The Architecture Billings Index is up, hitting 52.0 in November, the first positive ground since touching 51 in August (anything over 50 indicates an increase in billings). The roller-coaster volatility of the past few months—we held our breath and skipped reporting September’s down and October’s up—suggests cautious optimism that the index which tracks the approximate nine-month lag time between architecture billings and construction spending is finally in a solid swing upwards.
According to Crain’s New York, the city’s five biggest firms began rehiring last year. Kohn, Pederson Fox, Perkins Eastman, Gensler, HOK, and SOM all began staffing-up, though all five firms pointed to international work as driving much of the growth. “New York started coming out of the recession earlier than the rest of the country, and business is improving, but it’s still uneven,” Bradford Perkins, chairman and chief executive of Perkins Eastman, told the business journal. Perkins Eastman added around 30 architects last year. Nationally, billings have been back in positive territory for the last few months, though results vary substantially by region. And today the AP reported that new home construction is beginning to bounce back. Are you feeling a rebound?
The Architecture Billing Index (ABI) dropped nearly four points in January, but just managed to stay in positive territory with a score of an even 50 (any score below 50 indicates shrinking billings). The new projects enquiry index also fell significantly from 61.6 in December to 56.5 in January, but remained comfortably in positive territory. Even with the fall in the indexes, the AIA believes the overall trend is stable with mild growth.
For the forth month straight, billings for firms in the Midwest are showing the strongest uptick of the four regions tracked by the AIA. And for the first time since the recession, in March billings in the Midwest have moved into positive territory, breaking the 50 mark, making it the first region to do so since the recession began. (Anything below means billings for work are falling, above rising.) In the graph above, the Midwest region is represented in red, the East in blue, the West in green, and the South in orange. According to the numbers, the recovery has arrived. Read More
First Laurie Olin, now Frank Gehry. That was the news earlier this week when the Wall Street Journal reported that the Santa Monica-based architect had laid off “more than two dozen” staffers involved with Bruce Ratner’s Atlantic Yards project. What followed was a string of cheers predicting the troubled Brooklyn mega-development’s demise. After all, how could it go on without its signature architect?
While considering this question, I kept thinking of a comment made by Kermit Baker yesterday, during an interview about the abysmal November billings index. Given what’s going on elsewhere in the industry, the termination of a handful of architects may not signal the doomsday scenario the project’s critics would like, and instead may be one more credit-related payroll pause like many others around the nation: Read More
We’ve been tracking the AIA Architecture Billings Index ever since it took a dive last spring. But what about the rest of the design industry? Well, the American Society of Landscape Architects released its quarterly survey of member firms, and the numbers are no better than their brick-and-mortar friends.
In fact, the numbers are even worse, with only 16 percent of firms experiencing growth in their billings and 43 percent having stable or rising inquiries. Read More
As you already know, things aren’t going so well for architects right now, economically speaking. We got word earlier today that a certain three-letter firm laid off more than 100 employees in recent weeks, and smaller firms have been shedding staff as well. But there is hope yet. Should you be fired, that is.