HomeNews2025 ends with continued weak business conditions for architecture firms

2025 ends with continued weak business conditions for architecture firms

The AIA/Deltek Architecture Billings Index® (ABI) closed out 2025 in negative territory with a December score of 48.5. While up from 45.3 in November, any score below 50 indicates a decline in billings, although this month’s score indicates that fewer firms reported a decline in billings in December than in November. 

Architecture firm billings declined throughout 2025 and most months since October 2022, with only three exceptions. While fewer firms reported a decrease in December, declining design contract values suggest a near-term rebound is unlikely.

However, firm backlogs remain strong, averaging 6.3 months. Large firms with annual billings of $5 million or more report backlogs of 8.6 months, while institutional specialists average 8.2 months. Despite a decline in project inquiries and the value of newly signed design contracts, work pipelines have remained stable in recent years.

“Despite the ongoing decline in billings at most architecture firms, there are a few signs of potential improvement on the horizon,” said AIA Chief Economist, Kermit Baker, Hon. AIA, PhD. “The number of inquiries into future project work continues to grow, and Midwest firms saw billings increase for the fourth consecutive month in December. In general, however, overall conditions remain weak across all specializations.

“Multifamily residential firms faced the steepest declines, while institutional firms experienced a slightly slower pace of decline compared to earlier in the year.”

Key ABI highlights for December include:

•    Regional averages*: Midwest (51.7); South (47.7); West (45.3); Northeast (44.2)
•    Sector index breakdown*: institutional (48.7); commercial/industrial (47.8); multifamily residential (45.5); mixed practice (firms that do not have at least half of their billings in any one other category) (44.0)
•    Project inquiries index: 52.9
•    Design contracts index: 47.5

*The regional and sector categories are calculated as three-month moving averages and may not always average out to the national score.

For the full report, visit Architecture Billing Index (ABI) December 2025. To access resources to help architects successfully navigate an uncertain economy, visit AIA Resources for navigating economic uncertainty.


About the American Institute of Architects (AIA)

Founded in 1857, the American Institute of Architects (AIA) consistently works to create more valuable, healthy, secure, and sustainable buildings, neighborhoods, and communities. Through more than 200 international, state, and local chapters, AIA advocates for public policies that promote economic vitality and public well-being. AIA provides members with tools and resources to assist them in their careers and business as well as engaging civic and government leaders and the public to find solutions to pressing issues facing our communities, institutions, nation, and world. Members adhere to a code of ethics and conduct to ensure the highest professional standards.

About Deltek

Deltek is a leading global provider of enterprise software and information solutions for project-based businesses and the home of AIA MasterSpec®. More than 30,000 organizations, including 12,000 architecture & engineering firms, rely on Deltek for superior levels of project intelligence, management, and collaboration. Its industry-focused expertise powers project success for A&E firms of all sizes by helping them achieve performance that maximizes productivity and revenue.

- Advertisment -

Most Popular

- Advertisment -