Following the first reversal into negative territory in ten months in April, the Architecture Billings Index has bounced back in May. 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 American Institute of Architects (AIA) reported the May ABI score was 52.9, up dramatically from a mark of 48.6 in April. 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 59.1, up slightly from the reading of 58.5 the previous month.
“This rebound is a good sign for the design and construction industry and hopefully means that April’s negative dip was a blip rather than a sign of challenging times to come,” said AIA Chief Economist, Kermit Baker, PhD, Hon. AIA. “But there is a resounding sense of uncertainty in the marketplace – from clients to investors and an overall lack of confidence in the general economy – that is continuing to act as a governor on the business development engine for architecture firms.”
Key May ABI highlights:
- Regional averages: Northeast (53.7), West (52.1), South (50.9), Midwest (47.5)
- Sector index breakdown: multi-family residential (52.8), institutional (52.2), mixed practice (51.0), commercial / industrial (47.5)
- Project inquiries index: 59.1
The regional and sector categories are calculated as a 3-month moving average, whereas the index 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 White Paper Architecture Billings as a Leading Indicator of Construction: Analysis of the Relationship Between a Billings Index and Construction Spending on the AIA web site.
About The American Institute of Architects
Founded in 1857, members of the American Institute of Architects consistently work to create more valuable, healthy, secure, and sustainable buildings, neighborhoods, and communities. Through nearly 300 state and local chapters, the AIA advocates for public policies that promote economic vitality and public well being. Members adhere to a code of ethics and conduct to ensure the highest professional standards. The AIA provides members with tools and resources to assist them in their careers and business as well as engaging civic and government leaders, and the public to find solutions to pressing issues facing our communities, institutions, nation and world. Visit www.aia.org.
Related Stories
| Mar 16, 2011
AIA offers assistance to Japan's Architects, U.S. agencies coordinating disaster relief
“Our hearts go out to the people of Japan as a result of this horrific earthquake and tsunami,” said Clark Manus, FAIA, 2011 President of the AIA. “We are in contact with our colleagues at AIA Japan and the Japan Institute of Architects to offer not only our condolences but our profession's technical and professional expertise when the initiative begins focusing on rebuilding."
| Mar 16, 2011
Are you working on a fantastic residence hall project? Want to tell us about it?
The feature story for the May 2011 issue of Building Design+Construction will focus on new trends in university residence hall design and construction, and we’re looking for great projects to report on and experts to interview. Projects can involve new construction or remodeling/reconstruction work, and can be recently completed, currently under construction, or still on the boards.
| Mar 16, 2011
Foster + Partners to design carbon-neutral urban park for West Kowloon Cultural District in Hong Kong
Foster + Partners has been selected by the board of the West Kowloon Cultural District Authority to design a massive 56-acre urban park on a reclaimed harbor-front site in Hong Kong. Designed as a carbon-neutral development, “City Park” will seamlessly blend into existing streets while creating large expanses of green space and seventeen new cultural venues.
| Mar 15, 2011
What Starbucks taught us about redesigning college campuses
Equating education with a cup of coffee might seem like a stretch, but your choice of college, much like your choice of coffee, says something about the ability of a brand to transform your day. When Perkins + Will was offered the chance to help re-think the learning spaces of Miami Dade College, we started by thinking about how our choice of morning coffee has changed over the years, and how we could apply those lessons to education.
| Mar 15, 2011
What will the architecture profession look like in 2025?
The global economy and the economic recession have greatly affected architecture firms' business practices. A Building Futures survey from the Royal Institute of British Architects looks at how these factors will have transformed the profession and offers a glimpse of future trends. Among the survey's suggestions: not only will architecture firms have to focus on a financial and business approach rather than predominantly design-led offices, but also company names are predicted to drop ‘architect’ altogether.
| Mar 15, 2011
Passive Strategies for Building Healthy Schools, An AIA/CES Discovery Course
With the downturn in the economy and the crash in residential property values, school districts across the country that depend primarily on property tax revenue are struggling to make ends meet, while fulfilling the demand for classrooms and other facilities.
| Mar 14, 2011
Renowned sustainable architect Charles D. Knight to lead Cannon Design’s Phoenix office
Cannon Design is pleased to announce that Charles D. Knight, AIA, CID, LEED AP, has joined the firm as principal. Knight will serve as the leader of the Phoenix office with a focus on advancing the firm’s healthcare practice. Knight brings over 25 years of experience and is an internationally recognized architect who has won numerous awards for his unique contributions to the sustainable and humanistic design of healthcare facilities.
| Mar 11, 2011
University of Oregon scores with new $227 million basketball arena
The University of Oregon’s Matthew Knight Arena opened January 13 with a men’s basketball game against USC where the Ducks beat the Trojans, 68-62. The $227 million arena, which replaces the school’s 84-year-old McArthur Court, has a seating bowl pitched at 36 degrees to replicate the close-to-the-action feel of the smaller arena it replaced, although this new one accommodates 12,364 fans.
| Mar 11, 2011
Temporary modular building at Harvard targets sustainability
Anderson Anderson Architecture of San Francisco designed the Harvard Yard childcare facility, a modular building manufactured by Triumph Modular of Littleton, Mass., that was installed at Harvard University. The 5,700-sf facility will remain on the university’s Cambridge, Mass., campus for 18 months while the Harvard Yard Child Care Center and the Oxford Street Daycare Coop are being renovated.
| Mar 11, 2011
Holiday Inn reworked for Downtown Disney Resort
The Orlando, Fla., office of VOA Associates completed a comprehensive interior and exterior renovation of the 14-story Holiday Inn in the Downtown Disney Resort in Lake Buena Vista, Fla. The $25 million project involved rehabbing the hotel’s 332 guest rooms, atrium, swimming pool, restaurant, fitness center, and administrative spaces.
