Work-on-the-Boards
 Architecture Firm Billings Remain Relatively Weak
Project Backlogs at Firms Shrink to 3.9 Months
Despite recording the highest inquiries score in two years, the Architecture
Billings Index remains mired in the low 40s, with a score of 43.1 reported in
September. Architecture firm billings have been in this vicinity for six of the
last seven months, and have not yet shown any clear signs of approaching 50,
and an increase in billings. Business conditions remain quite poor for many firms,
with increasing numbers indicating nonexistent project backlogs and insufficient
billable hours for current staff. Inquiries scores are still rising, but this
continues to be triggered by the increased competition for projects, rather than
actual increases in project activity. 
Collections Without Counterclaims
Effective management of the process can forestall future problems
With more clients facing financial problems, managing collections more diligently
has become a necessity. The impact of not getting paid is significant. Depending
on a firm’s profit margin, writing off a $100,000 receivable is the equivalent
of giving up $1 million to $1.5 million in gross fees—not something many
firms can afford when revenues are declining.
kiplinger
connection
Economic Stimulus • U.S. Economy • Energy
Economic Stimulus: Slow spending
on infrastructure colors perception of success
U.S. Economy: Companies move from
centralized to regional centers
Energy: Prices to moderate if supplies
aren’t disrupted. |
