Archinect - News

Construction starts dip 1% in March despite encouraging signs in the residential sector

2024-04-26T13:56:00-04:00

Construction starts for March have dropped by 1% to a seasonally adjusted annual rate of $1.06 trillion, according to the latest figures released in Dodge Construction Network's new Construction Starts Index.

For the month, nonresidential building starts went down 9%, while nonbuilding starts dipped another 7%, and residential starts were up by 1%. On a year-to-date basis, the total number of all starts was up 13% compared to the same three-month period in 2023. Residential starts increased by 24%, while nonbuilding starts gained 16%, and nonresidential building starts went up by 2%.

“The construction sector has hit a soft patch to start 2024,” Richard Branch, the chief economist for Dodge Construction Network, said. “However, this should not be overly surprising given high rates and restrictive credit. There are bright spots though, as single-family starts are moving higher and federal dollars are lifting nonbuilding starts. The recent hot inflation readings likely mean that rate...

March Architecture Billings Index declines significantly due to inflation and supply chain issues

2024-04-24T13:23:00-04:00

The AIA/Deltek’s latest Architecture Billings Index (ABI) for the month of March has posted a decline to a score of 43.6. The new figures indicate a reversal of February’s “most modest easing.”

The AIA says: "This shows that clients are interested in starting new projects but remain hesitant to sign a contract and officially commit to those projects. However, most firms report that they still have strong project backlogs of 6.6 months, on average, so even with the ongoing soft patch, they still have work in the pipeline."

There were a number of revealing statistics included in the ABI report, which recorded responses from a special practice questions survey, including (among others) the ease at which design contracts are being negotiated when compared to the experiences of firm leaders within the industry just 4 to 5 years ago. 46% now report having a "more challenging" time negotiating their design fees versus the pre-pandemic time period, with another 14% saying that it was "much...

Noncompetes to be banned in the U.S. after FTC ruling

2024-04-24T11:36:00-04:00

The Federal Trade Commission has announced a rule banning noncompetes in the United States. According to the FTC, the ban seeks to “promote competition” by “protecting the fundamental freedom of workers to change jobs, increasing innovation, and fostering new business formation.” The rule is expected to go into effect in six months.

The rule will not apply to existing noncompetes for senior executives (workers earning more than $151,164 annually and who are in policy-making positions), although employers cannot enter into or enforce new noncompetes for senior executives. In all cases, employers must provide notice to workers bound to an existing noncompete that the agreement will not be enforced against them in the future.

Related on Archinect: A Guide to Salary Transparency Laws Across the United States. Image: Pixabay

Noncompetes can be used in the U.S. to impose contractual conditions on employees that prevent workers from taking a new job or starting their own business, the FTC n...

Construction input prices climb 0.4% in March

2024-04-12T11:42:00-04:00

A new analysis of the latest U.S. Bureau of Labor Statistics Producer Price Index data from the Associated Builders and Contractors (ABC) has shown an increase in the cost of construction input prices of 0.4% for March.

In the month, nonresidential construction input prices increased by 0.4%. Both overall and nonresidential construction input prices are 1.7% higher than they were a year ago.

The overall increase came despite declines in the cost of energy inputs, with natural gas prices down 37%, unprocessed energy materials down 6.9%, and crude petroleum down 0.8%.

Chart credit: Associated Builders and Contractors

“There has been growing evidence of resurfacing inflationary pressures in the nation’s nonresidential construction segment during the past two months,” said ABC Chief Economist Anirban Basu. “Were it not for declines in energy prices, the headline figure for construction input price dynamics would have been meaningfully higher. A new set of supply chain issues is emerging,...

Major uptake in artificial intelligence use across creative industries, Autodesk survey finds

2024-04-10T11:53:00-04:00

Autodesk has released a report on the state of digitization and technological adoption across creative industries. The 2024 State of Design & Make Report found that companies see artificial intelligence “as a current tool rather than a futuristic pipe dream.”

The report’s findings were derived from survey results of 5,400 industry companies and figures across architecture, engineering, construction, design, manufacturing, media, and entertainment. Among the findings was a high level of optimism, with 73% of companies believing they were prepared to handle unforeseen economic or geopolitical changes.

