by Carly Midgley | November 11, 2016 9:36 am
The results of two surveys—the American Society of Landscape Architects (ASLA) Business Quarterly survey and the American Institute of Architects (AIA) Architecture Billings Index (ABI)—suggest the building industry could be facing a decline.
The ASLA results are based on the responses of 188 primary firm contacts, received between October 3 and October 17. This survey compiles information on statistics such as billable hours, inquiries, and hiring plans to provide an industry overview.
The following results were obtained for the third quarter of 2016:
Although many of these results report significant increases since 2012, it is important to note results have only declined in more recent years.
AIA’s billings, on the other hand, are measured in diffusion indexes, and determined from the results of a monthly survey sent to specific firms owned by association members. This survey inquires as to whether firms’ billings increased, decreased, or remained stable between the month just ending and the month prior to that. Resulting scores indicate an overall increase or decrease in billings, depending on whether the number is higher or lower than 50.
Regional averages and sector index breakdowns are calculated using data from across three months, while all other data is calculated on a monthly basis. The overall ABI provides indications regarding the nine- to 12-month lead time between architecture billings and construction spending.
ABI results for September are as stagnant as those obtained by ASLA. Demand for design services has declined over consecutive months for the first time in four years, as follows:
Both surveys report a decline in industry spending, however slight, across multiple sectors. AIA chief economist Kermit Baker offers a potential explanation for the decline.
“This recent backslide should act as a warning signal,” he says. “But this drop-off in demand could be continued hesitancy in the marketplace to move forward on projects until the presidential election is decided. The fact that new work coming into architecture continues to slowly increase suggests that billings will resume their growth in the coming months.”
Source URL: https://www.constructionspecifier.com/architect-surveys-report-decline-in-billings/
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