Archinect - News

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...

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 ...

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...

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...

Economic Pressures and Labor Challenges: How 2023 Shaped Architecture and Construction Industries

2023-12-28T07:49:00-05:00

The architecture industry was impacted this year by market volatility, rising interest rates, and evolving labor dynamics. This unusual business climate was reflected not only in the Architecture Billings Index (ABI) and the Dodge Momentum Index (DMI) but also in the pattern of job openings around the country, also observed through Archinect Jobs, the leading job board for the architecture industry in the USA.

AIA predicts slower growth in non-residential construction through 2023 and 2024

Hints of 2023's challenges began in late 2022, with a downturn in both the ABI and DMI to kick off 2023. This signaled a cautious approach by firm owners and clients alike amidst tightening credit conditions and rising interest rates. This recessed business landscape was quickly echoed in the job market, as seen by a substantial 51.9% decrease in job advertising volume in January 2023 compared to January 2022. This trend of reduced job postings continued throughout the year, with monthly declines r...

November Architecture Billings Index remains below 50 for the fourth consecutive month

2023-12-20T13:31:00-05:00

The American Institute of Architects has released new Architecture Billings Index data for the month of November, indicating a further softening of business conditions with a score below 50 recorded for what is now the fourth month in a row.

The new 45.3 score for the month is still a full point higher than October’s total. The AIA says firms in the West region were the most impacted, reaching new lows for the calendar year. Multi-family residential specialty firms remained among the hardest-hit operations, along with architects working heavily in the institutional sector.

“This marks the seventh month in 2023 with a decline in billings. Over the past three months, this pace of decline has accelerated, with firms in all specializations and in all regions of the country reporting weakening business conditions,” the AIA’s Chief Economist Kermit Baker said in a press release. “However, with signs that credit conditions are beginning to ease, firms are reporting an uptick in inquiries...

October Architecture Billings Index drops below 50 for third consecutive month

2023-11-15T12:44:00-05:00

The newly-released Architecture Billings Index from the American Institute of Architects has indicated a significant decline in billings after posting a total score under 50 for the third month in a row.

The October score of 44.3 offers a slight decrease from September’s total of 44.8. The West and Northeast regions were reporting the biggest impact. The AIA stated that billings were, however, “universally soft” across the entire country.

“This report indicates not only a decrease in billings at firms but also a reduction in the number of clients exploring and committing to new projects, which could potentially impact future billings. The soft conditions were evident across the entire country as well as across all major nonresidential building sectors,” Kermit Baker, the AIA’s Chief Economist, said in a press release.

October ABI Highlights

Regional averages: Northeast (42.1); South (48.5); Midwest (48.9); West (40.0)
Sector index breakdown: commercial/industrial (43.7); institutiona...

Architecture Billings Index declines sharply in September, indicating a 'marked downturn' in demand for design services

2023-10-18T13:10:00-04:00

The latest Architecture Billings Index from the American Institute of Architects for the month of September is showing declines for a second consecutive month to a total score of 44.8 (any score above 50 indicates an increase) following a brief period of stabilization that occurred over the summer.

The new score was also reported by the AIA as the lowest figure recorded since the height of the pandemic in December 2020. Every sector except for institutional, which remained flat, posted declines in the demand for design services. The West region was particularly impacted, the AIA noted. The multifamily sector’s declines also offered a continuation of a trend that began in August of 2022.

"The September ABI score reflects a marked downturn in business conditions at architecture firms, with the sharpest decline observed since the peak of the pandemic," said Kermit Baker, PhD, AIA Chief Economist. "While more firms are reporting a decrease in billings, the report also shows the hesita...

August’s Architecture Billings Index drops slightly, driven by declines in multifamily and institutional contracts

2023-09-20T12:42:00-04:00

The American Institute of Architects' latest Architecture Billings Index for August has recorded a slight decrease to a score of 48.1 (any score above 50 indicates an increase), marking the eleventh month of consecutively flat figures for firms following a period of growth between 2021 and mid-2022.

