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 passage of the Patient Protection and Affordable Care Act, commonly known as Obamacare or Health Care Reform, has created many questions for employers throughout the construction industry.
Join Aronson LLC and Independent Benefit Services on May 8, 2013 for an informative presentation on the various provisions of healthcare reform that will have a profound impact on how healthcare is delivered and funded in the United States. Our experts will cover the major changes for 2013 and 2014, including new W2 reporting requirements, the Summary of Benefits and Coverage, The Employer Mandate, The Individual Mandate, and The Exchange. Continue reading »
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.
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.
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 »
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) 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.
The Architecture Billings Index (ABI) by the American Institute of Architects (AIA) saw a considerable slide in May, which remained consistant into June with scores of 45.8 and 45.9, respectively. According to Kermit Baker, the AIA chief economist, the drop in May demonstrated the ongoing uncertainty in the construction industry that should be signaling alarm bells to members of the industry, however in June he noted that though the weak market conditions exist, not all firms are experiencing negative conditions. Continue reading »
Construction Contractors that are planning to acquire fixed assets should consider doing so before the end of 2012. After 2012, two significant tax benefits will diminish or be completely eliminated.
Section 179 depreciation
For tax years beginning in 2012 taxpayers may expense, in lieu of capitalizing and depreciating, up to $139,000 of qualified property, generally tangible personal property and off the shelf computer software. The ability to expense eligible property phases out dollar for dollar when qualified acquisitions exceed $560,000. These limitations are already a significant reduction from those allowed in 2011 when the maximum expensing limitation was $500,000 with the acquisition ceiling set at $2,000,000. Absent any new legislation in this area, the limitations drop significantly again for tax years beginning in 2013, when the maximum expensing allowed will be only $25,000 with the phase out beginning at $125,000. Furthermore, off the shelf computer software is eliminated as eligible property for tax years beginning in 2013. Continue reading »
Have you had a chance to read any economic news lately, and how it may impact your Construction Company? Chances are there may be a feeling of increased anxiety and uncertainty. (Hasn’t this been the generally feeling for the past 3 years anyway though?) Here is a brief summary of what is causing this renewed feeling of anxiety:
Continue reading »