76% of professionals said they trust AI in their industry, with application areas including productivity and sustainability. “More than half of companies say they are approaching or have already achieved their goal of incorporating AI,” Autodesk said about the report findings. “While AI adoption is high, we still have a long way to go to maximize AI’s potential.”

Related on Archinect: Au...

Dodge Momentum Index continues to decline in March due to office, hotel, and education planning slowdown

2024-04-08T12:46:00-04:00

The latest Dodge Momentum Index (DMI) information for March has shown a continued decrease in economic activity, dropping 8.6% to a new score of 164.0 from February's revised total of 179.5.

Over the month, commercial planning fell 3.2%, while institutional planning dropped 17.2%. The decline in commercial performance is attributed by Dodge Construction Network to slow growth in office and hotel planning, while the institutional sector decline is linked to a decline in education planning.

“While strong market fundamentals should support institutional planning this year, this side of the Index is more at risk for a substantive correction after last year’s growth,” explained Sarah Martin, associate director of forecasting for Dodge Construction Network. “Much of the decline on the institutional side is credited to lower levels of education planning. Between February 2023 and February 2024, life science and R&D laboratory projects account for roughly 34% of education planning value, wi...

Project abandonments rose sharply across the country during March

2024-04-05T15:48:00-04:00

Project abandonments have spiked recently across the country, according to a new analysis of construction project data contained in the ConstructConnect Project Stress Index for the week ending on March 31st.

Construction Dive has more on the latest economic indicators impacting nearly every sector of commercial architecture, including the startling revelation that outright abandonments have increased by 60% from 2021 base levels.

“Not many months after interest rates started rising in early 2022, the private sector was quick to respond with greatly heightened levels of abandoned projects,” Michael Guckes, ConstructionConnect's senior economist, explained. “This volatility, coupled with overall elevated weekly readings, has continued with little exception through present.”

However, the total number of privately funded abandoned projects was down 10.7% compared with the same month las...

Nonresidential construction spending declines 1.0% for February, according to new ABC analysis

2024-04-03T12:53:00-04:00

Spending on nonresidential construction declined 1.0% in February to a seasonally adjusted total of $1.179 trillion, according to an Associated Builders and Contractors (ABC) analysis of data published this week by the U.S. Census Bureau.

The figures showed a decrease in spending for 15 of the 16 nonresidential subcategories on a monthly basis. Private nonresidential spending fell 0.9%, while public nonresidential construction spending was down 1.2% in February.

“Virtually every nonresidential construction segment experienced a decline in spending in February,” said ABC Chief Economist Anirban Basu. “In certain instances, the monthly decline was sharp, including health care (-2.2%), commercial (-1.9%) and water supply (-1.8%). The optimist will likely shrug off both the January and February nonresidential construction spending declines as merely reflecting winter weather. The pessimist will proclaim this release a wake-up call to contractors and an indication that higher interest r...

Construction starts fall 8% in February, driven by sharp nonresidential decline

2024-03-21T18:46:00-04:00

The total value of construction starts for February fell by 8% to a seasonally adjusted annual rate of $1.07 trillion, according to the latest data from Dodge Construction Network.

For the month, nonresidential building starts dropped 16%, while nonbuilding starts were down 3%, and residential starts fell by 2%.

For the 12 months ending February 2024, total construction starts were up 2% from the 12 months ending February 2023. Nonresidential building starts were down 2%, while residential starts were 4% lower, and nonbuilding starts were up 19% on a 12-month rolling sum basis.

“Construction activity was hit hard by higher rates and more restrictive credit standards,” Richard Branch, the chief economist for Dodge Construction Network, said in a news release. “Starts struggled over the past several months as the lagged effect of higher rates impacted projects moving forward through the planning process. Additionally, the significant deficit of skilled labor led to further delays — e...

February Architecture Billings Index softens decline, shows encouraging signs of economic turnaround

2024-03-20T12:38:00-04:00

New data from the AIA/Deltek Architecture Billings Index (ABI) for the month of February has revealed a continued decline to a new score of 49.5. The figure, however, represents the "most modest easing" since July 2023 (any score below 50 indicates a decline), suggesting an improvement over the economic downturn of last year.

