After a three-month streak of positive growth, the Architecture Billings Index revealed a small dip in the demand for design services. The ABI score slid down from 54.3 in September to 51.6 in October (any score above 50 indicates an increase). AIA Chief Economist Kermit Baker said that the tumultous political climate—read Government Shutdown—contributed to the drop in activity last month.
At its annual fall meeting (this year in Chicago), the real estate research non-profit Urban Land Institute released its 2014 trends report Thursday. The verdict of the 1,000 professionals surveyed? Next year we will continue “recovering from the recovery,” in the words of one respondent, following the depths of the 2008 recession.
The architecture business seems to be—slowly—rounding back into form in Southern California. One indicator? A bunch of Requests for Proposals (RFPs) and Requests for Qualifications (RFQs) for major public projects. One of the most significant is the $70 million renovation of the Los Angeles Memorial Coliseum, whose management was taken over by the University of Southern California (USC) this summer. The iconic Parkinson & Parkinson–designed building will undergo long-delayed updates throughout, including improved sight lines, seating, concessions, audio/visual, lighting, restrooms, and much more. The stadium’s last major upgrade came in 1993. The shortlist for the project for now includes Populous, NBBJ, DLR, HNTB, Gensler, and 360 Architecture.
The slow days of the recession are long gone. Recent figures indicate that September was another robust month for the architecture industry. The Architecture Billings Index (ABI) rose from 53.8 in August to 54.3 (any score above 50 indicates an increase in billings). AIA Chief Economist Kermit Baker said that this upswing in the demand for design services is a reflection of the industry’s new and advanced design and business practices. “The prolonged economic downturn that has affected the design and construction industry has actually resulted in the increased productivity levels as reported by architecture firms,” Baker said.
Recent economic figures from the Architecture Billings Index (ABI) revealed that summer finished on a high note with a significant rise in the demand for design services. The ABI score for the month of August jumped more than a full point from July climbing up to 53.8 from 52.7 (any score above 50 indicates positive growth). AIA Chief Economist, Kermit Baker, sees positive growth for the industry, but remains cautious about the future. “As business conditions at architecture firms have improved eleven out of the past twelve months, it is fair to say that the design professions are in a recovery mode,” Baker said. “This upturn signals an impending turnaround in nonresidential construction activity, but a key component to maintaining this momentum is the ability of businesses to obtain financing for real estate projects, and for a resolution to the federal government budget and debt ceiling impasse.”
Summer isn’t slowing the demand for design services, according to the AIA’s latest economic figures. In fact, numbers are on the rise. The AIA’s Architecture Billings Index (ABI) for July increased more than a full point spike in non-residential construction activity from June’s ABI score of 51.6 to 52.7 (any score above 50 indicates positive growth). Most notably, the new projects inquiry index produced positive results with a substantial increase from 62.6 the previous month to 66.7 in July.
Numbers are staying strong. AIA’s Architecture Billing Index for the month of June has revealed steady, but positive growth. The June ABI score of 51.6 reflected only a slight drop from May’s score of 52.9, and still indicates a general upswing for the non-residential construction industry. More projects will likely be on the horizon. The new projects inquiry index reported a significant climb in numbers to 62.6 from 59.1 the previous month.
At the AIA’s National Convention in Denver, held from June 19–22, AN’s Emily Hooper sat down with Spanish architect Francisco Mangado, who was in attendance to receive an honorary fellowship. Mangado discussed foreboding amendments to Spain’s law of professional services that would allow engineers, or anyone deemed “competent” in construction, to design and erect buildings across the nation. The law was introduced at a council meeting of Government Ministers in April of 2013, and a final pass-or-fail decision will be reached by the end of this year. Read More
Underscoring the fragility of the economic recovery, the April AIA’s Architecture Billings Index dipped into negative territory for the first time in nine months. The slump to 48.6 was significant, down from 51.9 in March (any score above 50 indicates positive growth).
“Project approval delays are having an adverse effect on the design and construction industry, but again and again we are hearing that it is extremely difficult to obtain financing to move forward on real estate projects,” said AIA Chief Economist, Kermit Baker, in a statement. “There are other challenges that have prevented a broader recovery that we will examine in the coming months if this negative trajectory continues. However, given that inquiries for new projects continue to be strong, we’re hopeful that this is just a short-term dip.”
Over the past few months the Architecture Billings Index has shown the strongest growth in the demand for design services since 2007 and once again reports an incrementally strengthened score of 54.9 for February, a slight increase from a 54.2 in January (and a 51.2 in December). All four regions scored above 50, an indicator of positive growth. The Northeast performed the best at 56.7, the West and the Midwest tied at 54.7, and the South finished with a 52.7.
Triggering Reality: New Conditions for Art and Architecture in the Netherlands
Centro per l’arte contemporanea Luigi Pecci, Prato, Italy
Curated by Giampiero Sanguigni with the collaboration of Marco Brizzi
The economic crisis may be a global phenomenon, but in the Netherlands it has shown its effects in full swing. During the ’80s and ’90s, Dutch architects and artists benefited from generous public funding supporting architecture and the arts. Nowadays, they face the same shortages as their European counterparts. Yet, history teaches that in the face of a recession, architecture shrinks; it hides by borrowing from other disciplines: sculpture, decorative, and performative arts.
Triggering Reality displays the work of young (and not-so-young) professionals, whose works range from decorative pieces of urban sculpture like Atelier Van Lieshout’s made-from-recycled-material cow, to small and ephemeral vanishing pieces of architecture like Dus Architects’ bubble building.
History also teaches that crisis can sharpen a person’s wits, and architects sometimes grow their works within existing structures. The work by Krijn De Koning, for example, consists of small reinventions of interiors. Overall an example of how even now, with less money, the Netherlands can build architectural examples to reflect upon.