Archinect - News

AIA/Deltek Architecture Billings Index remains flat in October, ending 20-month streak of declines

2024-11-20T12:31:00-05:00

The new AIA/Deltek Architecture Billings Index (ABI) for the month of October has recorded a flat (50.3) reading, ending its 20-month streak of consecutive declines. This score indicates a balance between the number of firms experiencing a decrease in billings and those seeing an increase, according to the AIA. Inquiries into new projects in October also picked up to their highest level in six months.

"Billings finally stabilized this month, and firms are feeling more optimistic about revenue projections for 2025," said the AIA's Chief Economist, Kermit Baker. "Overall, 41 percent of responding firm leaders expect to see net revenue growth from 2024 to 2025, with 32 percent projecting growth in the 5 percent to 9 percent range."

October ABI Highlights

Regional averages: Northeast (45.6); South (52.1); Midwest (46.9); West (47.6)
Sector index breakdown: institutional (50.5); multifamily residential (45.6); commercial/industrial (47.0); mixed practice (48.0)
Project inquiries index: 54...

AIA's new Firm Survey Report finds emerging demographics, market trends, and room for growth nationwide

2024-11-12T18:20:00-05:00

The newly updated AIA Firm Survey Report 2024 from the American Institute of Architects has been published, revealing the dynamics at play for firms in a rapidly consolidating market and increasingly fragmented profession.

The report assesses answers from more than 1,200 firm respondents and provides insights into factors such as the flight of new projects toward the commercial and institutional sectors and a subsequent decline of involvement with new single-family and manufacturing sector designs nationwide.

Incumbent trends such as higher rates of diversity amongst the youngest employee age groups, the decline of single-discipline firms, and cascading average firm age relative to their sizes (e.g. older firms tend to be larger) remained as constants in the firm and staff profile subsection.

The financial picture for firms generally is framed by th...

AIA announces participation in CO29 summit in Azerbaijan

2024-11-12T13:10:00-05:00

The American Institute of Architects (AIA) has announced its fourth official cohort of delegates that will be traveling to Azerbaijan to represent the organization and its interests at this month’s COP29 Summit in Baku. The contingent will be present to share the AIA's call on industry and governments to increase the amount of research and development for emerging decarbonization technologies. The announcement also mentions the publication of the AIA's first-ever AIA Materials Pledge ‘By the Numbers’ annual report, which includes 280 signatories. COP29 takes place from November 11th to the 22nd this year against claims of greenwashing and authoritarianism on the part of the Azerbaijani government.

Architecture business conditions worsened in September, says AIA/Deltek Architecture Billings Index

2024-10-23T11:47:00-04:00

The latest AIA/Deltek Architecture Billings Index has shown a continued decline in billings through last month. The September ABI remains at 45.7, where it also sat in August. Any score below 50.0 indicates a decline. The findings mark the twentieth consecutive month of declines in the ABI index.

“Despite recently announced rate cuts by the Federal Reserve, clients are still cautious about future projects,” the AIA notes about the latest figures. “Inquiries into potential new projects continued to increase, but the pace has slowed since the beginning of the year. And the value of newly signed design contracts at firms decreased for the sixth consecutive month in September, although the pace of that decline has moderated somewhat over the last few months.”

“However, firms continue to report average backlogs of 6.4 months, which remains above pre-pandemic historical averages and is a good indicator of existing work in the pipeline, even if new work coming in has slowed,” the AIA adds...

AIA Board of Directors files ethics complaint against misconduct accusers

2024-09-26T12:57:00-04:00

The Board of Directors of the American Institute of Architects (AIA) has filed an ethics complaint in response to the now-closed investigation over alleged misconduct on the part of CEO Lakisha Ann Woods and other executive staff in the AIA National office.

The complaint, which is addressed to be answered by the AIA National Ethics Council (NEC), comes against the unnamed letter signers and other "stakeholders" accused of taking part in a "coordinated campaign" to discredit the reputation of Woods and other members of the Board.

"Once the NEC responds with recommendations for the Board, we will act with expediency to prevent future similar destructive behavior that has the potential to negatively impact the health of our organization," the announcement of the action reads.

