New projects for architectural firms remain marginally on the downside, according to the most recent billings index released by the American Institute of Architects.
The latest figures indicate that an industry-wide slump first indicated last fall remains in place, although firms in the South, notes an AIA narrative, “reported a very slight increase in billings for the first time since last October.”
With an index reading showing that anything over 50 means an increase in business, the June survey indicates that billings now stand at 46.8, compared with last month’s 47.2. Meanwhile, actual contracts have marginally improved from 45.9 to 46.0.
Regionally, firms in the South led the nation in billings in June with a 50.6 reading. Firms in the Northeast, Midwest, and West reported readings of 46.5, 45.7, and 45.8 respectively.
Institutional work, meanwhile, proved the most lucrative in June, securing a 49.2 reading, followed by commercial and industrial work at 47.4. In a distant third was residential work at 43.8.
In a separate question asked of respondents, 24% of firm leaders said they are currently understaffed, while 12% indicated they are overstaffed. Firms located in the South, at 32%, said they were understaffed, compared with 10% of firms in the Midwest, and 20% in the Northeast.
The larger the firm, the more likely that the understaffing issue disappeared.
Conversely, notes the narrative, small firms say they are “significantly understaffed than larger firms, with firms with annual billings of $500,000 to $1 million being understaffed by a median of 30%,” compared to a 9% understaff rate for firms earning more than $5 million.
In one marginally positive note, firms reported a 46.8 reading in June regarding inquiries that may lead to possible future work projects, up from 44.1 in March.
The survey was undertaken by AIA Economics and Market Research Group.
August 1, 2025
By Garry Boulard
