Monday, August 24, 2009

AIA: Inquiries are up, but not translating into work

AIA’s Architecture Billings Index (ABI), a/k/a "Work on the Boards," bounced back in July, returning to a level seen in the three months prior to June, 43.1. Since a score of 50.0 indicates a neutral month-to-month change, this score still represents a decline, but a modest one compared to June.

Inquiries continued their positive trend, with a score of 50.3. This is the fifth month in a row where firms reported an increase in month-to-month inquiries for new work. Clearly, though, a significant disconnect is occurring between inquiries and the more important billings.

AIA Chief Economist Kermit Baker explains it this way:
"We are still seing a lot of inquiries out that that in all likelihood are not going to generate billings at firms because there is so much competition in the marketplace."

For more in depth analysis, check out this video with Kermit Baker.

Forward looking clients should get their ducks in a row before they miss an advantage of potentially decreased design and construction prices.

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