Architects report positive industry conditions

Constant strength

According to a March 22 news release, the ABI has been positive for 17 consecutive months, and 26 out of the last 27 months, after seasonal adjustments.

The American Institute of Architects reports a 55.5 ABI rating for February, the same score that was reported for January.

“The fact that we are seeing consistently strong numbers at architecture firms over such a prolonged period without any dips is especially encouraging for the nonresidential construction outlook,” said AIA Chief Economist Kermit Baker, in a news release. “These figures are following along a similar path as the conditions that led to a very healthy construction sector in the late 1990s.”

The Architecture Billings Index is derived from a monthly “Work-on-the-Boards” survey and produced by the AIA Economics & Market Research Group.

Based on a comparison of data compiled since the survey’s inception in 1995 with figures from the Department of Commerce, the findings provide an approximately six-month glimpse into the future of nonresidential construction activity. Participants with AIA member-owned firms are asked whether their billings increased, decreased, or stayed the same in the month that just ended. According to the proportion of respondents choosing each option, a score is generated, which represents an index value for each month.

Good news

The 55.5 ABI represents positive news for the nonresidential construction industry, as interest rates rise and demand for new homes shows signs of weakening.

Nonresidential construction can offset some of the emerging weakness in the residential market where existing home sales fell for the fifth consecutive month in January and the reported slowdown of housing starts in February.

A separate AIA survey to gauge which features are most in demand by homeowners has found that the kitchen is still the focal point of many U.S households.

Design trends

According to the AIA Home Design Trends Survey, which focused specifically on kitchen and bath trends, homeowners want more pantry space and high-end appliances and features in their kitchens.

The AIA Home Design Trend Survey is conducted quarterly with a panel of 600 architecture firms that concentrate their practice in the residential sector.

Of the survey participants, 56 percent reported increased popularity of larger pantry space, and 55 percent reported increased interest in high-end appliances. For countertops, 37 percent of participants reported decreased popularity of synthetic solid-surface countertops, and 53 percent indicated increased interest in natural stone counters.

“Both the square feet devoted to kitchens and the number of separate cooking facilities throughout the home are increasing, including the additions of outdoor kitchens in many areas of the country,” Baker said. “As far as specific trends in kitchen design, granite countertops, natural wood cabinets, and drinking water filtration systems are especially popular.”

Bathrooms are increasingly being designed with more room for separate or double vanities and include upscale products such as multihead showers (63 percent) and steam showers (35 percent).

“Upscale products and features are going into bathroom design as well, noted by heated floors and towel racks, and even fireplaces becoming more common in homes, while heat lamps and whirlpools aren’t nearly as prevalent,” Baker said.

In the survey, 41 percent of participating firms reported decreased popularity of heat lamps, while 31 percent reported decreased interest in whirlpools. [[In-content Ad]]