Archinect - News

In a downturn, manage your clients, people, and cash, says former HOK CEO

2024-10-24T08:25:00-04:00

As Archinect reported earlier this week, the latest AIA/Deltek Architecture Billings Index shows that U.S. architectural business conditions remain turbulent. Billings have declined at firms for over one and a half years, according to the index, while our monthly Archinect State of AEC series has noted that the challenging conditions are spread across all U.S. geographical regions.

To find out how architects, particularly firm owners, can navigate the current downturn, we recently spoke with former HOK CEO and Chairman Patrick MacLeamy on the subject. Through his long career at HOK, and his book Designing a World-Class Architecture Firm: The People, Stories, and Strategies Behind HOK, MacLeamy has accumulated a wealth of knowledge on how firms can survive poor economic conditions.

As our feature article shows, a majority of MacLeamy’s advice for firms take place long before a downturn hits, underscoring the need for architects to adhere to healthy practice management principles so t...

1 week left to share your experience of current architecture business conditions

2024-05-30T19:17:00-04:00

It's not too late to participate in our recently launched survey on the community’s perception of the current business conditions in architecture. The deadline to submit your anonymous responses is in 1 week.

We will analyze your valuable insights and publish the findings on Archinect in the coming weeks.

We'd love to hear from you! Thank you.

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Reminder: share your insights in our latest survey on business conditions!

2024-05-24T08:00:00-04:00

In case you missed it, we recently launched a survey to check in on the community’s feelings about the current business conditions in architecture. If you haven’t had a chance to fill it out yet, we’d love to hear from you! Your insights are invaluable in helping us gauge the current state of the industry and make meaningful improvements.

The deadline to submit your responses is in 2 weeks. We will be analyzing and publishing the results on Archinect in the coming weeks. Thank you for your time and input!

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March saw the highest rate of construction layoffs since the start of the pandemic

2023-05-04T17:49:00-04:00

The number of open jobs in construction dropped by 73,000 to 341,000 in March, the second lowest since mid-2021, according to an Associated Builders and Contractors’ analysis of new Bureau of Labor Statistics data. The openings represent jobs for which employers are actively recruiting.

This figure reflects a 17% decrease in job openings from March 2022. The quantity of open jobs has been volatile so far this year as January saw a 50% dip followed by a sharp rebound in February. According to the Associated Builders and Contractors (ABC), 3.7% of construction workers were laid off or discharged in March, which is the highest rate since the start of the pandemic.

Previously on Archinect: Construction job openings in February rebound after sharp dip in January

ABC attributes the fall in job openings to fragility in the single-family homebuilding sector. While this is cause for alarm, only a little over 9% of ABC members, which mainly work in the nonresidential sector, expect their staffing levels to fall over the next six months. It is expected this landscape will remain the same over the next few months as inflated interest rates are set to rise again.

Google pauses work on 'Downtown West' San Jose development

2023-04-25T11:48:00-04:00

As part of Google’s downsizing that went into effect early this year, the company has gutted its development team for the San Jose campus. The construction project, which was supposed to break ground before the end of 2023, has been put on pause, and no plan to restart construction has been communicated to contractors, according to people familiar with the matter who asked not to be named due to non-disclosure agreements.

The news broke on Friday amid a sector-wide fallout caused in part by the tech recession. CNBC reported that some sources now speculate as to whether or not the 80-acre development will be completed at the same scale though both LendLease and Google have reaffirmed their commitment to it in written statements. Google has now incurred $500 million in losses for the first quarter of the year alone on office lease exit fees.

Previously on Archinect: Google wins approval for 'Downtown West' mega campus in San Jose

Kohn Pedersen Fox, Heatherwick Studio, Grimshaw Architects, SHoP Architects, Solomon Cordwell Buenz, SITELAB urban studio, and West 8 were among the design firms attached to the construction, which was to be the single largest in San Jose history. The project was approved in 2021 after years of planning and an exchange with local opposition groups that ended in the decision to commit to adding $450 million worth of affordable housing and other community initiatives.

Construction job openings in February rebound after sharp dip in January

2023-04-05T17:04:00-04:00

After a “simply shocking” January where half of construction’s job openings vanished, the number of positions for which contractors are actively recruiting increased by 129,000 in February, according to analysis of Bureau of Labor Statistics data by Associated Builders and Contractors.

