ABI April 2026: Architecture firm billings retreat

Amidst ongoing instability in the broader economy, architecture firm billings retreated modestly in April

The AIA/Deltek Architecture Billings Index® (ABI) score declined from 49.8 in March (meaning that billings at firms were essentially flat) to 48.3 in April (indicating that the share of firms that reported a decline in billings was greater than the share that reported an increase). National architecture firm billings have not crossed the 50-point threshold, a development that would indicate growth, since January 2023. However, inquiries into new projects increased for the third consecutive month in April, and the value of new design contracts remained close to returning to growth.

Business conditions stayed soft at firms in all regions of the country in April, with none reporting growth. For the third consecutive month, firms located in the West were the least likely to report a decline in billings, while firms in the South reported that billings softened further after showing encouraging signs of growth at the beginning of the year.

Billings continued to decline at firms with a commercial/industrial specialization, which has been one of the weakest sectors for the last six months. However, firms with institutional and multifamily residential specializations reported modest growth in April, a promising sign that new projects are on the horizon. 

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Uncertainty continues in the broader economy

With the lingering conflict in Iran and closure of the Strait of Hormuz, conditions in the broader economy remained mixed in April. On the positive side, nonfarm payroll employment grew modestly, adding 115,000 new positions. However, architectural services employment declined for the first time this year in March, decreasing by 600 jobs. (March’s data is the most recent available for that statistic.)

In addition, inflation continued to increase in April, as the Consumer Price Index (CPI) rose by 0.6% from March and by 3.8% on an annual basis. Continually rising energy prices were the largest contributor to the increase this month, but shelter and energy prices rose as well. The proposed gas tax holiday may provide some relief, if enacted, but energy prices are unlikely to decline significantly until the Iran conflict ends, and even then, they may take some time to recover.

International projects accounted for an average of 6.5% of gross billings at firms working on them

This month’s special practice questions asked architecture firms about their recent international work. Overall, just 9% of responding firm leaders reported that their firm has had any billings over the past five years from international projects, defined as projects that will be built outside of the U.S. for either a foreign or domestic client. This share was highest at large firms, as 21% of firms with annual billings of $5 million or more reported international projects, and at firms located in the Northeast, where 12% of firms reported billings from international projects.

Regarding the past five years, 54% of firms with international billings reported projects in East Asia and the Pacific (excluding China), and 50% of firms with international billings reported projects in Canada. Those were the most commonly cited locations for international projects. In addition, at least one in five responding firms reported projects in Central America and the Caribbean, Eastern Europe and Eurasia, the Middle East and North Africa, Mexico, and South and Central Asia (including India).

Among firms that have had international projects in the past five years, 65% reported that they currently have billings from international projects. These firms indicated that an average of 6.5% of their firm’s gross billings over the past year came from international projects, and 24% reported that international billings accounted for 10% or more of their firm billings over the past year.

While nearly half of these firms (47%) reported that their share of gross billings from international projects is currently about the same as it was one year ago, more than one-third (35%) reported that billings from international projects are now slightly higher than they were a year ago. On the other hand, 18% of firms reported that billings from international projects are currently lower than they were a year ago, with 6% indicating that they are significantly lower.

Finally, 14% of firm leaders responding to the survey indicated that their firm has future plans to work on international projects, while 81% said that they have no plans, and 5% said that they’re uncertain. For firms that have no future plans to work on international projects, the most commonly cited reasons were: 

•    The potential headaches of international projects (50%)
•    Their lack of interest in international work (43%)
•    Their plentiful supply of domestic work (41%)
•    Their lack of knowledge regarding how to pursue international projects (41%)

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This month, Work-on-the-Boards participants are saying:

• “Very up and down as far as projects being approved. Interest is still high, but client approval of projects is taking way too long.”—10-person firm in the South, commercial/industrial specialization
• “Stable, but much smaller projects.”—43-person firm in the West, multifamily residential specialization
• “New RFQs are limited, but there is a large amount of construction going on in Cleveland.”—500+-person firm in the Midwest, institutional specialization
• “We are seeing an increase in proposal requests and contract approvals, some of which have been stalled in recent months.”—60-person firm in the Northeast, mixed specialization