Architecture firms are facing challenging business conditions, as evidenced by the AIA/Deltek Architecture Billings Index (ABI) score of 43.6 for March. This marks the 14th consecutive month of decreasing billings, as inflation, supply chain disruptions, and other economic obstacles continue to impact the industry.

Despite these challenges, Kermit Baker, chief economist at AIA, has noted that institutional design work has shown signs of stabilization. This provides a stable foundation for the profession while awaiting more favorable economic conditions for construction to improve.

According to Baker, the combination of elevated construction costs and persistently high interest rates is discouraging new project activity within the industry. Despite this, firms specializing in different areas reported a decrease in billings across all regions of the United States. Those focusing on commercial and industrial projects experienced a sharper decline.

For a visual representation of recent ABI scores and how they compare to historical trends, please refer to our interactive graph below: [Insert interactive graph here].