"There are indicators this month that business conditions at firms may finally begin to pick up in the coming months. Inquiries into new projects grew at their fastest pace since November, and the value of newly signed design contracts increased at their fastest pace since last summer," Kermit Baker, the AIA’s Chief Economist, said of the data. "Given the moderation of inflation for construction costs and prospects for lower interest rates in the coming months, there are positive signs for future growth."

For the month, firms in the Midwest region showed a continued growth in billings for what is now the fourth out of the last five consecutive months.

February ...

Construction input prices climb 1.4% in February

2024-03-15T17:21:00-04:00

In the month, nonresidential construction input prices increased by 1.3%. Overall construction input prices are 1.5% higher than they were a year ago, while nonresidential construction input prices are a total of 1.8% higher.

The prices for softwood lumber (1.7%), concrete (0.3%), construction sand/gravel (1.0%), and insulation materials (2.1%) all rose, while a drop of 0.3% was recorded for fabricated structural steel metal products.

Chart credit: Associated Builders and Contractors

“For the last several weeks, inflation data have been coming in hotter than anticipated,” said ABC Chief Economist Anirban Basu. “This was also true for the February construction input price data, which indicated that upward price pressures are reemerging after a period of calm. Month...

Michael Graves Architecture acquires Tennessee's Studio Four Design, its sixth firm since 2022

2024-03-11T16:08:00-04:00

Princeton, New Jersey-based Michael Graves Architecture has announced that the firm is expanding once again with the acquisition of Studio Four Design, a successful 17-person operation working with over twenty years of experience on various project types in the Knoxville, Tennessee, market.

The expansion follows five other acquisitions completed between March 2022 and June of last year. The move will allow the firm to compete in a new region, where they say they have identified a need for design services. The two share a similar organizational mission that's geared towards creating a "human-centric" architecture. Michael Graves' CEO and President Joe Furey says the addition "[encourages] us to embrace new perspectives and experiences, furthering our mission to create impactful design nationally."

Stacy Cox, Principal at Studio Four Design, added: "This merger leverages the skillsets and experiences at Studio Four Design, allowing us to take our capabilities and offerings to a new le...

Dodge Momentum Index drops slightly for February, hampered by weak commercial planning

2024-03-07T17:12:00-05:00

The latest Dodge Momentum Index (DMI) information for February has shown a slight decrease in economic activity, dropping 1.4% to a new score of 180.5 from January’s revised total of 183.0.

Over the month, commercial planning fell 2.3% while institutional planning ticked up 0.1%. The drop in the commercial sector was caused primarily by a lag in new office planning. On the institutional side, slow healthcare and amusement planning was offset by a strong showing in the education sector to maintain a flat reading for the month.

“Weaker office and healthcare planning constrained nonresidential planning in February,” Sarah Martin, the associate director of forecasting for Dodge Construction Network, said in a press release. “However, the Index remains 25% higher than where it was just two years ago. Most other categories showed growth over the month, and Dodge remains optimistic that nonresidential planning will stay elevated throughout 2024 alongside rising confidence in 2025 market co...

Construction input prices rise 1% for January following December drop

2024-02-23T13:59:00-05:00

The value of construction input prices increased by 1% for the month of January when compared to December’s totals, according to an Associated Builders and Contractors (ABC) analysis of the latest U.S. Bureau of Labor Statistics Producer Price Index data.

For the month, nonresidential construction input prices increased 0.9%. Overall construction input prices are now 0.4% higher than they were a year ago, with nonresidential construction materials prices another 0.7% higher.

Steel mill product input prices were up 5.4%, while construction sand, gravel, and crushed stone rose 3.3%, softwood lumber 1.1%, and concrete products 0.8%. The price of gypsum products declined by 1.3%.

Chart credit: Associated Builders and Contractors

“Construction materials prices surged in January, ending a streak of three consecutive monthly declines,” ABC's Chief Economist Anirban Basu commented on the findings. “While this represents the largest monthly increase since August 2023, input prices are essenti...

Construction starts up another 1% in January, continuing winter improvements

2024-02-22T18:29:00-05:00

The latest construction starts statistics revealed by Dodge Construction Network for January report that the total number of starts grew 1% to a seasonally adjusted annual rate of $1.16 trillion.