January witnessed a 50% drop of construction job openings from the month before, with 248,000 unfilled jobs available that month. This figure was 148,000 jobs below the same time last year. A sharp rebound in February saw 412,000 job openings, which led the likes of ABC Chief Economist Anirban Basu to designate January as a “statistical aberration”. However, this number is still down 9,000 compared to the year prior.

Basu said that demand for construction workers remains high even with the threat of a recession, the slow implementation of the United States’ infrastructure rebuilding program, higher interest rates, and financing concerns. He goes on to say that the rise in job openings indicates that nonresidential construction firms are expecting growth as they anticipate increases in sales, employment, and profit margins. Despite high demand, Construction Dive noted a report by the Associated General Contractors of America that many employers lack the staffing to bid on projects.

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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...

Civil construction, energy sectors expected to show positive growth in 2023 despite recession concerns

2023-01-13T13:58:00-05:00

The Infrastructure Investment and Jobs Act will boost activity in the civil construction space in 2023, according to Dodge Construction Network. Dodge expects civil construction starts, such as public transit, roads, bridges, EV charging stations, water-related projects and power plants, to total $281 billion in 2023, a 16% jump from last year. Dodge’s forecast assumes that 85% of infrastructure money will be spent by 2027.

Highway and bridge constructions are expected to jump by 20% each to $94.4 and $26.6 billion, respectively. Starts on water management projects are also expected to jump by 14% to $68.8 billion, according to the DCN. The network’s Chief Economist, Richard Branch, pointed to federal infrastructure spending authored by the Biden administration as the main source for continued improvements. Spending on EV charging stations also provided a boost in the transportation sector.

“A recession would lower the demand for construction workers and put more downward pressure on prices,” Branch said. “So, if we were to go into recession in 2023, it could mean here for infrastructure that more real work actually gets done for the dollars allocated.”

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...

Construction Backlog Indicator reaches highest level since 2019

2022-12-15T09:00:00-05:00

The Associated Builders and Contractors (ABC) has reported that its Construction Backlog Indicator (CBI) has increased to 9.2 months in November, the highest level since the second quarter of 2019.

This reading is 0.4 months up from October and a 0.8-month increase from November 2021. ABC’s CBI measures the amount of work that will be performed by commercial and industrial contractors in the months ahead. November’s rise is attributed to contractors with under $30 million in revenue, which saw a 0.6-month change from October.

The commercial and institutional categories and healthcare-related construction were the main drivers of the backlog improvement.

Graphic: Associated Builders and Contractors

“The rise in backlog is remarkable and unexpected,” said ABC Chief Economist Anirban Basu. “A number of contractors have been reporting that their backlog has risen rapidly over the past three months, which is counterintuitive given the pervasive view that the broader economy is headed i...

Construction job openings decrease along with fewer quits in October according to ABC study

2022-12-12T09:10:00-05:00

Construction filled more hard hats in October, as the total job openings dropped by 52,000 from a month earlier to 371,000, or 21,000 fewer vacancies than in October 2021, according to an analysis of Bureau of Labor Statistics data by Associated Builders and Contractors (ABC).

The U.S. Bureau of Labor Statistics Job Openings and Labor Turnover Survey (JOLTS) program defines a job opening as any unfilled position for which an employer is actively recruiting. While October's reading is promising, given a looming recession and labor shortages, 4.6% of all construction positions remain unfilled, which is more than at any point from when this data started to be gathered in 2000 through 2018.

However, on a brighter note, the number of workers who quit their job across all sectors fell to its lowest level since May 2021. The Associated Builders and Contractors anticipate increasing construction industry job openings even as the U.S. economy weakens.

Don't expect Big Tech's economic crunch to slow the pace of data center construction, experts say

2022-11-29T09:00:00-05:00

High inflation, rising interest and plummeting stocks are taking a toll on Big Tech [...] Despite the amount of blood on tech firms’ payroll ledgers, though, these massive cuts are not expected to affect the blistering pace of data center construction, according to industry sources.

The expected pullback from larger hyperscale data centers is nonetheless on pace to be absorbed by concurrent increases in the proliferation of smaller and more quickly deliverable colocation centers, according to recent market data.

Dodge Data & Analytics chief economist Richard Branch says he expects that boom will continue for at least the next two years. Google and Meta continue to be big drivers as demand is simply outstripping cost concerns. Other companies are even floating the possibility of data center construction on the moon should technology and the proper legal bodies allow.

