U.S. Architecture Billings Index falls in January

Cautious optimism for design industry: January ABI 50.0, down 3.9 pts, new projects index falls 5 pts to 56.5.

02/24/2011


A leading indicator of U.S. nonresidential construction activity weakened last month after two months of improving numbers, an architects' trade group said on Wednesday. AIA LogoThe monthly Architecture Billings Index fell almost 4 points in January to 50.0, a level that indicates neither expansion nor contraction of demand for design services, the American Institute of Architects said.

The billings index is considered a predictor of construction spending about nine to 12 months in the future, since buildings are designed long before they are erected. The latest readings suggest an anticipated recovery in U.S. nonresidential construction may not gain traction this year. A separate index of inquiries for new projects fell more than five points to 56.5, according to the AIA.

"This slowdown is indicative of what is likely to be a very gradual improvement in business conditions at architecture firms for the better part of this year," said AIA chief economist Kermit Baker. "We've been taking a cautiously optimistic approach for the last several months and there is no reason at this point to change that outlook."

The AIA's billings index dropped below 50 in January 2008, indicating falling demand, and stayed below that mark until last November. The separate inquiries index only fell below 50 briefly in 2008. It is typically higher than the billings index, as prospective customers solicit bids from multiple architecture firms.

Most diversified industrial companies get at least some revenue from nonresidential construction, selling machinery used for erecting buildings or components such as elevators or electrical and cooling systems.

A partial list of those in the US sector include:

  • Caterpillar Inc (CAT.N)
  • Deere & Co (DE.N)
  • Eaton (ETN.N)
  • Honeywell International Inc (HON.N)
  • Johnson Controls Inc. (JCI.N)
  • Terex Corp (TEX.N)
  • Tyco International Ltd (TYC.N)

As well as several in the European sector:

- Edited by Gust Gianos, Consulting-Specifying Engineer, www.csemag.com



Product of the Year
Consulting-Specifying Engineer's Product of the Year (POY) contest is the premier award for new products in the HVAC, fire, electrical, and...
40 Under Forty: Get Recognized
Consulting-Specifying Engineer magazine is dedicated to encouraging and recognizing the most talented young individuals...
MEP Giants Program
The MEP Giants program lists the top mechanical, electrical, plumbing, and fire protection engineering firms in the United States.
September 2018
Power boiler control, Product of the Year, power generation,and integration and interoperability
August 2018
MEP Giants, lighting designs, circuit protection, ventilation systems, and more
July 2018
Integrating electrical and HVAC systems, emerging trends in fire, life safety, ASHRAE 90.4
Data Centers: Impacts of Climate and Cooling Technology
This course focuses on climate analysis, appropriateness of cooling system selection, and combining cooling systems.
Safety First: Arc Flash 101
This course will help identify and reveal electrical hazards and identify the solutions to implementing and maintaining a safe work environment.
Critical Power: Hospital Electrical Systems
This course explains how maintaining power and communication systems through emergency power-generation systems is critical.
Data Center Design
Data centers, data closets, edge and cloud computing, co-location facilities, and similar topics are among the fastest-changing in the industry.
click me