The last three months have shown steadily increasing demand for design services and the Architecture Billings Index (ABI) is now at its highest level since 2007.
The American Institute of Architects (AIA) reported the July ABI score was 55.8, up noticeably from a mark of 53.5 in June. This score reflects an increase in design activity (any score above 50 indicates an increase in billings). The new projects inquiry index was 66.0, following a very strong mark of 66.4 the previous month.
As a leading economic indicator of construction activity, the ABI reflects the approximate nine to twelve month lead time between architecture billings and construction spending.
The AIA has added a new indicator measuring the trends in new design contracts at architecture firms that can provide a strong signal of the direction of future architecture billings. The score for design contracts in July was 54.9.
“Business conditions for the design and construction marketplace, and those industries associated with it, appear to be well-positioned for continued growth in the coming months,” said AIA Chief Economist Kermit Baker, Hon. AIA, PhD. “The key to a more widespread boost in design activity continues to be the institutional sector which is starting to exhibit signs of life after languishing for the better part of the last five-plus years.”
Key July ABI highlights:
- Regional averages: Northeast (55.5), South (55.1), Midwest (54.1), West (53.5)
- Sector index breakdown: mixed practice (61.0), multi-family residential (56.5), institutional (53.3), commercial / industrial (51.2)
- Project inquiries index: 66.0
- Design contracts index: 54.9
The regional and sector categories are calculated as a 3-month moving average, whereas the national index, design contracts 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 recently released White Paper, Designing the Construction Future: Reviewing the Performance and Extending the Applications of the AIA’s Architecture Billings Index on the AIA website.
Related Stories
| Dec 16, 2011
Goody Clancy-designed Informatics Building dedicated at Northern Kentucky University
The sustainable building solution, built for approximately $255-sf, features innovative materials and intelligent building systems that align with the mission of integration and collaboration.
| Dec 16, 2011
Stalco Construction converts Babylon, N.Y. Town Hall into history museum
The project converted the landmark structure listed on the National Register of Historic Places into the Town of Babylon History Museum at Old Town Hall.
| Dec 14, 2011
Belfer Research Building tops out in New York
Hundreds of construction trades people celebrate reaching the top of concrete structure for facility that will accelerate treatments and cures at world-renowned institution.
| Dec 14, 2011
Tyler Junior College and Sika Sarnafil team up to save energy
Tyler Junior College wanted a roofing system that wouldn’t need any attention for a long time.
| Dec 13, 2011
Lutron’s Commercial Experience Center awarded LEED Gold
LEED certification of the Lutron facility was based on a number of green design and construction features that positively impact the project itself and the broader community. These features include: optimization of energy performance through the use of lighting power, lighting controls and HVAC, plus the use of daylight.
| Dec 12, 2011
AIA Chicago announces Skidmore, Owings & Merrill as 2011 Firm of the Year
SOM has been a leader in the research and development of specialized technologies, new processes and innovative ideas, many of which have had a palpable and lasting impact on the design profession and the physical environment.
| Dec 12, 2011
Skanska to expand and renovate hospital in Georgia for $103 Million
The expansion includes a four-story, 17,500 square meters clinical services building and a five-story, 15,700 square meters, medical office building. Skanska will also renovate the main hospital.
| Dec 12, 2011
CRSI design awards deadline extended to December 31
The final deadline is extended until December 31st, with judging shortly thereafter at the World of Concrete.
