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January Shows No Relief on the Business Front for Architecture Firms03-08-10 | News

January Shows No Relief on the Business Front for Architecture Firms






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- Photo Courtesy of American Institute of Architects

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Availability of credit remains a serious problem for construction, with commercial projects and large new facilities drawing the most concern. This affects landscape architecture and contracting firms as the economy continues its slow rebound.

Billings at U.S. architecture firms fell again in January, beginning the third year of continuous decline in revenue at these firms, according to Kermit Baker, PhD, Hon. AIA Chief Economist. The January decline was somewhat steeper than in previous months, as the AIA?EUR??,,????'?????<

Billings were falling at firms in all regions of the country. By sector, firms that concentrate in the residential sector appear to be nearing a bottom in revenue, while commercial/industrial and institutional firms are still reporting declining conditions.






- Photo Courtesy of American Institute of Architects

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The ABI fell almost three points to a level of 42.5 in January, down from a revised 45.4 reading for December and 44.1 in November. Any score below 50 indicates a decline in business activity from the prior month across the architecture profession, so architecture firms still face eroding revenue positions at their firms, with steady declines since January 2008.

Though the pace of decline has moderated somewhat from late 2008 and early 2009 levels, current levels of the ABI are still associated with a fairly significant downturn in design activity.

No region of the country seems poised for an upturn. Scores are the healthiest for firms in the Midwest, reflecting some recent positive trends in the manufacturing sector of the economy. Firms in the Northeast also have seen scores above the national average, likely reflecting improvement in the economic base of this region, including the financial services sector of the economy. ?EUR??,,????'?????<

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