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
Architects | Mar 4, 2020
Yvonne Farrell and Shelley McNamara receive the 2020 Pritzker Architecture Prize
As architects and educators since the 1970s, Farrell and McNamara create spaces that are at once respectful and new.
Education Facilities | Mar 3, 2020
Carisima Koenig, AIA, joins Perkins Eastman as Associate Higher Education Practice Leader
Perkins Eastman as Associate Higher Education Practice Leader
Architects | Mar 2, 2020
Two ‘firsts’ for Sasaki and LEO A DALY
Following an industry trend, the firms hire chiefs of technology and sustainability, respectively.
Architects | Feb 26, 2020
Seven architects aim to design the “newsstand of the future”
The winning project will be created and presented during Milan Design Week 2020.
Architects | Feb 24, 2020
Design for educational equity
Can architecture not only shape lives, but contribute to a more equitable and just society for marginalized people?
AEC Tech | Feb 22, 2020
Investor interest in the built environment not quite as avid in 2019
Builtworlds’ annual list of venture deals led by workspace providers.
Modular Building | Feb 16, 2020
On the West Coast, prefab gains ground for speedier construction
Gensler has been working with component supplier Clark Pacific on several projects.
AEC Tech | Feb 13, 2020
Exclusive research: Download the final report for BD+C's Giants 300 Technology and Innovation Study
This survey of 130 of the nation's largest architecture, engineering, and construction firms tracks the state of AEC technology adoption and innovation initiatives at the AEC Giants.
Office Buildings | Feb 11, 2020
Forget Class A: The opportunity is with Class B and C office properties
There’s money to be made in rehabbing Class B and Class C office buildings, according to a new ULI report.
Architects | Feb 6, 2020
NBBJ acquires immersive technology design studio ESI Design
NBBJ has acquired experience design studio ESI Design. The acquisition signals a new era where buildings will be transformed into immersive and interactive digital experiences that engage and delight.
