Washington, D.C. – October 20, 2010 – For the first time since January 2008, the Architecture Billings Index (ABI) indicated a growth in design activity in September, increasing for the fourth straight month. As a leading economic indicator of construction activity, the ABI reflects the approximate nine to twelve month lag time between architecture billings and construction spending. The American Institute of Architects (AIA) reported the September ABI score was 50.4, up from a reading of 48.2 the previous month. This score reflects an increase in demand for design services (any score above 50 indicates an increase in billings). The new projects inquiry index was also up sharply, moving from 54.6 to 62.3 – the highest mark since July 2007.
“This is certainly encouraging news, but we will need to see consistent improvement over the next few months in order to feel comfortable about the state of the design and construction industry,” said AIA Chief Economist Kermit Baker, PhD, Hon. AIA. “While there has been increasing demand for design services, it is happening at a slow rate and there continue to be other obstacles that are preventing a more accelerated recovery. Still, the strong upturn in design activity in the commercial and industrial sector certainly suggests that this upturn can possibly be sustained.”
Key September ABI highlights:
• Regional averages: Northeast (56.7), Midwest (51.0), South (47.0), West (44.5)
• Sector index breakdown: commercial / industrial (56.3), institutional (47.9), multi-family residential (47.0), mixed practice (44.2)
• Project inquiries index: 62.3
so, stay away from the south and west. i'll vouch for the south. not nearly enough work right now - methinks those respondents were talking about leads out of state.
Better news will be when offices start hiring. I get the feeling that most offices that have seen some increase in work are hesitant to hire, instead opting to make the current employees work longer hours.
thank SOME higher power if this is true. but it will take a LOT to recover what we have lost.
i am a bit confused though because the east coast is supposed to be humming along according to the ABI, but it was still about where it was a year ago when i left the office (this is as of about a month ago now, so i guess things might have changed.) have others in the east/midwest seen an uptick in billables? we were JUST barely over the break even mark when i left, and we had a few bites here and there. but i guess this just means we've hit bottom finally?
I've already seen some new faces in our office over the past two weeks and it is said that we will start hiring a lot more in 2011.
We were just awarded this huge contract through the GSA so things will be crazy for a while. We are about 300 in our office here and everyone is pretty insanely busy which is obviously a good thing. But then again an overwhelming percentage of our projects are related to the federal or state government and in some case international governments.
We been pretty lucky here during the worse of the recession especially with a couple of projects that we were already working on that had just started. It was still pretty scary for a while. Nothing worse than spending two straight years wondering if that day would be the day the axe was going to fall....
This really is good news... From my midwest perspective its still a mixed bag... while some offices are re-hiring laid off employees plus adding new ones, others are slowing down, stagnating, or just now considering layoffs or a reduction in hours. It seems, generically, offices with international presence are beginning to rebound... Projects in some European and Middle Eastern countries are being taken off hold, and China really never stopped building other than a short period. But that struck me as really a self induced slow down, so clients could get a sense of just HOW cheap could they get western architects to work...
I think it will be awhile before the West recovers. California might be one of the last to see any growth. Meanwhile the smaller, neighboring states suffer the wrath of out-of-state office poaching. You know it's bad when the largest office in town is doing ADA improvement gigs to stay afloat.
In DC, firms like Gensler, HOK, P+W, Little, Perkins Eastman, Jacobs, and several others are slowly starting to hire. Other firms have hired some of their previously laid-off staff back like Shalom Barnes, Torti Gallas, etc.
Not sure what Smithgroup, RTKL, Kling, and SOM are up to in DC....Haven't heard a peep from them in quite sometime.
Like le bossman, our office is also in Chicago as well, and though we arent 'swamped' just yet, were about to be... we've been hiring consistently for a couple months now
Lletdownl, would you be kind enough to give a clue or nudge to what office you might be working for in Chi? Is it a big corp. office, medium or small? What part of the city? I agree with Prairie, this sure sounds hopeful.
theres a link to my office in my bio... its medium sized office... were downtown, with mostly international work...
like i mentioned above, i get the sense that its the offices with international presence which are starting to rebound... thats just from what i hear however, i dont have intimate knowledge of the billings for chicago's major offices...
I actually know one of your vp's, but from helmut's website I wouldn't know how to get in touch with him, also a bunch of other people from college, but the last time I asked them they said there is not work there, that was about a year ago. Is Murphy Jahn, working in Revit yet?
good to hear that some companies are hiring again, I'm not even 35 yet, but thanks for calling me Sir, lletdownl, you made feel about 20 years older, just messing, well if you guys need some lunch and learns on revit, let me know, i went through several nightmarish projects where I learned a ton.
Oct 23, 10 3:36 am ·
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aia billing index up for the first time in 2 years
Washington, D.C. – October 20, 2010 – For the first time since January 2008, the Architecture Billings Index (ABI) indicated a growth in design activity in September, increasing for the fourth straight month. As a leading economic indicator of construction activity, the ABI reflects the approximate nine to twelve month lag time between architecture billings and construction spending. The American Institute of Architects (AIA) reported the September ABI score was 50.4, up from a reading of 48.2 the previous month. This score reflects an increase in demand for design services (any score above 50 indicates an increase in billings). The new projects inquiry index was also up sharply, moving from 54.6 to 62.3 – the highest mark since July 2007.
