I hope readers in the United States are enjoying the Labor Day holiday and the unofficial end to summer. Take a moment to acknowledge all of the physical labor that goes into constructing our designs. And be sure to read to the bottom for a pair of NYTimes articles to enjoy on this day off.
US Federal Reserve Chair Jerome Powell indicated that the time has come to lower interest rates. While a recession isn't off the table, hopefully, this means that clients will be better able to fund their paused projects so that architects can get back to work.
For those of you struggling to find work, keep your head up and continue looking for your next opportunity. These cycles always end.
Firm leaders, please be transparent with your team about firm financials. Archinect recently reported that the anticipation of a layoff is just as stressful as an actual layoff. However, it is always better to be honest about a situation than to keep everyone in the dark because they can sense the situation. Also keep in mind that you have been through downturns before, while many young architects have not so they don't know what to expect.
-michael
July Billings Still Down, but New Project Inquiries Up
July's Billings Index rose a bit to 48.2. It has been a year-and-a-half of contracted revenues at architecture firms, but this uptick means that fewer firms showed a decline in billings between June and July. Inquiries moved to 52.4, which shows that firms received more inquiries for new projects. New design contracts remain depressed, but hopefully the uptick in inquiries will lead to new contracts and eventually higher billings.
As mentioned above, the US Federal Reserve is expected to lower interest rates in September with additional decreases also likely before the end of 2024. Hopefully, this continues to spur new projects.
The commentary this month discusses the duration of the design phase. 43% of firms indicated that the design phases of a project are taking longer than historically expected due to a longer jurisdictional approval process. 23% of firms indicated that design time has decreased due to clients wanting projects to be complete faster.
July: 48.2, June: 46.4, May: 42.4, April: 48.3, March: 43.6, February: 49.5
ABI July 2024: Firm billings decline at modestly slower pace
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AIA CEO Cleared of Wrongdoing
An independent law firm has cleared Lakisha Ann Woods of any wrongdoing in connection to accusations that were made public back in June. The AIA is reviewing the law firm's recommendations for improvements to their policies and processes.
Independent Investigation Clears AIA CEO Lakisha Ann Woods of Alleged Misconduct
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International Reciprocity with Australia and New Zealand Easier
NCARB has reached an agreement with accreditation boards in New Zealand and Australia to lower the eligibility requirements. The new agreement allows recently licensed architects or architects achieving licensure through an alternate path to be eligible for reciprocity. The new agreement goes into effect on November 6.
New Reciprocity Agreement Signed by Australia, New Zealand, and the U.S.
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Another Example of AI in the AEC Space
This article about Gilbane using AI to sift through 32GB of project documents really hit home. The team I work on is constantly going back through five years of meeting notes and emails to remind the client how (and why) they originally made certain decisions. Those hours of sifting are hours lost on more urgent tasks like answering RFIs and processing Submittals.
Current AI technology may not be able to design a building, but it can help make more time for you to work on design. Unfortunately, the AI is only as good as the data is has access to, so it is important that meeting notes reflect who, what, where, when, why, and how.
How Gilbane used an AI tool to track 21,000 documents
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Relaxed Labor Day Reading
Here are a pair of interesting articles from the New York Times to enjoy with your cup of coffee or under your beach umbrella.
Why We Don’t Build Beautifully (alternate link)
A Donor’s Message, Revealed in a Museum Renovation: He Hated This Design (alternate link)
