Architectural design services in strong demand despite slight dip: AIA

Architecture firms reported increasing demand for design services in May, according to a report from the American Institute of Architects (AIA). However, the Architecture Billings Index (ABI) indicated design activity has weakened somewhat since April. Photo © Bigstockphoto.com

Architecture firms reported increasing demand for design services in May, according to a report from the American Institute of Architects (AIA). However, the Architecture Billings Index (ABI) indicated design activity has weakened somewhat since April.

An economic indicator for non-residential construction activity, the ABI score for May was 53.5. While this score is down from April’s score of 56.5, it still indicates very strong business conditions overall (any score above 50 indicates an increase in billings from the prior month). Also in May, both new project inquiries and design contracts indexes expanded, posting scores of 63.9 and 56.9, respectively.

The index is derived from AIA’s Work-on-the-Boards survey, which has gathered data on shifts in billings from architectural firm leaders for more than 20 years. This data is a trusted tool used by the design and construction industry and other firms to predict and track movements in the market.

“The strength in design activity over the past three months has produced a broader base of gains. The Northeast region and institutional sector have struggled with slow billings activity, but now have posted consecutive months of positive scores,” says AIA’s chief economist, Kermit Baker, Hon. AIA, PhD. “With the improvement in inquiries and new design projects, demand for design services will likely remain high for the next several months, despite strong economic headwinds.”

Key ABI highlights for May include:

  • Regional averages: West (59.3); Midwest (56.8); South (52.3); Northeast (51.4).
  • Sector index breakdown: commercial/industrial (57.7); mixed practice (56.2); multi-family residential (54.5); institutional (51.7).

The regional and sector categories are calculated as a three-month moving average, whereas the national index, design contracts, and inquiries are monthly numbers.

Leave a Comment

Comments

Your email address will not be published.