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
| Feb 6, 2013
CSI: Revitalizing the brand to achieve the mission
CSI is revitalizing its brand as part of its continued pursuit of its mission: improving facility performance through better communication in the commercial-level construction industry.
| Feb 5, 2013
8 eye-popping wood building projects
From 100-foot roof spans to novel reclaimed wood installations, the winners of the 2013 National Wood Design Awards push the envelope in wood design.
| Feb 3, 2013
Electronic surveying improves accuracy on BIM-driven hospital project
A mechanical contractor combines an electronic surveying tool with a BIM model to make significant productivity gains in a large-scale hospital project.
| Jan 30, 2013
Design Firm Little Expands Durham Interiors Studio
Both Benner and Byers have expertise in market sectors such as corporate, retail, hospitality, healthcare, research /technology, critical facilities, civic and education.
| Jan 22, 2013
Midwestern Construction Company Acquires Local Architecture Firm
St. Charles, Ill.-based design/build and construction firm acquires architecture firm.
| Jan 17, 2013
Thornton Tomasetti Founding Principal Thornton receives ASCE Lifetime Achievement Award
The OPAL Lifetime Achievement Award is given to civil engineers who “represent a model of achievement to which future generations of engineers aspire to match or exceed.”
