As architecture firms ended 2021 on a high note with strong business conditions, staff recruitment is becoming a growing concern among firms.
December’s Architectural Billings Index (ABI) score of 52.0 was an increase from 51.0 in November (any score over 50 indicates billings growth). Despite a variety of concerns related to the omicron variant, labor shortages, and rising prices as well as limited availability of construction materials, firms continued to report a robust supply of work in the pipeline. Inquiries into new work and the value of new design contracts both remained strong, and backlogs, at an average of 6.5 months, remained near their highest levels since the AIA began tracking this metric in 2010.
“Since demand for design projects has been healthy over the last year, recruiting architectural staff to keep up with project workloads has been a growing concern for firms,” said AIA Chief Economist, Kermit Baker, Hon. AIA, PhD. “Architecture is one of the few industries where payrolls have already surpassed their pre-pandemic high, so meeting future staffing needs is a challenge that most firms will need to confront.
Key ABI highlights for December include:
• Regional averages: South (56.4); Midwest (51.0); West (47.5); Northeast (45.3)
• Sector index breakdown: mixed practice (60.6); multi-family residential (49.2); commercial/industrial (49.2); institutional (47.6)
The regional and sector categories are calculated as a three-month moving average, whereas the national index, design contracts and inquiries are monthly numbers.
Visit AIA’s website for more ABI information.
Related Stories
Market Data | Jul 15, 2021
Producer prices for construction materials and services soar 26% over 12 months
Contractors cope with supply hitches, weak demand.
Market Data | Jul 13, 2021
ABC’s Construction Backlog Indicator and Contractor Confidence Index rise in June
ABC’s Construction Confidence Index readings for sales, profit margins and staffing levels increased modestly in June.
Market Data | Jul 8, 2021
Encouraging construction cost trends are emerging
In its latest quarterly report, Rider Levett Bucknall states that contractors’ most critical choice will be selecting which building sectors to target.
Multifamily Housing | Jul 7, 2021
Make sure to get your multifamily amenities mix right
One of the hardest decisions multifamily developers and their design teams have to make is what mix of amenities they’re going to put into each project. A lot of squiggly factors go into that decision: the type of community, the geographic market, local recreation preferences, climate/weather conditions, physical parameters, and of course the budget. The permutations are mind-boggling.
Market Data | Jul 7, 2021
Construction employment declines by 7,000 in June
Nonresidential firms struggle to find workers and materials to complete projects.
Market Data | Jun 30, 2021
Construction employment in May trails pre-covid levels in 91 metro areas
Firms struggle to cope with materials, labor challenges.
Market Data | Jun 23, 2021
Construction employment declines in 40 states between April and May
Soaring material costs, supply-chain disruptions impede recovery.
Market Data | Jun 22, 2021
Architecture billings continue historic rebound
AIA’s Architecture Billings Index (ABI) score for May rose to 58.5 compared to 57.9 in April.
Market Data | Jun 17, 2021
Commercial construction contractors upbeat on outlook despite worsening material shortages, worker shortages
88% indicate difficulty in finding skilled workers; of those, 35% have turned down work because of it.
Market Data | Jun 16, 2021
Construction input prices rise 4.6% in May; softwood lumber prices up 154% from a year ago
Construction input prices are 24.3% higher than a year ago, while nonresidential construction input prices increased 23.9% over that span.