Nonbuilding starts rose 9% during the month, while nonresidential building starts fell by 2% and residential starts remained flat. For the year ending in January 2024, total construction starts were down 1% from the previous 12 months. Nonresidential building starts were down 5%, while residential starts were 8% lower. Nonbuilding starts were also up 17% on a 12-month rolling basis.

“Construction starts are struggling to make headway in the new year,” Richard Branch, the chief economist for Dodge Construction Network, said in a news release. “Construction starts will continue to struggle early on in 2024 as higher interest rates and tight credit standards are slowing down projects moving through the planning cycle to start. The Federal Reserve is expected to cut rates later this year. That...

January Architecture Billings Index increases slightly while soft business conditions remain

2024-02-21T13:39:00-05:00

The latest data contained in the AIA/Deltek Architecture Billings Index (ABI) for the month of January has shown a slight increase from December's 45.4 total to a new score of 46.2, signaling a continued weakening in business conditions as we enter 2024 following a year of heavy economic turbulence for the industry. (Any score below 50 indicates decreasing business conditions.)

For the month, indicators remained poor in all areas except the Midwest (which has performed well since the fall). Multifamily residential specialty firms continue to report the softest business conditions of all project types and categories. The AIA did, however, point out several other silver linings that can be taken from its report.

"This now marks the lengthiest period of declining billings since 2010, although it is reassuring that the pace of this decline is less rapid and the broader economy showed improvement in January," Kermit Baker, the AIA’s Chief Economist, said in a statement. "Firms are seeing...

The political reason behind London’s ‘weird’ skyline

2024-02-15T11:30:00-05:00

The dominance of starchitect-led high rises in London is the result of the UK’s subjective planning system, according to a new opinion piece in The New York Times. Taking aim at the city’s “weird” skyline, business and economics columnist Peter Coy argues that “developers hire star architects because doing so gives them a better chance of winning approval for taller, more profitable buildings.”

Related on Archinect: The City of London skyline is expected to add these eleven towers by 2030. Image credit: City of London Corporation

“London has a jarring profusion of odd skyscrapers with funny names or nicknames,” Coy explains. “There are the Shard and the Scalpel, which are pretty elegant. The (mostly) well-liked Gherkin, which looks like a glass pickle. The wedge-shaped Cheese Grater. And the widely loathed Walkie-Talkie, a bulbous cartoon of a building that “looms thuggishly over its low-rise neighbors like a broad-shouldered banker in a cheap pinstriped suit,” to quote The Guardian....

Market for architectural services to reach $523.2 billion by 2030, new study projects

2024-02-09T17:09:00-05:00

A new study conducted by the group Grand View Research Inc. has indicated a likely rise in the global demand for architectural services to a market share of $523.2 billion by the end of the decade.

The study cites the rates of urbanization in countries such as Brazil and India alongside a worldwide focus on the creation of affordable housing as the main factors supporting a compound annual growth rate (CAGR) of 4.8% from 2023 to 2030.

The development of Artificial Intelligence and Virtual Reality technologies was also indicated as pivotal factors driving growth. A demand to deliver green building designs across all sectors and design more humane and user-engaging spaces in the Healthcare, Residential, and Hospitality segments is also expected to favor business.

Urban Planning services are likewise predicted to grow to a CAGR of 6.4% over the same time period thanks to an increase in smart city projects and the threats posed by climate change on the built environment worldwide.

Rel...

January's Dodge Momentum Index increases slightly thanks to gains in the institutional sector

2024-02-08T17:14:00-05:00

The latest Dodge Momentum Index (DMI) report has shown a slight increase of 0.1% for January to a new total of 184.1, indicating an improvement over December’s revised figure of 183.9.

Over the month, commercial planning fell by 1.0%, while institutional planning improved by 2.1%. Year over year, the DMI is now 3% lower than January 2023's totals. The commercial segment was down 12% from year-ago levels, while the institutional segment was up 15% over the same period.

