Attention: You are using an outdated browser, device or you do not have the latest version of JavaScript downloaded and so this website may not work as expected. Please download the latest software or switch device to avoid further issues.

News > Advancing Architecture and Design > Architecture Billings Continue to Soften

Architecture Billings Continue to Soften

Image Courtesy of AIA
Image Courtesy of AIA

Today, March’s ABI was released. The AIA/Deltek Architectural Billings Index (ABI) March score declined to 43.6. This marked the 14th consecutive month of declining billings at firms as inflation, supply chain issues, and other economic challenges continue to affect business.

Key Highlights:

  •  46% of responding firm leaders reported negotiating design fees for projects is more challenging now than 4-5 years ago.
  •  Billings decline at firms in all regions of the country

The ABI is one of the most valuable products that AIA provides its members and the industry. Several years ago when the City of Philadelphia was presenting to financial investors (municipal bond folks), they invited AIA Philadelphia to present on the ABI as an indication of real estate development health in our city.  

If you don’t know or don’t follow the ABI, it is derived from AIA’s Work-on-the-Boards survey, which has gathered data on shifts in billings from architectural firm leaders for over 20 years. This data is a trusted tool used by the design and construction industry and other firms to predict and track movements in the market.

Investment groups like Wells Fargo, media outlets, firms of all sizes, and business leaders rely on the ABI to assess business conditions and predict and track the market.

Use the ABI to support budgeting and demand planning, benchmark portfolio performance, inform strategic planning, and assess and predict business decisions.

Click here to learn more about the ABI.

Ok, but how are Philadelphia firms doing? 

Anecdotally, we are hearing about layoffs from firm owners and individuals, but not sure the extent of the trend.

We are also hearing, consistent with the AIA National report, that firms have about 6 months of work in the pipeline, but anxious about securing beyond that. To give more accurate information specific to our region, below is an anonymous survey for firm owners to respond -- it's 3 questions.  We will publish the events once we have 50 respondents.

If there is anything AIA can do to help you and/or your firm navigate this uncertain economy, please reach out to staff or a board member today. 

Similar stories

Most read

Paschalville Library Exterior Rendering - Philadelphia, PA

Improvements create a safe, accessible and reimagined inviting place for community residents of all ages More...

Image by PA Senate Democrats, Caucus Communications

CBP Architects was delighted to attend the groundbreaking for Rev. James Moore Senior Triangle Village More...

This website is powered by
ToucanTech