For the first time since late 2022, the nation’s architects are reporting an increase in billings, although concerns about where things go from here appear constant, notes a new industry survey.
The Architecture Billings Index, as compiled by the American Institute of Architects, showed an overall 50.3 score, measuring future work. That figure is a substantial increase over where things stood in September, when the figure was 45.7.
While that 50.3 score is below the mid-50s showings recorded some three years ago, it is still greatly an improvement over the 29.5 listed in April of 2020 during the first weeks of the Covid 19 outbreak when orders for new architectural projects collapsed.
The current upward trend, noted Kermit Baker, chief economist with the AIA, have left architectural firms “feeling more optimistic about revenue projections for 2025.”
Notes a summary accompanying the index report: firms are generally expecting a revenue stream increase in 2025, with 39% pointing to falling interest rates and a more favorable lending environment as the primary source for their optimism.
Another 37% pointed to a current backlog of projects as the reason why they will have plenty of work next year. Respondents additionally reported that they were receiving a “higher level of inquiries for new projects.”
Done in conjunction with the Deltec Specpoint data services, the Architecture Billings Index also showed the South leading the way in the most recent survey, with a 52.1 positive figure, followed by the West at 47.6; the Midwest at 46.9; and the Northeast at 45.6.
Overall, institutional work is showing the highest billings numbers at 50.5. The commercial/industrial sector came in at exactly 47, followed by residential work at 45.6.
Of those responding firms expecting more work, the optimism was highly fluid, with some 31% expecting business to be up somewhat; 7% anticipating increases of 10% to 24%; and an abundantly confident 2.4% forecasting major work increases of at least 25%, if not more.
November 25, 2024
By Garry Boulard
Photo courtesy of Unsplash
