Unfortunately, it was another bad billings report from the AIA for June. Once the July report comes out, we could be looking at a year and a half of decreasing billings for architects.
The consensus among economists is that the US Federal Reserve will start lowering rates in September due to lower inflation and higher unemployment. Hopefully, lower interest rates will encourage owners and developers to restart projects. Of course, many things can change over the next few months, especially pressure to avoid rate changes so close to the election.
In the meantime, we all need to keep focusing on our jobs (or looking for a job if you have been laid off). Make sure you add value to your firm. If you are looking for work, make sure prospective employers know the value you could add to their firm.
The rest of this year will be interesting. Stay focused and stay strong.
-michael
June Billings: Billings Still Down, But There May Be Hope
June's Billings Index came in at 46.4. This is the seventeenth consecutive month with declines in revenue. Inquiries were also down from last month and new design contracts remain depressed as well.
However, the commentary indicated that firms believe things will start to turn once interest rates decline. After the Federal Reserve's July meeting, more experts agree that the Fed will lower rates in September and that we may see more than one decrease before the end of 2024.
The commentary this month also talks about staffing levels where small firms indicate they are understaffed.
June: 46.4, May: 42.4, April: 48.3, March: 43.6, February: 49.5, January: 46.2
ABI June 2024: Business conditions remained soft at architecture firms in June
: : :
Bernheimer Union Ratifies CBA
We have been following the progress of unionization at various architecture firms in the US. Recent news indicates that Bernheimer's staff has agreed to a collective bargaining agreement. This has been two years in the making. We will see whether unionization continues to make inroads in architecture firms.
Union at Bernheimer Architecture ratifies collective bargaining agreement
: : :
Does More Technology Make You Less Productive?
It feels like Revit, which was supposed to make us more efficient, actually takes more effort to manage the model than to create documents. I keep hearing, "Revit won't let us do that." Well, it appears that this affects the entire construction industry. This is a major problem since clients want us to get the work done faster.
When More Technology Leads to Lower Productivity – And What to Do About It
: : :
Teaching Artificial Intelligence
It has been a few newsletters since I wrote about AI. I haven't forgotten, but I figured you were all getting bored with it. However, this article about how Florida Atlantic University has reworked their curriculum to integrate AI into all of their courses is fascinating. It is less about designing projects and more about designing the systems and workflows that develop into a project.
How Do We Teach AI? In Florida, One Architecture School Offers a Precedent
: : :
Avoiding and Managing Burnout
I often advocate using all of your vacation time and for leaving your work at the office (which is harder to do if you WFH). However, there are some other things you can do to help you and your team avoid burnout. Please watch out for your mental health, especially in these times of economic uncertainty.
10 Tips for Overcoming and Preventing Burnout in Architecture