“This is certainly encouraging news, but we will need to see consistent improvement over the next few months in order to feel comfortable about the state of the design and construction industry,” said AIA Chief Economist Kermit Baker, PhD, Hon. AIA. “While there has been increasing demand for design services, it is happening at a slow rate and there continue to be other obstacles that are preventing a more accelerated recovery. Still, the strong upturn in design activity in the commercial and industrial sector certainly suggests that this upturn can possibly be sustained.”
Key September ABI highlights:
• Regional averages: Northeast (56.7), Midwest (51.0), South (47.0), West (44.5)
• Sector index breakdown: commercial / industrial (56.3), institutional (47.9), multi-family residential (47.0), mixed practice (44.2)
• Project inquiries index: 62.3
so, stay away from the south and west. i'll vouch for the south. not nearly enough work right now - methinks those respondents were talking about leads out of state.
I can vouch for the West. Nothing going on here.
Better news will be when offices start hiring. I get the feeling that most offices that have seen some increase in work are hesitant to hire, instead opting to make the current employees work longer hours.
thank SOME higher power if this is true. but it will take a LOT to recover what we have lost.
i am a bit confused though because the east coast is supposed to be humming along according to the ABI, but it was still about where it was a year ago when i left the office (this is as of about a month ago now, so i guess things might have changed.) have others in the east/midwest seen an uptick in billables? we were JUST barely over the break even mark when i left, and we had a few bites here and there. but i guess this just means we've hit bottom finally?
I've already seen some new faces in our office over the past two weeks and it is said that we will start hiring a lot more in 2011.
We were just awarded this huge contract through the GSA so things will be crazy for a while. We are about 300 in our office here and everyone is pretty insanely busy which is obviously a good thing. But then again an overwhelming percentage of our projects are related to the federal or state government and in some case international governments.
We been pretty lucky here during the worse of the recession especially with a couple of projects that we were already working on that had just started. It was still pretty scary for a while. Nothing worse than spending two straight years wondering if that day would be the day the axe was going to fall....
what region are you in med?
Washington DC
This really is good news... From my midwest perspective its still a mixed bag... while some offices are re-hiring laid off employees plus adding new ones, others are slowing down, stagnating, or just now considering layoffs or a reduction in hours. It seems, generically, offices with international presence are beginning to rebound... Projects in some European and Middle Eastern countries are being taken off hold, and China really never stopped building other than a short period. But that struck me as really a self induced slow down, so clients could get a sense of just HOW cheap could they get western architects to work...
my office is totally swamped. we are in chicago.
Were in a swamp and bailing water just to keep afloat. This quarter is going to really suck...big time!
I think it will be awhile before the West recovers. California might be one of the last to see any growth. Meanwhile the smaller, neighboring states suffer the wrath of out-of-state office poaching. You know it's bad when the largest office in town is doing ADA improvement gigs to stay afloat.
Hey le bossman, are you guys looking to hire anytime soon?
In DC, firms like Gensler, HOK, P+W, Little, Perkins Eastman, Jacobs, and several others are slowly starting to hire. Other firms have hired some of their previously laid-off staff back like Shalom Barnes, Torti Gallas, etc.
Not sure what Smithgroup, RTKL, Kling, and SOM are up to in DC....Haven't heard a peep from them in quite sometime.
Like le bossman, our office is also in Chicago as well, and though we arent 'swamped' just yet, were about to be... we've been hiring consistently for a couple months now
i am super excited to finally hear something that's starting to sound like good news. especially that firms in *chicago* are getting busy...
it would be good to know who's busy/might be hiring or even what types of projects are coming in...
(though trying to not get my hopes up too much)
Lletdownl, would you be kind enough to give a clue or nudge to what office you might be working for in Chi? Is it a big corp. office, medium or small? What part of the city? I agree with Prairie, this sure sounds hopeful.
theres a link to my office in my bio... its medium sized office... were downtown, with mostly international work...
like i mentioned above, i get the sense that its the offices with international presence which are starting to rebound... thats just from what i hear however, i dont have intimate knowledge of the billings for chicago's major offices...
im in chicago and so far no one will hire this expert. lletdownl, let me know if your office needs someone who can put a building together. congrats
prepare for the onslaught of resumes!
haha... i hope not... im not nearly high enough up the ranks to get any of you jobs
I actually know one of your vp's, but from helmut's website I wouldn't know how to get in touch with him, also a bunch of other people from college, but the last time I asked them they said there is not work there, that was about a year ago. Is Murphy Jahn, working in Revit yet?
No sir, we are not, though we are slowly starting to pick it up...
we just hired two people, not including myself. i doubt we'll hire again before the end of the year.
That's good to hear, bossman. There's work out there. It ain't great but there's something to pay the bills with.
letdown,
Does John DuBrow still work there?
He used to run Helmut's studio at IIT. (Helmut wouldn't show up very much.)
No, hes been gone quite a while...actually had him as a Prof at IIT a couple years back as well
nothing could be worse than last year...
good to hear that some companies are hiring again, I'm not even 35 yet, but thanks for calling me Sir, lletdownl, you made feel about 20 years older, just messing, well if you guys need some lunch and learns on revit, let me know, i went through several nightmarish projects where I learned a ton.
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