Jeff McDonald//December 19, 2013//
The national Architecture Billings Index in November showed contraction in demand for only the second time in 16 months, according to an American Institute of Architects report issued this week.
The index was at 49.8 – just below 50, which is the point where billings remain the same; any number above reveals an increase in billings, and any number below reveals a decrease. Regionally, the West was at 50.2 for the month.
“I wouldn’t consider this a sign for alarm bells,” AIA spokesman Scott Frank said. “The West has been doing well. It was down from several months prior, but there have been seriously strong numbers going back to the last several months.”
The index is considered a leading indicator for the construction industry, often reflecting a nine- to 12-month lead time between architectural billings and construction activity.
From a design perspective, 2014 is projecting to be stronger than 2013, said Kip Richardson, marketing director at Portland-based SERA Architects. Housing is expected to strengthen locally, and hospitality work may increase in most of the West, he said.
Public-sector work, including projects such as the state capitol seismic upgrade, also will increase demand for design services, Richardson said.
“It must have been an anomaly or a blip,” he said of the November report. “I would say that contractors a year from now are going to be really busy.”