"Divergent trends between commercial and institutional planning continued in January, nullifying any growth on the overall Momentum Index. Nevertheless, lending standards began to loosen in January, and the Fed is expected to begin cutting rates in the back half of the year. With this in mind, momentum should resume in commercial activity throughout 2024 as owners and developers gain confidence in market conditions for 2025," Sarah Martin, the associate director of forecasting for Dodge Construction Network, said in a...

ShubinDonaldson rebrands as Donaldson + Partners following Russell Shubin departure

2024-02-01T15:31:00-05:00

Southern California architecture studio ShubinDonaldson has been renamed Donaldson + Partners following the departure of Founding Partner Russell Shubin. The firm, based in Los Angeles and Santa Barbara, was founded in 1991 by Shubin alongside Robin Donaldson, who remains as a Founding Partner, Design Director, and Head of Studio, alongside Partner and Managing Director Mark Hershman.

“As Donaldson + Partners, we remain committed to delivering the same extraordinary architecture we have been privileged to create as ShubinDonaldson,” the firm said in an update on its website. “We wish Russell Shubin all the best as he departs for new endeavors and thank him for his contribution to the success of ShubinDonaldson.”

Related on Archinect: Explore Shubin Donaldson’s completed restoration of Richard Neutra’s Mariners Medical Arts building in Orange County. Image © Benny Chan Fotoworks

“It’s relatively easy to start a partnership, but it’s a lot harder to end or alter a partnership many yea...

Profitability is the biggest challenge facing architecture firms in 2024, says AIA analysis

2024-01-31T12:15:00-05:00

The AIA’s chief economist Kermit Baker has offered reflections on the economic context facing architecture firms throughout 2024. Baker, who previously shared reflections with Archinect on the industry’s recovery from the COVID-19 pandemic, says that “while 2024 may indeed end up looking a lot like last year, the reasons are likely to be very different.”

Citing data from the AIA’s December 2023 Works on the Boards survey, Baker notes that the most pressing issue facing firms in 2024 will be “increasing firm profitability,” with 30% of firms in the survey indicating this to be one of their top three concerns. Other challenges cited include “managing rising costs of running a firm” and “negotiating appropriate project fees.”

“Another set of challenges for the year are about a weakening project workload and concerns over how clients are dealing with economic uncertainty,” Baker notes in his new piece for the AIA. “So, while having more work than a firm could easily manage given staffin...

DLR Group acquires two Bay Area specialty firms

2024-01-25T14:16:00-05:00

The San Francisco office of DLR Group has announced its acquisition of two smaller local specialty design practices in a move that will expand services to clients in the areas of civic and public safety design as well as high-end hospitality and residential interiors.

Thirty-five-year-old BraytonHughes Design Studios and Sonoma-based RossDrulisCusenbery (RDC) were the two firms acquired in separate deals. Both are well-known in the Bay Area market, having developed nationally recognized designs in their respective practice areas for the last three decades.

The boutique interiors specialist BraytonHughes Design Studios will add their expertise in high-end hospitality, resort, corporate office design, and residential projects to the DLR portfolio. Its addition helps DLR to accelerate growth in these segments and is strengthened by the firm’s longtime clients like the Four Seasons, Waldorf Astoria, and Grand Hyatt hotel brands, according to DLR.

In a statement, BraytonHughes Presiden...

December Architecture Billings Index declines slightly to cap a challenging economic year for firms

2024-01-24T12:38:00-05:00

The new December Architecture Billings Index from the American Institute of Architects has shown a continued decline in business conditions to end the year 2023. The new index score of 45.4 was essentially left flat from November’s totals (any score below 50 indicates a decline) though there remained a few encouraging statistics within the production pipeline.

The findings cap a difficult economic year for architecture firms, which experienced suppressed conditions in all sectors (especially multifamily residential) for the balance of the year. The AIA says additionally that most firms report projects have been significantly delayed, put on hold, or even canceled in the past six months. On average, the report states, nearly 30% of projects have fallen into one of these categories.

“Billings at firms declined for eight months of the year, and the last four months saw this overall weakness accelerate,” Kermit Baker, the AIA’s Chief Economist, said. “Fortunately, project backlogs at fi...