The value of new design contracts also dropped for the first time since April. The multifamily market maintained its relatively poor performance, with the institutional sector likewise recording a decline. Firms specializing in commercial/industrial projects, however, reported increases for the third month in a row.

“Business conditions at architecture firms continue to be sluggish,” Kermit Baker, the AIA’s Chief Economist, said in a statement. “New project work coming into architecture firms as well ongoing project activity remain stalled in a relatively narrow range and exhibit very little month-to-month variation. Though this pause has taken pressure off tight staffing conditions acr...

July's Architecture Billings Index figures stabilize for the third month in a row

2023-08-23T18:20:00-04:00

The American Institute of Architects has just released its Architecture Billings Index for the month of July, highlighting further stability in the demand for design services for the third month in a row.

The index score was recorded at 50.0, indicating a flat figure (anything above 50.0 is considered an increase) that follows June’s total of 50.1. The score reflects an increased demand from firms specializing in commercial/industrial projects, which helps bolster the index against declines that were recorded across the residential sector.

“This is the third straight month that billings at architecture firms have stabilized,” the AIA’s Chief Economist Kermit Baker said. “New project work has been even stronger over this period. This suggests that design work may finally begin to increase over the coming months, although somewhat modestly.”

July ABI Highlights

Regional averages: Midwest (51.6); West (49.6); Northeast (49.3); South (48.9)
Sector index breakdown: commercial/industrial (...

Stable demand for architecture services in June, says AIA Architecture Billings Index

2023-07-20T11:23:00-04:00

The latest billings data from the American Institute of Architects has found there to be a stable demand for design services across June 2023. The latest figures represent the first time since Fall 2022 that billings remained in positive growth for two consecutive months, indicating that design activity is continuing to slowly recover from turbulent economic conditions.

According to the latest Architecture Billings Index from June, the billings score was 50.1, down marginally from 51.0 in May (a score above 50 indicates an increase in billings). Inquiries into new projects continued to post a positive score of 56.7, though down from May’s 57.2, while new design contracts edged upward to 52.7 in June from 52.3 in May.

June ABI Highlights

Regional averages: Midwest (52.4); Northeast (50.6); South (50.5); West (48.6)
Sector index breakdown: institutional (55.4); mixed practice (firms that do not have at least half of their billings in any one other category) (48.8); commercial/industria...

Rebound in demand for design services in May, says AIA Architecture Billings Index

2023-06-21T14:43:00-04:00

The latest billings data from the American Institute of Architects has found there to be a rebound in the demand for design services across May 2023. The index score in May was the highest it has been since September 2022, while inquiries into new projects and design contracts reached their highest levels since February.

According to the latest Architecture Billings Index from May, the billings score was 51.0, up from 48.5 in April (a score above 50 indicates an increase in billings). Inquiries into new projects continued to post a positive score of 57.2, up from April’s 53.9, while new design contracts entered positive territory with a score of 52.3, up from 49.8 in April.

May ABI Highlights

Regional averages: South (52.3); Midwest (49.6); Northeast (48.7); West (47.7)
Sector index breakdown: institutional (53.4); mixed practice (firms that do not have at least half of their billings in any one other category) (52.7); commercial/industrial (47.5); multi-family residential (43.0)

"The...

Architecture Billings Index for April indicates slight decrease despite upticks in future project inquiries

2023-05-24T12:25:00-04:00

New statistics from the American Institute of Architects' latest Architecture Billings Index (ABI) show a modest decrease for April, following the gains shown by the ABI in March for the first time since September.

The billings score for April dropped to 48.5, down from the March total of 50.4 (any score above 50 indicates an increase). Firms did report, however, that new project inquiries increased to a score of 53.9, though most practices continued to report a decline in the value of new design contracts to a score of 49.8.

April ABI Highlights

Regional averages: Midwest (51.2); West (49.3); South (48.7); Northeast (47.2)
Sector index breakdown: mixed practice (firms that do not have at least half of their billings in any one other category) (52.1); commercial/industrial (51.8); institutional (50.6); multi-family residential (41.5)

“The ongoing weakness in design activity at architecture firms reflects clients’ concerns regarding the economic outlook,” the AIA's Chief Economist Kerm...

