Archinect - Features

Architecture Business Metrics Begin To Turn Positive: Archinect’s State of AEC November 2024

2024-12-02T13:55:00-05:00

Welcome to the sixth installment of Archinect's series, State of AEC. At the end of each month, we will guide you through the latest analyses, indexes, and trends on how the architecture and construction industries are performing economically.

Throughout the past month, several key indicators related to architectural business have either stabilized or turned positive, counteracting a year of largely negative numbers. The AIA's Architecture Billings Index marginally turned positive for the first time in almost two years, while billings also increased in firms located in the South region and in firms specializing in institutional projects. For some commentators, such numbers are the early shoots of a more positive economic landscape expected in 2025.

Read our full roundup of the month's economic and business figures below and find out more about how the business health of the architecture profession is faring via our recently released survey results here.

Interest Rates Were Cut, but Growth Takes Time: Archinect’s State of AEC October 2024

2024-11-05T08:00:00-05:00

Welcome to the fifth installment of Archinect's new series, State of AEC. At the end of each month, we will guide you through the latest analyses, indexes, and trends on how the architecture and construction industries are performing economically.

Throughout the last month, commentators in the architecture and planning spheres have noted that, although interest rates were cut in September, clients remain cautious about commissioning architects for new projects or committing projects to planning. For one commentator, the industry may not feel the full positive impact of the rate cuts until the middle of 2025, which may lead to strong nonresidential planning performance.

The Industry Reacts to Interest Rate Cuts: Archinect’s State of AEC September 2024

2024-10-08T08:39:00-04:00

Welcome to the fourth installment of Archinect's new series, State of AEC. At the end of each month, we will guide you through the latest analyses, indexes, and trends on how the architecture and construction industries are performing economically.

Since our last edition, the U.S. Federal Reserve announced its first interest cut in four years, lowering its rate by half a percentage point. In previous editions of this series, we noted that many commentators had expressed hope that such a move would begin to reverse the fortunes of firms that, as can be seen in the data published below, continue to see declining billings. As we noted in a recent feature published after the rate cut, history tells us the move will indeed have a positive impact on architectural business conditions, though it may be several months before such an impact is felt.

Read our full roundup of the month's economic and business figures below and find out more about how the business health of the architecture prof...

Architecture's Interest Rate Prayers Answered: Archinect’s State of AEC August 2024

2024-09-04T08:00:00-04:00

Welcome to the third installment of Archinect's new series, State of AEC. At the end of each month, we will guide you through the latest analyses, indexes, and trends on how the architecture and construction industries are performing economically.

In our previous edition of the series, we noted the almost unanimous hope expressed by commentators across the AEC industry that the U.S. Federal Reserve would announce interest rate cuts in the coming months, which may propel growth in design studios and construction sites alike. In August, those prayers were answered by the Fed's confirmation that rates would be cut from September onwards.

While the industry waits to see what impact such cuts will have, divergent trends among architecture and construction business activity continue. While billings and design contracts in architecture firms continue to decrease, construction starts rose 10%, and both apartment and hotel construction activity sits at record highs.

Read our full roundup of ...

An Industry Pins Its Hopes on Interest Rate Cuts: Archinect’s State of AEC July 2024

2024-08-08T13:49:00-04:00

Welcome to the second installment of Archinect's new series, State of AEC. At the end of each month, we will guide you through the latest analyses, indexes, and trends on how the architecture and construction industries are performing economically.

As we reflect back on June and July 2024, we see continued declines in billings among architecture firms, in addition to a decrease in new on-site construction activity. Commentators on the business health of the industry are almost unanimous in voicing hopes that interest rate cuts, rumored to be announced by the Federal Reserve next month, may propel growth in design studios and construction sites alike.

Read our full roundup of the month's economic and business figures below, and find out more about how the business health of the architecture profession is faring via our recently-released survey results here.

How the Business of Architecture and Construction Fared in May 2024: Introducing Archinect's State of AEC Series

2024-06-03T12:13:00-04:00

Welcome to the first of Archinect's new monthly series, 'State of AEC.' At the end of each month, we will guide you through the latest analyses, indexes, and trends on how the architecture and construction industries are performing economically.

As we approach the midway point of 2024, data on the economic performance of the AEC sector suggests a subtle divergence between design and construction services. While the AIA's Architecture Billings Index shows a nine-month-long decline in billings within U.S. firms, construction starts are on the rise, albeit hampered by minor decreases in construction spending and increases in construction costs.

What unites all sides of the industry, however, are concerns over interest rates. While some held out hope that interest rates may fall from their 5.5% level at the beginning of May, no such fall materialized. As a result, analysts in the architecture and project planning sector note that clients have become hesitant to commit to new design proj...