Business conditions continue to soften according to the AIA/Deltek Architecture Billings Index. September’s ABI remained at 45.7, with declines reported in all regions, although at a slower pace in the South and Northeast. Firms specializing in commercial/industrial projects were at 44.2, multifamily residential at 41.7, while those involved in institutional projects reported in at 48.5.  

The value of newly signed design contracts at firms also decreased, although AIA noted the pace of decline has moderated over the last few months. Firms also continued to report average backlogs of 6.4 months, “a good indicator of existing work in the pipeline, even if new work coming in has slowed.”

Despite the uncertainty, there is some positive news for the industry. A recent survey by the Architectural Woodwork Institute saw gains in gross profits and contribution margins for all firms in 2024. Operating profit also rose compared to 2023 figures, as noted in the annual AWI Cost of Doing Business Survey. Slightly less than half (45%) also said they planned to invest more than $100,000 in the next six months.

The 2024 Wood Industry Almanac is sponsored by IMA Schelling Group.

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Quick Stats (Includes items not shown in print.)
• When it comes to home improvement spending in 2024, 34% of homeowners surveyed by HIRI and published in July reported they would spend more or even much more, 43% said they would spend about the same, and 24% reported they would spend less. 

• QY Research forecasts the global wood ceilings market to reach $159.8 million USD by 2029, at a CAGR of 3.8% (2022-2029). Expanding demand from commercial applications is driving demand. North America has about 50% of the market share.

• The Q4 2024 Houzz Renovation Barometer reveals sentiment in the architectural and design sectors is positive, with the Q4 Expected Business Activity Indicator up 11 points to 71. Project inquiries rose 13 points to 73, with a 9-point increase in committed projects, to 69. Architects reported a 17-point increase in expectations for Q4, while interior designers are more cautious, reporting a 1-point increase to 61.

• For home renovations, pros are hired most often by Seniors (96%) and Baby Boomers (92%), followed closely by Gen Xers (89%) and Millennials (86%). Gen Xers, however, spend the most. According to the 2024 U.S. Houzz & Home Study, the median spend on renovations by generation in 2023 was: Millennials $20,000, Gen Xers $25,000, Baby Boomers $24,000, and Seniors $20,000.

Market Data Sources: Architectural Woodwork Institute (AWI), The American Institute of Architects (AIA), AIA/Deltek/ABI,  Houzz, Architectural Woodwork Manufacturers Association of Canada, QY Research, Home Improvement Research Institute (HIRI). Category: Architectural & Custom includes: commercial & residential interior millwork, architectural woodwork, casework & cabinetry.

More data on North American woodworking and the specific wood product market segments can be found in the December 2024 FDMC Wood Industry Almanac digital edition or the online almanac articles. Also, find market data year-round at WoodworkingNetwork.com/news/almanac-market-data.