March Architecture Billings Index shows an increase for the first time since September

2023-04-19T13:06:00-04:00

New data from the American Institute of Architects' latest Architecture Billings Index (ABI) shows an increase for the month of March, ending a five-month streak of declines in spite of a slight decrease in the overall number of new contracts during the same 30-day period.

The billings score for March increased to 50.4 in March, up from February’s 48.0 figure (any score above 50 indicates an increase). As mentioned, the value of new design contracts declined to 48.9 in March, down from a score of 51.3 that was recorded the month before.

March ABI Highlights

Regional averages: Midwest (51.4); Northeast (49.1); South (47.4); West (47.2)
Sector index breakdown: mixed practice (firms that do not have at least half of their billings in any one other category) (53.9); institutional (48.8); commercial/industrial (49.7); multi-family residential (44.2)

“In spite of the positive movement in architecture firm billings in March, core concerns remain,” the AIA’s Chief Economist Kermit Baker said. ...

The ABI reports demand for design services declined again in February for the fifth consecutive month

2023-03-22T18:32:00-04:00

The latest data from the American Institute of Architects (AIA) has shown a decline for the industry in February, bolstering a downward economic swing that has lasted through the new year as the prospect of a recession grows ever closer.

The Architecture Billings Index (ABI) for the month was at 48.0, down slightly from the 49.3 figure that was recorded for January. New project inquiries did increase, however, along with the overall value of new design contracts. The AIA says these both provide indicators as to improve business performance over the coming months.

With the negative figure (only scores above 50 are considered positive) the ABI has now posted declines from the previous month five times in a row.

February ABI Highlights

Regional averages: West (50.4); Midwest (48.8); Northeast (48.4); South (47.3)
Sector index breakdown: mixed practice (57.0); institutional (46.9); commercial/industrial (45.8); multi-family residential (46.2)

“The combination of an unsettled economy and ...

Demand for design services continued to fall in January, though at a slower rate, says AIA Architecture Billings Index

2023-02-22T13:11:00-05:00

The latest billings data from the American Institute of Architects has found there to be a continued albeit slower decline in the demand for design services across January 2023. The reduction is the fourth month in a row where billings declined versus the previous month.

According to the latest Architecture Billings Index from January, the billings score was 49.3, slightly up from the seasonally-adjusted score of 48.4 in December. A score below 50 nonetheless indicates a decline in billings. Inquiries into new projects continued to post a positive score of 55.2, slightly up from December, while new design contracts entered positive territory with a score of 53.4, up from 50 in December.

January ABI Highlights

Regional averages: South (46.9); Midwest (51.6); West (51.3); Northeast (50.9).
Sector index breakdown: mixed practice (56.0); institutional (48.6); multi-family residential (45.9); commercial/industrial (46.8)

“While the downturn in design activity extended to four months in Jan...

Demand for design services continue to fall in December’s AIA Architecture Billings Index

2023-01-26T11:15:00-05:00

New data from the American Institute of Architects has found there to be a continued decrease in the demand for design services across December 2022, continuing a trend that began two months previously.

According to the latest Architecture Billings Index for December, the billings score was 47.5, slightly up from 46.6 in November. A score below 50 nonetheless indicates a decline in billings. Inquiries into new projects continued to post a positive score of 52.3, although new design contracts remained in negative territory with a score of 49.4.

December ABI Highlights

Regional averages: South (48.8); Midwest (49.4); West (45.5); Northeast (46.5).

Sector index breakdown: mixed practice (54.8); institutional (47.3); multi-family residential (44.3); commercial/industrial (45.2)

“Despite strong revenue growth last year, architecture firms have modest expectations regarding business conditions this coming year,” said AIA Chief Economist Kermit Baker. “With ABI scores for the entire fourth...

November Architecture Billings Index shows demand for design services continues to slow

2022-12-20T14:10:00-05:00

Data taken from the latest American Institute of Architects (AIA) report shows a continued decrease in the demand for design services industry-wide in November as economic concerns for the new year loom.

