For the first time in twenty months, the AIA's Architecture Billings Index moved above 50, which indicates that billings increased in October. While the increase is minimal, it is a good sign that things continue to moderate. I'm sure there will be some more volatility to come, but this hopefully starts to translate into more work for your firms.
This is definitely something to be thankful for as we move into Thanksgiving Week in the US. I hope you are able to enjoy some quality time with friends and family.
October Billings Index Goes Green!
The October AIA Billings Index rose to 50.3, which is essentially flat, but also represents a very slight growth in firm billings across the country. New design contracts fell, but project inquiries grew. These are mixed messages so we will probably see some volatility in the coming months, but hopefully, this is a good sign for an improving trend.
The commentary this month discusses how firm employment continues to decline, but also how firms are increasingly optimistic about 2025 revenue.
October: 50.3, September: 45.7, August: 45.7, July: 48.2, June: 46.4, May: 42.4
ABI October 2024: Business conditions at architecture firms begin to moderate
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Material Costs Higher in October
The Associated Builders and Contractors reported that construction costs were about 0.3% higher in October, but costs remain about 0.2% lower than this time last year. Most of the increase is related to higher energy prices.
Of course, everyone is concerned about new tariff policies that may be put in place by the Trump administration. Regardless, general anxiety about an administration change may weigh on prices.
It may be a good time to recommend client buy materials if they are able.
ABC: Energy Prices Drive Construction Materials Costs 0.3% Higher in October
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2024 NOMA Conference Report
The Architect's Newspaper reports on the 2024 National Organization of Minority Architects annual conference. While improvements continue to be made, the organization continues to urge firms to do more. One specific issue brought up in the article is that many minority architects feel like they can't make mistakes as they transition into leadership roles. It is clearly not possible to be perfect the first time managing a project or team, regardless of scale.
At NOMA’s annual conference equity issues in the profession remain top of mind
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What it is Like to be an Architect in China
I've watched plenty of videos of China construction projects going up in a matter of days instead of years. It is hard to believe that there is much care taken to maintain design requirements. Vector architects is a firm trying to change the industry.
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When to Start Hiring?
As we said earlier, it looks like the economic trends are moderating for architecture firms. If you are trying to decide when (or if) you should start hiring, this article from Architect offers some considerations.
When Should Architecture Firms Start Hiring? Five Factors To Consider
