Cautious optimism: Architecture billings moderate after nearly two years of monthly declines

WASHINGTON – November 20, 2024 – After twenty months of declining billings, the AIA/Deltek Architecture Billings Index (ABI) score for October was 50.3. This score indicates a balance between the number of firms experiencing a decrease in billings and those seeing an increase.

Although there was an increase in inquiries for new projects in October, clients are still cautious about moving forward. The value of new design contracts continued to decline for the seventh month in a row.

“Billings finally stabilized this month, and firms are feeling more optimistic about revenue projections for 2025,” said AIA Chief Economist, Kermit Baker, Hon. AIA, PhD. “Overall, 41 percent of responding firm leaders expect to see net revenue growth from 2024 to 2025, with 32 percent projecting growth in the 5 percent to 9 percent range.”

Key ABI highlights for October include:
•    Regional averages: South (52.1); West (47.6); Midwest (46.9); Northeast (45.6)
•    Sector index breakdown: institutional (50.5); mixed practice (firms that do not have at least half of their billings in any one other category) (48.0); commercial/industrial (47.0); multifamily residential (45.6)
•    Project inquiries index: 54.1
•    Design contracts index: 45.3

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 for detailed information about this, and past billing index reports.

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.