AIA Architecture Index for End of 2013: Economic Indicator for Business Development

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January 28, 2014

By Dr. Tyra OldhamLANDsds Sustainable Voice News

Architecture production is key indicator in economic picture. The AIA reveals design into the marketplace. The index does not include single-family home construction.  The report indicates that “architecture firms in the Northeast and Midwest reported a decrease in business conditions in December. This marks the third straight month of declines for the Northeast, and is the region’s steepest decline since the depth of the recession in early 2009. On the other hand, firms in the South and West reported “reasonably healthy” business conditions in December, according to the AIA,” states the World Property Channel  in “U.S. Architecture Billings End 2013 on a Low Mark“.

“A second monthly drop in a key architectural business barometer – the Architectural Billings Index, or ABI, – could signal a contraction in commercial construction,” reports the Woodworking Network  in “AIA Architecture Billings Index Fell in Dec. 2013.

AIA Billings Index

“The ABI measured 48.5 in December 2013, down from 49.8 in in November. The AIA’s Architecture Billings Index (ABI) stood at 51.6 in October and 54.3 in September. A reading below 50 signifies a decline a monthly “Work-on-the-Boards” survey that is sent to a panel of AIA member-owned firms.”

ABI-DEC_2013-FINAL-thumb-600x2112-21778 (1)

“What we thought last month was an isolated dip now bears closer examination to see what is causing the slowdown in demand for architectural services,” said American Institute of Architects Chief Economist Kermit Baker, whose office generates the index based on member billings.”

The index of design is within the nexuses of new energy efficient building, energy investment and new structures that reveal that in the North and Midwest design is shrinking.  The information results that traction is occurring for new design and working with architectural firms in the West.

The overall picture for those who are in the supply chain or nexuses of architecture including Tier I, II and the shrinking III  i.e. construction professionals, labor, heavy equipment leasing and rentals, construction managers, landscape, carpentry, equipment and more expose the work is in the West. This has economic impact on small firms relying on Tier I and II growth.  

All of these companies are with the ecosystem of architecture and thrive or decline based on the health of the overall market.  Further, this index indicates the infrastructure and development of cities and how they allocating dollars. I say follow the data and the truth is revealed.  


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Posted in Architecture, Business, Business Developments, Construction, Economics, Energy, Energy Efficiency, Energy Investment, Financial News, Infrastructure, RESEARCH, Sustainability Nexuses, Voice News
One comment on “AIA Architecture Index for End of 2013: Economic Indicator for Business Development
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