Archinect - News

New U.N. report warns of potential decades-long rebuild for Gaza

2024-05-09T12:02:00-04:00

A new report on the socio-economic situation in Gaza from the United Nations Development Program (UNDP) has established a baseline for rebuilding as a cease-fire deal that would end the seven-month Israel-Hamas war continues to be up in the air. The findings lay out the most realistic timeline for recovery, which first requires an estimated 37 million tons of debris removal and the construction of temporary shelters for Palestinians who have lost more than 80,000 of their homes since the fighting began in October.

Israel will have to allow five times the volume of construction materials as it had after its two most recent incursions in order for Gazans to regain "normalcy" by 2040. The UNDP stated it would likely take another four decades to rebuild entirely, given the number of damaged residential structures. Around 25,000 buildings have been reported destroyed in Gaza, with 32 hospitals now knocked offline and another 100 schools or universities being completely destroyed, accordi...

University of Hawaiʻi at Mānoa architecture students use AI and 3D modeling to preserve Lahaina heritage structures lost in August wildfires

2024-03-29T12:51:00-04:00

A new course being taught to undergraduate students this semester at the University of Hawaiʻi at Mānoa School of Architecture is helping preservationists on Maui document lost heritage structures using the same AI-augmented 3D modeling technology that was previously incorporated into the rebuilding of Notre-Dame Cathedral in Paris.

Co-taught by Dean William Chapman, Associate Professor Hyoung-June Park, and visiting Assistant Professor Kyung Hoon Hyun of South Korea’s Hanyang University, ARCH 490: Rebuilding Lahaina in Mixed Reality offers students the chance to aid in the recovery efforts by creating digital versions of lost buildings such as the Baldwin House, Wo Hing Society Hall, and Old Lahaina Courthouse.

"We want students to expand their creativity to think of more than simply rebuilding what was destroyed, but also what they can do with this new 3D model that they created," Hyun explained to Hawaii Public Radio recently. "They can add values or communal experiences within ...

Shigeru Ban team constructs Paper Log House prototype in wildfire-ravaged Maui

2023-12-08T17:32:00-05:00

A new collaborative project between Shigeru Ban, the University of Hawaiʻi at Mānoa School of Architecture, and Hawaii Off-Grid Architecture and Engineering has been constructed in Maui, providing residents of the community with much-needed temporary accommodations following the aftermath of the deadly spate of wildfires that killed 97 and destroyed another 2,000 structures in August of this year.

The installation of Ban's Paper Log House housing prototype in heavily afflicted Lahaina follows previous contributions to earthquake recovery efforts in Turkey and Morocco through Ban’s nonprofit Voluntary Architects’ Network (or VAN), which was first founded in 1995.

Image courtesy Hawaii Off-Grid Architecture and Engineering

“We are so grateful to Shigeru Ban and the Volunteer Architects Network (VAN) to inspire and remind us of the compassion and creativity that architecture and architects can provide to our communities,” Hawaii Off-Grid principal David Sellers told local news outlet La...

New York City projected to construct the most apartments nationwide in 2022

2022-08-26T14:08:00-04:00

According to a new report by apartment search website RentCafe, New York City is projected to deliver the most newly-built apartments in 2022, claiming the top position for the first time since 2018.

Despite pandemic-induced setbacks in the last two years, New York City is expected to provide a record 28,153 brand new rental apartments by the end of the year. This figure is out of the 420,000 new rental units projected to be completed this year nationwide. It is also nearly 50% higher than the number of apartments that were completed throughout the city in 2021.

Across the United States, the projected new rental units to be built this year represented a historic 50-year peak. According to RentCafe, this construction boom is driven by greater demand for apartments as renters hold off on purchasing homes due to soaring inflation and rising interest rates.

Previously on Archinect: America's largest cities have seen a spike in commercial and multifamily construction starts during fir...

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...

Dodge Momentum Index rises an additional 7% in May, indicating secure construction sector amidst uncertain economy

2022-06-08T15:11:00-04:00

The Dodge Momentum Index rose 7% in May to 176.2, up from the revised April reading of 165.2. The institutional component of the Index rose 9% and commercial planning rose 6%.

May’s increase pushed the level of planning above the most recent cyclical high set in November 2021. Last month, commercial planning was led by an increase in office and hotel projects. Institutional developments were driven by an increase in education and healthcare projects entering planning. The Index is 17% higher in May 2022 compared to the same period in 2021, with commercial planning up 24% and institutional planning 8% higher than a year ago.

