“Whatever positive momentum that there had been seen in late 2010 and earlier this year has disappeared,” said AIA Chief Economist, Kermit Baker, PhD, Hon. AIA. “The broader economy looks to be entering another soft spot, and certainly state budget constraints are adversely affecting the profession’s ability to work on institutional projects. But there is no denying that the prolonged credit freeze from lenders for financing commercial projects is the number one challenge to a recovery for the design and construction industry.”

Key May ABI highlights:

The American Institute of Architects released today the results of April's ABI and news was not so rosy.

Following several months of relatively positive business conditions, the Architecture Billings Index (ABI) fell almost three points in April.  As a leading economic indicator of construction activity, the ABI reflects the approximate nine to twelve month lag time between architecture billings and construction spending.  The American Institute of Architects (AIA) reported the April ABI score was 47.6, a precipitous decrease from a reading of 50.5 the previous month.  This score reflects a sharp decrease in demand for design services (any score above 50 indicates an increase in billings).

The new projects inquiry index was 55.0, down from a mark of 58.7 in March, but still at a healthy level.

“The first question is whether this drop is a sign of an industry wide reversal in demand for design services or a bump in the road,” said AIA Chief Economist, Kermit Baker, PhD, Hon. AIA. “The fact that most construction projects funded under the federal stimulus program have completed their design work, the anxiety around the possibility of a shutdown in the federal government in April, as well as the unusually severe weather in the Southeast had something to do with this falloff. However, the majority of firms are reporting at least one stalled project in-house because of the continued difficulty in obtaining financing.  That issue continues to be the main roadblock to recovery.”

Key April ABI highlights:

Regional averages: Northeast (51.2), Midwest (51.1), South (48.3), West (47.7)
Sector index breakdown: multi-family residential (53.9),  commercial / industrial (49.9),  institutional (45.9)  mixed practice (45.2)
Project inquiries index: 55.0

“This report should serve as a guidepost for many communities throughout the country that are looking for ways to implement green initiatives but fear the expense involved,” said AIA President Clark Manus, FAIA. “In reality, the average school is 42 years old, and energy inefficiencies cost it approximately $100,000 a year, money that could be better spent on teachers, education materials, books or computers.”

U.S. General Services Administration (GSA) Now Requires All Broadloom and Carpet Tile Purchased by the U.S. Government to Be Certified to NSF International's Sustainable Carpet Standard (NSF/ANSI 140) Gold Level

Current GSA carpet suppliers have until January 1, 2012 to certify their products to the NSF Sustainable Carpet Standard’s Gold Level in order for their carpet products to be considered for purchase

U.S. General Services Administration (GSA) Now Requires All Broadloom and Carpet Tile Purchased by the U.S. Government to Be Certified to NSF International's Sustainable Carpet Standard (NSF/ANSI 140) Gold Level.

The U.S. General Services Administration (GSA), which serves as the purchasing arm of the U.S. government and oversees more than $60 billion in purchased goods and services annually1, now requires Gold Level certification to NSF/ANSI 140 Sustainability Assessment for Carpet for all broadloom (wall-to-wall) carpet and carpet tile purchased through the GSA. Current GSA carpet suppliers have until January 1, 2012 to certify their products to NSF/ANSI 140 Gold Level in order for their carpets to be considered for purchase through the GSA (http://bit.ly/g5Ifgo).