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
| Jul 18, 2012
Construction employment stagnates in June
Lack of hiring in construction combined with job growth elsewhere threatens to create skilled-labor gap once contractors are ready to hire again.
| Jul 18, 2012
Legat & Kingscott relocates architecture/interior design office
Move enables the architecture/interior design firm to better serve its expanding clientele.
| Jul 18, 2012
Alcoa appoints Hunter Architectural Manager
Hunter to operate with the goal of driving specification, new product adoption and overall demand for the Alcoa BCS North America product range.
| Jul 17, 2012
AIA and Architecture for Humanity select Disaster Response Grant recipients
Awards help each group implement their locally driven preparedness project in the second half of the year.
| Jul 17, 2012
KM/Plaza changes name to Plaza Construction
Lands new projects including the Perry South Beach Hotel and Dadeland Mall Kendall Wing Expansion.
| Jul 17, 2012
Dr. Phillips Charities Headquarters Building receives LEED Silver
The building incorporates sustainable design features, environmentally-friendly building products, energy efficient systems, and environmentally sensitive construction practices.
| Jul 16, 2012
BD+C Under 40 Leadership Summit scheduled
Attendee registration for U40 Summit II now open.
| Jul 16, 2012
Construction spending at 2 ½ year peak
Construction economist Ken Simonson says that four private nonresidential categories each posted 12-month spending increases of more than 25%: power and energy construction, 35%; hotels, 29%; educational and manufacturing, 27% apiece.
| Jul 16, 2012
Chen named design director at Heery
Chen comes to Heery from his own firm, Mark Chen Architect, a design and planning consulting firm, based in New York City, whose recent work includes large-scale planning studies for mixed-use projects.
| Jul 16, 2012
Reed Construction hires new project manager
Fread is a LEED AP and received his degree from Purdue University.