Previously on Archinect: AIA members decry nepotism and other misconduct claims

No wrongdoing was found after the law firm Miller & Chevalier concluded its outside investigation into the allegations, which includ...

AIA lays off 16% of workforce

2024-09-20T18:36:00-04:00

The American Institute of Architects (AIA) has laid off 16% of its national staff, as reported by Architectural Record, amounting to 28 staff members. This follows months of internal controversy, including misconduct claims against CEO Lakisha Woods, which outside investigators cleared, as previously covered by Archinect:

AIA members decry nepotism and other misconduct claims, from Jun 10, '24

AIA Board of Trustees issues statement in response to controversy, from Jun 13, '24

Outside investigators clear AIA leadership of any wrongdoing after misconduct claims, from Aug 28, '24

AIA/Deltek Architecture Billings Index drops again in August for 19th consecutive month

2024-09-18T12:10:00-04:00

The newest AIA/Deltek Architecture Billings Index reporting has shown a continued stasis of weak conditions for firms nationally. The August ABI is now 45.7, down from the 48.2 figure that was recorded for July (any score below 50.0 indicates a decline). This is now the nineteenth consecutive month of declines in the ABI index.

"Unfortunately, even the impending interest rate cuts didn’t move the needle on project inquiries or new design contracts at architecture firms. Hopefully, once the trajectory of further cuts gets clarified, delayed projects will restart, and new projects will gather momentum," the AIA’s Chief Economist Kermit Baker says of the findings:

August ABI Highlights

Regional averages: Northeast (48.2); South (46.8); Midwest (46.6); West (45.7)
Sector index breakdown: mixed practice (firms that do not have at least half of their billings in any one other category) (48.6); institutional (47.4); commercial/industrial (46.6); multifamily residential (44.0)
Project inqui...

AIA releases seven-point advocacy agenda for 2024 U.S. elections

2024-09-13T12:45:00-04:00

The American Institute of Architects has released a statement urging action on a number of key priorities related to architecture and the built environment for the 2024 presidential elections following Tuesday’s debate between candidates Kamala Harris and Donald Trump.

"Architects across the country are keen to see greater progress toward key goals related to the built environment and our businesses," 2024 AIA President Kimberly Dowdell says in a preface to the seven-point agenda. "Our top election priorities highlight critical issues including the need for increased investment in affordable housing, aggressive climate action measures, enhanced resiliency against natural disasters and sound tax policies."

"[The] AIA calls on the candidates as well as the incoming new Congress to listen to architects as experts on the forefront of designing a more sustainable future," her statement continues. "Through these priorities, AIA’s members will continue to move the built environment forwar...

July's Architecture Billings Index remains depressed as decline rates slow

2024-08-21T11:56:00-04:00

The latest AIA/Deltek Architecture Billings Index (ABI) for July has shown a continued state of soft business conditions at firms across the country, with a score of 48.2. This constitutes fewer reported declines and a minor improvement over June’s score of 46.4. Contracts decreased for the fourth consecutive month while, conversely, the rate of decline has slowed. The AIA notes that inquiries into new projects have also increased, albeit at a continued slow pace.

"Architecture firms continue to face a billings slowdown,” Kermit Baker, the Chief Economist for the AIA, states. “However, the emerging prospects of lower interest rates coupled with a modest uptick in project inquiries suggest that some dormant projects may be revived in the coming months.”

The question of interest rates factored heavily into our recent Archinect Business Survey. Notably, firms in the Northeast U.S. experienced sta...

June Architecture Billings Index remains down despite slight improvement

2024-07-24T13:41:00-04:00

The latest AIA/Deltek Architecture Billings Index (ABI) for June has indicated a continuation of soft business conditions for firms, with a new recorded score of 46.4 (any score below 50 indicates a decline).

The number is slightly higher than May's score of 42.4, which represented a new post-pandemic low. The June data is augmented by other reported economic facts, including that the project pipeline is at its lowest point in three years (6.4 months on average).

