The March 2013 Architectural Billings Index (ABI) numbers came in above the critical
50.0 number for the 8th month in a row on a national basis (also for
the West Region) coming in at 51.9. The
West Region reported in at 51.9 while the Northeast, Midwest and South regions
reported 54.6, 53.9 and 53.6 respectively.
The strongest sector nationally was Multifamily Residential at 56.9 with
Commercial reported at 53.5 followed by Mixed Practice (53.3) and Institutional
(50.6).
The West region reported 46.6 in 2012 and 47.7 in 2011,
so the 51.9 is a nice improvement and as the number is greater than 50.0,
indicates architect’s billings are increasing.
As I reported a few years
ago,
the ABI is a leading indicator of construction activity as construction
spending generally lags architect’s billings by 9 months to a year. In recent months, we have seen many
contractor’s backlogs increase with improving margins. However, we also still see challenging
situations as well. That being said it
seems like many contractors are finding more opportunities and are posting good
results. Those who continue prudent
operational/fiscal management, are selective with which jobs to bid and
running with lower overhead are poised to take advantage of the improving
landscape.
