flexiblefullpage
billboard
interstitial1
catfish1
Currently Reading

Report finds credit crunch accounts for 20% of nation’s stalled projects

Report finds credit crunch accounts for 20% of nation’s stalled projects

Persistent financing crunch continues to plague design and construction sector.


By By BD+C Staff | November 29, 2011
AIA finance design construction
The lack of financing especially to the design and construction sector, which accounts for $1 in $9 of U.S. Gross Domestic Produ

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 | Sep 6, 2018

S/L/A/M Collaborative completes merger with L.A.-based firm

The healthcare sector is one of Frank Webb Architects’ strengths.

Giants 400 | Sep 6, 2018

What's happening at 89 design firms

The latest developments at 89 of the nation's largest architecture and architecture/engineering (AE) firms.

Architects | Sep 6, 2018

Little details, big questions: Occupancy planning 101 for healthcare facilities

Transitioning into a new hospital is no easy feat and daily tasks can have a huge impact.

Architects | Aug 14, 2018

AIA takes a firmer stand on making schools safer with better design

The Institute urges the formation of a federal clearinghouse for best practices, and wants security-related design to be eligible for grants.

Architects | Aug 9, 2018

The convergence of product design and architecture

Great design is born out of simplicity, purity, timelessness, unobtrusiveness and intuitiveness.

Architects | Aug 1, 2018

Client experience as competitive advantage for AEC firms

Clients are looking for solutions to their business problems from collaborative advisors. They’ve come to expect a higher level of service and detail than what was provided in the past.

AEC Tech | Jul 24, 2018

Weidt Group’s Net Energy Optimizer now available as software as a service

The proprietary energy analysis tool is open for use by the public.

Building Owners | Jul 17, 2018

Are we facing a new era in Foreign Direct Investment?

The construction industry is already feeling the effects of the recent tariffs, not only with higher steel and aluminum prices, but with higher prices on Canadian lumber.

Codes and Standards | Jul 17, 2018

NIMBYism, generational divide threaten plan for net-zero village in St. Paul, Minn.

The ambitious redevelopment proposal for a former Ford automotive plant creates tension.

boombox1
boombox2
native1

More In Category

Warehouses

California bill would limit where distribution centers can be built

A bill that passed the California legislature would limit where distribution centers can be located and impose other rules aimed at reducing air pollution and traffic. Assembly Bill 98 would tighten building standards for new warehouses and ban heavy diesel truck traffic next to sensitive sites including homes, schools, parks and nursing homes.




halfpage1

Most Popular Content

  1. 2021 Giants 400 Report
  2. Top 150 Architecture Firms for 2019
  3. 13 projects that represent the future of affordable housing
  4. Sagrada Familia completion date pushed back due to coronavirus
  5. Top 160 Architecture Firms 2021