The April slow down in architecture billings was significant enough to result in a negative score for the Architecture Billings Index (ABI), released by The American Institute of Architects (AIA) on May 22, 2013. The April score of 48.6 was the lowest in almost a year. The new projects inquiry index score was 58.5.
The negative April reading should cause contractors to pause and evaluate backlog, especially since the decrease in the ABI score may possibly be a result of financing concerns, as noted by Kermit Baker, AIA Chief Economist. The next couple month’s scores will provide a better barometer for which way construction spending may go, and will provide your company the information it needs for short and longer term business planning.
To learn more about the most recent ABI score please read the AIA’s May 22nd press release.
The March Architecture Billings Index (ABI) score released by the American Institute of Architects (AIA) on April 23, 2013 reflected another month of increases in design activity with a score of 51.9, however the rate of growth has decelerated. The new projects inquiry index score was 60.1, which also reflected a decrease from the previous month.
Despite the decrease in March, the fact that the score remains positive should be encouraging news to construction contractors, as this may indicate more work to bid on in the future.
To learn more about the most recent ABI score please read the AIA’s April 23rd press release.
Good news could be on the horizon for Maryland contractors and builders. The Baltimore Business Journal reports that Maryland Governor Martin O’Malley is slated to sign legislation created to foster public-private partnerships (P3s) between the state and the private sector. Bill 560 passed both the State Senate and House of Representatives this month with widespread support, as part of O’Malley’s legislative agenda.
The public-private partnership bill was initiated as a measure to help Maryland build capital projects by cutting through red tape, protecting state assets, and streamlining the teaming process. State officials anticipate that these P3s will help create as many as 4,000 new jobs and ultimately account for up to 10% of Maryland’s $3.1M capital budget by attracting private investment opportunities for infrastructure projects.
Lt. Gov. Anthony Brown commented on the partnership iniative in a public statement: “With passage of this legislation — which has the support of a broad coalition, including both the labor and business community — we’ve established a predictable, accountable, transparent, and streamlined process for future P3s. Our legislation will encourage additional private sector investment in Continue reading »
The American Institute of Architects (AIA) released their latest Architecture Billings Index (ABI) on March 20, 2013. With a score of 54.9 the ABI has shown steady growth for the past several months. The press release noted that this is the strongest growth seen since 2007. The new projects inquiry index also increased over the previous month with a score of 64.8.
The recent trend seen in the ABI index should provide contractors hope in the coming months that there will be more work to bid on with a possible return of more profitable work. Based on how this index works, the 3rd and 4th quarters of 2013 could be a time of growth for contractors.
To learn more about the most recent ABI score please read the AIA’s March 20th press release.
Aronson Systems is pleased to announce our partnership with Bluebeam Software, producer of paperless workflow solutions. As part of this new partnership, Bluebeam is hosting a complimentary, introductory webinar on Thursday, March 28, at 12:00 p.m. EST, which will feature their Revu 10 product.
Attendees will learn how Revu saves time, reduces printing costs and improves project communication with PDF solutions designed for architects, engineers, construction professionals or any technical user.
To register for this event, please visit here.
The AIA reported an increase in the Architecture Billings Index (ABI) score for January. A score of 54.2 reflects fast growth from December’s score of 51.2. In addition, there is strong growth in the new projects inquiry index, resulting in a reading of 63.2. This is up from last month’s new project inquiries index of 57.9.
Kermit Baker, the AIA’s Chief Economist, commented that “a continued reservation by lending institutions to supply financing for construction projects is preventing a more widespread recovery in the industry,” but that Continue reading »
The American Institute for Architects’ ABI Index posted positive for its third straight month. As noted in the full report, the index posted its strongest pace of growth since December of 2010 and indicated an increased desire for design services.
Kermit Baker, Chief Economist for the AIA, attributed the economic news to a sense of renewed optimism with the recent presidential election decided but was quick to note that anxiety has not completely diminished due to the potential financial cliff in the New Year.
To read the full article, please visit here.
Cash management is the act of organizing, planning, controlling the collection, investment, and disbursement of cash. In the construction industry, it is crucial to keep an eye on your company’s cash flow as well as the cash flow on your major projects. For that reason, acquiring a comprehensive knowledge of this process is essential to successfully manage a construction company. Successful cash management polices begin at the project level.
From the start to the completion of the construction project, it is important for management to be effective in terms of how they manage the cash to adequately fund project expenses, and to navigate the project to profitability. In each of the following stages of the construction project life cycle, decisions are made, actions are taken, and business practices are implemented that will ultimately determine your company’s ability to manage profitability and positive cash flow. Understanding the importance of cash management to a construction company, as well as the basic cash management fundamentals through the project life will allow you to improve your confidence when working with project managers, vendors, subcontractors, and owners. Continue reading »
The Architecture Billings Index (ABI) was positive for the first time in five months. August posted a score of 50.2, up nearly two points from the previous month. Kermit Baker, the American Institute of Architect’s Chief Economist appeared optimistic in his comments in that he stated the design market will net even until we establish a more solid economy.
The new Projects Inquiry Index was up nearly a point from July. To read the full press release, please visit here.
The Architecture Billings Index (ABI) by the American Institute of Architects (AIA) maintained a negative score for the month of July, though the rate of decline was not as significant as the months of May and June. The July ABI score was 48.7 which is an improvement when compared to June’s score of 45.9. Based on comments by AIA Chief Economist Kermit Baker, it appears that improvements in construction industry spending will correlate with the improvement of overall economic conditions. The new projects inquiry index increased from 54.4 in June to 56.3 in July. Read the AIA’s full ABI press release here.