Washington, D.C. – November 17, 2010 – Following the first positive reading since January 2008, the Architecture Billings Index (ABI) dropped nearly two points in October. As a leading economic indicator of construction activity, the ABI reflects the approximate nine to 12 month lag time between architecture billings and construction spending. The American Institute of Architects (AIA) reported the October ABI score was 48.7, down from a reading of 50.4 the previous month. This score reflects a decrease in demand for design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 61.7, down slightly from a nearly three-year high mark of 62.3 in September.
“This is disappointing news, but not altogether that surprising,” said AIA Chief Economist Kermit Baker, PhD, Hon. AIA. “We were anticipating a slow recovery period and it is likely that there will be some fits and starts before conditions show consistent improvement. Right now, reluctance from lending institutions to provide credit for construction projects and a sluggish economy are the main impediments to a revival of the design and construction industry.”
Key October ABI highlights:
Regional averages: Northeast (54.5), Midwest (51.8), South (48.6), West (44.3)
Sector index breakdown: commercial / industrial (54.5), institutional (50.8), multi-family residential (49.1), mixed practice (43.2)
Project inquiries index: 61.7
About the AIA Architecture Billings Index
The Architecture Billings Index (ABI), produced by the AIA Economics & Market Research Group, is a leading economic indicator that provides an approximately nine to twelve month glimpse into the future of nonresidential construction spending activity. The diffusion indexes contained in the full report are derived from a monthly “Work-on-the-Boards” survey that is sent to a panel of AIA member-owned firms. Participants are asked whether their billings increased, decreased, or stayed the same in the month that just ended as compared to the prior month, and the results are then compiled into the ABI. These monthly results are also seasonally adjusted to allow for comparison to prior months. The monthly ABI index scores are centered around 50, with scores above 50 indicating an aggregate increase in billings, and scores below 50 indicating a decline. The regional and sector data are formulated using a three-month moving average. More information on the ABI and the analysis of its relationship to construction activity can be found in the White Paper Architecture Billings as a Leading Indicator of Construction: Analysis of the Relationship Between a Billings Index and Construction Spending on the AIA web site.
About The American Institute of Architects
For over 150 years, members of the American Institute of Architects have worked with each other and their communities to create more valuable, healthy, secure, and sustainable buildings and cityscapes. By using sustainable design practices, materials, and techniques, AIA architects are uniquely poised to provide the leadership and guidance needed to provide solutions to address climate change. AIA architects walk the walk on sustainable design. Visit www.aia.org
Related Stories
| Aug 11, 2010
U.S. firm designing massive Taiwan project
MulvannyG2 Architecture is designing one of Taipei, Taiwan's largest urban redevelopment projects. The Bellevue, Wash., firm is working with developer The Global Team Group to create Aquapearl, a mixed-use complex that's part of the Taipei government's "Good Looking Taipei 2010" initiative to spur redevelopment of the city's Songjian District.
| Aug 11, 2010
Florida mixed-use complex includes retail, residential
The $325 million Atlantic Plaza II lifestyle center will be built on 8.5 acres in Delray Beach, Fla. Designed by Vander Ploeg & Associates, Boca Raton, the complex will include six buildings ranging from three to five stories and have 182,000 sf of restaurant and retail space. An additional 106,000 sf of Class A office space and a residential component including 197 apartments, townhouses, ...
| Aug 11, 2010
Restoration gives new life to New Formalism icon
The $30 million upgrade, restoration, and expansion of the Mark Taper Forum in Los Angeles was completed by the team of Rios Clementi Hale Studios (architect), Harley Ellis Devereaux (executive architect/MEP), KPFF (structural engineer), and Taisei Construction (GC). Work on the Welton Becket-designed 1967 complex included an overhaul of the auditorium, lighting, and acoustics.
| Aug 11, 2010
Best AEC Firms to Work For
2006 FreemanWhite Hnedak Bobo Group McCarthy Building Companies, Inc. Shawmut Design and Construction Walter P Moore 2007 Anshen+Allen Arup Bovis Lend Lease Cannon Design Jones Lang LaSalle Perkins+Will SmithGroup SSOE, Inc. Timothy Haahs & Associates, Inc. 2008 Gilbane Building Co. HDR KJWW Engineering Consultants Lord, Aeck & Sargent Mark G.
| Aug 11, 2010
High-Performance Workplaces
Building Teams around the world are finding that the workplace is changing radically, leading owners and tenants to reinvent corporate office buildings to compete more effectively on a global scale. The good news is that this means more renovation and reconstruction work at a time when new construction has stalled to a dribble.
| Aug 11, 2010
Great Solutions: Business Management
22. Commercial Properties Repositioned for University USE Tocci Building Companies is finding success in repositioning commercial properties for university use, and it expects the trend to continue. The firm's Capital Cove project in Providence, R.I., for instance, was originally designed by Elkus Manfredi (with design continued by HDS Architects) to be a mixed-use complex with private, market-...
| Aug 11, 2010
Nurturing the Community
The best seat in the house at the new Seahawks Stadium in Seattle isn't on the 50-yard line. It's in the southeast corner, at the very top of the upper bowl. "From there you have a corner-to-corner view of the field and an inspiring grasp of the surrounding city," says Kelly Kerns, project leader with architect/engineer Ellerbe Becket, Kansas City, Mo.
| Aug 11, 2010
AIA Course: Historic Masonry — Restoration and Renovation
Historic restoration and preservation efforts are accelerating throughout the U.S., thanks in part to available tax credits, awards programs, and green building trends. While these projects entail many different building components and systems, façade restoration—as the public face of these older structures—is a key focus. Earn 1.0 AIA learning unit by taking this free course from Building Design+Construction.
| Aug 11, 2010
BIM adoption tops 80% among the nation's largest AEC firms, according to BD+C's Giants 300 survey
The nation's largest architecture, engineering, and construction companies are on the BIM bandwagon in a big way, according to Building Design+Construction's premier Top 50 BIM Adopters ranking, published as part of the 2009 Giants 300 survey. Of the 320 AEC firms that participated in Giants survey, 83% report having at least one BIM seat license in house, half have more than 30 seats, and near...
| Aug 11, 2010
World's tallest all-wood residential structure opens in London
At nine stories, the Stadthaus apartment complex in East London is the world’s tallest residential structure constructed entirely in timber and one of the tallest all-wood buildings on the planet. The tower’s structural system consists of cross-laminated timber (CLT) panels pieced together to form load-bearing walls and floors. Even the elevator and stair shafts are constructed of prefabricated CLT.