Construction will stagnate in 2023 as recession looms, warns Dodge Construction Outlook

2022-11-17T11:59:00-05:00

The Dodge Construction Network has produced a forecast for the U.S. construction sector for 2023, in which it signals a slowdown across many typologies. Overall, the dollar value of construction starts will be $1.08 trillion, which, though unchanged from 2022, represents a 3% dip when adjusted for inflation.

Dodge’s analysis suggests the stagnation will not be felt evenly across the industry, with declines in residential and commercial activity offset by growths in manufacturing and infrastructure.

The dollar value of single-family homes starts will hold steady in 2023 versus 2022, which, when adjusted for inflation, represents a decline of 5%. The number of single-family housing units is expected to decline by 6% to 891,000 units, a fall fuelled by higher mortgage rates and continued high construction costs.

The multifamily sector will show similar stagnation with a 1% rise in the value o...

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...

'Housing sector is in a recession' warns leading construction economist

2022-10-13T12:16:00-04:00

A leading economist in the AEC industry has warned that the United States' housing sector has entered a recession, with ramifications for homebuilding in the coming years. Robert Dietz, chief economist at the National Association of Home Builders (NAHB), made the comments at the National Association of Real Estate Editors’ annual conference in Atlanta, GA this week.

“What I think is beyond denial right now, beyond debate, is the fact that the housing sector itself is in recession,” Dietz told the conference. “We had two negative quarters of GDP earlier this year, we’ll soon see a positive quarter in the Q3 report, but then we’ll have negative growth in Q4 and the first two quarters of 2023.”

Archinect Feature: Op-Ed: Don’t Waste A Recession

Dietz’ pessimism about the industry is fuelled by the NAHB’s National Homebuilder Sentiment Index, a metric which, similar to the AIA’s Architecture Billing Index, is used as a bellwether for the industry’s performance. “It’s fallen for nine stra...

Dodge Momentum Index builds on 14-year high with slight jump in July figures

2022-08-08T10:00:00-04:00

The Dodge Momentum Index hit a 14-year high in June and recorded another 2.9% increase in July. The index now stands at 178.7, up from June’s figure of 173.6.

“Commercial planning in July was led by an increase in data center, office and warehouse projects, while fewer education and healthcare projects drove the institutional component lower,” the latest report reads. “Compared to July 2021, the Momentum Index was 8%. The commercial component was 15% higher, while the institutional component was 3% lower than a year ago.”

Graphic: Dodge Construction Network

The index mentioned 14 projects carrying values of $100 million or more being recorded in July. Among them, new projects in Sacramento, Miami, and suburban D.C. were the biggest commercial heavy hitters. Three institutional projects, including Blair + Mui Dowd’s $500 million Vanderbilt University Medical Center expansion, also topped the $100 million threshold.

Dodge Construction Network has said it will watch closely to see if t...

America's largest cities have seen a spike in commercial and multifamily construction starts during first half of 2022

2022-07-27T15:44:00-04:00

A new report from the Dodge Construction Network indicates the continued rebound of the building industry in 12 of America’s 20 largest metropolitan areas during the first two quarters of 2022, propelled by new starts in the commercial and multifamily residential sectors.

A survey at the year’s midway point revealed a 24% year-to-year increase in the value of all new starts within those two sectors, which were driven by demand for housing that is increasingly focused on more affordable apartment and condominium designs. The increases offer a strong indicator of continued performance of the industry through the rest of the year, according to Dodge Construction Network chief economist Richard Branch.

Previously on Archinect: Commercial and multifamily construction starts reflect nationwide recovery in 2021

Only three of the top 10 areas surveyed — Seattle, Los Angeles, and Philadelphia — were in decline as the starts in the rest of the country rose a total of 18% when compared to the ...

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...

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 ...

Architecture Billings Index in March continues recovery, reaches new heights

2021-04-21T14:16:00-04:00

The American Institute of Architects released its latest economic report this morning, and the overall trajectory is welcome news to the architecture industry: rising to 55.6, the Architecture Billings Index (ABI) for March not only reached its second positive mark since the beginning of the pandemic one year ago (when it dropped to a historic low of 33.3 in March '20), but it also, according to the AIA, climbed to a score "not seen since pre-Great Recession" this month.

The design contract score continued the positive trend it began last month, hitting 55.7 in March. The new project inquiries score also improved from 61.2 in February to now 66.9.

