The American Institute of Architects (AIA) released a comprehensive report, which concludes that the major obstacle holding back job creation in the U.S. is the persistent lack of construction financing, despite record low interest rates.
“This report should lay to rest any doubt about what is a key source for holding back job creation in the United States,’ said Kermit Baker, chief economist of the AIA. “It is the lack of financing especially to the design and construction sector, which accounts for $1 in $9 of U.S. Gross Domestic Product.”
The report found:
- The share of projects stalled due to financing problems through August 2011 has almost doubled since 2008
- One-in-five stalled projects are directly resulting from financing problems
- Financing problems account for a higher share of stalled projects in the education and multi-family sector
- More than 25% of projects reported as stalled due to the credit crunch could qualify for LEED, Green Globes, or other green certification status
- Financing issues are less of a factor holding back projects in the manufacturing, private healthcare, and retail environments
“Whatever, the reason – be it over-regulation, the threat of a double-dip recession or the reluctance to have too many loans on the books, lenders are just not lending to a major job-producing sector of the American economy,” Baker noted. “Until more credit is extended, the potential of non-residential construction to promote greater levels of economic growth will not be realized.” BD+C
Related Stories
Architects | Feb 2, 2022
Steven L. Pliam joins LEO A DALY as Design Technology Leader
Pliam will oversee the deployment and use of technologies such as computational design, parametric design, digital practice, reality capture, visualization, virtual/augmented reality, GIS and AI/Machine Learning.
Architects | Jan 31, 2022
Heatherwick Studio proposes new public waterfront site for Seoul
Heatherwick Studio was recently selected as part of the team by the Seoul Metropolitan Government to create a new sports and cultural district for the city.
Retail Centers | Jan 31, 2022
Amazon Style: Amazon’s latest innovative physical shopping experience
In January, Amazon unveiled plans to build a physical fashion store concept, dubbed Amazon Style, in Los Angeles. The e-commerce giant says the store will offer “together the best of shopping on Amazon–great prices, selection, and convenience–with an all new shopping experience built to inspire.”
Sponsored | BD+C University Course | Jan 30, 2022
Optimized steel deck design
This course provides an overview of structural steel deck design and the ways to improve building performance and to reduce total-project costs.
Laboratories | Jan 28, 2022
3 must-know strategies for developers in today’s life sciences industry
While the life sciences industry had been steadily growing, this growth exploded when the pandemic arrived—and there is no indication that this lightning-fast pace will slow down any time soon.
Cultural Facilities | Jan 27, 2022
Growth in content providers creates new demand for soundstage facilities
Relativity Architects' Partner Tima Bell discusses how the explosion in content providers has outpaced the availability of TV and film production soundstages in North America and Europe.
Sponsored | Webinar | Jan 27, 2022
On-demand webinar: Open plenum design with baffles
With their vast, airy aesthetics, open-plan interiors offer a feel that can inspire and support occupants. But they can also create acoustical challenges that negate the effects of all that beauty. Baffles are an ideal ceiling design solution that address both aesthetics and performance.
Architects | Jan 27, 2022
Gensler’s latest design forecast is also a call to action
The firm urges the AEC industry to take the lead in creating a fairer, cleaner built environment that faces many obstacles.
Architects | Jan 26, 2022
HMC Architects Welcomes New Director of Sustainability
The Sacramento studio of leading national architecture and design firm HMC Architects has announced the appointment of new Director of Sustainability Jennifer Wehling, who joined in December
Market Data | Jan 26, 2022
2022 construction forecast: Healthcare, retail, industrial sectors to lead ‘healthy rebound’ for nonresidential construction
A panel of construction industry economists forecasts 5.4 percent growth for the nonresidential building sector in 2022, and a 6.1 percent bump in 2023.
