Prolonged Lack of Design Services Demand in the Northeast a Growing Concern

Prolonged Lack of Design Services Demand in the Northeast a Growing Concern

Commercial News » New York City Edition | By WPJ Staff | March 30, 2022 9:02 AM ET

According to a new report from the American Institute of Architects (AIA), U.S. demand for design services in February grew slightly over January 2022.

AIA's Architecture Billings Index (ABI) score for February was 51.3, up from a score of 51.0 in January. Any score above 50 indicates an increase in billings. Firms reported both project inquiries and design contracts remaining positive in February, but while project inquiries increased to 62.5 from 61.9 in January, design contracts decreased to 55.2 from 56.1.

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Kermit Baker

"Despite the continued healthy demand for design services, activity is plateauing as firms face a myriad of external challenges, from staffing to supply chain disruptions to high inflation and rising interest rates," said AIA Chief Economist, Kermit Baker, Hon. AIA, PhD. "While the rebound from the pandemic has positively impacted firms in most regions, the prolonged lack of demand for design services in the Northeast is of growing concern."

Key ABI highlights for February 2022 include:

  • Regional averages: South (58.6); Midwest (53.2); West (47.9); Northeast (44.3)
  • Sector index breakdown: commercial/industrial (55.4); mixed practice (53.8); multi-family residential (52.6); institutional (47.2)

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