August 24, 2007
  July Upturn Adds to Solid Summer Performance at Architecture Firms
Emerging credit market problems form dark cloud over evolving merger and acquisition activity at firms
AIA Chief Economist Kermit Baker, PhD, Hon. AIA, tells us that despite continued problems in credit markets, design work at architecture firms continues apace at near record levels. The gains in billings in July were matched by an upturn in inquiries for future work, indicating that design firms should see solid workloads for the next several months. However, the July numbers don’t reflect emerging concerns in credit markets that may yet threaten nonresidential design and construction activity. Until these problems are resolved, architecture firms would be well-served to monitor the financing status of projects very closely. Additionally, the recent interest in merger and acquisition (M&A) activity that has hit design firms is largely driven by the desire to open new markets for future growth.

kiplinger connection
The Economy • Jobs and Workers • World Business
The Economy: Loans for smalls ok; for the Fed, timing will be tricky.
Human Resources: Immigration rules will drive up construction cost.
The World: U.S. oil dependence shifting from Mideast to Africa.

The 2008 AAF Calendars Are Here
That perennial favorite—the American Architectural Foundation’s desktop calendar featuring more than 50 award-winning entries from the AIA St. Louis annual photo contest—is now available from the AIA Bookstore. The beautiful weekly calendar makes a great gift for architecturally inclined friends, employees, and coworkers. The AIA Store sold out very early last year, so order soon! AIA members, $12.60/retail, $13.99. Bulk orders of 25 or more receive a 30-percent discount ($9.79 per copy). To order, visit the AIA Store online, e-mail bookstore@aia.org, or call 800-242-3837, option #4. (Bulk orders by phone or e-mail only, please!)

  

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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.