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
| Nov 21, 2011
FDH Engineering acquires Energy Solutions
All ESI employees have been merged into FDH’s staff at its St. Louis office.
| Nov 18, 2011
Centre for Interactive Research on Sustainability opens
Designed to exceed LEED Platinum, the Centre for Interactive Research on Sustainability (CIRS) is one of the most innovative and high performance buildings in North America today, demonstrating leading-edge green building design products, technologies, and systems.
| Nov 17, 2011
SmithGroup changes name to SmithGroupJJR
SmithGroup and JJR join brands to become a single, multi-disciplinary company.
| Nov 17, 2011
Campus-wide energy-efficiency program aims to deliver $3.5 million in energy and operational savings
Merced College and Honeywell will use the school’s energy usage statistics to develop a course curriculum on sustainability, and raise awareness among students of the positive impact conservation practices contribute to the community.
| Nov 17, 2011
Hollister Construction Services renovating bank in Union City, N.J.
Project is part of a series of ground-up construction and renovation assignments.
| Nov 16, 2011
Project completion of BRAC 132, Office of the Chief Army Reserve Building, Ft. Belvoir, Va.
This fast-tracked, design-build project consists of a three-story, 88,470 sf administrative command building housing approximately 430 employees.
| Nov 16, 2011
Architecture Billings Index moves upward
The Architecture Billings Index climbed nearly three points in October.
| Nov 16, 2011
CRSI recommends return to inch-pound markings
The intention of this resolution is for all new rollings of reinforcing steel products to be marked with inch-pound bar markings no later than January 1st, 2014.
| Nov 16, 2011
John Patelski joins Ghafari as executive vice president
As executive vice president, Patelski will be responsible for expanding the firm’s services in new strategic markets.
| Nov 15, 2011
Struggling economy demands construction industry embrace enterprise-wide risk management
In today’s business environment of high supply and limited demand, it has become especially vital for organizations in the construction sector to effectively manage risk.