A total of 19 projects with a value of $100 million or more entered planning in May. The leading commercial projects were the $333 million Bitcoin Mining Facility in Corsicana, Texas and the $300 million Gun Lake Hotel and Resort in Wayland, Michigan. The leading institutional projects were the $250 million Drexel University life sciences building in Philadelphi...

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...

Construction starts rebounded in April following rises in nonresidential and residential building starts

2022-05-17T16:54:00-04:00

Total construction starts rebounded in April according to a new Dodge Construction Network study, rising 3% to a seasonally adjusted annual rate of $945.8 billion. Nonresidential building starts rose 6% and residential starts increased by 4%, while nonbuilding starts decreased by 4%.

Compared to the first four months of 2021, total construction starts were 6% higher during the same period in 2022. Nonresidential building starts and residential starts rose 19% and 3% respectively, while nonbuilding starts were 2% lower. And, for the 12 months ending April 2022, total construction starts were 12% above that period ending April 2021. Nonresidential starts were 24% higher, residential starts increased 11%, and nonbuilding starts fell 1%.

Graphic courtesy of Dodge Construction Network

“The construction sector is seemingly shrugging off the fear of higher interest rates and a potential recession,” said Dodge Construction Network chief economist Richard Branch. “Many building sectors have ...

Dodge Momentum Index continues upward trend with 6% increase of nonresidential projects in planning in April

2022-05-06T16:51:00-04:00

The Dodge Momentum Index continues to rise, with a 6% increase in April, taking it to 164.8, up from the revised March reading of 155. Commercial planning rose 9%, while institutional planning moved 2% higher.

This gain in April has moved the Dodge Momentum Index just 5% short of the all-time high set in the fall of 2021. The main driver has been the commercial sector, which has been carried by a growing number of data center, warehouse, and hotel projects in planning. The gain in institutional planning is due to an increase in education, healthcare, and recreation projects. Compared to April 2021, the index is 17% higher in April 2022, with commercial planning up 15% and institutional planning 22% higher.

25 projects with a value of $100 million or more entered planning in April. The leading commercial projects were the $208 million Colo 1 data center in Ashburn, Virginia and the $150 million QTS data center in Fort Worth, Texas. The leading institutional projects were the $300 mi...

March decline in total construction starts masks positive forecast for 2022

2022-04-28T19:03:00-04:00

In a new Dodge Construction Network report, total construction starts fell 12% in March to a seasonally-adjusted annual rate of $903.8 billion following a strong February. The decline, in which nonresidential building starts fell 29%, is in part due to the start of three large manufacturing facilities in the prior month. This is the first time so far in 2022 that total construction starts have decreased.

Previously on Archinect: Nationwide construction starts in February carried by three large manufacturing facilities

Without those three large projects, however, nonresidential starts in March would have risen 10%. In addition, residential starts fell 3% and nonbuilding starts lost 2%.

Total construction was 9% higher in the first three months of 2022 than in the same period of 2021. Nonresidential building starts rose 26%, residential starts increased 3%, while nonbuilding starts were 1% lower. For the 12 months ending March 2022, total construction starts were 15% above the 12 mon...

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...

A new Census Bureau/HUD report has construction starts rising again despite high mortgage rates

2022-04-19T16:02:00-04:00

The residential housing market continued its remarkable ascension in March, according to a market report published this week by the U.S. Census Bureau and the Department of Housing and Urban Development (HUD). The report indicates some more positive news for the industry in the face of several attendant economic issues including rising inflation and a tough labor market.

Overall, housing starts went up b 0.3% to 1.788 million in a continuation of recent market trends that have bucked the simultaneous increase in material prices and mortgage rates, which are at an eleven-year high. The March figure is 3.9% higher than the same period last year, and significantly higher than the 1.216 million starts registered at the beginning of the pandemic in March 2020.

Previously on Archinect: The pandemic is causing a host of changes in multifamily unit design

“Even with rising interest rates and ongoing issues surrounding geopolitical stability, supply chain issues, and inflation, the overall l...

Dodge Momentum Index yields another 4% increase in March

2022-04-08T13:43:00-04:00

The Dodge Momentum Index moved up another 4% in March to 166.9 from the revised February reading of 160.3. Last month, commercial planning rose 7%, while institutional planning fell by less than one percent.

