The American Institute of Architects released today the results of April's ABI and news was not so rosy.

Following several months of relatively positive business conditions, the Architecture Billings Index (ABI) fell almost three points in April.  As a leading economic indicator of construction activity, the ABI reflects the approximate nine to twelve month lag time between architecture billings and construction spending.  The American Institute of Architects (AIA) reported the April ABI score was 47.6, a precipitous decrease from a reading of 50.5 the previous month.  This score reflects a sharp decrease in demand for design services (any score above 50 indicates an increase in billings).

The new projects inquiry index was 55.0, down from a mark of 58.7 in March, but still at a healthy level.

“The first question is whether this drop is a sign of an industry wide reversal in demand for design services or a bump in the road,” said AIA Chief Economist, Kermit Baker, PhD, Hon. AIA. “The fact that most construction projects funded under the federal stimulus program have completed their design work, the anxiety around the possibility of a shutdown in the federal government in April, as well as the unusually severe weather in the Southeast had something to do with this falloff. However, the majority of firms are reporting at least one stalled project in-house because of the continued difficulty in obtaining financing.  That issue continues to be the main roadblock to recovery.”

Key April ABI highlights:

Regional averages: Northeast (51.2), Midwest (51.1), South (48.3), West (47.7)
Sector index breakdown: multi-family residential (53.9),  commercial / industrial (49.9),  institutional (45.9)  mixed practice (45.2)
Project inquiries index: 55.0

The Think Brick Awards for 2011, one of the richest design awards in Australia, is open for entries until May 31 2011, so it is not too late for architects and students to submit an innovative brick design for a chance to win the About Face Student & Open Face Awards. Created to encourage architects and architectural students to consider the artistic, environmental and versatile features of clay brick use, the winners of the Think Brick Awards 2011 will be announced at a high profile event in Melbourne on 11th August.

“This report should serve as a guidepost for many communities throughout the country that are looking for ways to implement green initiatives but fear the expense involved,” said AIA President Clark Manus, FAIA. “In reality, the average school is 42 years old, and energy inefficiencies cost it approximately $100,000 a year, money that could be better spent on teachers, education materials, books or computers.”