Economy
Architectural Billings Return to Positive Territory in February
Written by Sandy Williams
March 25, 2021
The Architecture Billings Index rose eight points in February to 53.3, returning to positive territory for the first time in a year, said the American Institute of Architects. New inquiries improved last month, climbing above 50 for the first time in almost two years, along with a return to growth in value of new contracts for the first time since February 2020.
“Hopefully, this is the start of a more sustained recovery, however, it is possible that scores continue to bounce above and below 50 for the next few months, as recoveries often move in fits and starts,” said AIA Chief Economist Kermit Baker. “Beyond the encouraging billing data, architecture employment added 700 new positions in January and has now regained 45% of the jobs that were lost since the beginning of the pandemic.”
Firms with a commercial/industrial specialization improved modestly in February. A decline in billings at multifamily residential and institutional firms slowed last month.
ABI highlights for February include (calculated as three-month moving averages):
- Regional averages: South (52.4); West (49.5); Midwest (49.3); Northeast (46.9)
- Sector index breakdown: mixed practice (52.5); commercial/industrial (50.5); multifamily residential (48.3); institutional (47.8)
The finding from one special question in the February survey: Expect 57% of full-time professional staff to work in the office on a daily basis post-pandemic, down from 74% before the crisis.
Comments from Works-on the-Boards participants included:
- “Increase in inquiries and workload for the near term. We hired three staff persons in the last three weeks. The question is whether this is a blip or indicative of a longer-term trend.”—21-person firm in the South, commercial/industrial specialization
- “The market seems to be picking up, but I am concerned that material costs and inflation are going to stall things.”—5-person firm in the Midwest, institutional specialization
- “A lot of proposals out, but clients are slow giving the go ahead.”—44-person firm in the Northeast, residential specialization
- “Conditions are slow. While there is activity, it takes much longer to close a deal, and substantially longer to process through governmental jurisdictions.”—30-person firm in the West, institutional specialization
Sandy Williams
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