Commercial planning in March was just slightly lower than the all-time high set in October 2021. However, this component of the Momentum Index has been much more volatile than institutional planning due to the presence or absence of large projects month-to-month. Compared to March 2021, the overall index was 17% higher in March 2022, with institutional planning up 23% over the year and commercial planning up 14%.

Previously on Archinect: Dodge Momentum Index recovers in February following 3-month stretch of decline

A total of 21 projects with a value of $100 million or more entered planning in March. The leading commercial projects were the $923 million third phase of the Atlas Power data center in Williston, North Dakota, and the $325 million Seaport San Diego Block F in San Di...

Nationwide construction starts in February carried by three large manufacturing facilities

2022-03-17T15:33:00-04:00

According to a new Dodge Construction Network report, total construction starts rose 9% in February to a seasonally adjusted annual rate of $1.013 trillion. Nonresidential building starts carried the activity, jumping 32% due to the start of three large manufacturing facilities. However, residential starts fell 3% and nonbuilding starts fell by less than 1%. Without the three manufacturing projects, total construction would have declined 6% last month.

Total construction was 14% higher in the first two months of 2022 than in the same period of 2021. Nonresidential building starts are up 39%, nonbuilding starts rose 4%, and residential starts gained 5%. For the 12 months ending February 2022, total construction starts were 16% higher than the 12 months ending February 2021. Nonresidential jumped 23%, residential starts increased by 19%, and nonbuilding rose 1%.

Graphic courtesy of Dodge Construction Network

“The manufacturing sector has been an important success story for construct...

Dodge Momentum Index recovers in February following 3-month stretch of decline

2022-03-08T15:37:00-05:00

In February, the Dodge Momentum Index increased 4% to 158.2 from the revised January reading of 151.9, marking a rebound from three consecutive monthly declines that followed a 14-year high in October 2021. Last month, institutional planning rose 9% and commercial planning moved 1% higher.

The Dodge Construction Network attributes much of February’s gain to the sizable jump in the institutional sectors, in which more education and healthcare projects entered planning. Gains in commercial planning are due to office and warehouse projects. Compared to February 2021, the overall Momentum Index was 11% higher during the same time this year. Institutional planning was up 37%, while commercial planning was down 1% on a year-over-year basis.

Previously on Archinect: Dodge Momentum Index continues to fall into January

A total of 22 projects with a value of $100 million or more entered planning in February. The leading institutional projects were a $500 million first phase of the OC Vibe rec...

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...

Nationwide construction starts increased in January despite labor shortages and soaring costs

2022-02-22T14:10:00-05:00

2022 is speeding along, and with March quickly approaching, this means another Dodge Construction Network report has been released. In January, total construction starts increased 4% to a seasonally-adjusted annual rate of $923.4 billion. Nonresidential building starts increased 4% and nonbuilding starts rose 18%, with residential starts falling 1%.

Compared to this time last year, total construction is 8% higher in January 2022 than in January 2021. Nonresidential building starts are up 14%, nonbuilding starts rose 12%, and residential starts gained 2%. For the 12 months ending January 2022, total construction starts were 13% above the 12 months ending January 2021. Nonresidential starts were 14% higher, residential starts increased 19%, and nonbuilding starts went up 3%.

Graphic courtesy of Dodge Construction Network

“Construction starts continue to climb, mostly unimpeded by rising materials prices and shortages of labor and key materials,” stated Richard Branch, chief economist ...

Dodge Momentum Index continues to fall into January

2022-02-14T13:15:00-05:00

The Dodge Momentum Index has continued to fall in January, yielding a 7% decline to a four-month low of 152.9 from the revised December reading of 163.7. Commercial planning fell 9% and institutional planning fell 1%.

Previously on Archinect: Dodge Momentum Index declines in November, remains near 14-year high

Last year, the Dodge Momentum Index reached levels not seen in nearly 14 years, rising 21% from 2020. The recent stretch of declines has been attributed to rising costs, logistical problems, and skilled labor shortages. However, despite this decrease, the dollar value of projects in planning remains strong, especially for education, warehouse, and healthcare projects.

January 2022 Dodge Momentum Index. Graphic: Dodge Construction Network

A total of 13 projects with a value of $100 million or more entered planning in January. The leading institutional projects were a $400 million hospital in Tahlequah, Oklahoma and the $320 million Ascension Seton Medical Tower in Austin, Texas....

