(04-21-18)
Most architecture firms expect to see an impact on their firm’s projects from the planned US tariffs on steel and aluminum. Architecture firm billings increased for the sixth consecutive month in March, although the pace of growth slowed modestly from February. However, the Architecture Billings Index (ABI) score of 51.0 for the month indicates that the majority of architecture firms are still continuing to experience improving business conditions. The pace of growth also slowed slightly this month for both inquiries and the value of new design contracts, although they remain generally strong overall. In addition, responding firms also indicated this month that their firm backlogs rose to 6.3 months, with three quarters of firms reporting that they currently have backlogs of three months or longer, another strong indicator of future work. Although architecture firm billings at firms located in the Northeast declined for the fourth consecutive month in March, business conditions improved at firms in all other regions of the country, with firms located in the South and West regions continuing to report the strongest growth. Business conditions also remained strong at firms with a multifamily residential specialization, as well as at firms with a commercial/industrial specialization, while billings softened slightly at firms with an institutional specialization.