The new Architecture Billings Index (ABI) score for the month was 46.6, down from October’s 47.7 figure (a score below 50 indicates a decline). New project inquiries managed to stay above the threshold with a score of 52.0, while the requisition of new contacts dipped slightly to a score of 46.9.

November ABI Highlights

Regional averages: South (50.5); Midwest (47.6); West (45.8); Northeast (42.4)
Sector index breakdown: mixed practice (51.5); institutional (47.7); multi-family residential (46.1); commercial/industrial (44.2)

“Given the slowdown in new project work, many architecture firms will rely on their near record levels of backlogs to support revenue,” said the AIA's Chief Economist, Kermit Baker, Hon. AIA, PhD. “Still, firm leaders remain largely optimistic about future busin...

October's Architecture Billings Index records a decline for the first time in nearly two years

2022-11-16T13:35:00-05:00

The data contained in the latest Architecture Billings Index (ABI) from the American Institute of Architects (AIA) shows a "considerable" decrease in the demand for design services across the industry in a sign that points to the arrival of a long-dreaded turndown for firms heading into the new year.

The ABI score for October was 47.7, down from September's 51.7 total and representing the first time since January of 2021 that the index has fallen below the threshold of 50 (which indicates a decline). The overall value of design contracts also dropped to a score of 48.6, with an increase in new project inquiries recorded at a score of 52.3.

October ABI Highlights:

Regional averages: Midwest (50.8); South (50.6); Northeast (50.3); West (49.6)
Sector index breakdown: institutional (54.3); mixed practice (50.8); multi-family residential (46.1); commercial/industrial (45.9)

“Economic headwinds have been steadily mounting, and finally led to weakening demand for new projects,” the AIA Chie...

September Architecture Billings Index dips slightly but remains in growth for 20th consecutive month

2022-10-19T12:58:00-04:00

New data from the American Institute of Architects (AIA) September Architecture Billings Index (ABI) indicates an increase in the demand for design services for the 20th consecutive month as the industry continues its positive growth into the year's final quarter.

For September, the ABI was at 51.7, down from August's total of 53.3, and up slightly from the 51.0 figure that was posted in July (a score above 50 indicates stable business conditions). Also, in September, the demand for both new project inquiries and design contracts adjusted slightly from August but also remained strong with scores of 53.6 and 50.7, respectively.

September ABI Highlights

Regional averages: Northeast (54.6); Midwest (52.1); South (51.7); West (51.6)
Sector index breakdown: institutional (58.9); mixed practice (50.3); multi-family residential (47.9); commercial/industrial (49.6)

“While billings in the Northeast region and the Institutional sector reached their highest pace of growth in several years, there...

August's Architecture Billings Index shows an accelerated increase in demand as economic concerns widen

2022-09-22T18:15:00-04:00

An increase in the overall demand for design services has been recorded for the 19th consecutive month, according to statistics contained in the August Architecture Billings Index (ABI) published this week by the American Institute of Architects (AIA). The ABI score is now up to 53.3, representing a 2.3 point increase from July’s recorded 51.0 figure.

The increase was driven by new project inquiries, which rose to 57.9 from 56.1 in July despite a registered decrease in the design contracts score to 52.3 from last month’s peak 52.9. Given the parameters of the survey (any score above 50 indicates an increase), the findings indicate an overall positive trajectory for the design industry nationwide.

August ABI Highlights

Regional averages: South (52.9); Midwest (51.4); West (50.2); Northeast (49.8)
Sector index breakdown: multi-family residential (52.0); institutional (52.0); commercial/industrial (51.2); mixed practice (51.2)

“While a strengthening billings score is encouraging, the fl...

Architecture Billings Index in July remains in growth territory

2022-08-24T13:59:00-04:00

Demand for design services at architecture firms across the U.S. has increased for the eighteenth consecutive month in July, according to new data from the American Institute of Architects (AIA). The Architecture Billings Index (ABI) reported a score of 51.0 last month.

