On the heels of a nearly three-point increase, the Architecture Billings Index (ABI) climbed into positive terrain for the first time in five months. As a leading economic indicator of construction activity, the ABI reflects the approximate nine to twelve month lag time between architecture billings and construction spending.
The AIA reported the August ABI score was 50.2, up from the mark of 48.7 in July. This score reflects an increase in demand for design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 57.2, up from mark of 56.3 the previous month.
“Until the economy is on firmer ground, there aren’t likely to be strong increases in demand for design services,” said AIA Chief Economist, Kermit Baker, PhD, Hon. AIA. “In the meantime, we can expect to see design activity alternate between modest growth and modest decline.”
Key August ABI highlights:
- Regional averages: South (52.2), West (51.2), Northeast (45.5), Midwest (45.3)
- Sector index breakdown: multi-family residential (53.0), institutional (50.2) commercial/industrial (47.9), mixed practice (46.8)
- Project inquiries index: 57.2. +
Related Stories
| Nov 27, 2013
Exclusive survey: Revenues increased at nearly half of AEC firms in 2013
Forty-six percent of the respondents to an exclusive BD+C survey of AEC professionals reported that revenues had increased this year compared to 2012, with another 24.2% saying cash flow had stayed the same.
| Nov 27, 2013
Wonder walls: 13 choices for the building envelope
BD+C editors present a roundup of the latest technologies and applications in exterior wall systems, from a tapered metal wall installation in Oklahoma to a textured precast concrete solution in North Carolina.
| Nov 27, 2013
University reconstruction projects: The 5 keys to success
This AIA CES Discovery course discusses the environmental, economic, and market pressures affecting facility planning for universities and colleges, and outlines current approaches to renovations for critical academic spaces.
| Nov 26, 2013
7 ways to make your firm more successful
Like all professional services businesses, AEC firms are challenged to effectively manage people. And even though people can be rather unpredictable, a firm’s success doesn’t have to be. Here are seven ways to make your firm more successful in the face of market variability and uncertainty.
| Nov 26, 2013
Design-build downsized: Applying the design-build method in an era of smaller projects
Any project can benefit from the collaborative spirit and cooperative relationships embodied by design-build. But is there a point of diminishing return where the design-build project delivery model just doesn't make sense for small projects? Design-build expert Lisa Cooley debates the issue.
| Nov 25, 2013
Electronic plan review: Coming soon to a city near you?
With all the effort AEC professionals put into leveraging technology to communicate digitally on projects, it is a shame that there is often one major road block that becomes the paper in their otherwise “paperless” project: the local city planning and permitting department.
| Nov 22, 2013
Kieran Timberlake, PE International develop BIM tool for green building life cycle assessment
Kieran Timberlake and PE International have developed Tally, an analysis tool to help BIM users keep better score of their projects’ complete environmental footprints.
| Nov 20, 2013
Architecture Billings Index slows in October; project inquiries stay strong
Following three months of accelerating demand for design services, the Architecture Billings Index reflected a somewhat slower pace of growth in October. The October ABI score was 51.6, down from a mark of 54.3 in September.
| Nov 19, 2013
Pediatric design in an adult hospital setting
Freestanding pediatric facilities have operational and physical characteristics that differ from those of adult facilities.
| Nov 18, 2013
6 checkpoints when designing a pediatric healthcare unit
As more time and money is devoted to neonatal and pediatric research, evidence-based design is playing an increasingly crucial role in the development of healthcare facilities for children. Here are six important factors AEC firms should consider when designing pediatric healthcare facilities.