Nonresidential construction is expected to rebound through 2023 according to new AIA report

2022-02-04T14:12:00-05:00

The nonresidential building sector is expected to rebound through 2023 after a slow recovery with the broader economy last year, according to a new report from the American Institute of Architects.

The AIA’s Consensus Construction Forecast for December 2021, comprising leading economic forecasters, expects spending on nonresidential building construction to increase by 5.4 percent in 2022 and jump to a 6.1 percent increase in 2023. Last year saw a five percent decline in construction spending on buildings, with only retail and other commercial, industrial, and health care facilities managing spending increases. This year, only the hotel, religious, and public safety sectors are expected to continue to decline.

Screenshot of the AIA's latest Consensus Construction Forecast. Image: AIA

Given ongoing challenges with Covid-19 and its variants, supply chain disruptions, inflation, and labor shortages, the outlook for the nonresidential building market still looks promising going forward...

Commercial and multifamily construction starts reflect nationwide recovery in 2021

2022-01-26T16:56:00-05:00

According to a new Dodge Construction Network report, the value of commercial and multifamily construction starts in the top 20 metropolitan areas of the United States has increased 18% from 2020 to 2021. Nationally, commercial and multifamily construction starts increased 16% in 2021. The commercial and multifamily total comprises office buildings, stores, hotels, warehouses, commercial garages, and multifamily housing.

Despite the industry’s recovery in 2021, following stalled projects and uncertainties in 2020, commercial and multifamily construction starts still remain below 2019 levels. The report notes that, in fact, larger metro areas have struggled to gain momentum as demand for construction is shifting away from denser urban areas.

Commercial and multifamily starts both nationally and in the top 20 metro areas in 2021, overall, were below 2019 levels. In the top 10 metro areas, starts were 9% below their 2019 level, however in the metro areas ranked 11–20, starts were up 5...

Survey finds AEC firms positive about growth in 2022, expect hybrid working to continue

2022-01-19T14:55:00-05:00

AEC firms are positive about industry growth in 2022 and expect to continue employing a hybrid workforce, according to a survey by Openasset. The AEC Industry Outlook Survey of 500 architecture, engineering, and construction professionals found that 78% believe their firm will experience positive growth in 2022.

46% of respondents said their firm would employ a hybrid workforce in 2022. Almost 25% expect their company to operate with a fully remote workforce, while 19% see a full return to the office for all staff. Maintaining a hybrid workforce was the largest challenge anticipated by respondents, with 54% identifying the shift as a challenge for 2022.

Other challenges highlighted by respondents included employee retention (mentioned by 42%), meeting tight deadlines (mentioned by 49%), and winning new business (mentioned by 42%).

The survey by Openasset is the latest insight into the AEC land...

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...

Materials prices rise 20% in 2021 according to new report

2022-01-18T16:54:00-05:00

Although the prices of some raw materials fell in December, costs are still sky high for contractors looking to purchase them, according to a new analysis by the Associated General Contractors of America. Overall, the price of construction materials jumped nearly 20% in 2021, the group said Thursday.

In addition, according to the Associated General Contractors of America’s (AGC) 2022 Construction Hiring and Business Outlook Survey, material costs were listed as a top concern for contractors this year.

Though prices moderated for some construction materials in December, they still ended the year with large gains. For example, the price index for steel mill products rose 0.2 percent in December, its smallest rise in 15 months, but soared 127.2 percent over 12 months. The index for diesel fuel declined 5.3 percent for December but increased 54.9 percent for the year. Prices for other materials, such as plastic construction products and lumber and plywood, yielded accelerated price hikes in December.

The Association believes that rising materials prices are threatening to set back a strong outlook of economic recovery in 2022. They’ve urged the Biden administration to reconsider its plans to double tariffs on Canadian lumber and to remove other trade barriers that are driving infl...

New survey reveals the pandemic's mixed impact on AEC firms

2021-12-27T14:40:00-05:00

National consulting group Appleseed Strategy has released the results of their 2021 Financial & Economic Survey, a U.S. business study of AEC firms to gauge the ongoing impact of the Covid-19 pandemic on the sector.

43 individuals and 39 companies in architecture, engineering, landscape architecture, and other consulting services, ranging in size from five people to over 1,000, were asked about their current situations compared to one year ago. They provided information about their current working environments and what they predict for the future.

