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
| Sep 7, 2011
Administration, Maintenance and Operations Facility in South Bend achieves LEED Platinum
The facility achieved 52 LEED points, including those for site selection, energy, materials and resources and innovation.
| Sep 6, 2011
Construction on Beijing's tallest building starts next week
The 108 floor mixed-use skyscraper consists of offices, apartments, hotels and shopping malls on the lower floors.
| Aug 31, 2011
Sebastopol, Cailf., invites designers to submit ideas for renewing city center
The goal of The Core Project is to explore how the physical presence of Sebastopol can become a more economically thriving and aesthetically vibrant place, reflecting the naturally beauty of the region and the character of the community.
| Aug 31, 2011
Wythe Confectionary renovation in Brooklyn completed
Renovation retains architectural heritage while reflecting a modern urban lifestyle.
| Aug 24, 2011
Deadline Extended: 2012 "Best AEC Firms to Work For” Awards
We’re looking for firms that create truly positive workplaces for their AEC professionals and support staff. In other words, this awards program will recognize those AEC firms that nurture and develop their most valuable asset—their people.
| Aug 23, 2011
Acoustical design education model
Pass this exam and earn 1.0 AIA/CES Discovery learning units. You must go to www.BDCnetwork.com/EnhancedAcousticalDesign to take this exam.
| Aug 19, 2011
Thought Leader: Boyd R. Zoccola, chair and chief elected officer of BOMA International
Boyd R. Zoccola is Chair and Chief Elected Officer of BOMA International. A BOMA member since 1994, he has served on the Executive, Finance, Investment, and Medical/Healthcare Facilities Committees. An Indiana Real Estate Principal Broker and a board member of the Real Estate Round Table, he is Executive Vice President of Hokanson Companies, Inc., of Indianapolis, and has been involved in the development of $600 million worth of real estate. On a volunteer basis, Zoccola was president of Horizon House and a board member of Girls, Inc. He holds a BA in biology from Indiana University.
| Aug 19, 2011
How and why AEC professionals choose flooring systems
Design and construction professionals who completed our flooring survey had strong opinions about their preferred flooring type.
| Aug 19, 2011
Underfloor air distribution, how to get the details right
Our experts provide solid advice on the correct way to design and construct underfloor air distribution systems, to yield significant energy savings.
