Led by a still active multi-family housing market and sustained by solid levels of demand for new commercial and retail properties, the Architecture Billings Index has accelerated to its highest score in nearly a year.
As a leading 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 May ABI score was 53.1, up sharply from the mark of 50.6 in the previous month. This score reflects an increase 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 56.9 the previous month.
“Business conditions at design firms have hovered around the break-even rate for the better part of this year,” said AIA Chief Economist, Kermit Baker, Hon. AIA, PhD. “Demand levels are solid across the board for all project types at the moment. Of particular note, the recent surge in design activity for institutional projects could be a harbinger of a new round of growth in the broader construction industry in the months ahead.”
Key May ABI highlights:
- Regional averages: West (53.8), South (53.7), Northeast (51.2), Midwest (49.9)
- Sector index breakdown: multi-family residential (53.7), institutional (53.0), commercial/industrial (51.0), mixed practice (51.0),
- Project inquiries index: 60.1
- Design contracts index: 52.8
- 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
| Mar 5, 2013
Barbara Mullenex joins Washington, D.C., office of Perkins Eastman as principal
The Board of Directors of top international design and architecture firm Perkins Eastman is pleased to announce that Barbara Mullenex RA has joined the growing Washington, DC, office as a Principal. Mullenex joins with a distinguished career of more than 26 years of industry experience in architecture and interior design focused on hospitality and corporate interiors.
| Mar 4, 2013
Dewberry names James Draheim president of architectural practice
Dewberry, a privately held professional services firm, has recently hired James Draheim, AIA, LEED AP BD+C, as president of the firm’s 175-person nationwide architectural practice. Draheim will be responsible for all facets of the firm’s business development, operations, strategic planning, and growth.
| Mar 4, 2013
German healthcare design specialist TMK Architekten joins HDR Architecture
TMK Architekten • Ingenieure, one of Germany’s leading healthcare architecture firms, announced today that it is joining forces with HDR Architecture, the world’s No. 1 healthcare and science + technology design firm. The merged company will conduct business as HDR TMK, and will be the hub for the firm’s healthcare and science + technology design programs in Europe.
| Mar 4, 2013
Korean Air, AC Martin collaborating on Western region's tallest tower
The 1,100-foot Wilshire Grand will combine retail and restaurant space, offices, and a luxury hotel in the sky.
| Mar 4, 2013
Gehry unveils design for Santa Monica hotel-condo tower
If all goes as planned, Frank Gehry will design the first building in his hometown in some 25 years.
| Mar 3, 2013
World's first LEGO museum planned in Denmark
Bjarke Ingels Group and Ralph Appelbaum Associates will team up with the LEGO Group to design the physical home for The LEGO House, the world's first museum dedicated to LEGO.
| Feb 28, 2013
Daniel J. Rectenwald promoted to chief operating officer of HGA
HGA Architects and Engineers (HGA) has promoted Daniel J. Rectenwald, AIA, to Chief Operating Officer. He will oversee daily operation of the firm’s design and business strategies across seven national offices.
| Feb 28, 2013
Videos reveal City 2.0 ideas from 2012 TED Prize winners
Thought leader TED has released eight new videos from winners of its 2012 TED Prize: the City 2.0. The prize went to 10 winners involved in urban issues, including education, safety, health, food, and public space.
| Feb 28, 2013
Greeening Silicon Valley: Samsung's new 1.1 million-sf HQ
Samsung Electronics' new 1.1 million sf San Jose campus will support at least 2,500 sales and R&D staff in the company's semiconductor and display businesses.
| Feb 28, 2013
BIA opens entries for 2013 Brick in Architecture Awards
The Brick Industry Association (BIA) has opened entry submissions for its 2013 Brick In Architecture Awards—with a new Renovation/Restoration category and new category divisions this year. BIA’s annual awards honor architectural excellence and sustainable design nationwide that incorporates clay brick products as the predominant exterior building or paving material.
