Builder blog

Current events and commentary regarding the construction industry. Opinions are my own.
Justin Reginato, Ph.D.
  • About
  • Builder Blog
  • Tacos & Tower Cranes
  • In the News
  • For Students

A Look at the AIA Architecture Billings Index, November 2015 Edition

11/19/2015

0 Comments

 
Wow, it's been a full nine months since I last wrote a post. Part of that is due to the fact that I've been super busy. When I'm super busy, that typically means the construction industry is super busy. It doesn't take a genius to recognize that the industry has been white hot in Northern California, particularly the Bay Area, for some time now. How long will the party last? How good is the construction industry in the rest of the country? Let's look at the data, particularly the American Institute of Architects Architecture Billings Index (ABI).  Because it's been a while, here's some background: the ABI records architectural billings on commercial building projects. Any value greater than 50 means that architecture billings are increasing; conversely, any value less than 50 means billings are decreasing. The ABI is a leading indicator of commercial building construction by approximately nine to 12 months.

The composite October ABI figure was 53.1, down from 53.7 in September, but still clearly above the 50 threshold. Not too shabby. Similarly, the new project inquiry index clocked in at 58.5 in October, down from 61.0 in September, a slight downturn but still strongly above 50.

Drilling down, we can look at how things are looking from a regional perspective based on the October 2015 data:
  • Northeast: 49.2 (a big leap up from 43.7 in September but still below 50)
  • South: 56.2 (up from 54.5 in September. The South continues to be strong)
  • Midwest: 52.6 (versus 54.2 in September, a modestly sharp decline but still better than the last time I posted)
  • West: 54.4 (versus 51.7 in September, a strong upward move)

Everywhere seems to be humming along except the Northeast. I'm a little surprised because New York City is supposed to be booming right now. That is a good reminder that these regional values are just that: regional. Please don't apply them directly to cities within those regions.

Sector Averages for October 2015:
  • Multi-family Residential: 52.5 (versus 49.5 in September; this sector has had recent ups and downs, but has really been strong overall for the past couple of years)
  • Commercial/Industrial: 55.1 (versus 50.9 in September, a strong move upward)
  • Mixed Practice: 54.9 (versus 52.6 in September, an nice move upward)
  • Institutional: 51.4 (versus 51.5 in September, basically a wash)

So there you have it: outside of the Northeast, the construction market seems to be very healthy. Based on hiring of students in Sac State's Department of Construction Management, the market is particularly bright in Northern California across most construction industry segments.
0 Comments



Leave a Reply.

    Archives

    January 2024
    October 2023
    August 2023
    July 2023
    May 2023
    April 2023
    March 2023
    February 2023
    January 2023
    November 2022
    October 2022
    September 2022
    July 2022
    June 2022
    May 2022
    April 2022
    March 2022
    February 2022
    December 2021
    November 2021
    October 2021
    September 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021
    March 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    September 2019
    August 2019
    September 2018
    June 2018
    April 2018
    March 2018
    February 2018
    January 2018
    March 2016
    February 2016
    January 2016
    November 2015
    February 2015
    December 2014
    November 2014
    September 2014
    August 2014
    July 2014
    June 2014
    May 2014
    April 2014
    March 2014
    February 2014
    January 2014
    December 2013
    November 2013
    October 2013
    July 2013
    April 2013
    March 2013
    February 2013
    January 2013
    December 2012
    November 2012
    July 2012
    May 2012
    April 2012
    February 2012

    Categories

    All
    Economics
    Real Estate
    Technology

    RSS Feed

Proudly powered by Weebly
  • About
  • Builder Blog
  • Tacos & Tower Cranes
  • In the News
  • For Students