Structure firms report
Two architecture teachers discuss the final project work by a student.
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Architecture companies report a decline in billings, as concerns about the broader economy and tariffs affect the development and expenditure of commercial real estate.
The AIA/Deltek Architecture Billings Index (ABI) remained in a negative area in June in June with a score of 46.8, compared to 47.2 in May. Everything under 50 is considered a negative feeling.
“The terms and conditions were nationwide in June, and for the first time since October in the south, slightly rose in the south,” said Kermit Baker, chief economist at the AIA, the American Institute of Architects. “Other regions recorded declining invoices, although it is slower. While all specializations experienced softer accounts, the decline for commercial/industrial and institutional companies slowed down. Memory companies confronted the weakest conditions with further declines.”
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A bright spot was inquiries about new projects that increased for the second time in a row and increased with a score of 53.6 at the strongest pace. This indicates that customers start sending inquiries about proposals and working with architectural companies on potential projects.
AIA notes that these inquiries are not necessarily transferred to actual projects. The value of newly signed design contracts also fell for the 16th month in a row. Billings should not improve until the value of these new design contracts is also evident.
The AIA also issued its prediction in the middle of the year:
First, the good news: Despite stubborn long-term long-term interest rates, the inflation rates above the goal of the Federal Reserve Board, falling denominational values of consumers, disappointing levels of home building activity, rising tariff rates for many inputs for the construction and construction of workers, which was held by the last year, was held in the year.
The bad news: The prospects for the issues of the year were very pessimistic.
The AIA forecast predicts that the total expenses for buildings without residents will only increase by 1.7% this year and will grow very modestly to only 2% next year.
The expenses for the construction of production facilities that had been a ray of hope in recent years will decrease by 2% this year with an additional decrease of 2.6% next year. Institutional institutions are expected to represent the strongest sector with projected profits of 6.1% this year and in 2026 by a further 3.8%.
In addition to a slow economy, unclear and constantly changing tariff policy creates growing uncertainty in the architects, engineers and construction services.
“Not to know which products will cost in the future, whether they will be available, how these changes could affect their supply chain and whether they will provoke a trade war with the export countries are all questions that the AEC industry asks before they continue with planned projects,” the report says.
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