Interesting take on ABI

An article posted yesterday to The Architect's Newspaper web site posited the notion that the AIA Architecture Billings Index results that show a recent uptick in inquiries might actually be signaling not renewed interest in work, but more competition for what little is available.

Indeed, AIA Chief Economist Kermit Baker points out that the higher level of inquiries could actually be a negative indicator, as it means clients are playing the competitive field against itself for greater savings, driving down prices for architectural work as a result.

Going further, with billings remaining well below their break-even index of 50, the article claims that for the time being, this means that payments are continuing to decline, now for 16 consecutive months. "And, with much of the stimulus spending already underway-- it was credited for the jump earlier this year-- there appears to be little economic activity to further buoy the industry out of the current decline," the article states.

To find out how to use short-term and long-term market trends in the design and construction industries to secure new projects, check out PSMJ's upcoming webinar: A/E/C Industry Trends: How are the trends impacting your firm? on July 14 at 1:30 p.m. Eastern Daylight Time.