Architects and designers are still plodding along a bumpy economic road, according to the most recent Architecture Billing Index (ABI). Released yesterday (July 22) by the American Institute of Architects (AIA), the monthly construction activity indicator’s 0.2 point gain (46.0) in June does little to restore the three point drop previously experienced in May. The score calls attention to the continued decline in design services: any score below 50 is considered a decrease in billings.
AIA chief economist Kermit Baker, PhD, Hon. AIA, says that he is concerned with how the numbers reversed a little in May and June from consecutive, month-to-month gains earlier this year, and attributes the dip to the overall economic uncertainty.
One sector, however, did display positive signs of activity: billings for commercial/industrial projects remained “up” (50.3 in May) and slightly rose to 50.6. Institutional grew 1.6 points (45.0), while multi-family residential (46.5) and mixed practice (44.7) both dipped from May totals, down from 46.9 and 46.8 points respectively.
The Northeast once again lead the regional sectors (47.7), down from 50.6 in May; while the Midwest (46.3) also came in low. Billings in the South totaled 46.7 (up 0.8 points) and West ranked at 43.6 (up 0.7 points).
Project inquiries index also dropped 1.9 points to total 57.7.
Thomas D. Polucci, AIA, IIDA, LEED GA, group vice president and design director for HOK, says that architecture and design firm HOK is projecting a similar, slow recovery for the industry, and adapting its design strategies appropriately. “Healthcare, science and technology, and higher education continue to be strong sectors of our practice,” he says. “Our corporate clients remain conservative…We continue to be sought out to help clients make the most effective use of their real estate, either consolidation of space or adaptive re-use. Where we’ve been successful in securing commissions for new or expanded facilities, we are designing within very efficient, budget-driven guidelines.”
Despite the lingering decline, Baker is optimistic to see upward trajectory and some recovery later this year. “It’s been a bumpy road up so far and its hard to say how that’s going to shape up as we move through the rest of the summer.”


