New Architects’ Index Reveals Unprecedented Boom

The latest Architecture Billings Index released by the Washington-based American Institute of Architects shows new business prospects remaining historically strong at 57.1 as of last month.

The report, with any reading above 50 indicating an increase in a firm’s billings, represents an ongoing spring and summer buoyancy in the industry since the end of the Covid-19 lockdown.

In a statement, Kermit Baker, chief economist with the AIA, noted that “with the current pace of billings growth near the highest levels ever seen in the history of the index, we’re expecting a sharp upturn in nonresidential building activity later this year and into 2022.”

The same index for June of last year showed new billings at only 40.0.

The index reading indicates that billings have been particularly strong in the Midwest and West, at 62.0 and 59.7 respectively. Last year at this same time, billings for the two regions stood at 36.8.

Billings were marginally lower in the South in June at 57.3 and significantly lower in the Northeast at 53.2, compared to 12 months ago when the South stood at 35.9 and the Midwest recorded a 34.2 average.

The commercial and industrial sectors led the most recent numbers at 61.0, followed by multi-family residential at 57.9; and institutional billings at 57.3.

As with the nation’s construction industry, however, architectural firms are reporting concerns regarding employee levels. “Nearly six in ten firms report that they are having problems filling open architectural staff positions,” noted Baker.

​By Garry Boulard

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