How to Utilize DMI and ABI Reports (with a Little Help from ChatGPT)

By AMANDA WILSON

As I dive deeper into creating content and building a more informed community around the commercial door and hardware industry, I’ve discovered that some of the most valuable tools for forecasting market trends are right in front of us – if you know how to read them.

Two of the most underused yet powerful tools are the Dodge Momentum Index (DMI) and the AIA Architectural Billings Index (ABI). Here is a quick explanation:

Dodge Momentum Index (DMI)

The DMI tracks new non-residential building projects that are just entering the planning phase, before they’re designed, permitted or built. It’s one of the earliest signs of construction activity, sometimes more than a year in advance.

In May 2025, the DMI jumped four percent, led by a strong uptick in the institutional sector, especially in education and health care. That’s good news for those of us who support projects in those spaces.

AIA Architectural Billings Index (ABI)

The ABI is a leading economic indicator that reflects how busy architecture firms are, based upon their billings. Because design happens in between the first planning stages and actual construction, it offers a preview of what’s to come about nine to 12 months down the road.

In May 2025, the ABI rose slightly to 48.1. That’s still below the growth threshold of 50, meaning billings continue to contract, but the decline is slowing.

How Can We Best Utilize This Information?

Now that we understand what these reports measure, how is this information useful? I turned to a trusted assistant, ChatGPT, to help me unpack these reports and better understand how to use them strategically. I asked ChatGPT how a business-savvy contract hardware distributor would utilize the information shared in these reports.

The Answer? In Chat’s Exact Words…

“If I were a business-savvy contract hardware distributor, I’d treat the Dodge Momentum Index and the AIA Architectural Billings Index like my industry weather forecast, not just something interesting, but a strategic tool to help me stay ahead of the curve, stock smart and sell with purpose.”

Here’s exactly how I’d use them:

1. 1. Forecast Future Demand

• DMI tells me what sectors are heating up at the planning stage. A strong DMI for health care or education? I’d be watching for upcoming specs in hospitals or schools.
• ABI tells me how busy architects are with real design work. If billings are up, I’d prepare for a stronger bidding and submittal season in nine to 12 months.

Takeaway:
Use this data to adjust inventory strategy, staffing and quoting bandwidth. If both indexes are up? Gear up. If both dip? Get lean and focus on service retention.

2. Align Sales and Estimating Efforts

• If DMI is up, especially in a region I serve, I’d direct my estimators and outside sales reps to start prospecting with GCs, architects or owners likely to be involved in those types of projects.
• I might also review historical job types and flag the customers who are active in the trending sectors.

Example: If the DMI shows commercial warehouse growth in Georgia, I’d revisit past warehouse jobs and check in with those GCs now.

3. Stock Smarter

• Use ABI and DMI data to time bulk buys. If I know construction activity is expected to pick up next quarter, I’d place strategic stocking orders on high-turn items — closers, frames, electrified hardware, etc.
• If institutional jobs are leading (per DMI), I’d stock up on ADA-compliant and high-abuse hardware lines.

Smart Move: Stock with lead times in mind especially for specialty items or imported components that might delay a project.

4. Strengthen Architect and Manufacturer Relationships

• Use the ABI as a conversation starter with architecture firms or design-build contractors.

“I noticed ABI numbers have trended up again. Are you seeing more activity on your end? Anything we can support early?”

• Use DMI to talk with manufacturers about sector-specific marketing, lead times or stock programs in advance of a surge.

5. Create a Local Strategy

• Both reports offer regional and sector-specific breakouts. I’d drill into my specific state or metro to see:
  • Where is design work growing?
  • What sectors are showing new momentum?

Example: If DMI reports a surge in institutional projects in the Southeast, I might double down on Division 8 packages targeted toward school districts, VA hospitals or universities.

Amanda Wilson is a manufacturer’s representative for Wilson Building Solutions, LLC.