Architecture Firms Face 20th Consecutive Month of Declining Billings in September

by | Oct 23, 2024 | News

Declining Billings

WASHINGTON – October 23, 2024 – Despite improving conditions in the broader economy, September marked the twentieth consecutive month of declining billings for architecture firms, according to the latest data from the AIA/Deltek Architecture Billings Index (ABI). The ABI score of 45.7 for the month indicates that the majority of firms continued to experience a decline in their billings.

“Despite recent rate cuts by the Federal Reserve, many clients remain on the sidelines with regard to proceeding on planned projects,” said Kermit Baker, PhD, AIA Chief Economist. “And while new project opportunities also emerge, clients are cautious about which to pursue. Fortunately, architecture firms report backlogs of 6.4 months on average, which remain above pre-pandemic levels and are an indication that there is existing work in the pipeline.”

Key ABI highlights for September include:

  • Regional averages: South (49.5); Northeast (46.4); Midwest (45.0); West (42.6)
  • Sector index breakdown: institutional (48.5); mixed practice (firms that do not have at least half of their billings in any one other category) (47.8); commercial/industrial (44.2); multifamily residential (41.7)
  • Project inquiries index: 51.6
  • Design contracts index: 48.3

The regional and sector categories are calculated as three-month moving averages and may not always average out to the national score.

Visit AIA’s website to get more information about the resources available to navigate changing economic conditions.

About AIA
Founded in 1857, AIA consistently works to create more valuable, healthy, secure, and sustainable buildings, neighborhoods, and communities. Through more than 200 international, state, and local chapters, AIA advocates for public policies that promote economic vitality and public well-being.

AIA provides members with tools and resources to assist them in their careers and business as well as engaging civic and government leaders and the public to find solutions to pressing issues facing our communities, institutions, nation, and world. Members adhere to a code of ethics and conduct to ensure the highest professional standards.

About Deltek
Better software means better projects. Deltek is the leading global provider of enterprise software and information solutions for project-based businesses and the home of AIA MasterSpec®. More than 30,000 organizations, including 12,000 Architecture & Engineering firms, rely on Deltek for superior levels of project intelligence, management, and collaboration. Our industry-focused expertise powers project success for A&E firms of all sizes by helping them achieve performance that maximizes productivity and revenue. Learn more at Deltek.