© Andrey Politov | Dreamstime.com
Id 104893957 © Andrey Politov Dreamstime com
Id 104893957 © Andrey Politov Dreamstime com
Id 104893957 © Andrey Politov Dreamstime com
Id 104893957 © Andrey Politov Dreamstime com
Id 104893957 © Andrey Politov Dreamstime com

Architecture Billings Index Points to Major Downturn in Commercial Construction

April 30, 2020
Largest monthly decline in billings a direct result of pandemic response

Reflecting the deteriorating conditions in the overall economy, demand for design services from architecture firms recorded a record fall, according to a recent report 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.

Voice your opinion!

To join the conversation, and become an exclusive member of EC&M, create an account today!

Sponsored Recommendations

Electrical Conduit Comparison Chart

CHAMPION FIBERGLASS electrical conduit is a lightweight, durable option that provides lasting savings when compared to other materials. Compare electrical conduit types including...

Don't Let Burn-Through Threaten Another Data Center or Utility Project

Get the No Burn-Through Elbow eGuide to learn many reasons why Champion Fiberglass elbows will enhance your data center and utility projects today.

Considerations for Direct Burial Conduit

Installation type plays a key role in the type of conduit selected for electrical systems in industrial construction projects. Above ground, below ground, direct buried, encased...

How to Calculate Labor Costs

Most important to accurately estimating labor costs is knowing the approximate hours required for project completion. Learn how to calculate electrical labor cost.