The Architecture Billings Index (ABI) returned to positive territory after a slight dip in August, and has seen growth in six of the nine months of the year so far. As a leading economic indicator of construction activity, the ABI reflects the approximate nine to twelve month lead time between architecture billings and construction spending. The American Institute of Architects (AIA) reported the September ABI score was 53.7, up from a mark of 49.1 in August. This score reflects an increase in design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 61.0, down from a reading of 61.8 the previous month.
Buoyed by sustained demand for apartments and condominiums, coupled with state and local governments moving ahead with delayed public projects, the Architecture Billings Index (ABI) has been positive for seven consecutive months.
Earlier this month, AGC Building Division Director Sylvester Giustino joined industry stakeholders from across the country at Building Innovation 2015: The National Institute of Building Sciences Third Annual Conference & Expo. The theme of the Conference & Expo was “Creating High-Performing Resilient Communities”. The Institute presented a four-day informative agenda that highlighted its activities and programs for developing innovative solutions to improving resiliency for communities in the event of a disruptive event.
Eighty percent of construction firms plan to expand their payrolls in 2015 while only 7 percent expect to reduce headcounts according to survey results released today by the Associated General Contractors of America. The survey, conducted as part of Ready to Hire Again: The 2015 Construction Industry Hiring and Business Outlook, indicates that most contractors are optimistic about the year ahead and ready to expand, but will have to cope with challenges including worker shortages and regulatory burdens.
An archive of each session of AGC’s recent two-part webinar on Understanding the Davis-Bacon Act and the New Federal Contractor Minimum Wage Law is now available for purchase and immediate viewing from AGC’s online bookstore. Visit http://store.agc.org/ and search for product codes WB294 and WB295. Be sure to login to see member pricing.
The chief executive officer of the Associated General Contractors of America, Stephen E. Sandherr, issued the following statement in response to today's announcement of new Build America Investment Initiatives By President Obama:
"The new Build America Investment initiatives outlined by the Obama administration today will help boost our economy and help rebuild aging infrastructure. The steps being taken by the administration should make it easier for state and local officials to finance a wide variety of projects designed to upgrade aging clean water systems, improve power transmission networks and keep our roads and bridges safe."
Construction employers added 48,000 jobs in December and 290,000 for the year, the largest annual increase since 2005, as the sector's unemployment rate fell to 8.3 percent, according to an analysis by AGC of America.
Last month, AGC Building Division leaders provided their expertise and insights at the Construction Owners Association of America (COAA) Fall Owners Leadership Conference in Nashville, Tennessee.
For contractors, the challenges that emerge due to the uncertainty and imperfection inherent in a complex construction project become evident during the construction phase. More than any other stakeholder, contractors need to be able to effectively manage uncertainty.
Headed by the continued strength in the multi-family residential market and the emerging growth for institutional projects, demand for design services continues to be healthy as exhibited in the latest Architecture Billings Index (ABI). As a leading economic indicator of construction activity, the ABI reflects the approximate nine to twelve month lead time between architecture billings and construction spending.