April was another bad month for architecture billings. The Architecture Billings Index (ABI) which is published by the American Institute of Architects (AIA) had its steepest reported decline ever in April. Demand for architecture services is down which means demand for construction will suffer when designed projects would have normally been ready for the construction phase. The drop in April was severe and things likely won't get better quickly. Few people or entities are spending money while trying to save as much as possible right now. Even after COVID-19 turns a corner and forecasts on our nation's health economic growth improve, the AEC industry won't instantly get back to normal. Lenders, facility owners and pros up and down the AEC supply chain will be hesitant to invest resources too quickly in the built environment. Lenders and facility owners aren't going to be excited about sinking larges costs into new facilities during a recovering but still battered economy. Construction pros will also be cautious in building bigger crews and investing in more resources. They will want to be ready for and able to build a better world during and after the rebound but they need to pay the bills. It will be a tricky balancing act to be prepared for growth during and after the rebound but not get over extended in case there's a bump or two while building back to normal.
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