After a Rally in October, Business Conditions at Architecture Firms Decline Slightly
In November, the AIA/Deltek Architecture Billings Index (ABI) dipped slightly, reporting a score of 49.6, but indicating little change from October's score of 50.3 (any score below 50.0 indicates decreasing business conditions). However, the stabilization of billings after nearly two years of decline last month offers some hope for the industry. Though inquiries for new projects continue to rise, suggesting ongoing interest in future work, the persistent decline in newly signed design contracts for the eighth consecutive month indicates that a significant recovery in design activity may still be some time away.
Image courtesy American Institute of Architects/Deltek
“Given the extended weakness in business conditions at architecture firms, increasing firm profitability remains the top concern for 2025, with one-third of firm leaders selecting it as a major issue—the highest since 2017,” said AIA chief economist Kermit Baker. “Negotiating appropriate project fees ranked second, chosen by 21 percent, while 20 percent identified finding new clients and markets or improving business planning and marketing as a top concern, up from 18 percent last year.”
Image courtesy American Institute of Architects/Deltek
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