Architecture Billings Continue Historic Contraction

May 29th, 2020 | Category: Industry News

Demand for design services in April saw its steepest decline on record, according to a new report from the American Institute of Architects (AIA). AIA’s Architecture Billings Index score of 29.5 for April reflects a decrease in design services provided by U.S. architecture firms (any number below 50 indicates a decrease in billings). During April, both the new project inquiries and design contracts scores also declined significantly, posting scores of 28.4 and 27.6 respectively.

“With the dramatic deceleration that we have seen in the economy since mid-March, it’s not surprising that businesses and households are waiting for signs of stability before proceeding with new facilities,” says AIA chief economist Kermit Baker. “Once business activity resumes, demand for design services should pick up fairly quickly. Unfortunately, the precipitous drop in demand for design services will have lasting consequences for some firms.”

Key ABI figures for April include:

Regional averages: West (38.1); Midwest (31.2); South (31.1); Northeast (23.0)

Sector index breakdown: institutional (36.1); multifamily residential (30.3); mixed practice (29.0); commercial/industrial (27.8)

Project inquiries index: 28.4

Design contracts index: 27.6

Leave Comment

X
This site uses cookies which allow us to give you the best browsing experience possible. Cookies are files stored in your browser and are used by most websites to help personalize your web experience. By continuing to use our website, you are agreeing to our use of cookies. To find out more, please see our Privacy Policy.