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Architecture NewsCoronavirus Coverage

March 2020 Architecture Billing Index Signals Major Downturn in Commercial Construction

May 2020 ABI Graph

According to the AIA, architectural inquiries and billings dropped dramatically in March 2020 as the COVID-19 pandemic disrupted the global economy.

Image © Architectural Record

April 22, 2020

The AIA issued the release below on April 22, 2020.

Read more about the economic impact of the COVID-19 pandemic on the architecture, engineering, and construction industries in this story from Engineering News-Record: CEOs Detail Virus-Reshaped Business Realities.

Read all of RECORD's coronavirus coverage for free, and see an interactive chart at the bottom of this story for historic Architecture Billings Index data.


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.


​

 

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