Architecture Billings Enter Fall on a Bleak Note
Those hoping that business conditions at architecture firms nationwide would warm up just a touch as temperatures begin to drop are in for a disappointment. According to the newest AIA/Deltek Architecture Billings Index, which represents figures for September, the ABI score is a tepid 43.3—the lowest since April of this year when it scored 43.2. (Any score below 50.0 indicates softening business conditions at architecture firms.) The score represents a sizable drop from the still-weak ABI released last month of 47.2.
Image courtesy American Institute of Architects
Per the AIA, new project inquiries remained flat in September while design contract values declined for the 19th consecutive month.
“Unfortunately, business conditions remain relatively weak at architecture firms,” said AIA Chief Economist Kermit Baker. “There was some erosion in project backlogs this past quarter, with the greatest slippage coming from firms with an institutional specialization.”
Image courtesy American Institute of Architects
In September, billings trended downwards in all regions, except in the Midwest were conditions remained stagnant. Firms based in the West experienced the sharpest decline for the fourth month, dropping from a previous score of 43.5 to 40.6. The South and Northeast fell from previous scores of 49.9 and 46.2 to 47.9 and 43.8, respectively.
Image courtesy American Institute of Architects
By specialization, firms focused on institutional projects continue to get hit the hardest, as mentioned by Baker. This category dropped slightly to a score of 44.3 compared to the previous scored of 44.5. Firms specializing in multifamily residential projects scored 47.2 while firms focused on commercial/industrial work, which experienced a brief reprieve over the summer, scored 46.6, down from a non-soft score of 50.8 as reflected in the ABI released in September. Mixed practice firms, which do not have at least half of their billings in any one other category, scored 44.0
The AIA, which recently announced Carole Wedge as its new CEO/EVP, offers a variety of resources to help professionals navigate economically uncertain times.
Looking for quick answers on architecture and design topics?
Try Ask RECORD, our new smart AI search tool.
Ask RECORD →
Looking for a reprint of this article?
From high-res PDFs to custom plaques, order your copy today!
