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 23, 2012
Federal budget cuts put major building projects on hold
A plan to build the National Bio and Agro-Defense Facility in Kansas is among several major building projects in jeopardy after the Obama administration’s 2013 budget was unveiled. The budget would cut all construction spending for the facility.
| Feb 23, 2012
Regulators investigating construction accident at World Trade Center
The New York Port Authority and the city’s fire and building departments are investigating an accident at the World Trade Center construction site in lower Manhattan after a crane dropped steel beams that fell about 40 stories onto the truck that delivered them.
| Feb 22, 2012
ACI BIM manual for cast-in-place concrete in development
The improved communication, coordination, and collaboration afforded by BIM implementation have already been shown to save time and money in projects.
| Feb 22, 2012
Siemens earns LEED certification for Maryland office
The Beltsville facility, which also earned the ENERGY STAR Label for energy performance, implemented a range of energy efficiency, water conservation and sustainable operations measures as part of the certification process.
| Feb 22, 2012
CISCO recognizes Gilbane for quality construction, design, and safety
The project employed more than 2,000 tradespeople for a total of 2.1 million hours worked – all without a single lost-time accident.
| Feb 22, 2012
Perkins Eastman expands portfolio in China and Vietnam
Recent awards, project progress signal ongoing commitment to region.
| Feb 22, 2012
Suffolk awarded Boston post office renovation project
Renovation of art deco landmark will add 21,000 square feet of retail and 110 new parking spaces.
| Feb 21, 2012
Top 10 trends in commercial lenders’ environmental due diligence
EDR offers free webinar on February 22, 2012 at 1 p.m.
| Feb 21, 2012
Three Goettsch leaders elevated to AIA College of Fellows
Honor recognizes significant contributions to architecture and society.