Construction sector will weaken across 2024 and 2025, says AIA

2024-01-23T11:29:00-05:00

Spending on nonresidential buildings will see a minor 4% increase in 2024 despite a 20% increase in 2023, according to the AIA’s latest Consensus Construction Forecast. In 2025, meanwhile, the pace is expected to slow to just over 1% growth.

Across key sectors, manufacturing construction will see a 10% increase in 2024, while institutional construction will see mid-single-digit gains over the next two years. Spending on commercial construction is expected to be flat for the next two years.

The strong performance of manufacturing construction continues from 2023, where it accounted for almost 30% of overall spending on nonresidential buildings. Last year also saw spending on offices increase by 8%, while hotels increased by 21% and retail and other commercial facilities increased by 7%. Elsewhere, healthcare and education spending both rose by 13%.

Extract from the AIA's latest Consensus Construction Forecast. The interactive data is available to view here.

In analyzing the strong per...

Construction starts climb 20% in December

2024-01-19T16:46:00-05:00

The latest data from Dodge Construction Network has shown an impressive 20% growth in new construction starts to a seasonally adjusted annual rate of $1.2 trillion for the month of December, offering encouraging statistics for the industry in a turnaround from November’s ten-month low.

For the latest month, nonresidential building starts were up 37%, while the residential and nonbuilding sectors improved by 8% and 13%, respectively. For the full year ending in December, total construction starts were down 4% compared to the previous 12-month cycle.

Graphic courtesy of Dodge Construction Network

“Construction starts ended the year on a positive note,” Richard Branch, chief economist for Dodge Construction Network, said in a statement. “Looking ahead, the new year provides promise that positive momentum will continue to build. The planning queue is stabilizing, and the promise of lower rates should spur construction onward. While hurdles remain, including scarce labor and tight credit,...

Residential construction activity declined in 2023, according to new census data

2024-01-19T11:42:00-05:00

Building permits and construction starts for residential projects in the United States declined by approximately 10% in 2023 versus 2022, according to new data by the U.S. Census Bureau. An estimated 1,469,800 housing units were authorized by building permits in 2023, which is 11.7% lower than in 2022. An estimated 1,413,100 housing units were started in 2023, which is 9% lower than the 2022 figure.

In December 2023, the U.S. saw 1,495,000 building permits issued for privately owned housing units, which is 1.9% above the previous month, and 6.1% above December 2022. Specifically, single-family home permit grants were 1.7% above the previous month, while authorization of units in buildings with five units or more was up 1.3% on the previous month.

Image credit: U.S. Census Bureau

With regards to housing starts, December 2023 saw commencement on 1,460,000 units, which is 4.3% below November 2023 but 7.6% above December 2022. Single-family housing starts numbered 1,027,000 units, which ...

Can modular housing startups be saved at a critical time for the industry?

2024-01-18T14:08:00-05:00

The notion that factory-built modular homes can serve as the salvation to America's vexing housing crisis has increasingly come under scrutiny, a report summarized recently in Business Insider.

A crippling lack of widespread success for modular housing startups can be attributed to state and federal manufacturing regulatory barriers, a lack of builders’ experience, investors’ overconfidence, local building codes, persistent social stigmas about prefabricated homes, and an overall lack of demand. The inflexibility of the prefabrication process for single-family designs is another factor hindering many businesses as well, according to the article.

Katerra and, more recently, Veev are perhaps the best-known examples. The once $1 billion Bay Area ‘unicorn’ shuttered its U.S. operation in November after constructing 170 units total in 15 years. Veev's failure can be boiled down to a fla...

Construction input prices drop again for December, driven by declines in all sectors

2024-01-16T14:43:00-05:00

The latest Associated Builders and Contractors (ABC) construction input price analysis for the month of December has registered a 0.6% decrease over November’s trend-reversing totals. Nonresidential construction input prices were down another 0.4%, with the commercial and multifamily sectors declining by 0.2% and 0.5%, respectively.

Overall construction input prices are now 1.2% higher than a year ago, and nonresidential construction input prices are another 1.6% higher. The price of softwood lumber has notably fallen by 14.6% in a 12-month span, joined by a substantial decline in the price of natural gas, which was down some 60.5% in the same time period.

