Architecture Profession Generally Reporting Improvement

 

Firms in all regions reported billings near or above the 50 level, signifying that the improvement in design activity is broad-based in each region.
Courtesy of AIA

Billings for residential and commercial/industrial firms are growing, so improvement is occurring across multiple construction sectors, according to Kermit Baker, Hon. AIA Chief Economist. A relatively weak job market has limited economic growth.

Without stronger growth, the need for new nonresidential facilities is limited. Banks remain concerned about their real estate lending portfolio, so obtaining financing for most nonresidential projects is still a challenge.

Still, most segments of the profession are reporting at least modest improvement since the fourth quarter of last year, indicating momentum for a continued recovery in design activity.

Regionally, firms in the Midwest have reported billings growth each month since last September. Firms in the Northeast and South have reported a mix of months with modest growth and months of modest declines over the past two quarters.

Firms in the West have reported steady declines over this period, but this trend may finally be reversing. Firms in this region reported an increase in billings in March, the first monthly increase since August 2007.

According to a small firm in the West the future looks promising. Lots of inquiries, but people are hesitant to sign contracts for the work.

– Courtesy of AIA