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U.S. architecture billings index up in October

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U.S. architecture billings index up in October

David McFadden | aia, architects, architecture, architecture jobs, construction, Hiring trends, jobs, recession, starting a business, Uncategorized, unemployed architects | November 16, 2011

October ABI up 2.5 pts to 49.4

* New projects index up 3 pts to 57.3

* AIA says demand for architects’ services volatile

* New projects index up 3 pts to 57.3

* AIA says demand for architects’ services volatile

A leading indicator of U.S. construction activity rebounded in October, the AIA said on Wednesday.

The architecture billings index rose 2.5 points last month to 49.4, according the American Institute of Architects. Any reading below 50 indicates an overall decrease in demand for design services, a predictor of construction spending nine to 12 months in the future.

A separate index of inquiries for future projects rose 3 points to 57.3. That measure is more often above 50 as clients reach out to multiple architecture firms.

October’s rebound was encouraging, but demand for designs remains volatile, the group said. Conditions in various regions range from improving to poor and are likely to continue that way in coming months, the AIA said.

Conditions are strongest in the U.S. Northeast and weakest in the West.

A depressed construction market has been a headwind for manufacturers of construction machinery and components that make up buildings’ infrastructure, such as electrical, cooling and security systems.

Analysts who cover industrial stocks have called the billings index as important an economic indicator as the monthly industrial data from the Institute for Supply Management.

Most diversified industrial companies get at least some revenue from the nonresidential construction sector, which includes office buildings, retail and warehouse space, and institutional buildings such as schools and hospitals.

Companies exposed to the sector include Honeywell International Inc , Tyco International Ltd , Ingersoll Rand , Eaton Corp , Caterpillar Inc , Deere & Co and Terex Corp .

European companies such as Siemens AG , Schneider Electric SA and lock maker Assa Abloy are also significant players in the sector.

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About the author

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.