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
| Apr 6, 2012
Batson-Cook breaks ground on hotel adjacent to Infantry Museum & Fort Benning
The four-story, 65,000-ft property will feature 102 hotel rooms, including 14 studio suites.
| Apr 6, 2012
Perkins Eastman unveils Qatar mixed-use sports complex
Home stadium for Lekhwiya Club a vibrant addition to Doha’s architectural identity.
| Apr 5, 2012
5 tips for a successful door and window retrofit
An exclusive tip sheet to help the Building Team manage door and window retrofits successfully.
| Apr 4, 2012
Educational facilities see long-term benefits of fiber cement cladding
Illumination panels made for a trouble-free, quick installation at a cost-effective price.
| Apr 4, 2012
HDS designs Mount Auburn Hospital’s new healthcare center in Waltham, Mass.
HDS Architecture provided design services for all the Mount Auburn Healthcare suites including coordination of HVAC and FP engineering.
| Apr 4, 2012
Bald joins the Harmon glazing team
Bald has 13 years of experience in the glazing industry, coming to Harmon from Trainor where he was the regional manager of the Mid-Atlantic region.
| Apr 4, 2012
JCJ Architecture designs New York City's first casino
Aqueduct Racetrack complex transformed into modern entertainment destination.
| Apr 4, 2012
San Antonio animal hospital earns LEED Platinum certification
Middleman Construction Company builds the city?s first commercial building to earn certification.
| Apr 4, 2012
Hason joins RNL’s as MENA regional director
Hason specializes in planning and urban design, hospitality, office, corporate headquarters and transportation structures, as well as, higher education and museum facilities.
| Apr 3, 2012
Product Solutions
Two new PV systems; a lighter shelf; and fire alarm/emergency communication system.
