Gerdau points to low architectural billings figure

Brazil-based steelmaker Gerdau S.A., which also operates several mills and scrap yards in the United States, says the Architectural Billings Index (ABI) tracked by the Washington-based American Institute of Architects (AIA) could indicate a slowdown in future construction activity.

According to a website posting by Gerdau, the December 2020 ABI national score of 42.6 “was down 3.7 points from November’s 46.3, which is [already] under the expansionary zone” marked by a score of 50 or higher.

Adds Gerdau, “U.S. architecture firms specializing in commercial and industrial facilities likewise reported a decrease in design activity in December, coming on the heels of a significant downturn in November.” The web posting says the billings of architectural firms concentrating in the multifamily sector also declined in December. Those sectors tend to use more steel compared with the single-family home sector.

A regional breakdown shows the Northeast with the lowest ABI score, at 38.8, while the South was able to stay the closest to 50 at 46.8. The West and Midwest regions both scored in the 43.5 range.

Gerdau calls the ABI a leading economic indicator “that provides an approximately 9-to-12-month glimpse into the future of nonresidential construction spending activity.” Adds the steelmaker, “The ABI has a proven track record and as such it is useful for business planning purposes.”