The March report also registered all building sectors and regions posting positive scores for the first time in three years.

Meanwhile hiring in the architecture industry is continuing to rebound, but remains volatile, as seen in Archinect's industry-leading architecture job board.

More March ABI Highlights

Regional averages: Midwest (56....

Architecture Billings Index in February reaches first positive mark after a year of monthly declines

2021-03-24T13:47:00-04:00

The latest economic report from the American Institute of Architects is indicating a mild sense of optimism: the Architecture Billings Index (ABI) for the month February climbed back into positive territory for the first time since February 2020. At a score of 53.3, the new ABI marked a significant increase compared to 44.9 in January.

The design contract score also re-entered positive terrain since the beginning of the pandemic with a score of 51.6 compared to 48.8 in January. The new project inquiries score expanded from 56.8 in January to 61.2 in February, a 22-month high water mark.

Meanwhile hiring in the architecture industry is continuing to rebound, but remains volatile, as seen in Archinect's industry-leading architecture job board.

More February ABI Highlights

Regional averages: South (52.4); West (49.5); Midwest (49.3); Northeast (46.9)
Sector index breakdown: mixed practice (52.5); commercial/industrial (50.5); multi-family residential (48.3); institutional (47.8)
Projec...

Architecture Billings Index in January continues to contract

2021-02-24T13:32:00-05:00

The latest economic study from the American Institute of Architects indicates that fewer architecture firms reported declining billings due to slightly improved business conditions, however overall billings continued to contract.

The Architecture Billings Index (ABI) for the month of January slightly rose to 44.9 compared to the revised December score of 42.3. The report saw a modest increase in inquiries into new projects during January, with a score of 56.8 compared to 51.7 in December. The value of new design contracts mildly improved to a score of 48.8 (December: 47.0), reflecting an easing in the pace of decline.

Meanwhile hiring in the architecture industry is continuing to rebound, but remains volatile, as seen in Archinect's industry-leading architecture job board.

More January ABI Highlights

Regional averages: South (47.4); West (42.8); Midwest (42.2); Northeast (41.9)
Sector index breakdown: mixed practice (47.9); multi-family residential (44.4); commercial/industrial (44.3...

Architecture Billings Index in December continues to 'lose ground'

2021-01-20T13:34:00-05:00

The American Institute of Architects published the new economic report for the month of December this morning, indicating a considerable decline in demand for design services from U.S. architecture firms. The Architecture Billings Index dropped to a score of 42.6, well below November's 46.3 score.

The report shows the pace of growth of inquiries into new projects as flat from November to December with a score of 52.4. The value of new design contracts remained in negative terrain with a score of 48.5.

Meanwhile hiring in the architecture industry is continuing to rebound, but remains volatile, as seen in Archinect's industry-leading architecture job board.

More December ABI Highlights

Regional averages: South (46.8); Midwest (43.6); West (43.4); Northeast (38.8)
Sector index breakdown: mixed practice (48.0); commercial/industrial (47.2); multi-family residential (46.1); institutional (38.5)
Project inquiries index: 52.4
Design contracts index: 48.5

"Since the national economic recovery...

Architecture Billings Index in November contracts once again

2020-12-16T13:47:00-05:00

The latest economic report from the American Institute of Architects shows a continued decline of architecture firm billing activity. The Architecture Billings Index for the month of November fell below October's, now posting a score of 46.3.

The Institute also registered a slowing pace of inquiries into new projects, albeit remaining in positive terrain with a score of 52.0 (compared to the October score of 59.1). The value of new design contracts however fell back into the negative zone with a 48.6 score after briefly inching into growth territory in October for the first time since the beginning of the pandemic.

Meanwhile hiring in the architecture industry is continuing to rebound, but remains volatile, as seen in Archinect's industry-leading architecture job board.

More November ABI Highlights

Regional averages: Midwest (50.1); West (48.3); South (46.7); Northeast (38.7)
Sector index breakdown: multi-family residential (52.2); mixed practice (49.5); commercial/industrial (47.5)...

Architecture Billings Index in October remains stalled

2020-11-18T13:17:00-05:00

Architectural billings remained largely unchanged from the previous month during October, reports the American Institute of Architects in its latest Architecture Billings Index (ABI) this morning. The current pace of decline in firm billings was registered at 47.5 — only a mild improvement from the 47.0 score in September and significantly behind pre-pandemic growth numbers that abruptly ended in March.