"Architecture firms continue to face a period of headwinds in the construction sector, driven by elevated interest rates, high construction costs, and generally weak property values," AIA Chief Economist Kermit Baker commented on the June ABI. "This is the seventeenth consecutive month of a billings decrease, and yet, despite the softness, firms remain generally optimistic that conditions will start to improve once interest rates begin to ease."

AIA’s Mid-2024 Forecast Predicts Growth in Nonresidential Construction

2024-07-16T18:23:00-04:00

Spending on nonresidential construction is projected to increase over the remainder of the year before taking a step back in 2025, according to the AIA’s updated Consensus Construction Forecast for mid-2024.

The report says construction of new commercial facilities effectively will remain flat this year and next, while manufacturing construction will see increases of 14% this year before stabilizing in 2025. The Institutional sector is projected to see a more than 10% gain this year before slowing to 4% in 2025, according to the data.

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

Put together, these three "niche" sectors now represent 40% of the market for nonresidential buildings. This is a substantial increase from before the pandemic, as in 2019 they accounted for fewer than 23% of the same total. "As a result," the AIA says "sectors that typically have a different design focus, materials composition, and contractor ...

AIA commends finalized revisions to fee limitations for federal design and construction projects

2024-07-01T17:54:00-04:00

The United States Department of Defense has finalized a revision to the fee limitations for federal design projects after a yearslong campaign led by Emily Grandstaff-Rice, Dan Hart, Elizabeth Chu Richter, and other senior leadership of the American Institute of Architects.

Beginning on August 26th, 2024, as part of the National Defense Authorization Act for Fiscal Year 2024, the statutory fee limit for architecture and engineering services will be increased from six to ten percent of the contract's value.

This is being welcomed as a particularly big win for firms working on smaller contracts. The AIA says: "The increase will also benefit architect and engineering entities with contracts for producing and delivering designs, plans, drawings, and specifications for large horizontal and complex vertical construction projects. While costs have increased for architects, construction costs have increased more dramatically, which results in a higher cost limit."

You can review the amend...

May Architecture Billings Index drops to new post-pandemic low

2024-06-26T12:45:00-04:00

The latest economic data revealed by the new AIA/Deltek Architecture Billings Index for May has indicated a sharp decline to a score of 42.4, representing a new low point for the index after a year and a half of weak performances.

"The decline in the May ABI score continues a year and a half of weakness in design billings at U.S. architecture firms. However, firms only reported modest declines over the first half of this period. Over the past nine months, volatility has increased, and scores have softened more significantly, with the May score the weakest reported since the end of the pandemic recession," Kermit Baker, the AIA's Chief Economist, noted in a statement about the latest figures.

The report points out that this is the fourth consecutive month in which declines have been posted in every region, with particularly weak conditions reported for the Midwest.

May ABI Highlights

Regional averages: Northeast (47.7); Midwest (41.7); South (46.0); West (46.3)
Sector index breakdown:...

AIA members decry nepotism and other misconduct claims

2024-06-10T16:53:00-04:00

Allegations of executive misconduct on the part of American Institute of Architects (AIA) CEO Lakisha Ann Woods and senior staffers who allegedly engaged in nepotism and other forms of unethical behavior have surfaced amidst the annual AIA24 conference that was held last week in Washington, D.C.

The list of accusations stemming from an April 4th letter signed by more than twenty past AIA presidents calls into question the organization’s leadership at a critical time. In an article published by Bloomberg late Friday, Woods and others were maligned for a series of missteps that includes a $152,000 staff retreat to the Dominican Republic in early March, unlawful firings and other retaliation, changes to the College of Fellows nominations process, and an increasingly toxic work culture within the AIA National ranks.

Additionally, as Bloomberg reported, former Chief Council Terrance Ona has recently entered an employment discrimination suit against the AIA, claiming he was unlawfully te...

AIA President Kimberly Dowdell outlines the need for better K-12 outreach to strengthen the architecture profession

2024-05-31T14:43:00-04:00

Reflecting upon her activities during the recently passed Architecture Week in Detroit, AIA President Kimberly Dowdell outlined the need to engage with the key K-12 demographic in order to cultivate and better prepare the next generation of American architects to match the challenges they and the country will face tomorrow.

