Reflecting the deteriorating conditions in the overall economy, demand for design services from architecture firms recorded a record fall, according to a new report today from The American Institute of Architects (AIA).
AIA’s Architecture Billings Index (ABI) score of 33.3 for March reflects a decrease in design services provided by U.S. architecture firms (any score below 50 indicates a decrease in billings). During March, both the new project inquiries and design contracts scores dropped dramatically, posting scores of 23.8 and 27.1 respectively.
“Though most architecture firms have made quick transitions to remote operations, the complete shutdown of business activity is severely impacting architects,” said AIA Chief Economist Kermit Baker, Hon. AIA, PhD. “The dramatic pullback in new and ongoing design projects reflects just how quickly and fundamentally business conditions have changed across the country and around the world in the last month as a result of the COVID-19 pandemic.”
Key ABI figures for March include:
- Regional averages: West (45.3); South (44.2); Midwest (44.2); Northeast (38.4)
- Sector index breakdown: institutional (46.9); multi-family residential (43.3); commercial/industrial (41.9); mixed practice (40.6)
- Project inquiries index: 23.8
- Design contracts index: 27.1
The regional and sector categories are calculated as a three-month moving average, whereas the national index, design contracts and inquiries are monthly numbers.
Related Stories
Coronavirus | Aug 25, 2020
Co-living firm Common issues RFP for the future home office and work hub
Common, the U.S.’s largest co-living company, recently released an RFP for a “Remote Work Hub” to blend work and life from the ground up.
Coronavirus | Aug 25, 2020
Video: 5 building sectors to watch amid COVID-19
RCLCO's Brad Hunter reveals the winners and non-winners of the U.S. real estate market during the coronavirus pandemic.
Coronavirus | Aug 25, 2020
6 must reads for the AEC industry today: August 26, 2020
Big-box retailers’ profits surge, and rent payment tracker finds 90% of apartment households paying rent.
Coronavirus | Aug 25, 2020
7 must reads for the AEC industry today: August 25, 2020
Medical office buildings get a boost by demand and capital, and why the COVID-19 pandemic is increasing the need for telemedicine.
University Buildings | Aug 20, 2020
Student housing in the COVID-19 era
Student housing remains a vital part of the student and campus experience.
Coronavirus | Aug 17, 2020
Covid-19 and campus life: Where do we go from here?
Campus communities include international, intergenerational, and varied health-risk populations.
Coronavirus | Aug 10, 2020
Reimagining multifamily spaces in the COVID era
Multifamily developments pose unique challenges and opportunities.
Coronavirus | Aug 3, 2020
Exploring the airborne transmission of the coronavirus and strategies for mitigating risk
Health authorities say it’s important to understand the dangers of microdroplets. How might indoor ventilation need to change?
Coronavirus | Jul 31, 2020
The Weekly show: Microhospitals, mass timber, and the outlook for 5 key building sectors
The July 30 episode of BD+C's "The Weekly" is available for viewing on demand.
