flexiblefullpage -
billboard - default
interstitial1 - interstitial
catfish1 - bottom
Currently Reading

Architecture Billings Index sees first back-to-back decline since mid-2012

Architecture Billings Index sees first back-to-back decline since mid-2012

The AIA's Architecture Billings Index dipped for the second consecutive month in December—the first consecutive months of contraction since May and June of 2012.


By AIA | January 22, 2014
Photo: Tim Evanson via Wikimedia Commons
Photo: Tim Evanson via Wikimedia Commons

Following consistently increasing demand for design services throughout most of 2013, the Architecture Billings Index (ABI) has posted its first consecutive months of contraction since May and June of 2012.  

As a leading economic indicator of construction activity, the ABI reflects the approximate nine to twelve month lead time between architecture billings and construction spending.  

The American Institute of Architects (AIA) reported the December ABI score was 48.5, down from a mark of 49.8 in November. This score reflects a decrease in design services (any score above 50 indicates an increase in billings).  

The new projects inquiry index was 59.2, up from the reading of 57.8 the previous month.

“What we thought last month was an isolated dip now bears closer examination to see what is causing the slowdown in demand for architectural services,” said AIA Chief Economist Kermit Baker, Hon. AIA, PhD. “It is possible that some of this can be attributed to the anxiety in the marketplace caused by the shutdown of the federal government, but it will be important  to see how business conditions fare through the first quarter of the new year when we no longer have end of the year issues to deal with.”

Key December ABI highlights:
• Regional averages: West (53.2), South (51.2), Midwest (47.0), Northeast (42.8)
• Sector index breakdown: multi-family residential (53.8), mixed practice 51.0), commercial / industrial (47.1), institutional (44.8)
• Project inquiries index: 59.2

Note: The regional and sector categories are calculated as a 3-month moving average, whereas the index and inquiries are monthly numbers.

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 website.

Related Stories

Office Buildings | Mar 5, 2024

Former McDonald’s headquarters transformed into modern office building for Ace Hardware

In Oak Brook, Ill., about 15 miles west of downtown Chicago, McDonald’s former corporate headquarters has been transformed into a modern office building for its new tenant, Ace Hardware. Now for the first time, Ace Hardware can bring 1,700 employees from three facilities under one roof.

Green | Mar 5, 2024

New York City’s Green Economy Action Plan aims for building decarbonization

New York City’s recently revealed Green Economy Action Plan includes the goals of the decarbonization of buildings and developing a renewable energy system. The ambitious plan includes enabling low-carbon alternatives in the transportation sector and boosting green industries, aiming to create more than 12,000 green economy apprenticeships by 2040.

Lighting | Mar 4, 2024

Illuminating your path to energy efficiency

Design Collaborative's Kelsey Rowe, PE, CLD, shares some tools, resources, and next steps to guide you through the process of lighting design.

MFPRO+ News | Mar 1, 2024

Housing affordability, speed of construction are top of mind for multifamily architecture and construction firms

The 2023 Multifamily Giants get creative to solve the affordability crisis, while helping their developer clients build faster and more economically. 

Multifamily Housing | Feb 29, 2024

Manny Gonzalez, FAIA, inducted into Best in American Living Awards Hall of Fame

Manny Gonzalez, FAIA, has been inducted into the BALA Hall of Fame.

K-12 Schools | Feb 29, 2024

Average age of U.S. school buildings is just under 50 years

The average age of a main instructional school building in the United States is 49 years, according to a survey by the National Center for Education Statistics (NCES). About 38% of schools were built before 1970. Roughly half of the schools surveyed have undergone a major building renovation or addition.

MFPRO+ Research | Feb 28, 2024

New download: BD+C's 2023 Multifamily Amenities report

New research from Building Design+Construction and Multifamily Pro+ highlights the 127 top amenities that developers, property owners, architects, contractors, and builders are providing in today’s apartment, condominium, student housing, and senior living communities.

AEC Tech | Feb 28, 2024

How to harness LIDAR and BIM technology for precise building data, equipment needs

By following the Scan to Point Cloud + Point Cloud to BIM process, organizations can leverage the power of LIDAR and BIM technology at the same time. This optimizes the documentation of existing building conditions, functions, and equipment needs as a current condition and as a starting point for future physical plant expansion projects. 

Data Centers | Feb 28, 2024

What’s next for data center design in 2024

Nuclear power, direct-to-chip liquid cooling, and data centers as learning destinations are among the emerging design trends in the data center sector, according to Scott Hays, Sector Leader, Sustainable Design, with HED. 

Windows and Doors | Feb 28, 2024

DOE launches $2 million prize to advance cost-effective, energy-efficient commercial windows

The U.S. Department of Energy launched the American-Made Building Envelope Innovation Prize—Secondary Glazing Systems. The program will offer up to $2 million to encourage production of high-performance, cost-effective commercial windows. 

boombox1 - default
boombox2 -
native1 -

More In Category

Laboratories

HGA unveils plans to transform an abandoned rock quarry into a new research and innovation campus

In the coastal town of Manchester-by-the-Sea, Mass., an abandoned rock quarry will be transformed into a new research and innovation campus designed by HGA. The campus will reuse and upcycle the granite left onsite. The project for Cell Signaling Technology (CST), a life sciences technology company, will turn an environmentally depleted site into a net-zero laboratory campus, with building electrification and onsite renewables.




Urban Planning

Popular Denver e-bike voucher program aids carbon reduction goals

Denver’s e-bike voucher program that helps citizens pay for e-bikes, a component of the city’s carbon reduction plan, has proven extremely popular with residents. Earlier this year, Denver’s effort to get residents to swap some motor vehicle trips for bike trips ran out of vouchers in less than 10 minutes after the program opened to online applications.

halfpage1 -

Most Popular Content

  1. 2021 Giants 400 Report
  2. Top 150 Architecture Firms for 2019
  3. 13 projects that represent the future of affordable housing
  4. Sagrada Familia completion date pushed back due to coronavirus
  5. Top 160 Architecture Firms 2021