“All sectors showed growth except for the commercial/industrial market, which, for the first time in over a year displayed a decrease in design services.”
After five consecutive months of growth, the design contract portion of the index decreased 2.4 points in March, from February's score of 54.7, to a score of 52.3.
Regional billings, which, unlike the national score, are calculated as a three-month moving average, increased in all four regions during March, after declines in February. The Midwest experienced the biggest rebound, growing 1.2 points to 54.6 from February's reading of 53.4. The West was close behind, rising 1.1 points from February's reading of 49.1, to 50.2. Billings increased marginally in the Northeast and the South, growing 0.6 points and 0.9 points, respectively, to scores of 52.4 and 52.6.
Architecture billings in the mixed-use, institutional, and commercial/industrial sector also rebounded from February's reading, posting scores of 53.7, 52.9, and 49.8, respectively. Billings rebounded most in the residential sector in March, increasing 3.5 points to 54.6, from February's reading of 51.1. (Results of the sectors and regions are calculated as a moving average of the past three months.)
The latest report from the AIA indicates a strong end for 2016, with three consecutive months of growth in design billing contracts, and a high billings score not seen since before the recession.
The monthly Architecture Billings Index (ABI) came in at a score of 55.9 in December, up 5.3 points from November's 50.6, the American Institute of Architects announced today.
The ABI is a leading economic indicator of construction activity in the U.S., and reflects a nine- to 12-month lead time between architecture billings and construction spending nationally, and regionally, as well as by project type. A score above 50, like this month, represents an increase in billings from the previous month, while a score under 50 represents a contraction.
The significant growth in billings does not come as a surprise, as the new project inquiries index, the most reliable indicator of future billings, soared to a score of 59.5 in November—4.1 points higher than a month prior. December's report benchmarks the highest architecture billings score seen since July 2007, when billings reached a score of 56.7.
“The sharp upturn in design activity as we wind down the year is certainly encouraging. This bodes well for the design and construction sector as we enter the new year”,” said AIA Chief Economist, Kermit Baker, Hon. AIA. “However, December is an atypical month for interpreting trends, so the coming months will tell us a lot more about conditions that the industry is likely to see in 2017.”
The design contract portion of the index also ended 2016 on a high note, rising one point to a score of 51.2, and marking the third consecutive month of growth. Billings are likely to ease in January, as project inquiries Regional billings, which, unlike the national score, are calculated as a three-month moving average, increased in three of four regions during December. After 11 consecutive months with the highest score, billings in the South—with a score of 53.8 —were finally surpassed by both the Midwest and the Northeast, with scores of 54.4, and 54.0, respectively. The only region to see a contraction in billings was the West, with a score of 48.8.
Architecture billings increased in all but one sector during December, with billings in the multifamily residential sector dropping 1.3 points to a score of 50.6. The commercial/industrial sector posted the highest score of the month, while the institutional sector posted the biggest increase, from 51.8 in November to 53.3 in December. (Results of the sectors and regions are calculated as a moving average of the past three months.)
Minneapolis, MN – May 24, 2016 /Business Wire/ – AEC Resources, Inc., the leading staffing and recruiting agency for the architecture, engineering and construction industry, today announced it has successfully completed its 300th search assignment.
Since its inception in 2012, AEC Resources has been solving the hiring needs of architecture and building engineering firms. A dedicated focus of providing staffing solutions for design firms has propelled AEC Resources to the preferred recruiting partner for architecture and engineering companies.
“We are proud to have reached our 300th placement milestone, but more excited to see the teams we’ve help build continue to design and construct the built environment around us,” said Jay Johnson, Technical Recruiter at AEC Resources. “Our niche specialization means we understand our clients’ needs and can quickly provide top talent for our clients to select from.”
AEC Resources has a proven protocol for identifying, attracting, evaluating and securing exceptional talent for architecture and building engineering firms. One important step in this process is providing free technical training for all candidates.
“We speak with customers every day, and we listen to their challenges,” said Sam Teut, Senior Technical Recruiter. “Providing technical training is one way we reduce employee development costs for our customers, and ensure the new employee is highly productive from their first day.”
About AEC Resources, Inc.
AEC Resources is the regional leader in providing recruitment and staffing solutions to the architecture and engineering industries. Since its founding in 2012, AEC Resources has helped the design community solve their hiring needs with flexible employment options. The company provides exceptional talent for temporary and permanent positions to keep projects on time and on budget. To learn more, visit www.aecresources.com
It’s all good if you’re in the hotel business.
Occupancy rates in the U.S. are expected to remain at record levels through 2017, according to PKF Hospitality Research|CBRE Hotels, which also projects room rates to increase by 5.5% and 5.8%, respectively, this year and next.
With demand exceeding supply, developers are expected to deliver 103,230 hotel rooms in 865 projects in 2016, according to the latest Comprehensive Pipeline Summary from the market research firm STR.
Through November 2015, the existing supply of hotel rooms nationwide stood at 5,031,859. A total of 457,606 rooms were under construction or in various planning stages.
For all the talk about the rise in demand and construction of luxury hotels, STR foresees the greatest number of hotel rooms—53,725 rooms—being delivered in the “upper midscale” classification, followed by 43,150 “upscale” room deliveries. Conversely, STR estimates that only 15 luxury hotels with 3,468 rooms are expected to open this year.
New York, with an existing supply of 117,367 rooms, leads the nation with 80 hotels and 13,583 rooms under construction, followed by Houston (with 79,255 existing rooms and 6,269 under construction), Dallas (79,572; 4,361), Los Angeles/Long Beach (98,186; 4,240), and Washington, D.C. (107,776; 3,949).
Jan Freitag, STR’s Senior Vice President of Lodging Insights, told USA Today that while room construction was up 21% over a year ago, the 1.5% increase in rooms opening in 2016 would still be below the longer-term annual average of 1.9%
Along from rising customer demand, hotel construction is being driven by room rate appreciation. For example, in Greater Sacramento, Calif., where hotel occupancy rates exceed 77% and where at least 19 hotels are under construction, the average room rates set a record in October at $116.67 per night, up 10.6% from a year earlier, according to PKF Consulting.
However, there’s always the concern that booms will eventually overheat some markets. In Central Dallas, where at least 14 hotels are slated to open between fall 2015 and the end of 2018, investors were bullish about their projects but wondered just how many rooms the market could absorb.
“I can’t remember when we’ve ever had that influx of hotel rooms, certainly in recent history,” said John Crawford, who heads Downtown Dallas Inc., which advocates for downtown development. “And I’ve been in this market for the last 35 years.”
Source: BD+C Network
AEC Resources can identify, attract, evaluate and secure Designers, Architects and Project Managers for your next hotel project. We understand the hospitality market and regularly recruit for this market sector. Contact us so speak with an architecture recruiter today.