The report signals a modest increase in new project inquiries, growing from 57.2 in September to 59.1 in October. The score for newly signed design contracts inched into positive terrain for the first time since the beginning of the pandemic at 51.7.

Meanwhile hiring in the architecture industry is continuing to rebound, but remains volatile, as seen in Archinect's industry-leading architecture job board.

More October ABI Highlights

Regional averages: West (50.4); Midwest (49.4); South (45.8); Northeast (44.9)
Sector index breakdown: multi-family residential (55.1); mixed practice (52...

September sees modest improvement in Architecture Billings Index relative to recent months

2020-10-21T17:37:00-04:00

Last month fewer architecture firms reported a decline in billings, up slightly from previous months, but still lagging behind pre-pandemic numbers. The AIA's Architecture Billings Index (ABI) report for the month of September shows a score of 47.0, indicating that a little over half of firms are continuing to see a decline in revenue, up from 40.0 in August. The reported number of inquiries, however, are promising, up to 57.2 compared to 51.6 in August.

Architectural employment is continuing to rebound, but remains volatile, as seen in Archinect's industry-leading architecture job board.

More September ABI Highlights

Regional averages: West 45.6 (41.7 in August); South 43.7 (41.6 in August); Midwest 45.6 (41.3 in August); Northeast 41.5 (33.9 in August)
Sector index breakdown: residential 54.0; commercial/industrial 43.3; institutional 40.5
Design contracts index: 46.0
Firms reported that they expect their revenue to decrease by an average of 1.9% from the third quarter to the fourt...

Get to know the panelists for Monday's panel on getting through a recession

2020-10-10T13:42:00-04:00

While it's easy to see a recession as nothing but challenge and hardship, a downturn in the economy has historically provided opportunities to make positive change, for both individuals and businesses.

On Monday we'll be (virtually) hosting an important discussion with a group of panelists that have a lot of valuable insight for architects and firm owners about how to best get through a recession. The panel, Lessons on Surviving, and Even Thriving Through a Recession, will take place on Monday, October 12th, from 1-2pm EST (10-11am PST).

How does the current recession compare to previous recessions? Why is architecture so vulnerable to changes in the economy? Should firms scale back or push forward and spend during a recession? How can a firm take advantage of opportunities a recession brings? What's the best approach to leading a team through a challenging time? These are just a few of the questions we plan to address during the panel.

RSVP here to reserve your spot. Our audienc...

Architecture Billings Index in August: 'business conditions remained stalled'

2020-09-23T13:05:00-04:00

The American Institute of Architects (AIA) has published its Architecture Billings Index (ABI) report for the month of August, showing stalled business conditions for architecture firms and a further decline in demand for design services, represented by an unchanged score of 40.0 for the third consecutive month.

August ABI Highlights

Architecture Billings Index score for August: 40.0
Regional averages: Midwest (41.7); South (41.6); West (41.3); Northeast (33.9)
Sector index breakdown: multi-family residential (49.4); mixed practice (41.9); institutional (40.2); commercial/industrial (35.5)
Project inquiries index: 51.6
Design contracts index: 46.0

"Unfortunately, since the start of the COVID-19 pandemic, many architecture firms are finding fewer inquiries that convert to billable projects," said AIA Chief Economist, Kermit Baker, Hon. AIA, PhD. "While fewer firms reported declining billings in August than during the early months of the COVID-19 pandemic, the fact that the score has been ...

Lessons on Surviving, and Even Thriving Through a Recession

2020-09-15T14:54:00-04:00

Recessions are hard for everyone, but the architecture industry has a history of being especially impacted by downturns in the economy. This panel, one of Archinect's many upcoming virtual events, will share insights from architects who have successfully worked through previous recessions, or even started up during a recession.

From L-R: Gregg Pasquarelli, Carie Penabad, David Gensler, Patrick Macleamy

The panel will bring together seasoned industry experts: David Gensler, Former Co-CEO at Gensler; Carie Penabad, Principal at CURE & PENABAD; Patrick Macleamy, Former CEO at HOK; and Gregg Pasquarelli, Founding Principal at SHoP Architects. The panel will be moderated by Paul Petrunia, Archinect's Founder/Director.

The conversation will focus on ways firms have pivoted in response to changing economic landscapes, team restructuring, strategic hiring, and other approaches to not only make it through a challenging time, but to come out stronger during the recovery.

To reserve your spot...