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
| Sep 6, 2013
U40 Summit featured speaker: Arthur Gensler on how to build a world-class AEC practice
Gensler, founder of the world’s largest architecture firm, will talk about the role of the architect in society, the impact of great design, and the practicalities of starting and running a practice, and will offer advice for today’s young design and construction professionals.
| Sep 4, 2013
Augmented reality: 12 applications for design and construction professionals
Building Design+Construction reached out to AEC professionals who have studied and applied augmented reality and asked them to pinpoint applications that are ripe for the technology. Here’s what they had to offer.
| Sep 4, 2013
Augmented reality goes mainstream: 12 applications for design and construction firms
Thanks to inexpensive mobile devices and increasingly advanced software apps, Building Teams are finally able to bring their BIM models to life on the job site.
| Sep 4, 2013
K-12 school design that pays off for students
More and more educators are being influenced by the Reggio Emilia approach to pedagogy, with its mantra of “environment as the third teacher”—an approach that gives Building Teams a responsibility to pay even closer attention to the special needs of today’s schools.
| Sep 4, 2013
Smart building technology: Talking results at the BUILDINGChicago/ Greening the Heartland show
Recent advancements in technology are allowing owners to connect with facilities as never before, leveraging existing automation systems to achieve cost-effective energy improvements. This BUILDINGChicago presentation will feature Procter & Gamble’s smart building management program.
| Sep 4, 2013
Last chance to pre-register for BUILDINGChicago/Greening the Heartland Conference at 20% savings
Attendees of the BUILDINGChicago/Greening the Heartland Expo and Conference can still save 20% off the at-site registration fee by registering online in these final days before the event opens on September 9 and concludes on September 11.
| Sep 3, 2013
'School in a box' project will place school in San Diego public library
Thinking outside the box, LPA Inc. is designing a school inside a box. With an emphasis on three E’s—Engage, Educate, and Empower—e3 Civic High is now being constructed on the sixth and seventh floors of a public library in downtown San Diego. Library patrons will be able to see into the school via glass elevators, but will not have physical access to the school.
| Sep 3, 2013
Delinquency rate for commercial real estate loans at lowest level in three years
The delinquency rate for US commercial real estate loans in CMBS dropped for the third straight month to 8.38%. This represents a 10-basis-point drop since July's reading and a 175-basis-point improvement from a year ago.
| Sep 3, 2013
EDGE studio, GBBN announce merger
GBBN Architects and EDGE studio of Pittsburgh, Pennsylvania are very pleased to announce the merger of their firms under GBBN Architects effective September 1, 2013.
| Sep 3, 2013
Jon Pettit (1952-2013) - DLR Group Managing Principal
Jonathan (Jon) E. Pettit, AIA, died August 19, 2013 in Seattle following treatment for cancer. He was 61. Pettit was a DLR Group managing principal and practiced for his entire professional career with DLR Group.