While this reading is slightly below June’s score of 53.2, it still indicates stable business conditions for architecture firms, as any score above 50 suggests an increase in billings from the prior month. In addition, both the new project inquiries and design contracts indexes moderated from June but remained strong with scores of 56.1 and 52.9, respectively.

July ABI Highlights

Regional averages: South (53.6); Midwest (52.2); West (51.7); Northeast (48.4)
Sector index breakdown: multi-family residential (52.8); commercial/industrial (52.2); mixed practice (52.1); institutional (49.6)

“Despite architecture services employment recently surpassing pre-pandemic levels, the ABI score this month reflects the slowest grow...

Architecture Billings Index in June continues growth as project backlog remains substantial

2022-07-28T10:00:00-04:00

Demand for architectural design services has expanded for the seventeenth consecutive month, according to the latest economic report released by the American Institute of Architects. The Architecture Billings Index (ABI) for June reached a score of 53.2, softening only slightly from May's score of 53.5 but continued to indicate overall healthy business parameters for the U.S. architecture industry.

While new project inquiries and design contracts also dipped a bit compared to the previous month, they remained in growth territory and reported scores of 58.2 and 52.2, respectively.

June ABI Highlights

Regional averages: West (57.8); Midwest (54.8); South (51.5); Northeast (48.7)
Sector index breakdown: institutional (53.5); mixed practice (52.8); multi-family residential (52.6); commercial/industrial (52.5)

"Ongoing project activity at architecture firms as well as new work coming online remains strong, pushing project backlogs up to seven months on average nationally," said AIA Chief E...

Architecture Billings Index in May marks sixteen months of continued growth in demand for design services

2022-06-24T12:58:00-04:00

The American Institute of Architects’ latest economic data shows that May was the sixteenth consecutive month of growing demand for design services across the U.S. The Architecture Billings Index for May, which uses feedback from architecture firms, finished at a score of 53.5. While down on April’s score of 56.5, the figure still represents very strong business conditions, considering any score above 50 indicates an increase in billings from the previous month.

New project inquiries and design contracts indexes also expanded, posting scores of 63.9 and 56.9 respectively, up from 62.3 and 55.4 in April.

May ABI Highlights

Regional averages: West (59.3); Midwest (56.8); South (52.3); Northeast (51.4
Sector index breakdown: commercial/industrial (57.7); mixed practice (56.2); multi-family residential (54.5); institutional (51.7)

“The strength in design activity over the past three months has produced a broader base of gains. The Northeast region and Institutional sector have struggle...

Architecture Billings Index in April continues strong growth momentum of architecture industry

2022-05-25T14:25:00-04:00

The latest economic data issued by the American Institute of Architects confirm the fifteenth consecutive month of growing demand in design services as reported by architecture firms across the U.S. The Architecture Billings Index for April moderated slightly to a score of 56.5 from a near-record 58.0 score in March but remained in solid growth territory.

New project inquiries and design contracts during April experienced a mild descent compared to March, reporting scores of 62.3 and 55.4 respectively, but kept a positive trajectory.

April ABI Highlights

Regional averages: West (58.2); Midwest (57.6); South (57.3); Northeast (53.1)
Sector index breakdown: mixed practice (61.2); commercial/industrial (60.7); multi-family residential (57.2); institutional (51.8)

"While business conditions at architecture firms have been very encouraging over the past year, project activity has been steadily shifting toward work on existing buildings," said AIA Chief Economist, Kermit Baker, Hon. AIA, Ph...

Architecture Billings Index in March rises sharply, reflecting a booming demand for design services

2022-04-20T15:33:00-04:00

The American Institute of Architects released new economic data this morning, indicating a significant increase in the demand for design services in March. The latest Architecture Billings Index (ABI) score rose to 58.0, up sharply from a score of 51.3 in February.

The March scores for both new project inquiries and design contracts also expanded to 63.9 and 60.5, respectively.

