Demand for Design Services Continues to Increase

Architecture firms continue to report increasing demand for design services in September, according to a new report from The American Institute of Architects (AIA).

The Architecture Billings Index (ABI) score for September was 56.6, which is up from August’s score of 55.6. Any score above 50 indicates an increase in billings from the prior month. During September, scoring for both the new project inquiries and design contracts moderated slightly, but remained in positive territory, posting scores of 61.8 and 54.7 respectively.

“The ABI scores over the last eight months continue to be among the highest ever seen in the immediate post-recession periods that have been captured throughout the index’s history,” said AIA Chief Economist, Kermit Baker, Hon. AIA, PhD. “However, it’s unlikely that revenue increases at architecture firms can sustain this pace. Given that growth in both new design contracts and project inquiries have moderated in recent months, we expect to see a similar path for the ABI.”

Key ABI highlights for September include:

  • Regional averages: Midwest (57.7); South (57.0); West (56.0); Northeast (51.5)
  • Sector index breakdown: mixed practice (58.8); commercial/industrial (58.1); multi-family residential (56.1); institutional (53.5)

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 Reply

Your email address will not be published. Required fields are marked *