Salary Reductions and Restored Salaries. Charts via the 2021 Financial & Economic Survey by Appleseed Strategy.

The survey reports that nearly 77% of respondents were back to pre-pandemic staffing levels, and approximately 9% were even larger than they had been in March 2020. Nearly 53% of respondents had implemented salary cuts in at least one staff category because of the pandemic. In addition, of the firms that received PPP loans or ot...

Architect Duo Dickinson on the hazards of practicing in the pandemic economy

2021-12-22T18:39:00-05:00

Months of isolation made people rethink the way they wanted to live. That meant their buildings would change. That meant construction, and architects became useful again, after being abandoned. But the craziness of a new era has made all builders and architects simultaneously empowered by their new in-demand status while fully threatened by costs and availability of all the products and people necessary to build.

Earlier in the year, labor and supply chain issues had caused markets in steel and timber to skyrocket, delaying many commercial and residential projects industry-wide, in addition to triggering what some think will be a boom in demand once the pandemic subsides.

However bright the prospects are for some people, architect Duo Dickinson sees recent gains as part of a cycle which has become “insane and dangerous.”

Related Duo Dickinson feature article on Archinect: Everything Is Changing: But Not Architecture’s “Deep State”

“If the past is prologue, this boom shall soon bust,” he wrote. “The anecdotes of recent months are great in the construction world, but the articles and studies have not kept up with a chaotic time. In my little corner of this world, the last season has seen four of my clients dip their toes into building and use my firm to scope out the time and money involved, and when inflated numbers and indeterminable schedules were revealed, they simply opted out, even though...

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...

Dodge Momentum Index declines in November, remains near 14-year high

2021-12-10T13:53:00-05:00

The latest edition of the Dodge Momentum Index indicates a 4% decrease in November from October. Commercial planning fell 8% while institutional planning moved 5% higher.

The value of nonresidential building projects continues to move in a sawtooth pattern, in which month-by-month measures alternate between gains and losses. Despite this, the Momentum Index remains near a 14-year high. As reported in Dodge Construction Network’s newest release, the index was 44% higher in November 2021 compared to November 2020. In addition, the commercial planning component was 45% higher and institutional planning was 41% higher.

Previously on Archinect: Non-residential projects in planning are at a 14-year high, according to new analysis

Since the start of the pandemic, nonresidential building projects entering planning have been more volatile, which is likely due to higher prices and shortage of labor.

A total of 10 projects with a value of $100 million or more entered planning in November. Th...

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."

Archinect Jobs,...

Construction prices experience largest monthly increase since June, finds new analysis

2021-11-12T15:41:00-05:00

According to an Associated Builders and Contractors (ABC) analysis of the recently-released U.S. Bureau of Labor Statistics’ Producer Price Index data, construction input prices increased 1.5% in October. Nonresidential construction input prices have increased by 1.4% in the month.

Compared to October 2020, construction input prices are 21.1% higher this year, with nonresidential input prices increasing by 22.3% over this period. Other major price increases since October 2020 include steel mill products increasing by 141.6% and iron and steel prices up 101.5%. The only decrease in prices over this timespan is softwood lumber.

Previously on Archinect: Lumber prices are falling fast after COVID-19 disruption

With this dramatic price increases, ABC Chief Economist Anirban Basu seems less optimistic about the construction industry's rebound compared to his projections in the summer.

“Any notion that the bout of pandemic-induced inflation was simply transitory has gone by the wayside,”...

Construction starts are rising in the U.S. despite pandemic disruptions

2021-10-21T12:18:00-04:00

Total construction starts across the United States rose 10% during September 2021 versus the previous month, according to new data from Dodge Construction Network. The 10% figure is an amalgamation of residential building starts, nonresidential building starts, and nonbuilding starts, all of which showed positive growth throughout the last month.

Statistics from Dodge Data & Analytics on construction starts since 2015.

Residential construction starts rose 9% in September, with single-family projects rising 9% on the previous month, and multifamily homes increasing 24%. The positive figures also remain robust over a longer timeframe. Total residential starts were 22% higher over the past year than the 12 months to September 2020, including a 26% rise in single-family starts and a 10% rise in multifamily starts. The new data from Dodge correlates with other recent studies we have reported on, indicating a surge in U.S. residential construction and a rare increased demand for larger hom...