With all geographic regions and building project sectors showing positive conditions, there continues to be a heightened level of demand for design services signaled in the latest Architecture Billings Index (ABI).
The American Institute of Architects reported the September ABI score was 55.2, up from a mark of 53.0 in August. This score reflects an increase in design activity (any score above 50 indicates an increase in billings). The new projects inquiry index was 64.8, following a mark of 62.6 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 August was 56.8.
“Strong demand for apartment buildings and condominiums has been one of the main drivers in helping to keep the design and construction market afloat in recent years,” said AIA Chief Economist Kermit Baker, Hon. AIA, PhD. “There continues to be a healthy market for those types of design projects, but the recently resurgent Institutional sector is leading to broader growth for the entire construction industry.”
Key September ABI highlights:
• Regional averages: South (55.3) , Midwest (55.1), West (54.2), Northeast (51.0)
• Sector index breakdown: multi-family residential (55.3), institutional (54.9), mixed practice (53.8), commercial / industrial (50.8)
• Project inquiries index: 64.8
• Design contracts index: 56.8
The regional and sector categories are calculated as a 3-month moving average, whereas the national index, design contracts and inquiries are monthly numbers.
Related Stories
Market Data | Feb 24, 2021
2021 won’t be a growth year for construction spending, says latest JLL forecast
Predicts second-half improvement toward normalization next year.
Events Facilities | Feb 22, 2021
Weiss/Manfredi designs $250 million expansion for Longwood Gardens
The project will transform 17 acres of the core conservatory area.
Healthcare Facilities | Feb 18, 2021
The Weekly show, Feb 18, 2021: What patients want from healthcare facilities, and Post-COVID retail trends
This week on The Weekly show, BD+C editors speak with AEC industry leaders from JLL and Landini Associates about what patients want from healthcare facilities, based on JLL's recent survey of 4,015 patients, and making online sales work for a retail sector recovery.
Multifamily Housing | Feb 10, 2021
The Weekly show, Feb 11, 2021: Advances in fire protection engineering, and installing EV ports in multifamily housing
This week on The Weekly show, BD+C editors speak with AEC industry leaders from Bozzuto Management Company and Goldman Copeland about advice on installing EV ports in multifamily housing, and advances in fire protection engineering.
Architects | Feb 5, 2021
Heartwell named CEO at CallisonRTKL; Thompson appointed firm's first COO
Kim Heartwell named CEO at CallisonRTKL; Harold Thompson appointed COO.
Healthcare Facilities | Feb 5, 2021
Healthcare design in a post-COVID world
COVID-19’s spread exposed cracks in the healthcare sector, but also opportunities in this sector for AEC firms.
Building Owners | Feb 4, 2021
The Weekly show, Feb 4, 2021: The rise of healthy buildings and human performance
This week on The Weekly show, BD+C editors speak with AEC industry leaders from Brookfield Properties, NBBJ, and UL about healthy buildings certification and improving human performance through research-based design.
AEC Tech | Jan 28, 2021
The Weekly show, Jan 28, 2021: Generative design tools for feasibility studies, and landscape design trends in the built environment
This week on The Weekly show, BD+C editors speak with AEC industry leaders from Studio-MLA and TestFit about landscape design trends in the built environment, and how AEC teams and real estate developers can improve real estate feasibility studies with real-time generative design.
Multifamily Housing | Jan 27, 2021
2021 multifamily housing outlook: Dallas, Miami, D.C., will lead apartment completions
In its latest outlook report for the multifamily rental market, Yardi Matrix outlined several reasons for hope for a solid recovery for the multifamily housing sector in 2021, especially during the second half of the year.
Modular Building | Jan 26, 2021
Offsite manufacturing startup iBUILT positions itself to reduce commercial developers’ risks
iBUILT plans to double its production capacity this year, and usher in more technology and automation to the delivery process.
