Login

Commercial, Industrial Design Work in July Propels Growth for Architects

Architects’ Billings for Government, Institutional Clients Flatlined in July, AIA Says

TVS was hired as the architect of record for the Tennessee Titans' planned $2.1 billion football stadium in downtown Nashville. (Tennessee Titans)
TVS was hired as the architect of record for the Tennessee Titans' planned $2.1 billion football stadium in downtown Nashville. (Tennessee Titans)

Design projects for commercial and industrial properties were the strongest area of business for architecture firms in July, according to a monthly report by an industry trade group.

Billings from architects and designers sent to clients in July reached a score of 50, according to a monthly index of invoices compiled by the American Institute of Architects and software company Deltek. Scores higher than 50 on the AIA-Deltek index mean there was a monthly increase in billings. A score of 50 equates to no monthly change.

Billings had been strongest for government and institutional clients in recent months, but growth in that sector flattened in July, the AIA said. However, commercial and industrial designers posted their strongest billings growth in more than a year, said Kermit Baker, the AIA’s chief economist.

In addition, the index score for product inquiries by potential clients was 54.5, which indicates healthy growth, Baker said.

“This suggests that design work may finally begin to increase over the coming months, although somewhat modestly,” Baker said in a news release.

Many commercial and industrial clients have placed design and construction projects on hold in recent months amid rising interest rates and widespread concerns about a potential recession.

In one of the biggest new design contracts awarded this year, the NFL’s Tennessee Titans hired the Atlanta firm TVS as the architect of record for its planned $2.1 billion stadium in downtown Nashville. TVS will work with Manica, a Kansas City, Kansas-based firm, and Nashville-based Hastings, which had previously been announced as some of the stadium’s design architects.