technology is giving office workers the chance to play musical chairs
Technology is redefining how offices function and is particularly salient in the growing trend of "hoteling" and "hot seating" or "free addressing."
| Aug 12, 2016
Top 100 Office Architecture Firms
Gensler, HOK, and Perkins+Will top Building Design+Construction’s annual ranking of the nation’s largest office sector architecture and A/E firms, as reported in the 2016 Giants 300 Report.
| Aug 11, 2016
RETAIL GIANTS: Retailers and developers mix it up to stay relevant with shoppers
Retail is becoming closely aligned with entertainment, and malls that can be repositioned as lifestyle centers will have enhanced value.
| Aug 10, 2016
Top 90 Retail Architecture Firms
Gensler, GreenbergFarrow, and MG2 top Building Design+Construction’s annual ranking of the nation’s largest retail sector architecture and A/E firms, as reported in the 2016 Giants 300 Report.
| Aug 10, 2016
DATA CENTER GIANTS: Information overload is pushing the limits of mission-critical facilities
Streamlined design and delivery approaches for individual business enterprises and co-location facilities are being born out of the necessity to bring new capacity online as quickly as possible.
| Aug 10, 2016
Top 30 Data Center Architecture Firms
Gensler, Corgan, and HDR top Building Design+Construction’s annual ranking of the nation’s largest data center sector architecture and A/E firms, as reported in the 2016 Giants 300 Report.
| Aug 10, 2016
UNIVERSITY GIANTS: Facing money woes, the nation's colleges double down on innovative ideas
Budget constraints are compelling some public institutions to pursue alternative methods of financing their major building projects.
| Aug 9, 2016
Top 100 University Architecture Firms
Gensler, Perkins+Will, and CannonDesign top Building Design+Construction’s annual ranking of the nation’s largest university sector architecture and A/E firms, as reported in the 2016 Giants 300 Report.
Reconstruction & Renovation | Aug 9, 2016
Renascent architecture: Demolished Frank Lloyd Wright structures get new life
The Frank Lloyd Wright Revival Initiative is set to begin its reconstruction efforts with the Banff Pavilion, which was demolished in 1939.