Architecture Firms Report Modest Billings Increase in March, According to AIA
The American Institute of Architects (AIA) recently released its report for March 2023, which shows that architecture firms saw a slight improvement in billings. Although this is positive news, the report also noted a decrease in new design contracts. It’s the first time since September 2022 that billings have improved.
The billings score increased from 48.0 in February to 50.4 in March, indicating an increase in firm billings. However, new project inquiries grew at a slower pace, and the value of new design contracts declined from 51.3 in February to 48.9 in March.
According to AIA Chief Economist Kermit Baker, Hon. AIA, PhD, “core concerns remain” despite the positive movement in architecture firm billings. Inflation needs to ease further for interest rates to return to more normal levels, and banking turmoil continues to hold back residential and commercial construction loans.
Here are some key highlights from the report:
Regional averages: Midwest (51.4); Northeast (49.1); South (47.4); West (47.2) Sector index breakdown: mixed practice (firms that do not have at least half of their billings in any one other category) (53.9); institutional (48.8); commercial/industrial (49.7); multi-family residential (44.2) The regional and sector categories are calculated as three-month moving averages and may not always average out to the national score.
For more information about the report and past AIA reports, visit AIA’s website. Download ABI March 2023 (PDF)
AIA, founded in 1857, works to create more valuable, healthy, secure, and sustainable buildings, neighborhoods, and communities. They advocate for public policies that promote economic vitality and public wellbeing. Deltek, the leading global provider of enterprise software and information solutions for project-based businesses and the home of AIA MasterSpec®, helps A&E firms of all sizes achieve performance that maximizes productivity and revenue.
Source: www.aia.org with additional information added by Apazone