Washington, D.C. - March 24, 2010 - Following a drop of nearly three points, the Architecture Billings Index (ABI) nudged up almost two points in February. As a leading economic indicator of construction activity, the ABI reflects the approximate nine to twelve month lag time between architecture billings and construction spending. The American Institute of Architects (AIA) reported the February ABI rating was 44.8, up from a reading of 42.5 in January. This score indicates a continued decline in demand for design services (any score above 50 indicates an increase in billings). The new projects inquiry score was 52.0.
"We continue to hear that funding dedicated for construction projects in the stimulus package has not yet been awarded, resulting in a bottleneck of potential projects that could help jumpstart the economy," said AIA Chief Economist Kermit Baker, PhD, Hon. AIA. "That, coupled with a persistently rigid credit market for private sector projects, is a key reason why the design and construction industry continue to suffer at near historic levels in terms of job losses."
Key February ABI highlights:
Regional averages: Midwest (49.4), Northeast (44.1), West (43.6), South (40.7)
Sector index breakdown: multi-family residential (47.3), institutional (44.2), mixed practice (43.3), commercial / industrial (43.2)
Project inquiries index: 52.0
About the AIA Architecture Billings Index
The Architecture Billings Index is derived from a monthly "Work-on-the-Boards" survey and produced by the AIA Economics & Market Research Group. Based on a comparison of data compiled since the survey's inception in 1995 with figures from the Department of Commerce on Construction Put in Place, the findings amount to a leading economic indicator that provides an approximately nine to twelve month glimpse into the future of nonresidential construction activity. The diffusion indexes contained in the full report are derived from a monthly survey sent to a panel of AIA member-owned firms. Participants are asked whether their billings increased, decreased, or stayed the same in the month that just ended. According to the proportion of respondents choosing each option, a score is generated, which represents an index value for each month. The regional and sector data is formulated using a three-month moving average.
About The American Institute of Architects
For over 150 years, members of the American Institute of Architects have worked with each other and their communities to create more valuable, healthy, secure, and sustainable buildings and cityscapes. By using sustainable design practices, materials, and techniques, AIA architects are uniquely poised to provide the leadership and guidance needed to provide solutions to address climate change. AIA architects walk the walk on sustainable design. Visit www.aia.org
Related Stories
| Dec 5, 2013
Maximizing the impact of online marketing
Because most professional services firms exist to help their clients reduce risk and navigate an uncertain future, they tend to approach the world of online or digital marketing with some caution. Here are four tips for maximizing the impact of online marketing.
| Dec 5, 2013
Translating design intent from across the globe
I recently attended the Bentley User Conference in Vejle, Denmark. I attended the event primarily to get a sense for the challenges our Danish counterparts are experiencing in project delivery and digital communication. One story I heard was from a BIM manager with Henning Larsen Architects in Denmark, who told me about a project she’d recently completed overseas in the Middle East. She outlined two distinct challenges and offered some interesting solutions to those challenges.
| Dec 3, 2013
‘BIM for all’ platform pays off for contractor
Construction giant JE Dunn is saving millions in cost avoidances by implementing a custom, cloud-based BIM/VDC collaboration platform.
| Dec 3, 2013
Historic Daytona International Speedway undergoing $400 million facelift
The Daytona International Speedway is zooming ahead on the largest renovation in the Florida venue’s 54-year history. Improvements include five redesigned guest entrances, an extended grandstand with 101,000 new seats, and more than 60 new trackside suites for corporate entertaining.
| Dec 3, 2013
Creating a healthcare capital project plan: The truth behind the numbers
When setting up a capital project plan, it's one thing to have the data, but quite another to have the knowledge of the process.
| Dec 3, 2013
Architects urge government to reform design-build contracting process
Current federal contracting laws are discouraging talented architects from competing for federal contracts, depriving government and, by inference, taxpayers of the best design expertise available, according to AIA testimony presented today on Capitol Hill.
| Dec 3, 2013
Construction spending hits four-year peak after rare spike in public outlays
An unusual surge in public construction in October pushed total construction spending to its highest level since May 2009 despite a dip in both private residential and nonresidential activity.
| Nov 27, 2013
BIG's 'oil and vinegar' design wins competition for the Museum of the Human Body [slideshow]
The winning submission by Bjarke Ingels Group (BIG) and A+ Architecture mixes urban pavement and parkland in a flowing, organic plan, like oil and vinegar, explains Bjarke Ingels.
| Nov 27, 2013
Retail renaissance: What's next?
The retail construction category, long in the doldrums, is roaring back to life. Send us your comments and projects as we prepare coverage for this exciting sector.
| Nov 27, 2013
Pediatric hospitals improve care with flexible, age-sensitive design
Pediatric hospitals face many of the same concerns as their adult counterparts. Inpatient bed demand is declining, outpatient visits are soaring, and there is a higher level of focus on prevention and reduced readmissions.