Chart credit: Associated Builders and Contractors

“Construction input prices fell sharply in December,” ABC’s Chief Economist, Anirban Basu, said in a news release. “While plunging oil prices are the primary factor behind the sharp decline, most input prices were tame in 2023’s final month. That serves as a fitting end to a year du...

December's Dodge Momentum Index increases by 3% thanks to commercial sector gains

2024-01-12T12:32:00-05:00

The latest Dodge Momentum Index (DMI) has posted an increase of 3% for December to a new total of 186.6, showing a marked improvement over November’s revised figure of 181.5.

For the month, commercial planning grew 1.0%, and institutional planning improved 6.1%. Hotels and data centers were the primary drivers of the sector, while the institutional sector was propelled by healthcare and public buildings. Overall, the commercial sector was down 9% from 2022, while the institutional sector was up 14% over the same time period.

“The Momentum Index ended the year 11% below the November 2022 peak, ultimately stabilizing as the year progressed. Regardless, the DMI averaged a reading of 184.3 in 2023, hitting levels of activity that haven’t been recorded since 2008,” Sarah Martin, the associate director of forecasting for Dodge Construction Network, said in a statement. “While ongoing labor and construction cost issues will persist in 2024, a substantive amount of projects are sitting in ...

BNIM details the firm's transition to an employee-owned company model

2024-01-11T20:05:00-05:00

Kansas City-based architecture firm BNIM recently announced its decision to transition to an employee stock ownership plan (or ESOP) and trust.

The move was made in the fall and was brought about by an apparent desire to hand over control to younger employees, its senior leadership says. BNIM feels they are now better positioned for the future and sees the new ownership model as something that better relates to its core values and organizing mission to “design and deliver beautiful, integrated environments to inspire change and enhance the human condition.” They are now one of just a handful of known ESOP firms in the industry, following Zaha Hadid Architects, Gensler, Make Architects, SHoP, Design Workshop, HDR, and several others.

In a new sit-down interview with Bloomberg CityLab, BNIM principals Laura Lesniewski and James Pfeiffer described the effects the transition has had on the firm's work culture, client interface, and recruitment efforts. They say the lead-up to the decis...

Archinect - News

Construction starts dip 1% in March despite encouraging signs in the residential sector

March Architecture Billings Index declines significantly due to inflation and supply chain issues

Noncompetes to be banned in the U.S. after FTC ruling

Construction input prices climb 0.4% in March

Major uptake in artificial intelligence use across creative industries, Autodesk survey finds

Dodge Momentum Index continues to decline in March due to office, hotel, and education planning slowdown

Project abandonments rose sharply across the country during March

Nonresidential construction spending declines 1.0% for February, according to new ABC analysis

Construction starts fall 8% in February, driven by sharp nonresidential decline

February Architecture Billings Index softens decline, shows encouraging signs of economic turnaround

Construction input prices climb 1.4% in February

Michael Graves Architecture acquires Tennessee's Studio Four Design​, its sixth firm since 2022

Dodge Momentum Index drops slightly for February, hampered by weak commercial planning

Construction input prices rise 1% for January following December drop

Construction starts up another 1% in January, continuing winter improvements

January Architecture Billings Index increases slightly while soft business conditions remain

The political reason behind London’s ‘weird’ skyline

Market for architectural services to reach $523.2 billion by 2030, new study projects

January's Dodge Momentum Index increases slightly thanks to gains in the institutional sector

ShubinDonaldson rebrands as Donaldson + Partners following Russell Shubin departure

Profitability is the biggest challenge facing architecture firms in 2024, says AIA analysis

DLR Group acquires two Bay Area specialty firms

December Architecture Billings Index declines slightly to cap a challenging economic year for firms

Construction sector will weaken across 2024 and 2025, says AIA

Construction starts climb 20% in December

Residential construction activity declined in 2023, according to new census data

Can modular housing startups be saved at a critical time for the industry?

Construction input prices drop again for December, driven by declines in all sectors

December's Dodge Momentum Index increases by 3% thanks to commercial sector gains

BNIM details the firm's transition to an employee-owned company model

Michael Graves Architecture acquires Tennessee's Studio Four Design, its sixth firm since 2022