January 19, 2007
  Year-End Figures Confirm an Upturn in Architecture Firm Business
Firms report considerable variation in profitability of projects
AIA Chief Economist Kermit Baker, PhD, Hon. AIA, reports that billings at architecture firms showed their strongest growth in a year and a half in December after seasonal adjustments, reflecting continued strength in the nonresidential sector, as well as mild weather patterns that may have pushed projects along at a faster pace. The AIA’s Architecture Billings Index rose to 59.5 in December, up from 57.4 in November. Inquiries for new work eased off from the past several months, indicating that billings are likely to slip a bit as we enter 2007. Independent of general business conditions, however, architecture firms find that there can be considerable variation in the profitability of individual projects.

kiplinger connection
The Economy • Human Resources• The World
The Economy: Growth in the West, but overall expect firms to spend less on buildings this year.
Human Resources: Health insurance and sick leave are undergoing close regulatory scrutiny.
The World: Oil prices are down, but winter’s not over, and expect OPEC to play it tough.

 

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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.