September 22, 2006
 


Firms Enjoy a Late Summer Surge
As nonresidential activity heats up, firms report change orders on the rise
Chief Economist Kermit Baker, PhD, Hon. AIA reports that billings at architecture firms rebounded sharply in August after several months of sluggish conditions. The AIA Architectural Billings Index (ABI) for August was 59.5, where any reading above 50 signifies growth in business activity. This reversal was led by very strong activity at commercial/industrial firms, which reported their highest reading in the 11-year history of the ABI at 61.4. Institutional firms reported continued favorable conditions, while residential architects reported their fifth straight month of declining billings. And, as construction activity strengthens, change orders to the specifications of projects often increase. Our Work-on-the-Boards panel also reported increasing change orders recently, as well over a third (37.5 percent) of firms responded that change orders have become a lot more common or somewhat more common in recent years.


Energy • The Economy • Global Politics

Going green: Regs will reward energy and water efficiency, The economy: Cheaper oil eases inflation and interest rates, Materials costs: Steel up short term, easing long-term.

Two Opportunities to Get Your Work Published
Barry D. Yatt, FAIA, professor at The Catholic University of America, is seeking examples of effective pre-design analysis presentations for a textbook, and author Wendy A. Jordan is writing a book for the general public on building and remodeling, and is seeking a range of good-looking accessible accommodations for kitchens, bathrooms, entries, and multi-level spaces.

 
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Welcome to the Business Zone
This is the place for our monthly Work-on-the-Boards survey report, quarterly Housing Trends survey report, and biannual Consensus Forecast, all by AIA Chief Economist Kermit Baker, PhD, Hon. AIA. You’ll also find tips for managing the business side of your practice, as well as the weekly Kiplinger Connection.