"If we want to engage the best young talent to help us grow our profession in the future, we must start now. Kindergarten through 12th grade engagement provides a wonderful opportunity to educate and excite students about the amazing field of architecture," Dowdell stated, also relating her experience as a young student in the city public school system.

Outlining her vision for institutional change in a new five-point agenda, Dowdell (also currently a trustee of her alma mater Cornell University) said better youth engagement can be achieved by further connecting the AIA’s K-12 nationwide resources; increasing support for the Architects Foundation’s scholarship pr...

Congress appoints engineer Thomas Austin as the next Architect of the Capitol

2024-05-24T14:22:00-04:00

The appointment of military engineer Thomas Austin as the next Architect of the Capitol has been announced by a 12-member bipartisan commission of lawmakers in Washington, D.C.

Austin, a retired Army veteran and the former Director of Engineering at Arlington National Cemetery, will assume the office beginning on June 24th and serve a ten-year term, which soon could be subject to direct congressional oversight after the controversy surrounding predecessor Brett Blanton’s abuse of office.

“The Architect of the Capitol plays a vital role in welcoming millions of visitors to our Capitol and ensuring it is a functional workplace. Thomas Austin has managed construction projects and facilities of all sizes, maintained one of our nation’s most hallowed landmarks, and served our country in the military. We are confident that with his extensive experience, Thomas Austin will be an adept and capable Architect of the Capitol,” the committee’s public statement reads.

Previously on Archinect: ...

April's Architecture Billings Index shows business conditions for firms remaining soft

2024-05-22T12:59:00-04:00

The new AIA/Deltek Architecture Billings Index (ABI) for April has reported a new score of 48.3, indicating a continued decrease in economic activity while posting an improvement over March’s previously reported total of 43.6. For the month, inquiries into new projects continued to increase slightly despite a decrease in the total value of newly signed design contracts.

The AIA notes an increase in the number of firms pursuing international projects, with 9% of responding firm leaders indicating they currently have billings overseas. This news comes on the heels of the Federal Reserve’s decision not to lower interest rates earlier in May. The demand for architecture services employment is now at its lowest level since December.

The AIA says: "Firms had hoped that the Federal Reserve would start lowering interest rates this spring and that would open new work, but with that decrease now likely on hold until late summer or early fall, firms may have some more slow months ahead of th...

62% of A&E firms report using artificial intelligence increased efficiency, according to new Deltek study

2024-05-10T18:28:00-04:00

Statistics revealed in the latest Deltek Clarity Architecture & Engineering Industry Study have indicated wide optimism about the use of AI technology, even as most firms struggle to determine where and how to apply emerging trends in the face of prevailing economic headwinds.

According to the 45th annual report, 62% of all 650 surveyed A&E respondents across the United States and Canada have successfully begun using AI to augment their daily operations. Only 20% of firms now report at least three-quarters of their project leadership teams as possessing the proper project management training to best utilize such tools, with another 44% reporting insufficient time to invest in skill-based learning. Other leading challenges include prioritizing applicable trends and the cost of technology.

The findings add to a body of recent valuable industry trends reporting, including last month’s Autodesk study which stated that 76% of all AEC professionals now feel confident about incorporating ...

AIA presents plans for Global Campus for Architecture & Design at reimagined D.C. headquarters

2024-05-07T17:06:00-04:00

The American Institute of Architects has issued an update on the EHDD-led campaign to redesign its Washington, D.C., headquarters. The organization this week announced a new initiative aimed at bringing different community members together to better professional practice and advance discourse within the field.

According to the press announcement, the complex will reopen as the AIA Global Campus for Architecture & Design in 2025. The new "home base" for design professionals, students, and civic leaders in architecture aims to increase collaboration and serve the "holistic new vision" outlined by EHDD partner Rebecca Sharkey at the project's April 2022 remodel announcement. AIA EVP/CEO Lakisha Ann Woods says it will become a "place where the public can be inspired by the power of design."

