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

| Nov 21, 2014

Nelson adds to its stable with EHS Design acquisition

This represents Nelson’s fifth merger or acquisition in 2014, during which the firm’s net fee revenue has increased by 60% to $65 million. 

| Nov 21, 2014

Nonresidential Construction Index rises in fourth quarter

There are a number of reasons for optimism among respondents of FMI's quarterly Nonresidential Construction Index survey, including healthier backlogs and low inflation.

| Nov 21, 2014

NCARB: Number of architects in U.S. grows 1.6% in 2014, surpasses 107,500

The architecture profession continues to grow along with a gradually recovering economy, based on the results of the 2014 Survey of Architectural Registration Boards, conducted by the National Council of Architectural Registration Boards.

| Nov 20, 2014

Lean Led Design: How Building Teams can cut costs, reduce waste in healthcare construction projects

Healthcare organizations are under extreme pressure to reduce costs, writes CBRE Healthcare's Lora Schwartz. Tools like Lean Led Design are helping them cope.

| Nov 19, 2014

The evolution of airport design and construction [infographic]

Safety, consumer demand, and the new economics of flight are three of the major factors shaping how airlines and airport officials are approaching the need for upgrades and renovations, writes Skanska USA's MacAdam Glinn.

| Nov 19, 2014

Construction unemployment hits eight-year low, some states struggle to find qualified labor

The construction industry, whose workforce was decimated during the last recession, is slowly getting back on its feet. However, in certain markets—especially those where oil drilling and production have been prospering—construction workers can still be scarce.

Sponsored | | Nov 19, 2014

3 technology trends on the horizon

As technology continues to evolve exponentially, construction firms have ongoing opportunities to enhance the quality, speed, and efficiency of building projects and processes. SPONSORED CONTENT

Sponsored | | Nov 19, 2014

Long-life coatings vs. long-life screws

Are you concerned with the long-life protection of your metal building project? SPONSORED CONTENT

Sponsored | | Nov 19, 2014

Fire resistive, blast-resistant glazing: Where security, safety, and transparency converge

Security, safety and transparency don’t have to be mutually exclusive thanks to new glazing technology designed to support blast and fire-resistant secure buildings. SPONSORED CONTENT

| Nov 19, 2014

Must see: Arup, Damian Rogers propose urban surf park in Melbourne

The surfing pool would offer 98-foot-wide waves that would run the length of the 500-foot-long enclave.

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