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
| Jun 12, 2012
SAC Federal Credit Union selects LEO A DALY to design corporate headquarters
LEO A DALY also provided site selection, programming and master planning services for the project over the past year.
| Jun 12, 2012
Restoration Millwork exterior trim achieves GreenCircle certification
Made from cellular polyvinyl chloride, the full line of Restoration Millwork trim, beadboard and accessories is engineered to look, feel and work like top-grade lumber.
| Jun 12, 2012
Piché joins C.W. Driver as director of business development
Piché will expand upon project opportunities for firm’s Southern California operations.
| Jun 12, 2012
BCA Architects transforms Anaheim schools into dynamic learning environments
BCA Architects was selected to update the district's long-range master plan.
| Jun 11, 2012
Survey reveals emerging trends in parking
Industry-transforming innovations are changing the way we park.
| Jun 11, 2012
Buro Hapold hires new principal Neil Porto
Porto brings a broad depth of expertise in civil and structural engineering to new and existing projects.
| Jun 11, 2012
Historic church gains energy efficiency, retains aesthetics with architecturally rated windows
New windows would need to not only stand the test of time, but also accommodate the aesthetics of an architecturally historic church.
| Jun 11, 2012
Genivar and WSP Group join forces
Genivar concurrently announces a $225 million public bought deal of subscription receipts, a $197 million private placement of subscription receipts and new credit facilities.
| Jun 11, 2012
SimplexGrinnell highlights integrated suite of web-based technologies at NFPA Expo
eservices platform uses the power of the Internet to deliver more value to customers.
| Jun 11, 2012
Reed Construction announces new hire and promotion
Reed Construction hired Augie Insalaco as a project manager and promoted Matt Mahoney from project intern to project engineer.