Landscape Architect & Specifier News

MAR 2014

LASN is a photographically oriented, professional journal featuring topics of concern and state-of-the-art projects designed or influenced by registered Landscape Architects.

Issue link: https://landscapearchitect.epubxp.com/i/274582

Contents of this Issue

Navigation

Page 127 of 181

128 Landscape Architect and Specifier News I n f o r m a t i o n R e q u e s t # 6 0 8 I n f o r m a t i o n R e q u e s t # 5 2 5 The American Institute of Architects' (AIA) index measuring billings fell for the second consecutive month in December, accelerating the downturn that began the month prior. While year-end slowdowns are common due to winter weather, economists are concerned that the broad scope of the decline could affect growth in 2014. Architecture Firms Report December Billings Decline Billings at construction-based architecture firms declined for the second straight month in December, the first two-month downturn since the middle of 2012. The American Institute of Architects' Architecture Billings Index (ABI) dropped below its November level of 49.8 to a 48.5 reading at the end of 2013. Residential firms continue to report solid business conditions, with an ABI score of 53.8. (Scores above 50 in the ABI's three- month moving average indicate improvement from the previous month.) Commercial/industrial and institutional firms reported declines in December, however, with ABI readings of 47.1 and 44.8, respectively. In both instances, the declines accelerated from the drop-off in November, according to the report from AIA chief economist Kermit Baker, Hon. AIA. Severe weather in parts of the country could have played a role in the recent dip, though widespread weakness suggests that weather was not the only issue. New project inquiries accelerated a bit in December, however, offering hope that revenue may begin to turn up in the new year. Architecture firms have a long list of concerns for 2014, Baker said in the report. Based on ABI survey results, the top concern is coping with the uncertain economy; more than one- third of respondents (37.4 percent) named dealing with the uncertain economy as one of their top three issues for 2014. Uncertainty among owners and developers has meant that many projects have been delayed, pending greater clarity in the feasibility of projects, which has made it difficult for architecture firms to know how to staff up for projects and manage financial issues. Strategy and firm management issues were also identified as top concerns for the coming year, including dealing with competition from other architecture firms. This was the fourth item on the list, with 28.3 percent of respondents mentioning it as one of their top concerns. Competition continues to put pressure on design fees, as it has during the entire period of the downturn. Managing the cost of running a firm was the fifth most common concern for the coming year. Traditional healthcare costs and liability insurance are included in this group of issues, as well as emerging concerns like rising office rents and necessary investments in technology. 128-129.indd 128 2/27/14 8:58 AM

Articles in this issue

Links on this page

Archives of this issue

view archives of Landscape Architect & Specifier News - MAR 2014