Architecture Billings Finish 2006 on Strong Note

Architecture billings finished 2006 on a strong note fueled by robust commercial and industrial sector activity, reports the American Institute of Architects, a non-profit industry trade group. It should translate into a high level of construction activity throughout 2007 since there is usually a nine to twelve month lag time between architecture billings and construction spending. The AIA’s billings index had a 59.5 rating in December, up from 57.4 in November. (Any score above 50 indicates an increase in billings).

“Despite a sluggish economy, there is no sign of a slowdown in nonresidential construction activity in the foreseeable future,” said Kermit Baker, AIA’s chief economist. “This is very positive news for the construction industry and those markets affected by it because 2006 ended on a strong rebound, after trending down for most of the first 10 months.”

The Northeast, West, and Midwest regions remained hot spots of activity, with the commercial/industrial sector recording its highest level of work since 1995. Institutional and mixed-use projects also saw a high volume of architecture billings.

“These very solid billings are further confirmation that the construction market has retained momentum going into 2007," said Mark Hughes, an analyst with SunTrust Robinson Humphrey. “This is important, timely information in light of the drift in many construction-related stocks since mid-year.”