March ABI Highlights

Regional averages: South (57.2); Midwest (56.2); West (54.0); Northeast (46.3)
Sector index breakdown: mixed practice (58.2); multi-family residential (57.2); commercial/industrial (55.3); institutional (50.5)

"The spike in firm billings in March may reflect a desire to beat the continued interest rate hikes expected in the coming months," said AIA Chief Economist, Kermit Baker, Hon. AIA, PhD. "However, since project backlogs at architecture firms have reached seven months, a new all-time high, it appears that firms are having a difficult time keeping up with this uptick in demand for desig...

January Architecture Billings Index kicks off the new year in growth territory as staffing constraints remain

2022-03-02T09:00:00-05:00

The latest economic report released by the American Institute of Architects signaled a continuation of expanding billings and a "slight improvement in business conditions," according to the organization. The Architecture Billings Index (ABI) score for January held steady at 51.0 compared to the (seasonally-adjusted) December score of 51.0.

New project inquiries and design contracts kept their strong momentum, reporting scores of 61.9 and 56.1 respectively.

January ABI Highlights

Regional averages: South (61.2); Midwest (51.5); West (47.6); Northeast (46.8)
Sector index breakdown: mixed practice (59.3); commercial/industrial (54.2); multi-family residential (50.1); institutional (47.3)
Project inquiries index: 61.9
Design contracts index: 56.1

"Architecture billings, while remaining at very healthy levels in recent months, have slowed considerably from the middle of last year," said AIA Chief Economist, Kermit Baker, Hon. AIA, PhD. "This no doubt reflects delays in the construction secto...

Architecture Billings Index in December ends 2021 favorably despite labor shortage and pandemic uncertainty

2022-01-19T13:09:00-05:00

Wrapping up a tumultuous business year 2021, the American Institute of Architects reports that architecture firms ended the year on a "high note with strong business conditions." The Architecture Billings Index (ABI) score for December rose to 52.0, a one-point increase from 51.0 in November.

The study conveys overall robust business conditions, continued strong design demand, and record-breaking backlogs, at an average of 6.5 months, despite serious challenges related to the ongoing pandemic and the omicron variant, labor shortages, rising prices and constrained availability of construction material.

December ABI Highlights

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)
Project inquiries index: 66.8
Design contracts index: 55.8

"Since demand for design projects has been healthy over the last year, recruiting architectural st...

Architecture Billings Index in November continues growth as market challenges persist

2021-12-15T15:32:00-05:00

The latest economic report issued by the American Institute of Architects is out today, indicating continued increasing demand for design services for the tenth consecutive month in November. The pace of growth as expressed in the Architecture Billings Index (ABI) softened slightly compared to October's score of 54.3 but remained in positive territory at 51.0.

The scores for new project inquiries and design contracts dampened somewhat in November but posted positive scores of 59.4 and 55.8 respectively.

November ABI Highlights

Regional averages: Midwest (57.6); South (53.7); West (50.9); Northeast (45.5)
Sector index breakdown: mixed practice (56.9); multi-family residential (51.4); commercial/industrial (50.5); institutional (50.1)

"The period of elevated billing scores nationally, and across the major regions and construction sectors seems to be winding down for this cycle," said AIA Chief Economist, Kermit Baker, Hon. AIA, PhD. "Ongoing external challenges like labor shortages, sup...

Architecture Billings Index in October remains strong as architecture services employment 'surpasses pre-pandemic high'

2021-11-18T13:10:00-05:00

Demand for architectural design services has grown for the ninth consecutive month, according to the latest economic report released by the American Institute of Architects. The Architecture Billings Index (ABI) for October remained at an elevated, positive score of 54.3, softening only slightly from September’s score of 56.6.

New project inquiries and design contracts expanded from the previous month, reporting scores of 61.8 and 54.7 respectively.

October ABI Highlights

Regional averages: Midwest (61.9); South (58.2); West (53.4); Northeast (48.6)
Sector index breakdown: mixed practice (58.7); commercial/industrial (57.4); multi-family residential (55.8); institutional (51.4)

"Unlike the economy-wide payroll figures, architecture services employment has surpassed its pre-pandemic high," said AIA Chief Economist, Kermit Baker, Hon. AIA, PhD. "Staffing continues to be a growing concern at architecture firms and may serve to limit their ability to take on new projects."

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