Architecture Billings Index at highest mark since 2007

Led by demand for projects such as new education and healthcare facilities, public safety, and government buildings, the Architecture Billings Index (ABI) increased in June following fluctuations earlier this year.

The American Institute of Architects (AIA) reported the June ABI score was 55.7, up from a mark of 51.9 in May. This score reflects an increase in design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 63.4, up from a reading of 61.5 the previous month.

The ABI reflects the approximate nine- to 12-month lead time between architecture billings and construction spending.

“This is the first month in 2015 that all regions are reporting positive business conditions and aside from the multi-family housing sector, all design project categories appear to be in good shape,” AIA Chief Economist Kermit Baker said in a statement. “The demand for new apartments and condominiums may have crested with index scores going down each month this year and reaching the lowest point since 2011.”

Some highlights from the June ABI:

Regional averages: Midwest (57.2), South (54.9), West (50.7) Northeast (50.4)

Sector index breakdown: institutional (59.1), mixed practice (54.7), commercial / industrial (51.6) multi-family residential (47.0)

Design contracts index: 52.5

Earlier this month, my colleague and I presented a session to a group of civil engineers and transportation agencies about the tech trends in the AEC space. Along with advice on how to prepare your plan for controlled collaboration, we also talked through some practical use cases. One such use case was especially interesting, as it outlined a challenge not unfamiliar to government agencies who are contemplating the leap from paper to digital processes: how to securely migrate workflows.

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