Fluctuating billings: How to come out on top

While the latest Architectural Billings Index (ABI) score of 50.3 represents billings evening out after almost two years of deceleration, it’s still not a bad idea to take some time to strengthen your business foundations and explore promising new sectors. AIA has a plethora of tools and resources that help to shine light on key areas where architecture firms can focus to adapt and prepare for future growth. Here are a few to consider as you plan for the next year and beyond.  

Look for sectors of growth. AIA's Consensus Construction Forecast has noted institutional building sectors as having the most opportunity for 2025. This is a strength area for architects, given it comprised 55% of architecture firm billings in 2023, reported in AIA’s 2024 Business of Architecture firm survey report. 

Expand existing building work. More architecture firm billings are coming from existing building projects, according to AIA's 2024 Business of Architecture firm survey report. Existing building work not only helps the environment, but maintains longer-term client relationships. 

Work with clients to increase prosperity. Maintain client relationships through regular feedback—only 40% of architecture firms regularly survey clients to assess satisfaction, a practice associated with improved client retention.

Examine fee structures. Architecture firms find varying success through ways they structure fees. Most popular among firms are hourly wage and stipulated sum, with both low-risk structures. Corporate business and commercial clients tend to be most profitable. Find more information here. 

Invest in sustainability. Some architecture firms are readying themselves—56% of firms employed at least one staff member with sustainability credentials in 2023, according to AIA's firm survey report, and larger firms often had entire teams dedicated to this expertise. For small and midsize firms, incorporating sustainable design services can provide an edge as demand for environmentally responsible projects grows. Adding certifications like LEED and WELL for staff or exploring partnerships with sustainability consultants are tangible steps to meet this demand and build resilience.

Build a more resilient firm. By having a business continuity plan, firms can ensure they keep operating during disruptions. Today, over 60% of large firms and 30% of midsize firms have implemented continuity plans, often including communication protocols, project data inventories, and redundancy measures. Smaller firms could benefit from adopting or refining these practices, which can mitigate risks associated with economic downturns or disruptions.

Embrace technology to improve efficiency. One-third of firms of all sizes reported using AI in day-to-day work at their firm, according to this year's AIA firm survey report. If your firm isn't currently using AI, it's an area ripe for opportunity to increase operational efficiency. A fifth of respondents to this year's Architects' Journey to Specification report expect to use AI for product research and specification in the future. Ready your team to compete more effectively. 

In sum, there are plenty of measures you can take now to ensure your firm's continued resilience in the face of shifting market headwinds. 

For more resources, bookmark AIA's Resource Center for the latest insights and research.