As the prognosis for the design and construction industry continues to improve, the Architecture Billings Index (ABI) is reflecting its strongest growth since November 2007. 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 January ABI score was 54.2, up sharply from a mark of 51.2* in December. This score reflects a strong increase in demand for design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 63.2, much higher than the reading of 57.9 the previous month.
“We have been pointing in this direction for the last several months, but this is the strongest indication that there will be an upturn in construction activity in the coming months,” said AIA Chief Economist, Kermit Baker, PhD, Hon. AIA. “But as we continue to hear about overall improving economic conditions and that there are more inquiries for new design projects in the marketplace, a continued reservation by lending institutions to supply financing for construction projects is preventing a more widespread recovery in the industry.”
Key January ABI highlights:
- Regional averages: Midwest (54.4), West (53.4), South (51.7), Northeast (50.3)
- Sector index breakdown: mixed practice (54.9), multi-family residential (54.5), commercial / industrial (52.0), institutional (50.2)
- Project inquiries index: 63.2
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.
* Every January the AIA research department updates the seasonal factors used to calculate the ABI, resulting in a revision of recent ABI values.
Related Stories
| Oct 6, 2011
GREENBUILD 2011: Growing green building market supports 661,000 green jobs in the U.S.
Green jobs are already an important part of the construction labor workforce, and signs are that they will become industry standard.
| Oct 6, 2011
GREENBUILD 2011: Dow Corning features new silicone weather barrier sealant
Modular Design Architecture >Dow Corning 758 sealant used in GreenZone modular high-performance medical facility.
| Oct 6, 2011
GREENBUILD 2011: NEXT Living EcoSuite showcased
Tridel teams up with Cisco and Control4 to unveil the future of green condo living in Canada.
| Oct 6, 2011
GREENBUILD 2011: Kingspan Insulated Panels spotlights first-of-its-kind Environmental Product Declaration
Updates to Path to NetZero.
| Oct 5, 2011
GREENBUILD 2011: Johnson Controls announces Panoptix, a new approach to building efficiency
Panoptix combines latest technology, new business model and industry-leading expertise to make building efficiency easier and more accessible to a broader market.
| Oct 5, 2011
GREENBUILD 2011: Software an architectural game changer
Interactive modeling software transforms the designbuild process.
| Oct 5, 2011
GREENBUILD 2011: Tile manufacturer attains third-party certification for waste recycling processes
Crossville has joined with TOTO to recycle that company’s pre-consumer fired sanitary ware.
| Oct 5, 2011
GREENBUILD 2011: Sustainable construction should stress durability as well as energy efficiency
There is now a call for making enhanced resilience of a building’s structure to natural and man-made disasters the first consideration of a green building.
| Oct 5, 2011
GREENBUILD 2011: Solar PV canopy system expanded for architectural market
Turnkey systems create an aesthetic architectural power plant.
| Oct 5, 2011
GREENBUILD 2011: Kohler builds sustainable booth at Greenbuild 2011
In a setting composed of reclaimed materials, biodegradable signage, energy-efficient lighting and more, exhibitor highlights its new products with ecological awareness.
