Business
& Labor
Architectural Billings Down for Second Consecutive Month
(archrecord.construction.com - 08/03/2006)
By Tony
Illia
Nonresidential architecture billings
dipped for the second straight month in June after 19 months
of gains, reports the AIA, which tracks industry activity
through member “work-on-the-boards” surveys. The
run marked the longest stretch of continuously positive billings
since the period between 1998 and 2000.
“Design activity eased only slightly
during the last two months as a result of less residential
work,” says Kermit Baker, Hon. AIA, the AIA's chief economist.
“After such a prolonged period of positive business conditions,
it's inevitable that the market would soften a bit.”
Residential activity has also softened
due to a combination of rising interest rates, slowing economy,
and high construction costs. These factors have also affected
mixed-use projects. Despite the overall decline, industrial
and institutional design work remains strong with steady growth.
Regionally, the South still has positive billings, while the
Northeast, West, and Midwest all recorded negative numbers
in June.
“This should not be viewed with
too much alarm,” Baker points out. “But it should
serve notice to the construction industry that there could
be a slowdown in activity if this pattern continues over the
next few months.”
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