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ABI December 2022: Architecture firm billings end the year on a soft note

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ABI December 2022: Architecture firm billings end the year on a soft note

David McFadden | Architects Billing Index | February 07, 2023

Four in ten firm leaders report seeing an increase in delayed projects at their firm

Architecture firms reported ongoing softness in business conditions to close out 2022, as firm billings declined for the third consecutive month in December. However, the ABI score of 47.5 significantly delayed projects at their firm has been increasing over the last six months, while 30% reported that the share of indefinitely stalled projects has been increasing, and 21% indicated that the share of canceled projects has been increasing.

Overall, firms reported that an average of 13% of the projects at their firm over the past six months have been significantly delayed, 6% have been indefinitely stalled, and 3% have been canceled. Firms with a multifamily residential specialization have been most significantly impacted, as they reported that an average of 18% of their projects have been significantly delayed, in contrast to 15% of projects at firms with a commercial/industrial specialization and 9% of projects at firms with an institutional specialization. Firms located in the Northeast and West regions also reported a higher share of significantly delayed projects than firms in other regions.

Originally published by the AIA.

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After working at various design practices on a full-time and freelance basis and starting his design firm, David McFadden saw a gap in the industry. In 1984, he created an expansive hub for architects and hiring firms to sync up, complete projects, and mutually benefit. That hub was Consulting For Architects Inc., which enabled architects to find meaningful design work while freeing hiring firms from tedious hiring-firing cycles. This departure from the traditional, more rigid style of employer-employee relations was just what the industry needed – flexibility and adaption to current work circumstances. David has successfully advised his clients and staff through the trials and tribulations of four recessions – the early ’80s, early ’90s, early 2000s, the Great Recession, and the pandemic.