Previously on Archinect: AIA announces energy-efficient redesign scheme for its Brutalist D.C. headquarters

Hartman-Cox, Hood Design Studio, and Point Energy Innovations are serving as consultants for...

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...

Dr. Sanjay Gupta and Ruth Carter to give keynotes at 2024 AIA Conference

2024-04-05T11:47:00-04:00

Dr. Sanjay Gupta and Ruth Carter have been announced as keynote speakers for the upcoming AIA Conference on Architecture & Design 2024. Gupta will deliver his speech to the Washington D.C. conference on June 7th, with Carter delivering her speech on June 8th.

Gupta is the Chief Medical Correspondent for CNN, where he reports on health and medical news domestically and internationally. “Since 2001, Gupta has covered some of the world’s most important public health and safety stories, including the COVID-19 pandemic — reaffirming his role as a trusted guide to millions of viewers navigating between facts and fiction,” the AIA said.

Meanwhile, Carter is an Academy Award-winning costume designer most well-known for her work on Marvel’s blockbuster film Black Panther, where she made history as the first Black person to win the category. “Her career in film and television spans over three decades, collaborating with prolific directors like Spike Lee, Steven Spielberg, and Ava DuVernay,” A...

Taylor Swift to give keynote at 2024 AIA Conference

2024-04-01T08:00:00-04:00

Emerging music artist Taylor Swift has been announced as the keynote speaker for the AIA Conference on Architecture & Design 2024. In advance of the event, Archinect has gained exclusive access to a leaked version of Swift’s speech, which is titled ‘A New Architecture Era.’

Swift is expected to begin her speech by taking an adversarial tone with the AIA, questioning if her invitation to deliver the keynote speech was made as a joke. “I don’t like your little games,” she will say. “Don’t like your tilted stage; the role you made me play of the fool.”

In addition to taking aim at the AIA, Swift is also expected to use the speech to offer an atonement for her involvement as an advisor for Saudi Arabia’s NEOM project. “I knew you were trouble when you walked in,” she will say, directly addressing the project organizers. “So, shame on me now. You flew me to places I’d never been, now I’m lyin’ on the cold hard ground.”

Turning to her vision for the future of the built environment, Swift...

Kimberly Dowdell hits back at anti-DEI push in business circles and academia

2024-03-25T14:21:00-04:00

The new AIA President and Principal in HOK’s Chicago office, Kimberly Dowdell, talked with Crain’s recently, stating diversity, equity, and inclusion efforts must be sustained in the face of the latest anti-DEI pushback parroted by Elon Musk and other business leaders that contributed to the resignation of Harvard University President Claudine Gay and other rollbacks on Wall Street and in corporate America.

"It's really disturbing how quickly the pendulum is shifting back toward a less inclusive and diverse society," she says, referring to different policymakers who are beginning to codify their resistance in conservative states like Florida and Texas.

Revisit our 2019 Archinect Sessions interview with Kimberly Dowdell, then President of the National Organization of Minority Architects

Of her company’s ethos she says, "[It’s] about diversity and its multiple forms in terms of its people but also the work and the kinds of work that we do," something that has underpinned its success...

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 ...

AIA elevates 96 architects and two non-members to the AIA College of Fellows

2024-03-01T18:46:00-05:00

The American Institute of Architects has selected 96 member architects and 2 non-member architects to the AIA College of Fellows.

A jury of seven-member fellows led by Chair Lisa Lamkin of Brown Reynolds Watford Architects was responsible for the selection process, which vets architects up for consideration for the College of Fellows. The Honorary Fellows were selected by a separate nine-person panel chaired by Sandra Barclay. Each new fellow will be honored at the AIA Awards Gala held June 7th at the National Building Museum in Washington, D.C.

To gain admission, candidates must have at least ten years of AIA membership and demonstrated influence in at least one of the six broad areas, including the advancement standards of practice, promotion of different efficiencies, higher living standards for the built environment, and pursuit of an architecture that is in service to society.

The full list of new member Fellows and their AIA affiliation reads as follows:

Douglass Alligood, AIA...

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...

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...

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...

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...