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
Giants 400 | Dec 2, 2020
2020 Airport Sector Giants: Top architecture, engineering, and construction firms in the U.S. airport facilities sector
AECOM, Hensel Phelps, and PGAL top BD+C's rankings of the nation's largest airport sector architecture, engineering, and construction firms, as reported in the 2020 Giants 400 Report.
Giants 400 | Nov 29, 2020
Top 40 Engineering Architecture Firms for 2020
Jacobs, AECOM, and Kimley-Horn top the rankings of the nation's largest engineering architecture (EA) firms for nonresidential buildings and multifamily buildings work, as reported in Building Design+Construction's 2020 Giants 400 Report.
Giants 400 | Nov 29, 2020
Top 155 Architecture Firms for 2020
Gensler, Perkins and Will, and HKS Architects top the rankings of the nation's largest architecture firms for nonresidential and multifamily buildings work, as reported in Building Design+Construction's 2020 Giants 400 Report.
Giants 400 | Nov 29, 2020
Top 100 Architecture Engineering Firms for 2020
Stantec, HDR, and HOK head the rankings of the nation's largest architecture engineering (AE) firms for nonresidential and multifamily buildings work, as reported in Building Design+Construction's 2020 Giants 400 Report.
Government Buildings | Nov 25, 2020
New Indiana Toll Road headquarters creates unified environment for staff
New LEED Gold facility consolidates operations for tollway authority.
Architects | Nov 24, 2020
AEC Leaders share lessons from past downturns
Positions of passivity and cost-cutting run counter to the key lessons from AEC leaders who successfully navigated their firms through past market downturns.
Smart Buildings | Nov 20, 2020
The Weekly show: SPIRE smart building rating system, and pickleball court design tips
The November 19 episode of BD+C's The Weekly is available for viewing on demand.
Transportation & Parking Facilities | Nov 13, 2020
BIG and Kilo-designed Pegasus Pod transports first Hyperloop passengers
The pod achieves Hyperloop travel at speeds over 1000km/hour.
Government Buildings | Nov 13, 2020
Tax shortfalls nip government projects in the bud
Federal contracts are proceeding, but states and cities are delaying, deferring, and looking for private investment.
AEC Tech | Nov 12, 2020
The Weekly show: Nvidia's Omniverse, AI for construction scheduling, COVID-19 signage
BD+C editors speak with experts from ALICE Technologies, Build Group, Hastings Architecture, Nvidia, and Woods Bagot on the November 12 episode of "The Weekly." The episode is available for viewing on demand.
