Reasons for the Architectural Billings Increase in Greenville
Did you know that architectural billings hit the 53.3 mark (the highest ever post-pandemic) last February? Architectural billings are the leading indicator of future construction. There has been an increase in billings since February 2021, which came after the collapse due to the pandemic. It’s worth noting that an ABI score above 50 is an indication of an increase in billing.
The architectural billings realized a positive rate that is slightly higher than the normal national rate in the South because most states in the South bounced back to business earlier than the rest of the U.S.
Why Architectural Billings Increased in Greenville
Greenville has been on its knees for the last two decades, although efforts to reawaken the once vibrant textile town has shown some results. Previously, most industries were neglected along with the downtown areas.
However, the situation has changed recently, and small businesses have started to restore the face of the storefronts in the downtown area. The reemergence of the textile town has attracted manufacturers to the region because of the available low-cost labor, business-friendly climate, proximity to Atlanta and potential to develop real estate.
Below are the key players in the growth of architectural billings in Greenville.
1. Increased Project Inquiries
Most clients who inquire about projects are likely to start construction soon, which automatically increases the architectural billing.
2. Informal Inquiries From Potential Clients
Some clients will inquire informally about a serious project they have in mind to avoid attracting attention that brings about pressure. It would be best to take such inquiries seriously since they may turn out to be a future business, thus impacting the architectural billing.
3. Requests for Design Contracts
Many clients contract architects to design different houses, with the hope of making informed choices and adopting one. Such moves are encouraging as the client will settle for the best design and contract an architect to construct it, hence increasing architectural billing.
The Number of Contracts the Client Signs
Signing a contract shows commitment to a project, which is a clear sign of a future increase in architectural billings. Many clients start projects as soon as the architect signs the contract. Thus, if there are an increased number of signed contracts, you can positively expect an architectural billings increase.
On the other hand, things can change along the process, even after a contract is signed. Thus it’s only until there's an actual billing that you can expect an increase.
Further, other sectors and regions also contribute to the increased architectural billing. In terms of sectors, AIA did not expect an increase in commercial and industrial growth because it struggled throughout the pandemic. On the other hand, multifamily residential projects survived the pandemic, although they slowed down as the previous buyers opted for smaller single homes.
Some regions like the South have remained strong throughout the pandemic, although others are coming up after the increased vaccine uptake. People are regaining business confidence, raising the Architectural Billing Index.
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