Demand for design services from U.S. architecture firms continues to grow at a vigorous pace, according to a new report today from The American Institute of Architects (AIA).
AIA’s Architecture Billings Index (ABI) score for May rose to 58.5 compared to 57.9 in April (any score above 50 indicates an increase in billings). May’s ABI score is one of the highest in the index’s 25-year history. During May, the new design contracts score reached its second consecutive record high with a score of 63.2, while new project inquiries also recorded a near-record high score at 69.2.
“Despite ballooning costs for construction materials and delivery delays, design activity is roaring back as more and more places reopen,” said AIA Chief Economist Kermit Baker, Hon. AIA, PhD. “However, concern over rising inflation and ongoing supply chain disruptions, as well as emerging labor shortages, could dampen the emerging construction recovery.”
Key ABI highlights for May include:
• Regional averages: Midwest (63.4); South (59.0); West (57.4); Northeast (54.2)
• Sector index breakdown: commercial/industrial (60.6); multi-family residential (59.5); mixed practice (57.9); institutional (57.1)
• Project inquiries index: 69.2
• Design contracts index: 63.2
The regional and sector categories are calculated as a three-month moving average, whereas the national index, design contracts and inquiries are monthly numbers.
Visit AIA’s website for more ABI information.
Related Stories
Multifamily Housing | Oct 30, 2020
The Weekly show: Multifamily security tips, the state of construction industry research, and AGC's market update
BD+C editors speak with experts from AGC, Charles Pankow Foundation, and Silva Consultants on the October 29 episode of "The Weekly." The episode is available for viewing on demand.
Hotel Facilities | Oct 27, 2020
Hotel construction pipeline dips 7% in Q3 2020
Hospitality developers continue to closely monitor the impact the coronavirus will have on travel demand, according to Lodging Econometrics.
Market Data | Oct 22, 2020
Multifamily’s long-term outlook rebounds to pre-covid levels in Q3
Slump was a short one for multifamily market as 3rd quarter proposal activity soars.
Market Data | Oct 21, 2020
Architectural billings slowdown moderated in September
AIA’s ABI score for September was 47.0 compared to 40.0 in August.
Market Data | Oct 21, 2020
Only eight states top February peak construction employment despite gains in 32 states last month
California and Vermont post worst losses since February as Virginia and South Dakota add the most.
Market Data | Oct 20, 2020
AIA releases updated contracts for multi-family residential and prototype residential projects
New resources provide insights into mitigating and managing risk on complex residential design and construction projects.
Market Data | Oct 20, 2020
Construction officials call on Trump and Biden to establish a nationwide vaccine distribution plan to avoid confusion and delays
Officials say nationwide plan should set clear distribution priorities.
Market Data | Oct 19, 2020
5 must reads for the AEC industry today: October 19, 2020
Lower cost metros outperform pricey gateway markets and E-commerce fuels industrial's unstoppable engine.
Market Data | Oct 19, 2020
Lower-cost metros continue to outperform pricey gateway markets, Yardi Matrix reports
But year-over-year multifamily trendline remained negative at -0.3%, unchanged from July.
Market Data | Oct 16, 2020
5 must reads for the AEC industry today: October 16, 2020
Princeton's new museum and Miami's yacht-inspired luxury condos.
